UNEP

Introduction to Green Economy and Sustainable Consumption and Production: 

Introduction to Green Economy and Sustainable Consumption and Production Regional Workshop on Green Economy and Sustainable Consumption and Production – success stories Christophe Bouvier UNEP 14-15 April 2011, Belgrade

List of Content:: 

List of Content: Part A: Towards a Green Economy (GE) 1. What is Green Economy? 2. Why Green Economy? 3. UNEP’s Activities 4. Success Stories (EU) 5. Major Opportunities and Challenges 6. Enabling Conditions for a GE Part B: Sustainable Consumption & Production (SCP) 7. Why SCP? – The Resource Crisis 8. The context of SCP in GE 9. UNEP’s Approach 10. Progress in the Pan-European Region 11. Further Questions

Part A: 

Part A Towards a Green Economy (GE)

1. What is Green Economy?: 

1. What is Green Economy? UNEP defines Green Economy (GE) as one that results in increased human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.

2. Why Green Economy?: 

2. Why Green Economy? Meets minimum criteria for sustainability To Meet the dual goals of sustainability – High human development and low ecological impact

Continued…: 

Continued… 2. Initiative born out of multiple crises and accelerating resource scarcities 3. It is a new economic paradigm that can drive growth of income and jobs, while enhancing environmental assets 4. A Green Economy is an economic vehicle for sustainable development 5. A Green Economy can contribute to poverty reduction

3. UNEP’s Activities: 

3. UNEP’s Activities 1. Green Economy Initiative Mission is to “Advising clients on Greening their Economies, by working with extensive partnerships of institutions and experts and using a range of research products infused with thought leadership” It links to the following: Engine of Economic Growth Quality employment generation Equity Poverty reduction

Continued…: 

Continued… 2. Green Economy Report: Key Findings - Investing in natural capital, resource and energy efficiency can lead to the Following: a. Enhanced wealth b. Employment generation c. Improved health for all d. Well-managed natural assests

a. Higher rates of GDP growth over time and enhanced wealth : 

a. Higher rates of GDP growth over time and enhanced wealth

b. Employment Generation (Global-sectoral): 

b. Employment Generation (Global-sectoral) Agriculture - over the next decade, shifting to sustainable agriculture could increase global employment by as much as 4% Forests - forest conservation and reforestation could boost formal employment in this sector by 20% by 2050 Transport - improved energy efficiency across all transport modes combined with shifting to collective modes would increase employment by about 10% above business-as-usual by 2050 Energy - expansion of renewables and investments in energy efficiency could generate employment that is 20% higher than business-as-usual by 2050

c. Poverty Reduction: 

c. Poverty Reduction Ecosystem services provide 47% to 90% of the so-called ‘GDP of the Poor’; India, e.g.: Ecosystem services add “only 7.3%” to classical GDP or Ecosystem services add 57 % to “GDP of the Poor” (540 million rural people) Investing in natural capital and wise management of natural resources and ecosystems, therefore results in lifting people out of poverty

4. Success Stories (EU): 

4. Success Stories (EU) Buildings in Germany: Investment in building sector Stimulus package estimated to create 25,000 jobs per each 1 billion invested in manufacturing and construction for retrofitting buildings. The government estimated 350,000 jobs to be created by 2050 (UNEP 2009a). Spain’s Investment in Renewables: National Energy Policy (targets) Investment in the renewable energy sector found in Aragon region that the renewable energy industry generates between 1.8 and 4 times more jobs per MW installed than conventional sources (Llera Sastresa et al. 2010). Public transport/cycling in EU & Switzerland: In 13 cities in EU, every €1 invested in public transport provided €2 to €2.5 in benefits. The whole economy benefited from an added value of €4.6 for every €1 spent on public transport In Switzerland, the economy as a whole benefited from an added value of €4.6 for every €1 spent on public transport. in Austria, the Government programmes to encourage cycling has contributed €900 million to the economy and 18,000 jobs SEE region Cases will be presented tomorrow

5. Major Opportunities for change: 

5. Major Opportunities for change 1. GE & Resource Efficiency Status quo challenges – cost of inaction Economic activity currently consumes more biomass than the Earth produces on a sustainable basis (i.e. the ecological footprint exceeds our planet’s resources) Opportunities Investment - increases net welfare gains from economic activities by “doing more and better with less” Global market for environmental products and services is projected to double from $1.37 trillion per year to $2.74 trillion by 2020 Increasing demand - markets for organic food and beverages expanding on average 10-20% per annum

Continued…: 

Continued… 2. GE and the Environment/Climate Change Status quo challenges – cost of inaction Business-as-usual risks increasing greenhouse gas emissions by 130% by 2050 (IEA) and raising average global temperatures by 6˚C (IPCC) Emissions linked to deforestation and forest degradation account for nearly 20% of global greenhouse gas emissions Opportunities In 2008, investments in renewable energy generation ($140 billion) surpassed investments in fossil fuel power generation ($110 billion) Projected investments in renewables could generate 20 million jobs REDD-plus - investments in reducing emissions from deforestation, forest degradation, and sustainable management of forests

6. Enabling Conditions for a GE: 

6. Enabling Conditions for a GE Establish sound regulatory frameworks enshrined in laws Remove harmful subsidies (e.g. fossil fuels, fisheries) Prioritize green investment Utilize market mechanisms and taxation Build capacity through training and technology transfer Roles of sub-national and local authorities

Part B: 

Part B Sustainable Consumption and Production (SCP)

Slide17: 

7. Why SCP? 17 a. The Resource Crisis If we keep the current patterns of production & consumption Since the late 1980 ecological Footprint exceeded the Earth’s bio-capacity in 2003 by about 25% 2002 2050 17 1900 2100

b. The Face of Consumption and Production: 

b. The Face of Consumption and Production 1. CP areas with the most significant environmental impacts across the EU27 Buildings and appliances (20-35%) Passenger transport (15-20%) Food and drink (20-30%) Clothing (5-10%) Other (including tourism and leisure) (c. 5%) (Figures represent % of environmental impacts across the EU27)

Continued…: 

Continued… 2. An illustration of life cycle energy use of Milk production in UK (excluding disposal) High primary production impact: electricity used in milking fertilizer used in feed production Variation in packaging impact depending on type of material

Continued…: 

Continued… 3. Macro Trend: GDP, Material Productivity and Domestic Material Consumption in EU (Michal Miedzinski, 2011) Although the EU has achieved a relative decoupling of GDP growth from material use, the absolute level of consumption also grew.

Continued…: 

Continued… 4. Global material Use 1900 – 2005 (Krausmann et al. 2009)

8. The context of SCP in GE: 

8. The context of SCP in GE Transition to a Green Economy will be achieved through: Investments and policy measures aimed at improvements in resource efficiency Development of cleaner and low-carbon technologies and markets, and Reduction of environmental risks, while enhancing human well being, fostering green growth and decent job creation

9. UNEP’s Approach : 

9. UNEP’s Approach In the achievement of this objective UNEP works towards ensuring that: Resource efficiency is increased and pollution and related health cost is reduced over product life cycles and along value chains Investment in efficient, clean and safe industrial production methods is increased through public policies, registration and private sector action Consumer choice favors resource efficient and environmentally friendly products: awareness, education, information

10. Progress in the Pan-European Region: 

10. Progress in the Pan-European Region a. Overall: Breaking the link between economic growth and resource use and energy consumption (“relative decoupling”) has taken place in many countries. Similar situation for waste generation in EU-27 + EFTA countries (absolute decoupling in EU10) Progress in Eco-innovations

Continued…: 

Continued… b. Policy/Strategy/Law: SEE Several SEE countries have included SCP as a thematic chapter of their NSSD. (E.g. Croatia (2009), Serbia (2008), FYR of Macedonia (2008)). other specific examples are: Croatia is developing SCP Action Plans under National Strategy for Sustainable Development (NSSD) and has introduced policy package for promoting organic farming: The National Strategy for Sustainable Development (NSSD) of Macedonia (2008). “Strategy of Agricultural Development” in Serbia (Official journal 78/2005) Bosnia & Herzegovina introduced general stipulations on imports, distribution and use of plant protection products

11. The 10 Year Framework of Programmes on sustainable consumption and production (10YFP): 

11. The 10 Year Framework of Programmes on sustainable consumption and production (10YFP) 1. 10YFP is an umbrella for developing and implementing voluntary programs, supporting all stakeholders in achieving vision, goals and objectives of 10YFP. Overarching goal: decouple economic growth from resource use and environmental degradation to support sustainable development. Objectives: catalyze political, technical and financial support; mainstream SCP; incentivize innovation; support developing countries; increase demand for sustainable products; monitor progress to SCP; strengthen the science-policy interface.

Continued…: 

Continued… 2. Initial Selection of Programs: The CSD 19 could identify a first set of priority programmes, based on the following rationale: Priorities identified by the CSD RIMs as well as recommended by CSD 18, Select sectors or products with the largest environmental impact and resource intensity. (e.g. food, mobility and housing). Priorities contained and recognised within regional strategies, and endorsed by regional fora Programmes stemming from the work of Marrakech Process Task Forces, recognised by CSD 18 as useful building blocks for 10YFP (Public Procurement, Tourism, Products, Education, Sustainable Lifestyles, Cooperation with Africa, Building & Construction).

Continued…: 

Continued… 3. Outcomes of the Intergovernment Preparatory Meeting for the 19th session (NY, Feb 28 & Mar 4, 2011) of the Commission on Sustainable Development: Key elements of the text being negotiated: Proposed organizational structure summarized under 10 major points: Including a global clearinghouse platform to share information and tools; A mechanism for developing countries to solicit support for their SCP initiatives; A global pact between Governments and relevant stakeholders; A policy strategy Predictable financing: Including realigning existing multilateral and bilateral funding sources, a voluntary trust fund to support the launch of programs. Programs: A toolbox of programs on SCP to lead selected key priorities (20). Suggesting that the 10YFP should include an initial list of programs building on the experiences carried out under the Marrakech Process and other best practices.

Continued…: 

Continued… Way forward suggested to CSD 19 (NY, May 2011): merge overlapping programs; program proposals developed by UNEP in collaboration with its partners can now be refined and merged with similar existing ones; Additional information to be included in the program proposals could include manifestation of interest with a preliminary list of stakeholders (including governments from developed and developing countries) interested in participating.

Discussion points : 

Discussion points Possible discussion on messages from this workshop to CSD-19 from a SEE perspective ? (in a EU Accession/pre-accession context) Enabling conditions for Green Economy specific to the region, e.g. EU incentive legal framework Possible regional actions?

Slide31: 

Thank you!