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Transformations to a Green Economy : Lessons learned from Small States

Transformations to a Green Economy : Lessons learned from Small States. Port Louis, Mauritius 4 October 2012 Nadine Smith Economic Adviser, Climate Change and Sustainable Development. Introduction. Introduction.

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Transformations to a Green Economy : Lessons learned from Small States

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  1. Transformations to a Green Economy:Lessons learned from Small States Port Louis, Mauritius 4 October 2012 Nadine Smith Economic Adviser, Climate Change and Sustainable Development

  2. Introduction

  3. Introduction • The Commonwealth Secretariat’s evolving programme of work on low carbon, climate resilient blue-green economies • Small States and the Green Economy • Constraints • Enablers • Conclusions and Discussion

  4. The Commonwealth Secretariat and support to low-carbon, climate-resilient blue green economies

  5. Green Growth and the Transformation to the Green Economy in Small States • Commonwealth Secretariat’s recent engagement on behalf of its members on issues related to the green economy and green growth • CCGE on Ocean Government (February) • G20 DWG and OIF (April 2012) • Small States Biennial (September 2012)

  6. Commonwealth Framework for Transformation of the Green Economy Applied to the Oceans • Recognise value of natural capital and its potential for growth • Introduce marine spatial planning • Transform patterns of economic investments • Create new approaches to ocean governance • Grow institutional and human capacity to act

  7. Our Dialogue with and Outreach to the G20 DWG and Francophonie Together we explored various options on offer to: • Conserve, regenerate and set meaningful limits on resource activity • Achieve robust macro-economic systems for sustainability • Adopt integrated and long-term approaches • Stimulate private sector and green jobs • Address inequalities • Promote greater accountability and transparency • Foster collective action at the international level

  8. 8 Key Priorities for PSMVs Considered • Specific recognition of the special challenges faced by PSMVs • Recognition of the need for investment in the natural resource base as a key basis for green productivity and growth • Broader knowledge-sharing on pathways to green growth and the green economy • Concerted international support for developing and building communities of practice to learn together in conceptualisation and implementation • Developing viable financing options and frameworks to support the transformation • Building concerted international support for costed and time-bound national (integrated and cross-sectoral) implementation frameworks for the green economy tied to SD objectives • Supporting governments in fostering an enabling environment (technical, financial and managerial capacities) • Maintaining high ambitions for post-Rio+20 implementation (including on the SDGs) and in the UNFCCC climate change negotiations building a clear picture of each country’s contribution to the green economy

  9. Small States and the Green Economy

  10. Small States Case Studies on the Transformation to a Green Economy • Draft research papers - Jamaica, Grenada, Guyana, Seychelles, Mauritius, Samoa, Nauru* (SIDS) and Small State of Botswana + consolidated paper • Independent research - does not reflect the views of any of the Member Governments or the Secretariat • Examined how each small state conceptualised and implemented the green economy

  11. Green Growth Session at the Small States Biennial Some Key issues from Plenary Discussion: • MIC classification - using GDP/GNI affecting ability to access concessional finance and masking in country inequalities • Capacity constraints - to transform energy mix in SIDS • High cost of service provision (within and across small states) • Full integration by some of GE concept into national strategies and policies for SD • Importance of economic diversification for building resilience • Recognition of the value of indigenous knowledge systems and women in implementation • Potential impact of green public procurement • Value of tools like vulnerability indices to assist small states in management of their natural capital • Some concern about reliance on state and insufficient attention to the role of private sector

  12. Conceptualisation of the green economy concept

  13. Conceptualisation of the Green Economy Concept • All referred to UNEP’s definition which describes a green economy as one which: • Results in improved human well-being and social equity and significantly reduces environmental risks and ecological scarcities And several added the following elements: • Is low-carbon, climate and resource-efficient • Maintains natural capital • Takes advantage of growth and job opportunities • Small States have also been influenced by regional dialogues or have influenced them • An approach to development and economy which is pro-poor, generates decent jobs and working conditions that offer opportunities for self advancement for local people, and addresses holistically the multiple environment and economic challenges facing the world (CANARI) • Botswana and Grenada influenced other states’ conceptualisation

  14. Conceptualisation • Seychelles – a ‘living likeness of the green economy’; SDSS draws on discourse on blue/green economies • Jamaica – specific reference to concept in 2009 policy document ‘Vision 2030’, recognition in Rio+20 preparations that needed to develop its own definition relevant to national circumstances, taking into account and being inspired by UNEP definition and regional dialogue • Grenada – concept introduced in 2008 through officials from MoFaP and MoE, influenced by CANARI and CARICOM, its own economic, social and environmental capital, Rio+20 national consultations and leadership role in IEG as AOSIS Chair; must be conceptualised as ‘subject of SD’ which consolidates the 3 dimensions in a holistic and integrated way • A Green Economy is driven by growth and investment that reduce the harmful carbon emissions and pollution, promotes energy and resource efficiency and most importantly prevent further loss of our flora and fauna and marine life…Given Grenada’s national and resource endowments and our social and cultural ethos, we are already practitioners of sustainable development and will continue with that level of resolve and commitment (Earth Day Address by His Excellency, the Prime Minister of Grenada)

  15. Conceptualisation • Botswana – NSDS provides the path towards a sustainable and green economy • Samoa – influenced by Pacific region’s Rio+20 preparations which identified five modalities and pathways for greening the economy; driven by political commitment, natural circumstances (disasters), shift in macro-economic framework and changing market • Guyana – LCDS sets out its trajectory to achieve a green economy by encouraging a productive shift in vital economic sectors and puts rainforests under protection once the right economic incentives are created; uses PES to reorient economy to low-carbon, environmentally sound path • Mauritius – SD considered a major challenge and respondents aware that development path followed has had significant impacts on environment and quality of life, MID fresh look at development paradigm (2008), Rio and SD as basis for green growth.

  16. Implementation of the concept

  17. Highlights of Implementation of the Green Economy • Seychelles – on-going, SDSS about greening the economy to redirect environmental management towards sustainable management of GE; on track path • Jamaica –GE as one of many strategies to achieve Vision 2030; CSAP Policy tool; sector-specific strategies to underpin GE goal (GE outcome in Energy Plan); progress in early stages; official commitment for Vision 2030 - GE not dominant thrust • Grenada – sectoral approach; energy sector key/critical to transformative potential in health, wellness and education; GE pilots; green decision making; Green Parliament • Botswana – development of several activities relevant to developing a GE (PEI and NRA); adopted thematic working group • Samoa – SDS emphasis on GE; CC M&A programmes structured on promotion of GE; greening of environmental sector; some greening of tourism, energy and agriculture • Guyana –LCDS and key sectors of forestry, land use, energy, agriculture and ICT seen as contributing to transformation • Mauritius – GE development strategy as way forward to rising environmental degradation and social problems stemming from the ‘pollute now clean later’ principle underlying neo-classical growth; MID; MID Fund; MID Levy…

  18. Enablers

  19. Enablers • Political commitment • Cultural and societal values attached to environmental protection • Stakeholder and public consultation, education and sensitisation and ownership of strategy • Mainstreaming of SD into national development plans and poverty reduction linkages • International pressure/stimuli • Advocacy • Enabling legislation and strong green policies • Use of metrics – targets and indicators to measure progress • Investments in ICT

  20. Constraints

  21. Constraints and Challenges to Overcome • Loss and degradation of natural capital and historical dependence on resource exploitation • SD seen as an environment issue • Fragmentation of policy environment • Fossil fuel dependency; green deficit of renewable energy alternatives • Debt servicing • Incompleteness or not weighty enough GE policies • Availability of technology; technology transfer • Simplified and expedited access to finance for implementation • Absorptive capacities; institutional and individual capacity constraints • Socio-economic inequalities • Government short-term outlook • Implementation gaps • Limited local markets and market accessibility • Enforcement of legislation • Limited physical and social infrastructure • Availability and cost of green products and international standards

  22. Some Final Thoughts

  23. Other Factors raised in the Case Studies • GE will advance efforts to achieve SD • Need to maintain natural capital and benefits of CBA and economic valuation • Environmental mainstreaming as a tool in in helping to achieve GE • Blue economy • Environment and climate finance • Greening of the energy sector key • Value of enabling legislation in investment in infrastructure

  24. Other Factors Raised in the Case Studies • Diversification opportunities • Enhanced private sector involvement • Technology transfer and application of green technologies to existing industries, and establishment of new green industries • Use of taxes and subsidies • Gender and the GE • Resilience building • Development of laws and regulations to compliment market instruments • Value of regional influences to inform and influence understanding of concept • Research and innovation • Opportunities for south-south cooperation • Need for policy coherence and policy reviews • Incentives, awards to encourage innovation

  25. DiscussionWhere do we go from here?

  26. Thank You

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