Green Economy for Africa’s Structural Transformation The African Economic Conference October 2011, Addis Ababa 1 Desta Mebratu UNEP Regional Office for Africa

2 Presentation outline 1.Why structural transformation? 2.Structural transformation and Green Economy 3.Africa and Green Economy

3 1. Why structural transformation? Source: Mebratu D., 2000, Strategy Framework for Sustainable Industrial Development in Africa, Lund University.

The existing fundamentals and global trends strongly indicate structural transformation of the global economy as inevitable The only question in front of us is whether we smartly design and manage the pace of this structural transformation or be subject to its dictate Green Economy is an innovative response framework to this structural transformation 4

The required epistemological shift 5 The triple helix of economic, social and environmental dimensions as the DNA of any national economic system. Mebratu D., 1996, Sustainability as a scientific paradigm, MSc Thesis, Lund University

6 2. Structural transformation and Green Economy Source: UNEP, 2010, Decoupling Natural Resource Use and Environmental Impacts from economic growth

7 Elements of Decoupling Strategy Resource decoupling: through Incremental efficiency gains driven by the ‘price- structure’ of the economy are necessary Impact decoupling: through systems innovation (both social and technological) aimed at building the transformational infrastructure (both natural and physical) are vital Integrated application of incremental improvements and systems innovation

Sustainability-oriented innovation as a key 8 Progression to Green Economy

9 Decoupling potential and challenges Countries having different decoupling potential and challenges depending on their level of (unsustainable) development Developed countries having higher challenges on impact decoupling due to the significant infrastructural lock-in inertia African countries having higher challenges on resource decoupling due to their resource dependency and lack of technology and know- how

10 3. Africa and Green Economy Environmental challenges in Africa

11 High resource potential

12 Human Development Index (HDI) and Ecological Footprint, 2005

Factors favoring Green Economy in Africa Technology beneficiary: availability of matured, efficient and sustainable technologies (hard and soft) Low lock-in inertia : due to low level of development of physical and institutional infrastructure that is unsustainable Better affinity to sustainability: due to a culture of living in harmony with nature & lower level of overconsumption. 13

Conditions for transformational change in Africa i.Re-orienting Macro-economic policies towards building sustainable physical and institutional infrastructure ii.Promoting innovative development planning based on sustainability principles at regional and local level iii.Ensuring adaptive and inclusive development governance to promote social innovations at all levels iv.Greening development cooperation in Africa (both quantitatively and qualitatively) 14

15 Statement from African Ministers of Finance, Planning and Economic Development “We will play our part to spearhead the transition to a green economy in Africa, inter alia, by supporting the necessary systemic and institutional transformations to ensure that green economies contribute to sustainable development and poverty reduction objectives, including improving welfare and the quality of life of Africa’s citizens. We call on all development partners to accompany Africa in this journey” Addis Ababa, March 2011

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