Transcript Real world context for GE, Rio +20

How has Rio +20 promoted
future national level efforts to
move towards greener and fairer
economic models?
17 September 2012, Stockholm
Tom Bigg, IIED
Real world context for GE, Rio +20
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1. Knock on effect of the Eurozone crisis
2. Push for reform of financial systems
3. Impacts of climate change and unpredictability (increasing food
prices etc.)
4. Shale gas becoming widely available and cheap due to hydraulic
fracturing (‘fracking’)
5. Financial crisis accelerating the shift in economic power to
emerging economies
About the Rio Summit
1. Formal agenda focused on two broad themes:
• Green economy in the context of SD and poverty eradication
• Institutional framework for SD
2. New voices, perspectives evident – but participation was
uneven
3. Many parallel strands to Rio – not all about the official
negotiations
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5 Fault lines on GE in Rio
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1. Putting a price tag on nature: protection or commodification?
Differing views ALBA Group (Latin America) - European Union
2. Interests of OECD / emerging economies / LDCs on GE not aligned
• Least Developed Countries Group
• Middle Income Countries
• Civil society in emerging economies
3. Top down vs. bottom up models
• Caribbean Action Learning Group on GE
• Global Green Growth Initiative
Fault lines on GE in Rio (2)
4. SD Goals vs. post 2015 framework for development assistance
• Potential for new aid narrative (however, risks undermining
poverty reduction, core development objectives)
• Focus on universality in SDGs
5. What’s in a name: green economy or green growth?
• Mckinsey
• Brazilian govt
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5 key Rio Commitments:
The Future We Want.
1. Role of co-operatives and micro enterprises
2. Job creation
3. Plurality of different GE approaches
Voluntary Commitments.
4. 50:50 Action on Natural Accounting campaign (World Bank)
Country Commitments.
5. Gabarone Declaration
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… and 4 Rio failures:
1. No agreement on constraining or limiting the unsustainable
activities of corporations
2. Resistance to any acknowledgement of planetary boundaries
or ecological limits
3. Process was flawed – typified by ‘take it or leave it’ text
dropped in by Brazilian govt in place of negotiated agreement
4. Outcome document failed to establish SD as the basis for
solutions to the current economic, environmental and social
crises
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Implications for development
co-operation
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1. OECD work on green growth in developing countries – draft available
and consultation underway.
2. Cautious interest from members of the LDC Group
 Against a single approach
 Must lead to short term mainstream improvements
 Long term resilience and resource security
 Improve equity
 Sustainable development remains the goal – GG a means to an end,
but must be well governed
What kinds of policies have helped
GG in developing countries?
Many proven/promising mechanisms &
instruments:
 Focus on governance of public expenditure and
markets
 Others create green incentives for investors,
business and households
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e.g. Government expenditure review
Routine Qs for all departments:
 Expenditure on env?
 % return on env investments?
 Sensitivity to env risks?
 Can env revenue be increased?
 Tanzania review led to env budget
increase by 500%
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e.g. Sustainable public procurement
• Public procurement 25-30% of GDP in LICs
• Govt green procurement can lead markets
• Risk: initial lack of experience and suppliers can lead
to monopoly and vested interests
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Possible GE research and action agenda
What research and analysis is particularly needed in the near future?
• More context specific assessments
• Connections with other linked research agendas and policy regimes
• Dialogue and collaborative research in particular developing countries
• South-South sharing of experience and tools
• Increased focus on informal economy
• Explore sectors / opportunities with high potential for poor rural and urban
dwellers that also produce environmental benefits
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Transforming economies and societies
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What broader framework for progressive actors to use GE to achieve
major change?
• Listen more and impose less
• Inclusion and equity
• Value changes
• Structures and systems
• Macroeconomic research, case-making and policy options
• Green financing models
• Green accounting and accountability
Further resources
www.greeneconomycoalition.org
www.iied.org
www.shapingsustainablemarkets.org
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