Trade and the Green Economy

Trade and Green Economy United Nations Environment Programme Dr. Moustapha Kamal Gueye Joint UNECA-UNEP-ICTSD event UN Conference on Sustainable Development (Rio+20) Regional Preparatory Meeting for Africa 19 October 2011 ~ Addis Ababa, Ethiopia

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

A green economy stimulates growth, exceeding BAU over time… GDP growth (%)

…while reducing ecological scarcities and environmental risks

Composition of exports in (monetary units) by world regions, 2006

Share of NR in total value of Africa’s exports Source: Aryeetey

Raw material extraction & trade

Resource curse of leapfrogging? Growing faster than ever before Diversification, resource sector down to 24% But primary resources still 80% of exports Prices are too low Resource rents not properly invested Decoupling helps Africa to rethink development Source: UNEP, International Resource Panel, 2011

Green economy and trade: Linkages Trade effects Trade-related concerns Trade opportunities Trade tools Development needs

What does a green economy mean for trade in Africa? How might countries’ Green Economy strategies affect trade with and between African countries? What effects might a transition to a Green Economy have on Africa’s key economic sectors? –Agriculture –Natural resources –Services –Manufacturing

Enabling Africa’s transition to a green economy What policies and tools can facilitate a Green Economy transition in Africa? –Standards –Investment How do we achieve a Green Economy in an efficient and equitable manner? –Which actions should be prioritized?

Uganda – Sustainable agriculture 48-68% less emissions and carbon sequestration The global market: 97% of buyers in OECD countries; 80% of producers in Africa, Asia and Latin America A $ 60 bn market growing at 10% per year 185,000 ha, 45,000 farmers (2004) 60%/ 359% increase 296,203 ha/ 206,803 farmers (2008) US$ 22.8 mil (2007/8) US$ 6.2 mil (2004/5) US$ 3.7 mil (2003/4)

Role for the international community How could the multilateral trade framework support Africa’s transition to a Green Economy? Trade-related capacity building and development aid –What types of international support are most desirable?

Thank you