Framing green growth and
sustainable development
GG BINGO
• A sheet with multiple words related to green
growth and sustainable development is
provided to all participants;
• To ensure that everyone is listening
intensively, every time you hear a word on the
sheet place a mark in the respective square;
• When you reach 100 marks, stand up and yell
out BINGO – there will be a prize.
Presentation outline
• What is green growth in the global and regional
context?
• Why green growth should be inclusive?
• How to visualize green growth?
• Overview of opportunities and challenges in
pursuing green growth
• Different approaches for different development
stages
Global context of Green Growth
• Green growth is economic growth that is
environmentally sustainable (WB, 2012)
• Enhances the
quality of
growth
• End goal is to
operationalize
sustainable
development
Figure from PovertyEnvironment Partnership
2012.
Green Growth and Sustainable
Development
• Sustainable development is defined in many ways
but the most common definition is “development
that meets the needs of the present without
compromising the ability of future generations to
meet their own needs” (Brundtland 1987).
• UNCED in 1992 and WSSD in 2002 called for all
countries to prepare a NSDS and establish a NCSD
before 2005.
• Simple explanation is that inclusive green growth
is the process that will lead to an equitable green
economy, which is a stepping stone towards SD.
Regional context of Green Growth
“In Africa, green growth will mean pursuing
inclusive economic growth through policies,
programs and projects that invest in sustainable
infrastructure,
better
manage
natural
resources, build resilience to natural disasters,
and enhance food security.” (AfDB, 2012)
Asia's policy makers must pursue inclusive
and green growth simultaneously if they wish
their people to enjoy the fruits of sustainable
growth. There is no trade off. (ADB, 2012)
The developing world is growing fast
Fastest-growing countries are in developing world
What factors are pushing growth
in developing regions?
• improved governance with growing democratic
accountability and reduced conflict
• discovery and exploitation of minerals and oil and
gas deposits
• attracted investors as last bastions of growth
• gains of Asian prosperity spread to Africa with
China as leading investment partner
• “brain-drain” to “brain-gain” as expatriates return
Development paths are not the same
And the quality of current economic growth
is neither inclusive nor sustainable
• growth is heavily dependent on either a
resources boom which cannot last forever or
exports to a shrinking developed world
• GDP growth drivers do not create the most jobs,
leading to jobless growth
• 50% of Africa’s population are without access to
energy, other basic infrastructures and services;
likely exacerbated by climate change impacts
• much of Asia has no access to basic services,
poverty is still prevalent, and environmental
quality is rapidly degrading.
If resource depletion is taken into consideration,
national savings often reveal a negative trend.
On average, the genuine wealth growth in subSaharan Africa is estimated to be negative
(Arrow et al., 2004). Adjusted net savings measures give an indication of
the net saving rate when national accounting frameworks account for
resource depletion and environmental degradation.
Source: UNEP, 2011.
Human impacts on ecosystem goods and
services
Sustainability pressures in developing countries
Determinant
Trend
Characteristic
Population
increasing
High fertility rates, especially among less educated and
poor populations; but the overall rate of population growth
is predicted to decrease in the mid-term future.
Economy
Increasing
High GDP growth rates per year; mainly from agriculture
and natural resources exploitation.
Rural-urban
migration
Increasing
Many young people move to cities to seek employment
opportunities; rural areas drained of youth, reducing social
vitality; urban lifestyles are energy and resource intensive.
Consumer-class
Increasing
The so-called ‘good life’ typified by media images of
western-style consumerism now define the lifestyles of the
consumer class and aspirations of the poor.
Market
pressure
Increasing
Innovative ways of stimulating consumption, such as
aggressive advertising, credit card use, consumer loans, and
rebates after purchase are on the rise.
Poverty
Variable , but absolute
numbers not declining
Developing world is home to most of the world’s total poor.
They predominantly live in slums in cities and in rural areas
(unsustainable livelihoods).
The rate of deforestation in Africa is four
times the world's average (RRI, 2009).
Poor infrastructure in rural areas
(Photo: Jonathan Kalan/Global Post)
Working on degraded land
(Photo: Panos London)
Unprotected small scale miners
(Photo: Heather Murdock/Global Post).
Adverse impacts of climate change
(Photo: WB)
• threat to human life, health, livelihood, food security
• drags development growth, drives the cycle of poverty
• increases overall risks and vulnerability
Deaths due to environmental causes
MPI: Multi-dimensional
Poverty Index
(Source: UNDP, 2011)
How to find a sustainable development path?
“the major cause of the
continued
deterioration of the
global environment is
the unsustainable
pattern of
consumption and
production...”
Agenda 21, Chapter 4
from energy and carbon
intensive development
paths exacerbating
climate change to a low
carbon, inclusive and
sustainable
development path...
Why pursue green growth?
• to sustain growth beyond minerals and oil
and gas boom
• to avoid natural resource overexploitation
• to make growth resilient to climate change
and other diverse environmental impacts
• to ensure food, water and energy security
• to explore new opportunities for job creation
• to prepare the infrastructure for the future
• Above all, to overcome poverty
Green growth is
Adapting to changing realities for development
…which operate over multiple scales (local to global)
and time-horizons (near to long-term)
Source: Sperling, 2012.
Green growth represents an iterative process
leading towards a green economy
BAU
GG
Source: Sperling, 2012.
NOTE:
• GG pathway tailored to
development circumstances
• Near term: more focus on
managing local priorities
• Consider irreversible
consequences with long
term impacts
How to visualize green
growth?
Sustainable
infrastructure
Photo: AfDB
The award-winning transport system in Guangzhou, in
south China's Guangdong province, includes not only Bus
Rapid Transit but wide, tree-lined bicycle lanes and a tie-in
to the large city's rail network. (Photo: Li Huang)
Energy access
(Photo: The Economist)
http://sirix.eu/
Sustainable
agriculture
mainstream
More decent and quality jobs
Source: McKinsey Global Institute. 2012. Africa at work: Job creation and inclusive growth.
Photo: www.one.org
Better quality of life
Better education
Better career options
We cannot afford to “grow now,
clean up later”
Number of haze days/yr in different cities in China
Photo: Fan Meng
Overview of opportunities and
challenges in pursuing GG
Challenges:
• inadequate enabling
policies and regulatory
framework; poor
enforcement
• poor and inadequate
infrastructure
• not enough public funding
and private investments
• limited awareness of best
practices
• not enough skilled human
resources
Opportunities:
• early adoption of
sustainable policies and
programs; avoid ‘lock-in’
• growing investments in
infrastructure
• shift public funds and
diversify savings from
resource investments
• facilitate behavioural
change
• facilitate education and
training
OECD’s GG framework for
developing countries
What are the entry points in
mainstreaming green growth?
Development
oriented
• aligned with national development plan
• aligned with climate change action plan
• aligned with NAMAs/NAPAs
Immediate start
with long term
plan
• not a quick fix but with tiered goals
• consider transition scenarios
• greening the process
Collective
effort
• strong political commitment
• openness to engaging the private sector
• civil society and community participation
The Malaysian example
Malaysia is a resource-rich country that used its natural
resource wealth to diversify, grow their economy and
transition towards green growth.
•
Third Plan
(1976 -1980)
•
•
Ninth Plan
(2006 - 2010)
Source: KeTTHA, 2012.
•
•
emphasized that the objectives of development and
environmental conservation be kept in balance so that
the benefits of development are not negated by the
costs of environmental damage
various policies, programs and measures have been
initiated to ensure that the nation's economic
development over the long term be sustained
in April 2009, the Ministry of Energy, Green Technology
and Water (KeTTHA) was created
National Green Technology Policy on 24 July 2009
unveiled New Economic Model in October 2010 towards
low carbon growth
A tale of 2 countries, 2 choices
Uganda
• in 1980s exports mainly
coffee (96%)
• by 2000, diversified into
tobacco, cotton,
sesame, flowers, etc.
• today, added highervalue products like
cement, bulldozers, etc.
• GDP growth: 6.5% in
1990s to 7% in 2000s
• 1990 poverty more than
halved to below 25%
Source: AfDB, 2012.
Zambia
• dependent on export of
copper
• haven’t embraced
diversification
• GDP growth: 5% ave. in
the last decade
• growth confined to
capital-intensive
resource sector, less job
creation
• poverty remains above
50%
Key messages
• greening growth now makes economic sense in
all countries, but will vary from country to country;
• green growth is beyond low carbon energy strategies vary depending on the country
circumstances but complement climate change
actions;
• green growth pathway can guide the
diversification of resource-rich economies and
create new jobs: and
• green growth is a collective, contributory process
towards sustainable development, not a
substitute.
Thank you for your attention.
Exercise 1
Compare and Contrast Business as
Usual and Green Growth
Compare and Contrast Business as Usual and Green Growth
• Split into 2 small groups of 8-10 people
• Half of each group holds the position of a normal
economic planning group in a Ministry of
Planning and Development.
• The task of this group is to prepare a brief plan
for economic development in the industry sector
of a fictional country “Exploitia” – Divide the flip
chart into two columns and on the left side put
the key policies for industrial development in
Exploitia. (estimated time 15 minutes)
• The second half represents a group of planning
staff in the Ministry of Environment, which is
concerned by the industrial plans for Exploitia.
Compare and Contrast Business as Usual and Green Growth
• On the right side of the flip chart the
environment group will propose counter policies
or policy adjustments to “green” the economic
policies outlined earlier. (30 minutes).
• The 2 groups will then debate arguments for and
against the proposed amendments and record
these on a separate flip chart sheet (15 minutes).
• Report back to plenary by both tables (15
minutes).