Transcript Keynote Speaker 9

11th GCET
Market Instruments &
Sustainable Economy
Bangkok, November 3-5, 2010
Ana Yábar Sterling
Complutense Univ. of Madrid
Pedro M. Herrera
UNED
A sustainable Economy (1)
 An economy to be sustainable
requires, at least:
– Economic: stable and healthy
– Social: fair and job creative
– Environmental: less intensive in the use of
natural resources and pollution
 = an economy set in a sustainable
development path (long term perspective)
A sustainable Economy (2)
 Economic development, since autumn 2008,
isn't:
– a continuous and smooth process
– able to assure population higher and better quality of life
 The traditional economic growth system, also
can reverse because of bad practices and
imbalances:
– in supply and demand,
– in savings and spending,
– in loans and investment
 Imbalances can lead to economic crashes,
recessions and depressions
A sustainable Economy (3)
 Most of industrialized countries have
decades of experience on how to
achieve a more sustainable economy
– trying to transform what they produce and how
they produce it
 Big changes have been accounted for:
– in production technologies
– in consumers goods & services preferences
A sustainable Economy (4)
 All sectors of the economy have been
making efforts to grow with less
environmental impact and greater resilience
to future environmental challenges
– including adaptation to climate change, material
scarcity (water included) and emergencies
 But, after the economic crash we know:
– it was not enough to support strong business
investment, new opportunities & resiliency to
long term challenges
A sustainable Economy (5)
 We discovered that economic, social and
environmental systems must all be kept in relative
equilibrium and also balanced with each other, to be
sustainable
 Still we have a huge gap of knowledge to fill in this
questions, as wide are the possibilities for GCET to
contribute
 This is the major reason to chose this Lemma for
12th GCET:
Market Instruments &
Sustainable Economy
We need to fill several gaps (1)
 We do not know much about:
– When the critical threshold of these systems
will be reached and exceeded
– Which are the conditions to be satisfied for
considering that green growth is the actual
path of socioeconomic evolution, or not, in
defined nations or regions
We need to fill several gaps (2)
 We do not know much about:
– How relevant the transition from the traditional
growth system to a Green Economy would be
for delivering sustainable development and long
term growth.
• which are the best indicators to use for assessment
on the competitiveness challenge, the eco-efficiency
aim,……
We need to fill several gaps (3)
 We do not know much about:
– Haw many infrastructure and existing
practices are unsustainable
• and haw much social and economic investment
would be necessary to replace them
– The extent of culture as a sustainability pillar
for some emerging economies
• and, also for many industrialized countries where
the biggest cultural industries are located
We need to fill several gaps (4)
 So, We need to intensify research and
efforts for:
– a better selection on the market instruments mix
and strategies for a sustainable economy
– working harder in:
• the effects of taxes, charges, incentives and particular
markets understanding to cope with that big theme
• and also, social scientists should devote more inputs
trying to make the research and policy interface more
efficient
• (Cicerone: Is not enough to achieve wisdom but to
learn haw to use it)
On 12th GCET Lemma
 12th GCET in Madrid, 2011 is a great opportunity to
contribute to the sustainability aim
– It joints very talented people and interesting research
papers
– It makes possible to combine different experiences
 We (Pedro M. Herrera an Ana Yábar), in charge of
organizing 12th GCET:
– Had to accept that it was necessary to reduce
contributions topics within the big lemma:
• Market instruments & sustainable economy
– So, finally, decided to choose 5 sub lemmas in order to
concentrate participant’s research papers
Lemma subtopics
1. International sustainability and human
security
2. Industrial transformation pro sustainability in
the context in the context of economic crisis
3. Market instruments to foster sustainable
technology and renewable energy
4. Sustainable urban mobility and transport
5. Emission trading schemes & environmental
tax reform to sustainable economy
International sustainability and
Human Security (1)
 Often, environmental reasons are underneath the
extreme insecurity and vulnerability of millions of
people
– Population grows faster in poorest countries.
– Also, the rhythm of natural resources destruction (major force for
massive migration flows, hunger, malnutrition & cultural shocks)
 This opposite path is fully unsustainable from
human security point of view
– It is getting worst because of climate change (CC) impacts
– International forecasts estimates premature global deaths due to CC:
500,000 people in twenty years ahead
– Efficient and fair instruments, strategies and policies for CC
adaptation are relevant for global human security challenge
International sustainability and
Human Security (2)
 Also the contemporary social preferences in
favour of urbanization (in 2050, around 5.3
billions would live in cities) is getting more
importance form IS & HS point of view
– to select the best market instruments to cope with cities
sustainability minimum criteria is today a great topic for
social scientist
 Energy, food and water security, also matters
– not only for moral considerations but, also
– for the length for global risk increases, to be focused
from political, socio-economic, sanitarian and cultural
perspectives
International sustainability and
Human Security (3)
 The topic called IS & HS, is, certainly a huge row to
amalgamate some innovative papers and
contributions
– The questions just mentioned are examples for papers
and debates
 All of them and some more would feet under the
Lemma: Market Instruments & Sustainable
Economy which gives us an exceptional cover for
questions that we expect to deal with during 12 th.
GCET, next year in Madrid
Industrial transformation “pro S” in
the context of economic crisis (1)
 EU Sustainable Consumption and Production
and Sustainable Industrial Policy Action Plan
(July, 2008) was published at the end of a quite
long period of regular and positive growth
processes in Europe and other industrialized
countries
 this Action Plan, in parallel shows that EU
countries were evolving trough industrial
transformation processes up to production and
consumption sustainability
Industrial transformation “pro S” in
the context of economic crisis (2)
 Innovation is one Area of Action essential to
reach smarter consumption, better products and
leaner and cleaner production
 Innovation and some other challenges faced by
industrial production in the context of S. aim
demands huge funds
– Are they enough funds for greening the economy in
the actual economic crisis context?
– The frequent complaints about the potential delay for a
green industrial transformation due to the global
Financial and Economic crisis, are they right?
Industrial transformation “pro S” in
the context of economic crisis (3)
 Business and Industry, including multinational
companies, have a huge role to play in
– promoting and achieving world-wide industrial
transformation & SD
– reducing impacts on the environment and resources
by using more efficient manufacturing processes and
producing less waste
 Businesses can also promote fair employment,
solving a big social problem of the industrialized
world, nowadays
 But we have to deal with important barriers
Industrial transformation “pro S” in
the context of economic crisis (4)
 Money matters quite a lot in removing
barriers and filling gaps
– Supply-side barriers, related mainly to
Industrial Sectors,
– Systemic barriers to reduce the lack of
alternatives, the weakness of effective
instruments to greening the economy, the
subsidies still alive for non sustainable
products, etc.
Industrial transformation “pro S” in
the context of economic crisis (5)
 We will be able to share and discuss in Madrid,
during the 12th. GCET on:
– Innovation policy, initiatives, funding, networks, etc.
that ought to be sustainable
– Legal, economic, sociological and educational
instruments (product labelling, eco-design
requirements for energy using products….) for
greening the economy
– Initiatives to foster sustainable business and
sustainable jobs in order to a faster crisis take off
– the role of environmental taxes and other market
instruments oriented to sustainable industrial
transformation in crisis periods
Industrial transformation “pro S” in
the context of economic crisis (5)
 At the end of our meeting next year in Madrid, we
could be as famous as Rubini or Krugman
(why not?)
 It is possible depending on the success of our
conclusions, at the end of 12th GCET in Madrid,
about these type of issues which are relevant
nowadays and some other subjects
 Pedro M. Herrera would present next some
reflexions on the rest of lemma subtopics
WEB GCET12
http://www.seatra.org/EnvironmentalTaxation/