14th Meeting of the Mediterranean Commission on Sustainable Development

Milocer (Budva), 30 May – 1 June 2011

Moustapha Kamal Gueye

United Nations Environment Programme

UNEP Green Economy Report

• Investing 2% of global GDP into ten key sectors for a transition towards a low-carbon, resource-efficient economy.

Key findings• Investing in natural capital,

resource and energy efficiency can lead to:

– Higher rates of GDP growth over time and enhanced wealth

– Reduced poverty– Decent employment

A green economy can create employment• Agriculture - over the next decade, shifting

to sustainable agriculture could increase global employment by as much as 4%

• Forests - forest conservation and reforestation could boost formal employment in this sector by 20% by 2050

• Transport - improved energy efficiency across all transport modes combined with modal shift would increase employment by about 10% above business-as-usual by 2050• Energy - expansion of

renewables and investments in energy efficiency could generate employment that is 20% higher than business as usual by 2050

Opportunities for green jobs

Source: Green Jobs Report (UNEP 2008)

20.4 million jobs by 2030 in renewable energy

Turnover of the Environmental Goods and Services Sector in the EU - Actual: Euros 319 billion in 2008 (2.5%of GDP)

Key finding: A green economy stimulates growth, exceeding BAU over time…

GDP growth (%)

…while reducing ecological scarcities and environmental risks

Green Economy and Water– Under the green investment scenario, all the

MDGs for water are achieved in 2015, making a major contribution to poverty and water borne diseases.

Enabling conditions for a green economy

• Establish sound regulatory frameworks

• Remove harmful subsidies (e.g. fossil fuels, fisheries)

• Prioritize green investment

• Utilize market mechanisms and taxation

• Build capacity through training and technology transfer

Incentives for Eco-Innovation

UNEP – GREEN ECONOMY INITIATIVE

Source: OECD (2010), The Invention and Transfer of Environmental Technologies

Incentive for eco-innovation : CLEAR POLICY SIGNAL!

Financing the green economy

• Investment in greening key sectors is growing but needs further expansion

– Investments in clean energy were $180-200 bn in 2010, up from $46 bn in 2004

• Scope for increasing green investments from international finance institutions and national development banks - investing USD350 bn/yr

• Need for additional innovative mechanisms and tools – Green Climate Fund– Payments for Ecosystem Services (e.g.

REDD+)– Environment, social and governance

reporting

China – Solar Water Heaters

Economic Benefits

Economic Benefits

Industry/ Highly

profitable

Household/ save fuel costs ($50 - $500)

Environmental

Benefits

Environmental

Benefits

Reduce fossil fuel consumption

Save 348,000 tsce of fossil energy/ year

Social BenefitsSocial

Benefits

Reduce risk of CO poisoning, Rheumatoid

arthritis

600,000 employed

Tunisia – Clean Energy

Brazil – Sustainable Cities

Sustainable Planning Initiatives

UNEP – Green Economy Initiative

Thank You

UNEP Green Economy reporthttp://www.unep.org/greeneconomy/GreenEconomyReport/tabid/29846/Default.aspx