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Rio+20: Promoting Greener and Fairer Economic Models

Explore how the Rio+20 Summit has encouraged national level efforts to transition towards greener and fairer economic models. This article highlights the real-world context, fault lines on green economy, Rio commitments and failures, implications for development cooperation, policies that have helped in developing countries, and a possible research and action agenda.

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Rio+20: Promoting Greener and Fairer Economic Models

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  1. How has Rio +20 promoted future national level efforts to move towards greener and fairer economic models? 17 September 2012, Stockholm Tom Bigg, IIED

  2. Real world context for GE, Rio +20 2 • Knock on effect of the Eurozone crisis • Push for reform of financial systems • Impacts of climate change and unpredictability(increasing food prices etc.) • Shale gasbecoming widely available and cheap due to hydraulic fracturing (‘fracking’) • Financial crisis accelerating the shift in economic power to emerging economies

  3. About the Rio Summit 3 • Formal agenda focused on two broad themes: • Green economy in the context of SD and poverty eradication • Institutional framework for SD • 2. New voices, perspectives evident – but participation was uneven • 3. Many parallel strands to Rio – not all about the official negotiations

  4. 5 Fault lines on GE in Rio 4 • Putting a price tag on nature: protection or commodification? • Differing views ALBA Group (Latin America) - European Union • Interests of OECD / emerging economies / LDCs on GE not aligned • Least Developed Countries Group • Middle Income Countries • Civil society in emerging economies • Top down vs. bottom up models • Caribbean Action Learning Group on GE • Global Green Growth Initiative

  5. Fault lines on GE in Rio (2) 5 • 4. SD Goals vs. post 2015 framework for development assistance • Potential for new aid narrative (however, risks undermining poverty reduction, core development objectives) • Focus on universality in SDGs • 5. What’s in a name: green economy or green growth? • Mckinsey • Brazilian govt

  6. 5 key Rio Commitments: 6 • The Future We Want. • Role of co-operatives and micro enterprises • Job creation • Plurality of different GE approaches • Voluntary Commitments. • 50:50 Action on Natural Accounting campaign(World Bank) • Country Commitments. • Gabarone Declaration

  7. … and 4 Rio failures: 7 • No agreement on constraining or limiting the unsustainable activities of corporations • Resistance to any acknowledgement of planetary boundaries or ecological limits • Process was flawed – typified by ‘take it or leave it’ text dropped in by Brazilian govt in place of negotiated agreement • Outcome document failed to establish SD as the basis for solutions to the current economic, environmental and social crises

  8. Implications for development 8 co-operation • OECD work on green growth in developing countries – draft available and consultation underway. • Cautious interest from members of the LDC Group • Against a single approach • Must lead to short term mainstream improvements • Long term resilience and resource security • Improve equity • Sustainable development remains the goal – GG a means to an end, but must be well governed

  9. What kinds of policies have helped 9 • GG in developing countries? • Many proven/promising mechanisms & instruments: • Focus on governance of public expenditure and markets • Others create green incentives for investors, business and households

  10. e.g. Government expenditure review 10 • Routine Qs for all departments: • Expenditure on env? • % return on env investments? • Sensitivity to env risks? • Can env revenue be increased? • Tanzania review led to env budget increase by 500%

  11. e.g. Sustainable public procurement 11 • Public procurement 25-30% of GDP in LICs • Govt green procurement can lead markets • Risk: initial lack of experience and suppliers can lead to monopoly and vested interests

  12. Possible GE research and action agenda 12 • What research and analysis is particularly needed in the near future? • More context specific assessments • Connections with other linked research agendas and policy regimes • Dialogue and collaborative research in particular developing countries • South-South sharing of experience and tools • Increased focus on informal economy • Explore sectors / opportunities with high potential for poor rural and urban dwellers that also produce environmental benefits

  13. Transforming economies and societies 13 • What broader framework for progressive actors to use GE to achieve major change? • Listen more and impose less • Inclusion and equity • Value changes • Structures and systems • Macroeconomic research, case-making and policy options • Green financing models • Green accounting and accountability

  14. Further resources 14 • www.greeneconomycoalition.org • www.iied.org • www.shapingsustainablemarkets.org

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