Environmental Engineering Reference
In-Depth Information
UNEP Green Economy Report 2011
The UN's conception of a green economy is not a fundamental rethink of the current
system of production and consumption, ownership and control, but an exercise in
ecological modernization and state-assisted development of the global market
economy. The Green Economy Report clearly defines its terms of references as:
A major challenge is reconciling the competing economic development aspirations
of rich and poor countries in a world economy that is facing increasing climate
change, energy insecurity and ecological scarcity. A green economy can meet
this challenge by offering a development path that reduces carbon dependency,
promotes resource and energy efficiency and lessens environmental degradation.
As economic growth and investments become less dependent on liquidating
environmental assets and sacrificing environmental quality, both rich and poor
countries can attain more sustainable economic development.
The concept of a green economy does not replace sustainable development;
but there is a growing recognition that achieving sustainability rests almost
entirely on getting the economy right.
(UNEP, 2011: 17)
The report notes that investments in renewable energy have grown considerably in
the major emerging economies of Brazil, India and China, which account for about
90 per cent of the same investment undertaken by developing countries. In 2006,
Brazil accounted for around 50 per cent of the world's production of ethanol. In
2008, China was the second heaviest investor in renewable energy after Spain. Brazil
ranked fourth and India seventh. In 2011, global investment in renewables was in
the region of US$160 billion. There is considerable opportunity for expansion in
these countries and with it the growth of green jobs. Currently, China employs the
largest number of people in the renewable energy field, followed by Germany, Brazil,
Japan and the US.
UNEP argues that there needs to be both international and national policy
commitments to renewable energy growth, which would need to include an enabling
policy framework, establishing long-term targets for investment in additional capacity
and penetration rates within the current energy mix. Such targets can powerfully
communicate intent and security to potential investors. Among the developing
countries, Brazil, China, Egypt, India, Kenya, the Philippines and Thailand have set
targets for 2020 or later. Some significant financial reform, green regulations and
positive incentives will be required to promote the necessary public and private
investing, if a green economy is to emerge. The UNEP report argues:
Analysis and modeling conducted for the
Green Economy Report
suggests that
the level of additional investment needed is between 1 to 2.5 per cent of global
GDP per year from 2010 to 2050. Currently, green economy investment is well
below 1 per cent of global GDP. . . .
If a robust business case can be created and properly demonstrated, for example,
by governments fully implementing the 'polluter pays' and 'user pays' principles
agreed by OECD countries, then arguably some of this re-deployment of capital
will occur naturally as investors pursuing enlightened self-interest shift their
assets from less attractive brown economy (based on fossil fuels) activities.
(2011: 622)
