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ED Seminar: SDNs Green Growth Report 23 February 2012, 15:00-16:30, MC 2-800 Marianne Fay, Chief Economist, SDN
Green growth is
economic growth that is environmentally sustainable.
It is not a new paradigm, but aims to operationalize sustainable development by enabling developing countries to achieve robust growth without locking themselves into unsustainable patterns. Green growth policies need to focus on what is required in the next 510 years to avoid lock-in and irreversible environmental damage.
Greening growth
1. Necessary
2. Efficient 3. Good 4. Affordable 5. But challenging 6. The way forward: tailored strategies that promote smart behavior and tackle upfront financing needs
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1. Necessary
MAKING DEVELOPMENT SUSTAINABLE REQUIRES GREENING GROWTH
Economic
Sustainable development
Social
Environmental
2. Efficient
CURRENT GROWTH PATTERNS ARE NOT ONLY UNSUSTAINABLE, THEY ARE INEFFICIENT
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Y = f (A, K, L, E) L)
Bolstering resilience
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Promoting innovation
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3. Good
GREEN GROWTH IS MOSTLY GOOD GROWTH POLICY (BUT NO SUBSTITUTE AND TRADE-OFFS HAVE TO BE MANAGED)
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But no substitute
Green jobs potential depends on labor market structure and constraints:
Business environment in South Africa where unemployment is around 24%
Replacing fuel subsidies with better targeted safety nets helps the poor
Average distribution of energy consumption subsidy benefit across 20 countries
The cost to the budget of transferring $1 to the poorest 20% of the population via gasoline subsidies is $33 17
4. Affordable
BECAUSE MUCH OF WHATS NEEDED PAYS FOR ITSELF AND INNOVATION HELPS
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Energy
Land Steel 20
Water
Environmental regulations: - lead to innovation Stringent air - cost less than expected pollution regs in CA results in - can improve productivity refineries more - impacts vary thatn productive across in rest industries of US
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5. But challenging
POLITICAL ECONOMY, ENTRENCHED BEHAVIORS, AND THE NEED FOR SPEEDY ACTION
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Synergies
(attractive regardless of income, provided that financial mechanism can be found)
Drinking water and sanitation Lower-carbon, lower-cost energy supply Loss reduction in supply Demand management Land use planning Public urban transport Fisheries catch management 27
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Innovative finance:
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ii. help countries design and implement policies to move toward a green economy through four main sets of activities:
Applied Research
Global Dialogue
GREENING GROWTH
A Path to Sustainable Development