Poverty and Social Dimensions
in a Green Economy
Jan DUSÍKDeputy Director
Regional Office for Europe
• Ecosystems and biodiversity providing benefits for humankind
―Economic invisibility.―Complex and valuable ecological
infrastructure.
What is natural capital?
• A Green Economy is one that results in increased human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.
• UNEP Green Economy Initiative
What is a Green Economy?
• National development plans and strategies
• Key sectors of GE: Energy and Agriculture
• Low-carbon systems
• “Double dividend” policies: employment and green growth
• Labour market adjustment: high labour mobility-income security and national and education systems
• Weaknesses of a “business as usual” approach
Role of governments
Why a Green Economy?• Initiative born out of multiple crises
and accelerating resource scarcity
• An economic vehicle for sustainable development
• Can take advantage of new growth trajectories designed to be more socially inclusive, as well as responsive to poverty reduction and economic diversification objectives
• A new economic paradigm that can drive growth of income and jobs, without creating environmental risks
Least Developed Countries
• Low levels of carbon emissions
• Relatively low investments in technologies
• More dependent on natural resources → ecosystem degradation, resource scarcity and climate change challenges to ending poverty
• Investments, policy reforms and maximize local knowledge are needed
A Green Economy is an opportunity• Common interest between
developed and developing countries
• For achieving the MDGs
• Partnership of policymakers and business community
• Crucial to prioritize spending in sectors that can simultaneously promote social, economic and environmental gains
• ODA and South-South cooperation
Green Economy can reduce poverty and inequality• Inextricable link between poverty
alleviation and wise management of natural resources and ecosystems
• Ecosystem services provide 47% to 90% of the so-called ‘GDP of the Poor’
• Hence need to invest in natural capital as a source of growth and well-being
Natural-resource dependent sectors and ESS (2005)
Brazil Indonesia
India
Original share of GDP (%): agriculture, forestry, fisheries
6% 11% 17%
Share of ESS/non market goods of total income of the poor (%)
90% 75% 47%
Some challenges
• Multilateral trading system• Technological innovation
and transfer• Global intellectual property• Extent of private investment
in the development of environmentally-sound technologies
Enabling conditions for a Green Economy
• Establish sound regulatory frameworks
• Remove harmful subsidies (e.g. fossil fuels, fisheries)
• Prioritize green investment
• Utilize market mechanisms and taxation
• Build capacity through training and technology transfer
Enabling conditions for a Green Economy
• Transform consumption patterns – not just technology!
• Use poverty alleviation/MDG targets
• Policy coherence
• Private sector engagement
• Local authorities’ engagement
• Public awareness & mobilisation
• Intergovernmental co-operation
The Green Economy is on the agenda for Rio 2012
• UNCSD: a call for renewing efforts towards sustainable development and poverty eradication
• “Green Economy for sustainable development and poverty eradication” → recognising importance of the social dimensions of development
Thank you
Regional Office for Europe