Transcript GreenEcoDevGoetzvStumpfeldtProGED

International Experiences and GIZ’s Contribution to
a Shift towards Green Economic Development
ProGED Start Up Event
11 to 13 March 2013
Marco Polo Hotel, Cebu City
Götz von Stumpfeldt, GIZ
Economic Policy and Private Sector Development
- Green Economy -
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Content
I.
Green economy: What is it?
II. Concept of ecological footprint
III. The eco-efficiency revolution:
Decoupling growth from resource inputs
IV. Success factors for green economy strategies
V.
GIZs approach: Greening economic policy advice
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Green Economy
“An economy that improves human well-being and social equity
while simultaneously reducing environmental risks and
ecological scarcities.“ (UNEP)
Green Growth
„ Green Growth describes a growth strategy that shapes
economic processes in an ecologically sound way and
creates new jobs and income opportunities in new green
sectors. It reduces environmental impact to a minimum.“
(BMZ Broschüre Ökologisches Wirtschaften, Green
Economy, S. 8)
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Growth – ecological objectives
GDP – the gross domestic product
• indicates the value of all goods and services produced in a country
during one year
• it is important to understand, whether the economy is growing or
shrinking
Economic growth can be linked to environmental degradation; New
indicators have been developed that give important information additional
to the GDP.
The Economics of Ecosystems and Biodiversity (TEEB) study is an
international initiative to draw attention to the global economic benefits of
biodiversity. It calculates the economic value of natural resources as the
rainforest.
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Payments for ecosystem services (PES)
is the practice of offering incentives to farmers or landowners in exchange
for managing their land to provide some sort of ecological service.
1997 Nature magazine article estimated the annual value of global
ecological benefits at $33 trillion, a number nearly twice the then global
gross product.
There are “big three” among these 24 services which are currently
receiving most of the money and interest worldwide.
•
•
•
•
climate change mitigation,
watershed services and
biodiversity conservation e.g.
UN-REDD Program is the United Nations collaborative initiative on
Reducing Emissions from Deforestation and forest Degradation (REDD)
in developing countries.
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What does the ecological footprint mean?
•
The ecological footprint represents the amount of biologically
productive land and sea area necessary to supply the resources that a
human population consumes, and to assimilate associated waste in a
given technological context
•
It estimates how much of the Earth it would take to support humanity if
everybody followed a given lifestyle.
•
For 2007, humanity's total ecological footprint was estimated at 1.5
planet Earths; that is, humanity uses ecological services 1.5 times as
quickly as Earth can renew them.
•
It represents an accounting system for bio-capacity that tracks how
much bio-capacity there is, and how much bio-capacity people use.
•
Every year, this number is recalculated to incorporate the three-year
lag due to the time it takes for the UN to collect and publish statistics
and relevant research.
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Components of the Footprint
Forest
Cropland
Grazing
Land
Carbon
Footprint
Fishing
Grounds
Built Area
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Ecological Creditors and Ecological Debtors
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Relative and absolute decoupling
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Decoupling of energy consumption and GDP growth in
Germany
Resource productivity and growth
Resource productivity
GDP (gross domestic
product)
Resource extraction
and imports
Source: Federal Agency for Statistics
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Decoupling of energy consumption and GDP
Decoupling of energy consumption and GHG-emissions
Germany
130
125
120
GDP
115
110
105
Efficiency
Primary energy
100
95
90
85
GHG-emissions
Substitution
80
75
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
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Germany Success factors (1)
1. Political system: Ability
• to quickly integrate the new issues
 learning
• to formulate and implement policies
 consensus orientation/ corporatism
•
integraton of stakeholders
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Germany success factors (2)
2. Environmental policy is innovation policy
• Regulative policies
• Feed-in-tariffs
• Environmental taxes
Strong and competitive green industries
green business services
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Success Story China (1)
11th Five-year Plan (2006-2010): Allocation of a significant share of
investments to green sectors  esp. renewable energy and energy efficiency
• Wind Power
• Annual growth rate of additional generating capacity from wind power:
more than 100% from 2005 to 2009
• New installations in 2009: 13,8GW  China led world in added
capacity = 2nd in terms of installed capacity, after the US
• Solar Power
• China is largest Solar PV manufacturer
• Produced 45% of global solar PV in 2009
• With more than 12 GW of large projects in the pipeline, it would rapidly
become a major market in Asia and the world
• China is largest market for solar hot water with nearly 2/3 of global
capacity  more than 10% of Chinese households rely on the sun to
heat their water with more than 160 million sq. meters as total collector
area
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China Success Story (2)
Job Creation
• Energy sector output is worth US$17 bn. and employed an
estimated 1,5 million (2009), out of which:
 600,000 in solar thermal industry
 266,000 in biomass generation
 55,000 in solar photovoltaics
 22,200 in wind power
 In 2009 alone, an estimated 300,000 jobs were created.
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Comparing industrialized countries
• Most competitive countries are less polluting
• Environmental sound is innovative
• Environmental sound policies are innovative
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GIZ‘s approach:
Establish green growth as a cross-cutting issue
Change framework conditions to integrate external costs
Eco-taxes; reduction of subsidies
Make use of cost-effective environmental investment
Promote eco-efficiency, profitable environmental management
PREMA, Pro-Klima, Green industrial parks, eco-Innovation
Create green markets
Green procurement, feed-in-tariffs for renewable energies
Green finance
Implement environmental and social standards
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Change framework conditions to integrate
external costs
Integrate costs of pollution into production costs
Reduce market failure

Reduction of environmentally critical subsidies e.g.
fuel subsidies

introduction of ecological taxes

Integrate environmental aspects into poverty
reduction strategy papers (PRSP)

introduce feed-in tariffs for renewable energies
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Change framework conditions to integrate
external costs
Introduction of ecological taxes in Vietnam
Taxing
• refined fuels and
coal
• energy and certain
• chemicals
(HCFCs)
• selected pesticides
and
• soft plastic bags.
Expected results
• reduction of CO2
emissions by 7,5%
• revenues 1,5 billion
Euro/ year
• reduction of waste.
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Make use of cost-effective environmental
investment
Cost structure of the manufacturing sector
Germany
Sonstiges 11,4%
Mieten, Pacht 1,4%
Dienstleistung 1,6%
Energie 1,8%
Lohnarbeiten 2,4%
Abschreibungen 2,8%
Material 44,8 %
Kostensteuern 3,4%
Handelsware 11,7%
Saving potential 20%
Personnel 18,7%
Material costs: 500 bn. Euro
Source: DESTATIS 2009
Saving potential: 100 bn. Euro
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Make use of cost-effective environmental
investment
During the last decades, in Germany material and resources productivity has
risen, but much slower than the productivity of labour.
350
Productivity of labour
Development since 1960=100
(West Germany only)
300
250
200
Productivity of material
150
Productivity of energy
100
50
0
1960
1970
1980
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1990
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Make use of cost-effective environmental
investment
Material- and Energy Flow Diagram
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Make use of cost-effective environmental
investment
Value Stream and Cost Diagram
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Make use of cost-effective environmental
investment
PREMA Saving Potentials
Energy
Water
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Steel
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Make use of cost-effective environmental
investment
GIZ Prema approach
1
Where is
the problem
How big is
the problem
Flow analysis
2
6
Integration in
company structure
How to
go on
5
Analysis of costs /
environmental impact
potentials?
3
Implementation
of measures
Who does what
by when
Cost Saving
Cycle of change
4
Development
of measures
Why do you
have the problem
Analysis
of causes
What can we
do about it
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Make use of cost-effective environmental
investment
GIZ Prema approach
economic
efficiency
Cost savings and
Increase in
productivity
Less waste,
air emissions and
effluents
environmental
performance
organisational
learning
Capability to
implement
changes
PREMA = triple win
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Make use of cost-effective environmental
investment
Elements of the PREMA Programme
network
meeting
network
meeting
network
meeting
3 workshops of
2-3 days each
Cost Management
Module
3-day
workshop
2 hours – 1-day
workshop
Good Housekeeping
Module
Infotraining to PREMA
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Make use of cost-effective environmental
investment
Example: CHINA – application of methodology
„Profitable Environmental Management“ (PREMA)
Approach
 PREMA Training of 3 Trainers, 42 Consultants, 128 representatives of
companies
 Implementation of 11 training programs in 5 cities
 Implementation of 840 PREMA measures in more than 60 companies
Results
 64 companies, implementation of more than 800 individual measures
 Investment of approx. 6,5 million € in plants that led to annual net
saving of approx. 13,5 million € (average payback period: 5,2
months)
 Altogether, up to 30% of energy, 20% of water and 10% of materials
have been saved
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Make use of cost-effective environmental
investment
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Make use of cost-effective environmental
investment
Proklima
–
–
–
–
16 years worldwide initiatives
~ 235 projects
~ 40 Partner countries
~ 100 Mio tons CO2 eq. reduced
Integrated ozone and climate protection with focus on
natural refrigerants with low-GWP and energy-efficient
applications.
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Make use of cost-effective environmental
investment
Global relevance of cooling
•
More than 50% of energy consumption in hotels & resorts for
cooling and air conditioning
•
Ca. 15% of global energy consumption for cooling (7%
growth/year until 2050) [IEA]
•
Approx. 40% of energy consumption in urban areas for
refrigeration and air conditioning
•
Up to 40% of goods perish along the (missing) cool chain
•
Refrigerator and air conditioning unit are (next to light and tv) the
top investments for poor families
•
Up to 80% of energy costs of poor households come from the
household refrigerator
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Make use of cost-effective environmental
investment
Case study Ramada Benoa Hotel, Bali (Indonesia)
Installation of new air conditioning system
•
180 Guest rooms, spa,
restaurant, etc
•
Energy consumption: 3.2 Mio
kWh/yr (old system)
•
Savings: ca. US$
15,000/month, 1.8 Mio kWh/yr,
•
Return on Investment: 12
Months
•
Save 1,500 tonnes CO2eq/yr,
between 40–60% lower CO2eq
emissions
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Make use of cost-effective environmental
investment
Approach
•
Capacity building for local AC manufacturer
•
Independent energy and emission audit
•
Redesign of AC products
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Pilot installation in hotel
•
Training of local technicians (installation, operation, maintenance)
•
Promotion of results and experience, replication
•
Best practice in national strategy for sector transformation
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investment
Sustainable Management of Industrial Zones
Sustainable management of industrial zones in Tunisia:
• 121 industrial zones in which 50% of all companies produce.
• GMG is a group of companies which together provide infrastructures
such as waste water.
GIZ
 consults how to increase resource efficiency and how to reduce
emissions.
 acts as a moderator/intermediary btw. governments and industries.
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Make use of cost-effective environmental
investment
Summer academy sustainable entrepreneurs 2011 et 2012,
GIZ Algeria
Business plan competition
54 winners selected
Summer school: training,
mentoring, business plan
development
Create awareness
Stimulate innovation
Support high
potential start-ups
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Make use of cost-effective environmental
investment
Ice Hub - Egyptian-German Program Private Sector Promotion
and Employment Promotion:
• Development of a platform to facilitate and promote innovation,
collaboration and entrepreneurship for the green economy
• Services: facility (fab lab, creativity corner), training (green skills, innovation
management, marketing), consulting (project feasibility, energy efficiency)
• Partners: Ministry of Trade and Industry, Ministry of Education, University of
Cairo, Youth NGO
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Create green markets
Create green markets
Green procurement and green labels
Green procurement and eco-labelling project in
Bangkok
• The Green Public Procurement in Thailand is
strengthened.
• The new Green Public Procurement strategies in
Thailand are disseminated to other selected countries
in Southeast Asia.
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Green Finance
Financial system
development
Green Finance
Policy Consulting: Intersections of financial, environmental and
energy policy
Integration of ecological aspects within regulatory frameworks of
banks and other financial service providers
Innovative concepts of financing for:
•
SSMEs
•
renewable energies
•
investments in energy efficiency
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Green Finance
India: SSME Promotion in India
Green finance for improvements in energy-efficiency.
The development of loan products for the purchase of clean and energyefficient technologies.
Energy-efficient loan is tested in a light metal cluster involving ca. 10.000
SSMEs.
GIZ:
• consults banks like the State Bank of India in their development of loan
products for clean and energy-efficient technologies
• acts as intermediary btw. banks and industry
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Green Finance
India: Sustainability in the Banking sector
• Support to the State Bank of India and other banks.
• Integration of environmental issues and other dimensions of
sustainability in their management strategies.
• Integration of environmental and social aspects into lending decisions
and to evaluate risks relative to these issues.
• Development of trainings to integrate adaptation to climate change into
management strategies.
• Banks as multipliers for sustainability issues.
• Reducing Carbon footprint of companies in textile industries.
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Green Finance
Green Value Chains – Basic
Approaches
Promotion of Value
Chains
Systemic and systematic integration of ecological aspects and criteria
in the promotion of value chains, which means at all levels of the value
chain:
•
Interactions btw. value chains and climate change as well as
•
Resource efficiency
•
Identification of new, ecologically sustainable business opportunities
& models
Indonesia (Local und Regional Development, LRED)
 Value chains in tourism
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Implement environmental and social standards
Bangladesh: Social and environmental standards in
industry esp. textile industry
Pressure to respect social and environmental standards
• Development partnerships with international retail enterprises and local
partners; Bangladesh Garment Manufacturers & Exporters Association;
• Advise the development of new environmental guidelines on the national
level.
• Training of entrepreneurs, managers and workers in energy- and resourceefficiency and the treatment of chemicals and wastewater
200 enterprises were able to step up one staircase in ILOs classification
 Respect of social and environmental standards is raising productivity; the
project aims at documenting these “business cases” and wants to
cooperate with local consultants to make sure that positive experiences are
being scaled up to a national level.
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Thank you very much for your attention!
[email protected]
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