Transcript Report Presentation - Geneva Environment Network

Green Economy & Trade
Trends, Challenges and Opportunities
Key facts and
findings of the
report
Green Economy & Trade report
• The report, Green Economy and Trade – Trends, Challenges and
Opportunities, explores the nexus between international trade and the
green economy.
• It analyzes:
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how the transition to a greener economy can create sustainable trade
opportunities, economic growth and progress in developing countries.
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how the main trade-related challenges can be addressed in order to
advance economic and social development in a sustainable way.
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how national capacity to deal with the challenges of the transition to a
green economy can be developed.
The report is a key output of UNEP’s Green Economy and Trade Opportunities
Project (GE-TOP). In the next phase of GE-TOP, UNEP and its partners will, at
a national level, assist countries to capture the benefits of greening trade.
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Background
•
Rio+20 reaffirmed trade as an engine for development and sustained
economic growth. Since then, the focus has shifted from the potential risks of
trade protectionism to the benefits for developing countries when implementing
green economy policies.
•
The GE&T report reflects UNEP’s aim to help developing countries capture
trade opportunities arising from the implementation of sustainability standards,
the integration in sustainable supply chains, and the exchange of environmental
goods and services, while ensuring that these measures are neither used as
trade barriers nor as green protectionist measures with trade partners and
multilateral bodies.
•
In producing this report, UNEP has benefited from the inputs of many partner
organizations, as well as more than 200 experts, government
representatives and stakeholders. The European Commission financially
supported this project.
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Current Trends and Opportunities
• Trade is a vital element of the global economy
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The sum of world exports of goods and services grew at a rate of 5%
per year between 2000 and 2011, amounting to US$ 22.3 trillion in 2010.
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Merchandise and commercial services exports share of the world’s GDP
doubled since 1970 up to 29.3% in 2011. In developing countries, this share
reached peaks of 45%.
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Trade between developing countries is the most dynamic segment of
global trade in the last decade, increasing from 39.2% of total developing
country exports in 2002 to 50% in 2010.
• Greening trade is an imperative of our times
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This expansion of trade has implied an unprecedented surge in resource
consumption as well as significant increases in GHG emissions. To
reverse these trends, trade must become more sustainable and responsible.
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Current Trends and Opportunities
• Developing countries, and especially LDCs, whose exports are still
dominated by natural resource based products and raw materials, need
to urgently diversify their economies.
• While still representing only a small percentage of the global market,
trade in certified products and in environmental goods and services
is on the rise.
• Developing countries are well-positioned to capitalize on the
opportunities to integrate into international value chains for sustainable
goods and services.
• The transfer of environmentally sound technologies, through trade
and investment-related channels, also promotes economic and social
development.
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Economic Sector Analyses
• The report analyses emerging opportunities and challenges in six
economic sectors – agriculture, fisheries, forestry, manufacturing,
renewable energy and tourism – all of which are particularly
promising in a transition to a green economy, especially for developing
countries.
Each of the sectoral chapters includes case studies and
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reviews the environmental and economic context for greening the
economy
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presents green economy measures and assesses the opportunities and
challenges they imply for developing countries, and
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discusses enabling conditions, such as policy tools, market based
instruments, the role of national and international frameworks, and
relevant actions that can help countries benefit from these new markets.
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Economic Sector Analyses
Agriculture
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Large multinational companies made sustainability
commitments, which will further drive demand for sustainable
agricultural and fishery products.
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The organic agricultural market is projected to rise from US$
62.9bn in 2011to US$ 105bn in 2015.
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Increasing demand for sustainable and/or organic products (e.g.
organic tea production increased by 2000% between 2005 and
2009)
Fisheries and Aquaculture
• Wild-capture fisheries – already certified or in full assessment –
records annual catches of around 18 million metric tonnes. This
represents about 17% of annual global catches, while demand far
outstrips supply.
• Sales of certified aquaculture seafood is forecasted to increase
from US$ 300mln in 2008 to US$ 1.25bn in 2015.
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Economic Sector Analyses
Forestry
• Illegal logging and processing is worth between US$ 30-100bn a year.
Certification schemes like PEFC or FSC can significantly increase
transparency in the forestry sector (2013: 10% of global forest
resources, which is close to 400mln hectares, are already certified).
• Certified products sales are worth more than US$ 20bn per year;
currently, demand outstrips supply
• Price premiums for certified woods range between 15-25%
• Non-timber forest products (NTFPs) fit high-value markets
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Manufacturing
Manufactured products with environmentally friendly
designs and sustainability standards have an advantage in
international markets.
Moreover, ISO 14001 certifications on environmental
management awarded increased by 1500% between 1999
and 2009.
Increasing energy- and resource efficiency in processes and
production methods allows firms to maintain or increase
competitiveness in international markets.
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Economic Sector Analyses
Renewable Energy
• The use of renewable energy could save an equivalent of
220-560 gigatons of CO2 emissions between 2010 and 2050.
• The global market in low-carbon and energy efficient
technologies, which includes renewable energy supply products,
is projected to nearly triple to US$ 2.2 trillion by 2020.
• Developing countries significantly increased their exports of
renewable energy equipment (e.g. solar panels) and expanded
their potential to export electricity from renewable sources.
• Tourism generates large export revenues for developing countries
and is a key driver of growth for the world economy (tourists account for
>9% of global GDP, more than one billion tourists in 2012).
• Ecotourism, which focuses on nature-based activities, is the fastest
growing sub-sector of the sustainable tourism industry.
• Many developing countries have a comparative advantage in
ecotourism, e.g. Costa Rica generates US$ 5mln a year with entrance
fees to protected areas. Countries need to preserve their natural
environments to be attractive as tourism destinations.
Tourism
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Enabling Conditions for Greening the Trade
Investment and spending. Public investment in key economic infrastructure, technical
assistance, targeted education and training programmes, and access to sustainable
resources, such as electricity from renewable energy sources
Market-based instruments. Phasing out environmentally harmful subsidies; introduction
of pricing policies that include environmental and social costs of production and
consumption
National regulatory frameworks, that support green industries and incorporate
sustainable development considerations in national development plans and export
promotion strategies
Enhancing dialogue and capacity building. International organization have an important
role in building capacity, providing research and data, and increasing awareness
International and regional frameworks. International frameworks, such as the WTO, can
help liberalize trade in environmental goods and services, and provide opportunities for
collective action to address global challenges. Regional trade agreements, if properly
designed, also provide opportunities to promote sustainable practices and drive the policy
reforms needed.
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Challenges on the Way to Greener Trade
Obstacles such as low levels of literacy, problems in accessing finance, poor
transport services and economic infrastructure, and lack of support by public
institutions, all hinder the ability of producers and service providers to comply with
sustainability certification requirements.
The complexity of the requirements that producers and service providers have to
meet to access sustainable value chains. These can include sanitary and phytosanitary or technical requirements, coupled with the proliferation of private
standards.
Compliance with more requirements can be costly, notably for small and
medium-sized enterprises, and can necessitate technologies and know-how that
may not yet be available in developing countries.
UNEP will continue to help developing countries overcome these
challenges. Following this report, UNEP will focus on applying these
findings in conjunction with partners through quantitative and policy
assessments at the national and sectoral level.
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Thank You