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Friday, 20 February 2015 14:00
Greening the Economy : Mauritius on the right path
Written by Leena Gooraya
Mauritius ranks 23rd in the fourth edition of the Global Green Economy Index 2014. In
fact, it is the first time our country features in this report, which looks at how 60
countries perform in the global green economy, as well as how expert practitioners rank
this performance. Mauritius is listed well ahead of countries like Italy (25), Canada (29),
Malaysia (35), UAE (40), Japan (44) and Poland (56). Does this indicate that our
economy is indeed greening up? How can we further improve? News on Sunday met
a team of the UN Resident Coordinators Office in Mauritius to have a clearer view on
this issue.
The term green economy appeared 20 years ago in the report Blueprint for a Green
Economy. Since then, interest in a green transition has evolved and intensified. The United
Nations Environment Programme (UNEP) defines the green economy as: An economy that
results in improved human well-being and social equity, while significantly reducing
environmental risks and ecological scarcities. At the operational level, the green economy is
seen as one whose growth in income and employment is driven by investments that achieve
the
Reduce

following
carbon

emissions

objectives:
and

pollution

Targeted policy mechanisms, technical and financial assistance as well as a review of

concessionary tariffs will attract private finance to the renewable energy and energy
efficiency sectors, and thus reducing carbon emissions. The transport sector can also play an
important role in the reduction of carbon emissions. A shift to environmentally-efficient
modes of public transport; increasing pedestrian roads and incentivise the use of bicycles are
measures that can help green the Mauritian transport sector. An increase in level of waste
recycling and composting would imply that smaller quantities of domestic, industrial,
agricultural and commercial waste landfilled, with positive impacts on environmental and
human

health.

Enhance

energy

and

resource

efficiency

In 2013, around 85% of the total primary energy requirement was met from imported
petroleum products and coal, while about 15% was obtained from local renewable sources
namely: hydro, wind, landfill gas, photovoltaic and bagasse. Bagasse contributed around
92% of the local renewable sources while hydro, wind, landfill gas, photovoltaic and
fuelwood accounted for the remaining 8%. There is the potential to increase the efficient use
of bagasse and use of cane tops for energy production. In 2013 photovoltaic solar energy
represented less than 0.2% of total energy use. Small independent power producers (SIPPs)
should be encouraged to produce and use electricity from photovoltaic, micro-hydro and
wind turbines and export the extra electricity to the grid. Financial incentives for the
development of the market for solar water heating systems could be increased.
Prevent

the

loss

of

biodiversity

and

ecosystem

services

In Mauritius, agriculture is a sector which can help maintain the ecosystems through soil
formation, water regulation and carbon sequestration. Mauritius has a huge potential for
development of ecotourism. Incentives to induce investment in environmental friendly
projects, especially on the part of small local promoters, should be encouraged. These
investments need to be catalysed and supported by targeted public expenditure, policy
reforms and regulation changes to create the enabling conditions for a green economy.
According to UNEP, priority areas for policy-making to create such enabling conditions
include: addressing environmental externalities and existing market failures; limiting
government spending in areas that deplete natural capital; promoting investment and
spending in areas stimulating a green economy; establishing sound regulatory frameworks;
and
Why

international
does

frameworks
our

that

regulate

economy

economic
need

activity
to

(UNEP

green

2011).
up?

According to our speakers, a common purpose of green policies and investments is the
maintenance, enhancement and rebuilding of natural capital as a critical economic asset and
source of public benefits. Protecting natural resources, from clean freshwater to forests and
air, is especially important for poor people who depend on these resources for their
livelihoods and are especially vulnerable to environmental contamination and degradation.
The green economy can be seen as an action-oriented pathway to sustainable development.
The traditional patterns of economic development are now seen as a key cause for current

economic and financial instability, environmental degradation, and persisting poverty. There
is need for urgent evolutionary action to achieve sustainable development. The past centurys
need less consumption of resources is, to use UN Secretary Generals words, a global
suicide pact with time running out to ensure an economic model for survival.
Can

small

island

like

Mauritius

meet

the

challenges?

Mauritius faces major development challenges typical of middleincome Small Island

Developing States (SIDS) such as environmental vulnerability and exposure to natural
disasters, coastal zone erosion, endangered species, reduction in forest coverage, decrease in
fish stocks, and water shortages. In order to support Mauritiuss transition to a green
economy,

the

following

essential

components

have

been

identified.

Regulations and Standards include (i) improvement of regulatory compliance (ii)

development of a robust harmonized system of environmental standards, and (iii) negotiated
and voluntary agreements and industry self-regulation. Economic and fiscal policy
instruments, including taxation, pollution charges, public expenditure on infrastructure,
public procurement and market mechanisms, are powerful instruments for a transition to a
GE. These can be achieved by (i) greening public expenditure; (ii) enhanced sustainable
public procurement; (iii) set-up of an environmental fiscal reform (EFR) to create the fiscal
space to support environmental protection and conservation and (iv) set-up of tariffs and trade
policy

for

sustainably

produced

products.

Financing
Resources required to finance a transition to a green economy can be mobilized by smart
public policy and innovative financing mechanisms. The potential key sources of funding
include (i) the governments budget; (ii) earmarked funds from various sources; (iii) funds
generated by the economy; and (iv) donor programmes of assistance and loans from
international

financial

Institutional

and

policy processes

institutions.
to

support

reform

Policies will need to be complemented by a strengthening of institutions and integrated into

the national development strategy. An array of government processes and initiatives will be
required

to

facilitate

the

success

of

the

initiatives.

Education,

training

and

capacity

enhancement

Most important capacity-building issues are policy impact analysis, the need for integrated
planning, adequate enforcement of policy requirements and laws, the development of green
skills. Public awareness campaigns are essential to make green economy a social goal.
Three major recommendations for a green economy roadmap stem from the assessment and
stakeholder

consultations.

These

include:

(i) Investment opportunities to lower energy costs and water losses, waste management
costs, and measures to increase adaptive capacity and building of resilience to climate change
and

to

introduce

more

sustainable

consumption

and

production

patterns.

(ii) Enabling conditions for investments with a mix of policy instruments involving
framework conditions that mutually reinforce economic growth and the conservation of
natural capital; and policies targeted at incentivising the efficient use of natural resources and
discourage

pollution.

(iii) Capacity building to effectively implement policies involving institutional and technical
capacity in the areas of policy analysis, implementation, monitoring, and financial
management. Strategies are required to articulate clear quantitative targets and/or develop
sets of indicators to measure progress and assess synergies and policy trade-offs. Investment
in

innovation

is

also

essential.

The new governments program has recently been presented. The government says that
Sustainable and eco-friendly development ranks high on Governments agenda and is
expected to pave the way for a cleaner, greener and safer Mauritius. What must the
government

do

to

achieve

his

goal?

For the team, the Maurice Ile Durable concept has been a very good national initiative and
which has been highly commended internationally. Investments in priority sectors that would
enable the achievement of the sustainable and eco-friendly developments. PAGE is willing
to support Mauritius in key sectors, including sustainable tourism, green energy, waste and
organic agriculture. There are also a jobs, youth and skills agenda. In addition, the
programme mention new pillars of development for Mauritius, but does not mention
explicitly the green economy. PAGE hopes there is a way it can encourage the green economy

as a new pole of development, as well as more general integration of the environmental

agenda

as

solution

to

the

economic

priorities

of

the

country.

Investing in green economy can be costly at the beginning but there are costs savings in the
long

run

The green economy modelling using systems dynamics, which is included in the Green
Economy Assessment shows that green economy investments can generate annual savings in
the range of 2.6% of GDP, which can be allocated to consumption, savings and partly to
investment. Green investments can also help increase GDP by about 6% higher 2035,
compared

to

scenario

where

no

Mauritiuss

green

investments

are

made.
aim...

Mauritius aims to obtain 35% of its energy from renewable sources by 2025. Savings on fuel
imports originating from the investments in renewable energy and energy efficiency are
projected to be Rs 4.5 billion per year between 2014 and 2025 on average. As a result of
investment in renewable energy, fossil fuel emissions under the green economy scenario are
projected to be 18.2% and 20% lower than in the business as usual scenario in 2025 and
2035,

respectively.

About PAGE (Partnership for Action on Green Economy)]The Partnership for Action on
Green Economy (PAGE) was launched in February 2013 by the UN Environment Programme
(UNEP), the International Labour Organization (ILO), the UN Industrial Development
Organization (UNIDO) and the UN Institute for Training and Research (UNITAR), and lately
included the United Nations Development Programme (UNDP). PAGE is a response to the
Rio+20 outcome document The Future We Want, which recognizes green economy as a
vehicle for sustainable development and poverty eradication. PAGE aims to support 30
countries over the next seven years, in building national green economy strategies in order to
generate new jobs and skills, promote clean technologies, and reduce environmental risks and
poverty.
The PAGE Partners have already supported a number of green economy initiatives in
Mauritius including the Africa Adaptation Programme for Mauritius partly funded by UNDP,
the Green Jobs reports funded by ILO, the Climate Change Adaptation Programme in the
Coastal Zone of Mauritius and the on-going green economy assessment that will feed into an

action plan. Mauritiuss request to benefit the support of PAGE was acceded and announced
at the first global conference on PAGE held in Dubai last year. Five Mauritians (including
representatives from Government, Private Sector and UN officials) also participated at the
first PAGE Green Economy Academy held in Turin last October. PAGE supports Mauritius
through a series of analytical, capacity building and awareness raising activities.
A Green Economy Assessment is being finalised, which looks at the current policy
framework and measures being taken by the Mauritian government in relevant sectors. A
broader consultation process is being conducted to ensure that information in the green
economy assessment is as accurate as possible, and inputs and insights of all stakeholders are
incorporated into the document Green Economy Action Plan.