Transcript Green-Economy-Meetin..

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Co-Create the Green Economy
What’s Happening in Wales
20/11/13
with
Dr Jeanette Reis [email protected]
Senior Policy and Research Officer, Cynnal Cymru – Sustain Wales
Overview- What’s Occurring In Wales?
1. The business case for green economy
2. What do we mean by green economy
3. Setting the context- The international and
welsh situation
4. Examples of Welsh green growth
A favourite catchphrase of Nessa from
Gavin and Stacey
5. Common issues….
6. Final thoughts….
The Business Case for Green Economy
1. 41,500 jobs in Wales supported by green business
2. drive significant business investment
3. create sustainable economic, social and
environmental benefits.
Ref: CBI (2012) The Colour of Growth- Maximising the Potential of Green Business. Confederation of British
Industry.
More importantly, if humanity is to survive, science tells us that a major
transformation of our economies, policies, technologies and modes of
production and consumption is required.
Ref: WWF (2012) Building Green Economies- Creating Prosperity for People and Planet. Downloaded from
http://assets.wwf.org.uk/downloads/building_green_economies_oct_2012_lo.pdf on 9th April 2013.
Definition of Economy (Wikipedia- sorry!)
An economy consists of the
production, distribution and
consumption of limited goods and
services by agents in a given
geographical location. The economic
agents can be individuals, businesses,
organizations, or governments.
Aberystwyth from above
A given economy is the result of a set of
processes that involve culture, values, education,
technological evolution, history, social
organization, political structure and legal systems,
as well as its geography, natural resource
endowment, and ecology, as main factors.
What Do We Mean by Green Economy?
UNEP 2010- “(Is) one that results in improved human well‐being and
social equity, while significantly reducing environmental risks and
ecological scarcities. It is low carbon, resource efficient and socially
inclusive”.
Rio 2012- “It should contribute to
eradicating poverty as well as sustained
economic growth, enhancing social
inclusion, improving human welfare and
creating opportunities for employment
and decent work for all, while
maintaining the healthy functioning of
the Earth’s ecosystems...”
Price Waterhouse Cooper 2012- “A
green economy is an economy
that is low-carbon, climateresilient, biodiverse, resourceefficient and socially inclusive”.
What’s the Difference Between Green
Economy and Green Growth?
“Green growth is the means by
which the current economy can
make the transition to a sustainable
economy. It involves promoting
growth and development while
reducing pollution and greenhouse
gas emissions, minimising waste
and inefficient use of natural
resources, maintaining biodiversity,
and strengthening energy security”.
Source: OECD 2009
OECD 2011- Green growth means fostering economic growth
and development, while ensuring that natural assets
continue to provide the resources and environmental services
on which our well-being relies.
However, There is also “Sustainable
Economic Development”…
One Wales One Planet Vision of Sustainable Economic Development (2009):
A resilient and sustainable economy for Wales that is able to develop whilst
stabilising, then reducing, its use of natural resources and reducing its
contribution to climate change.
Key outcomes:
• A sustainable economy for Wales that is resilient to changes in the global
economy
• Our long term economic future secured by achieving the transition to a
low carbon, low waste economy
• Wales is the best place for business to locate, start up, grow and prosper
• Regeneration involves and engages with local communities and is firmly
based on sustainability principles, creating an infrastructure for the future
that favours sustainable ways of living and working.
Green Economy is not entirely new. It is a more specific, infrastructure based
way to talk about the economic dimension of sustainable development….
It All Becomes Clearer (Hopefully)
Green growth is a means to achieve a green economy. A green economy
is a component part of sustainable economic development, which in turn
is a component part of sustainable development.
Sustainable development
Sustainable economic
development
Green growth
Green
economy
International Context for Green Economy
Global low carbon and environmental goods and services sales
for 2010/11 in £m
1,800,000
1,600,000
1,400,000
1,200,000
• Significant global
presence
• Estimated 5% of the
global economy
• Growing rapidly relative to
the rest of the economy.
1,000,000
800,000
600,000
400,000
200,000
0
Low Carbon
Renewable Energy
Environmental
Low carbon goods are
generating sales of £1.6bn
globally.
BIS: Low carbon environmental goods and services
However… the valuation of ecosystem goods and services is still being
debated and yet to mainstreamed.
Global Recycling Rates
Hooray52%
recycling
rates
achieved
by Wales
in 2013
Organisation for Economic Co-operation and Development,’OECD.Stat Waste data’, retrieved March 2013, available at
http://stats.oecd.org/Index.aspx?DataSetCode=WASTE. All data is for 2010 except for Japan and Canada data (2008) and
Australia, Chile, Iceland, Korea, and the UK (2009). Data for the Czech Republic and Denmark are national estimates. The
Ireland figure is an estimated value. The OECD average is an estimate based on partial data.
International Green Jobs?
“Green Jobs” as defined by the ILO
(jobs designed to reduce
environmental harm):
• over 7 million in the EU
• over 3 million in the US
• nearly 3 million in Brazil
(equivalent to 6.6% of all formal
employment).
WARNING!!!
Definitions are hotly debated — even new legal marijuana farms in several U.S. states
will technically generate “Green Jobs” — but the estimates cited here come from mostreliable governmental and international sources.
Wales at a Glance
Theme
Population
Population growth rate
Employment numbers
Fact
Mid 2011= 3,063,800
+5.3%
1.349 million people in employment in Wales
September to November 2012. This is 68.6 per
cent of those aged 16-64.
Public Sector Employment 25.7% of people in employment in Wales
worked in the public sector in September 2012
(ie. Just over 330,000 people)
GVA
Gross Value Added (GVA) for Wales was £47.3
billion or £15,696 per head of population. This
was 75.2 per cent of the average for the total
of all UK regions
Landfill
52% Local Authority waste recycled (Nov 2013
data)
Carbon dioxide produced 32,186.51 kilotonnes CO2 (2010 data)
10.7 tonnes CO2 per resident produced (2010
data)
Source: Office for National Statistics, April 2013
GVA is the difference
between the value of
goods and services
produced and the cost
of raw materials and
other inputs which are
used up in production.
GVA is used in the
estimation of GDP.
GDP is defined as the
total value of all goods
and services produced
within a country or
region. It is a key
indicator of the state of
the whole economy.
Welsh Context- Employment by Sector
Other service
activities, 3%
People employed by Agriculture, forestry &
Mining &
households, etc., 0%
fishing, 3%
quarrying, 0%
Arts, entertainment &
recreation, 2%
Manufacturing,
11%
Human health &
social work activities,
15%
Education, 11%
Construction, 6%
Transport & storage,
3%
Financial & insurance
activities, 2%
Regional Labour Market: HI10 - Headline Indicators for Wales, April 2013 (Excel sheet 2157Kb)
http://www.ons.gov.uk/ons/datasets-and-tables/index.html
Water supply,
sewerage, waste &
remediation activities,
1%
Wholesale & retail
trade; repair of motor
vehicles and motor
cycles, 15%
Public admin &
defence; compulsory
social security3, 6%
Administrative
& support
Professional scientific
service
Real estate activities,
& technical activities,
activities,
6%
1%
4%
Electricity, gas, steam
& air conditioning
supply , 1%
Accommodation & food
Information &
service
communication,
activities, 7%
2%
In a Nutshell….
1.
Wales has the lowest regional GVA per head in the UK, with GDP per
capita in West Wales and the Valleys being lower than some regions in
Greece and Eastern Europe
2.
Unemployment in Wales is higher than the UK average and earnings
continue to fall below the median for the UK.
Wales needs to find a new way to prosper- existing
mechanisms are not working for us!
What Can We Do and What Are We Doing?
…WG Green Growth Stimuli
1.
2.
3.
4.
Localisation of supply chains
Minimisation of resource use
Encouragement of green innovation
Expansion of renewable energy mix.
Source: Adapted from Climate Change Commission for Wales submission to the Council for Economic Renewal June 2013.
Who’s Involved in Stimulating Welsh Green Growth?
Existing Green Jobs in Wales
(It’s Occurring?)
• UK sales in the green economy (using the BIS LCEGS definition ) of £122.2
billion in 2010/11 in a global market of £3.3 trillion, placing the UK 6th
globally
• Green employment in Wales was 41,506 FTE in 2010/11:
o 10,104 in Environment sector (£1.1bn)
o 17,740 in Low Carbon sector (£2.2bn)
o 13,662 in Renewables sector (£1.9bn)
o Plus… employment in sectors which support the natural
environment (approximated from employment in the food and
farming and energy and environment priority sectors, veterinary
services and forestry) supported over 203,000 jobs in Wales in
2011, over 16% of total employment in Wales.
Existing Green Jobs in Wales
(It’s Occurring 2?)
• There are particularly active growth areas.
– Employment in the energy and environment sector grew just
under 15% between 2010-11 and employment in the food and
farming sector grew by over 5% in the same year.
• In addition, the value of the natural environment can be considered in
terms of the traditionally defined “non-green jobs” it helps support.
– Eg. tourism employment in Wales in 2011 was just over 115,000,
9% of total employment.
Future Potential of Green Jobs?
1.
An ILO study suggests 10-20% of jobs depend on the existing “brown”
economy (e.g. the fossil fuel industry)
2. Transition policies must be handled correctly to avoid serious
displacements
3. High-level analysis identifies that material cost savings of up to £2.0bn a
year in Wales could be achieved by transitioning to circular processes in
an advanced scenario
4. The automotive and electronics industries, which represent £2,693m and
£1,261m respectively in manufacturing turnover to the Welsh economy,
present the highest potential for these savings (primarily by designing out
waste, minimising packaging and re-using products and materials)
•
However, all sectors should consider how they can become more sustainable.
(Source: (Ellen Mcarthur Foundation 2013).
Wales- Examples of Green Growth in
Action?
1.
Orangebox is a Welsh SME and UK leader in the design and manufacture
of office furniture, with a factory in Hengoed, Mid Glamorgan.
2. Howies clothing manufacture in Cardigan (minimise waste, repair
clothes, use offcuts)
3. Dawn meats of Cross Hands recycles food containers
4. Castell Howell food suppliers re-use packaging, work with supply chains
to reduce portion sizes and minimise waste
5. SA Brains uses waste products as animal feed and fertilizer
6. Dow Corning of Barry sell the primary by-products of silicon production
to European partners
7. GS Flooring, a social enterprise, provide reused commercial carpet tiles
to community and third sector at reduced cost
8. SEDA Packaging upcycle their high quality technical waste from paper
cups by selling it to paper mills
Etc…..
There are lots of small and medium scale activities but green
growth is yet to be mainstreamed.
The Rural Economy in Wales?
The rural economy is more dependent upon and has a unique role in driving
green growth, in particular:
1.
2.
3.
4.
5.
Increasing the scale of renewable energy production where appropriate
Securing returns for the value of water management and carbon storage
in the uplands
Developing sustainable tourist destinations
Promoting high quality sustainable food production and processing
Maximising the commercial value of natural capital.
Barriers and Challenges to Overcome
1.
2.
3.
4.
5.
Business as usual lock-in
Business risk of a transition
Up front costs
Lack of understanding of terminology
Lack of recognition of value of ecosystem
services
6. Wales’ dependence on external markets
7. Limited access to appropriate resource flows,
qualitatively and quantitatively
8. Lack of processing and reprocessing plants in
Wales
9. Lack of practicality in supporting mechanisms
10. Lack of green education, skills and training
opportunities
11. Lack of public procurement drivers
12. Limited influence of Wales on UK fiscal policy.
Conclusions
1. Lack of definition of green economy in Wales
2. General support across government, business and environment sectors
for green economy principles
3. Some good but ad hoc examples of green growth, mainly in the south
(more needed across the rest of Wales)
4. Lack of a baseline to chart progress
5. Lack of linkages between green growth activities (lack of infrastructure)
6. No vibrant green economy… yet (Nessa’s doesn’t think it’s occurred yet).
Final Thoughts
Some suggestions, offered to generate discussion:
1.
2.
3.
What are the barriers to the use of alternative indicators, including a
Green GDP or equivalent measure?
Should there be new laws, incentives and regulations to drive increasing
investment in the Green Economy, eg. through regulating and
incentivizing the manufacturing sector?
What shade of green is right for Wales- jade (more of tried and tested
approaches), mint (different way of applying tried and tested
approaches) or lime (innovative approaches with new ideas)?
Thank you for your attention!
[email protected]
www.cynnalcymru.com | www.sustainwales.com
Follow us on Twitter | Dilynwch ni ar Twitter @CynnalCymru
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Further Information and References
Atkisson A (2013) Green Economy 2013. A Strategic Briefing on the State of Play in the Global Transition.
Sustainability Intelligence Unit.
CBI (2012) The Colour of Growth- Maximising the Potential of Green Business. Confederation of British
Industry.
Ellen McArthur Foundation (2013) Wales and the Circular Economy.
GJI (2012) Working towards sustainable development: Opportunities for decent work and social inclusion in a
green economy. Published by the Green Jobs Initiative.
Government of Ireland (2012) Delivering Our Green Potential- Government Policy Statement on Growth and
Employment in the Green Economy.
Green Growth Advisory Group (2011) Greening New Zealand’s Growth- Report of the Green Growth Advisory
Group. Downloaded from http://www.med.govt.nz/sectors-industries/environment/pdf-docslibrary/Greening%20New%20Zealands%20Growth.pdf on 9th October 2013.
http://wefo.wales.gov.uk/news/casestudies/?lang=en Downloaded 10th November 2013.
OECD (2009) OECD and Green Growth. Downloaded from http://www.oecd.org/greengrowth/44273385.pdf
on 9th October 2013.
OECD (2011) Towards Green Growth: A Summary for Policy Makers. May 2011
UNEP (2011) Towards a Green Economy- Pathways to Sustainable Development and Poverty Eradication.
United National Environment Programme.
United Nations (2012) Rio +20 Outcome Document– The Future We Want- Part III. Green Economy in the
Context of Sustainable Development and Poverty Eradication
UNEP (2010) Green Economy Developing Countries Success Stories. United Nations Environment Programme,
Geneva.
Welsh Assembly Government (2009) One Wales One Planet- The Sustainable Development Scheme of the
Welsh Assembly Government.
WWF (2012) Building Green Economies- Creating Prosperity for People and Planet. Downloaded from
http://assets.wwf.org.uk/downloads/building_green_economies_oct_2012_lo.pdf on 9th November 2013.