Distinguished delegates, ladies and gentlemen SLIDE 1 Thank you for the opportunity to address this important event. The International Institute for Environment and Development is an independent research organisation based in London. We provide analysis of the interface between development and environment, and we work in countries in Asia, Africa and Latin America. For the past decade we have worked closely with the LDC Group in the UN climate change negotiations, and more recently we have collaborated with OHRLLS and with the LDC Group in the development of the draft SDGs. IIED supported the creation of an LDC Independent Expert Group, which was the brainchild of USG Mr Gyan Acharya. This group has been set up to provide access for LDCs to a group of experts from LDCs on key aspects of sustainable development. We are delighted that a number of members of the IEG are able to attend this conference and are taking part in a number of the sessions. The Chair of the IEG Dr Michele Pierre-Louis will give reflections on the key ideas and action points raised during the course of the conference in the closing session on Thursday. SLIDE 2 During the course of this presentation I will touch briefly on the following themes: 1. Characteristics of a green (or blue) economy What does the concept mean and why is it relevant? 2. Green economy opportunities for LDCs How can the concept be in the interest of LDCs? 3. Questions and concerns for LDCs What are the problems and questions that have been raised about GE? 4. Implications of green economy for productive capacity building How does GE relate to the IPOA 5. Synergies with the SD Goals And the positions taken by LDCs in the discussions of the Open Working Group 6. Possible steps forward SLIDE 3 What is a Green Economy? There are many definitions on green economy and there is a need for flexibility to make the concept relevant and understandable in different national and local contexts. But UNEP’s definition is a good starting point. UNEP states that A green economy is one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. What does this mean in practice for LDCs?
A green economy has wellbeing and inclusion as its central purpose. It emphasises sustainability and resilience : • as a condition of growth: by minimising environmental impacts on people and the depletion of natural capital • as a driver of growth: by optimising the economic potential of natural resources, green markets and green finance and investment • as an enabler of poverty eradication and equity, through jobs, small enterprise opportunities, more equitable access to natural resources Green economy is not an alternative model of development in itself but rather is a useful way of approaching and understanding the economic dimension of sustainable development. SLIDE 4 Green economy has a number of potential benefits for LDCs LEAPFROGGING: LDCs can benefit from having only a few ‘brown’ heavily polluting industries, and being at relatively early stages in infrastructure development. Many are in a position to take advantage of new and emerging low-carbon technologies and gain a competitive advantage on countries with more established but outdated infrastructure. Recent IIED research has identified at least 9 LDCs that are making moves in this direction, for example Ethiopia, through its national Climate Resilient Green Economy Strategy. ADDING VALUE: There is much untapped potential in natural resource-based and other green products and services in LDCs. We will hear more about this from M. Chimere Diaw from the African Model Forests Network later in the session . CREATING NEW JOBS AND ENTERPRISES: Possibilities exist for both high-end enterprises and jobs employing new green technologies and micro-enterprises and jobs for workers in the informal economy. We will also hear more on this subject from Mr Aeneas Chuma from ILO . ACCESSING CLIMATE AND GREEN FINANCE: Much anticipated, the promised Green Climate Fund is still some years away from being operational, but several LDCs are already accessing green finance and setting up trust funds to manage it effectively. For ex ample, Rwanda’s new green fund consolidates domestic funds with international (bilateral and multilateral) climate finance to incentivise green innovation through both grants and preferential credit to local businesses. SLIDE 5 Questions and concerns about viability of ‘greening’ the IPOA Is green economy consistent with the IPoA’s vision of development? YES
The IPoA’s success heavily depends on maintaining and enhancing the value of the natural resource base and building resilience to climate change to protect key sectors such as agriculture Can a green economy achieve the IPoA’s high growth target? POTENTIALLY By creating new economic activity and reducing the negative effects on economic growth of natural disasters, fuel importation and depletion of natural resources through commodity extraction can help spur growth. The World Bank has concluded that LDCs have highest rates of natural wealth depletion of any group of countries. Will green regulations from trading partners help or hinder LDC products? A LEGITIMATE CONCERN But this challenge can be overcome, initially through preferential and differential treatment of LDCs in trade regimes, while countries progressively build capacity and institutions to establish, and conform to, international green standards. Will green economy support or divert attention from the major business of poverty reduction? DEPENDS ON THE STRATEGY Green initiatives can reduce poverty, for example through extending decentralised, renewable energy to poor communities; supporting small NR enterprises with high added value. But the evidence base, access to key resources and appropriate technology needs improving to avoid inadvertent poverty traps. SLDE 6 What is the ‘fit’ between the IPOA focus on productive capacity building and prioritization of green and resilient economic growth? The IPOA presents four major elements of productive capacity, all of which are highly compatible with a ‘green economy’ approach: 1. Infrastructure It will be critical to make infrastructure climate-resilient – so including a key environmental threat in the IPOA model. There is also considerable scope to develop transport and market infrastructure for green products and services. As the African Union speaker mentioned earlier, the only LDCs which have made significant progress towards the MDGs are those which have diversified their economies. 2. Energy Investment in renewables and small-scale sustainable energy services presents major opportunities for LDCs – not least as a key element in the UN Decade for Sustainable Energy, which has just started. Development of renewables such as hydro, geothermal and solar can reduce dependence on fossil fuels and help expand energy to off-grid areas while creating opportunities for small-scale and community-based sustainable energy services. 3. Science, technology and innovation
The IPOA proposed creation of the LDC Technology Bank, which as we have been hearing is now well underway and can play a key role in supporting information needs and providing access to the most useful innovations. There is a widespread need for major investment in further research and development on assessing natural capital, value addition through natural resource-based products and services, and sustainable and low-carbon energy technologies suited to LDCs. 4. Private sector development There is a need for greater awareness building on the role of the private sector in contributing to environmental management, capital formation and poverty reduction. Tax incentives and low cost loans will be needed to help enterprises move to inclusive and green business models. There is huge potential for green transitions in smaller enterprises and through community and NGO initiatives, and targeted programmes will be needed to build capacity at that level. SLIDE 7 What are the key aspects of ‘green economy’ in the draf t SDGs that are relevant for LDCs? LDCs were actively involved in the Open Working Group process that developed a draft set of Sustainable Development Goals to be negotiated in the UN starting later this year. Some of the targets in that draft that would support actions on productive capacity building for a green economy include these, for example: Target 9.1 Develop quality, reliable, sustainable and resilient infrastructure Target 9.2 Promote inclusive and sustainable industrialization Target 9.4 Upgrade infrastructure and retrofit industries … with increased resource use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes SLIDE 8 How to move forward? Five possible initial steps: 1. SCOPE DEMAND AND OPPORTUNITY Build a national green economy vision through stakeholder dialogue (see for example the work of IIED and GEC, including IIED’s guide to national dialogues and diagnostics, “Scoping a green economy”). Explore immediate opportunities: what’s happening already that can be built on? Also give attention to building demand, for example through making a strong economic case for green economy to decision-makers and developing monitoring and evaluation systems to be able to demonstrate results. Jean-Jacob Sahou will say more about this later in the session. 2. MAINSTREAMING GREEN ECONOMY This is already starting to happen in some LDCs. The Gambia has made a start on mainstreaming green economy in its national development plan PAGE (Programme for Accelerated Growth and Employment) and Minister Pa Ousman Jarju may say more about
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