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Monitoring the Transition Towards a Green Economy Seminar on Green Economy and Official Statistics, Seoul, 6 July 2011 Fulai Sheng Head, Research and Partnerships.

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Presentation on theme: "Monitoring the Transition Towards a Green Economy Seminar on Green Economy and Official Statistics, Seoul, 6 July 2011 Fulai Sheng Head, Research and Partnerships."— Presentation transcript:

1 Monitoring the Transition Towards a Green Economy Seminar on Green Economy and Official Statistics, Seoul, 6 July 2011 Fulai Sheng Head, Research and Partnerships Unit Economics & Trade Branch Division of Technology, Industry and Economics UNEP

2 A Green Economy is one that results in increased human well- being & social equity, while significantly reducing environmental risks & ecological scarcities. What is a Green Economy?

3 In Other Words… A Green Economy is one whose growth of income and jobs is driven by investments that reduce carbon emissions and pollution, enhance efficiency and sustain biodiversity and ecosystem services.

4 Why a Green Economy? It was born out of multiple crises and accelerating resource scarcity. A Green Economy is the economic vehicle for sustainable development. A Green Economy has strategies to end the persistence of poverty. It is a new economic paradigm that can drive growth of income and jobs, without creating environmental risk.

5 China - investing US$ 468 billion in greening key sectors by 2015; >double past five years. Barbados - National Strategic Plan includes green economy as one of its six goals by South Africa - launched a process to develop a national Green Economy Plan. Indonesia - national development plan has a goal of a green and everlasting Indonesia by Brazil – State of Sao Paulo developed a green economy plan with targets and indicators. Green Economy in Action

6 UNEPs Green Economy Report Investing or reallocating just 2% of global GDP in 10 key sectors can kick-start a transition to a low- carbon, resource-efficient economy.

7 BAU vs. a Green Scenario Green Scenario 2 % of GDP or 1.3 trillion USD per year invested in greening 10 key sectors from Policies adopted to help reduce harmful CO2 emissions and subsidies, and incentives created to increase investments, i.e., in natural capital and energy efficiency. Business as Usual Current trends assumed to continue with 2% of GDP per year allocated in a BAU across 10 key sectors from Policies continue to support investment in non-green infrastructure, harmful fossil fuel and fishing subsidies, etc.

8 Key Findings Investing in natural capital, resource and energy efficiency can lead to: –Higher rates of GDP growth over time and enhanced wealth –Natural capital stocks –Reduced poverty –Decent employment

9 Results by 2050 … While preserving NATURAL CAPITAL GREEN ECONOMY can… … outperform BAU …alleviate poverty … ensure economic growth …create employment

10 UNEPs Role in Monitoring Progress Facilitating and catalytic: what are important issues Work in partnership: UNSD, OECD, WB, EUROSTAT, ILO, etc EMG Emphasize user perspective policy Collaborate with developing countries and promote capacity building

11 Some Important Issues National tailoring vs International comparisons Relevance vs Data availability Measured vs Modelled indicators

12 Basic framework for monitoring the transition 1. Green Investments, Jobs and Sectors Investment (monetary) Employment (jobs) Output (monetary) Key Sectors Agriculture Buildings Cities Energy Forests Fisheries Manufacturing Tourism Transport Waste Water 2. Decoupling Impacts & Resource Productivity GDP per unit… GHG emissions Energy use Water use Material use Waste generation Economy- wide Selected key sectors 3. Aggregate indicators of progress and well-being e.g. Adjusted net savings, expanded wealth estimates, indices of well-being, poverty reduction, Genuine Progress Indicator, etc.

13 Green Sectors, Jobs … Economic variables Economic sectors Environmental domains Type of output Turnover Value added Employment Exports Env. specific & connected services Connected goods Adapted goods End of pipe technologies Integrated technologies Environmental protection Resource management Corporations General Government NACE 2-digits levels Administrative levels Different levels of detail for presenting data in EGSS (EUROSTAT)

14 UK market value and employment, LCEGS sector, 2008/09 SectorMarket value (£ billion) Total employed (thousands) Environmental22192 Renewable energy31257 Emerging low carbon53432 Total Source: Innovas 2010

15 … & Green Investments

16 Concluding Remarks Coordinated efforts, but flexibility Importance of economic statistics on the green economy Recognize value of SEEA accounting framework for statistics and indicators at national level To respond to policy makers urgent needs, explore new approaches


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