Download Mr. Lucas Assunção - Economic Commission for Africa

Green Economy: Trade and Sustainable
Development Implications
Lucas Assunção
Head of Branch
Trade, Environment, Climate Change
and Sustainable Development
UNCTAD
Green Economy Session
African Development Forum, Addis Ababa
13 October 2010
Green Economy and
sustainable development
– Stockholm Conference 1972 laid foundation of the
sustainable development (SD) concept, which simultaneously
addresses the economic, social and environmentally sound
development imperatives, then UNCED92, WSSD02,
UNCSD12
– GE should result in improved human well-being and reduced
inequalities, while not exposing future generations to
significant environmental risks and ecological scarcities. It is,
therefore, an enabling component of the overarching SD goal
– Potential Friction: Emphasis of traditional development is on
economic growth, while emphasis of GE is on the
environmental pillar of SD. The former not sustainable, while
the latter a novelty. Constructive doubt prevails….
Trade and
sustainable development
–
Trade by itself is not intrinsically good or bad for SD;
depends on scale effects, composition effects and
technology deployed, as well as on the distribution of
benefits in the society
–
Sustainable trade is more than the liberalization of
environmental goods and services (EGS)
–
It is not only about trading green goods and services,
sustainable trade is about ensuring that trade positively
contributes to a more leveled valuation among economic,
social, and environmental development objectives
Transition towards a Green Economy
– GE concept emerged post 2008 crisis as a potential new
development engine
– The green economy might have trade and sustainable development
implications. Key doubts: Does it mean steady zero growth? Does
it assume higher income and employment levels? Which sectors
stand to win or to lose? Door to Green protectionism? Standards?
Actionable subsidies at WTO?
– Several developing countries still do not perceive the green
economy as intrinsically sustainable; nor is it considered
automatically pro-development or pro-poor .
– Urgent need for a policy-relevant work to ensure paths to GE are
socially inclusive and contribute to economic and social
development
Export-led growth versus growth
under the green economy
–
Export-led development strategy assumes that there is an infinite and
unlimited demand for exports particularly from developing countries
–
Developing countries continue to rely heavily on the exports of primary
commodities. Only exception are the BASIC countries – Brazil, South
Africa, India, and China – with a shift towards a greater share of
exports of manufactured goods
–
Trade data shows BASIC countries with reduced reliance on primary
commodity exports and significant increase in manufacturing exports.
–
A global trade system focusing on SD should foster inclusion of all
economic actors and seek social and environmental benefits, leading to
a system not solely based on the principle of commercial reciprocity but
on the search for global SD solutions for global commons issues (CC)
Challenges for a green economy
– GE means mainstreaming green sectors of economy, changing
consumption patterns and internalizing environmental costs
– Implies significant new investments to (i) structurally change the
production function of the economy, (ii) transform infrastructure, and
(iii) spur investments for continuous technology development
– The SD challenge is to be able to produce more wealth, employment
and better social services, coupled with a lower absolute use of natural
resources, greater reliance on less carbon-intensive and renewable
energy, and without causing regional displacements due to uneven
endowment of natural resources
– Both SD and GE require well-targeted policies to address market
failures (CC) and bolder and more ambitious public policy response
that would speed up the transitioning to GE
Concluding remarks
– Trade is an important tool in a strategy leading to sustainable
development. Trade should “grease” the wheel of a GE and move to
a GE should not “clog” channels of trade.
– Export-led growth strategy alone will not automatically provide
incentives to developing countries to move towards GE and SD
– Need for an integrated approach to economic growth and SD, defining
what role should trade and trade rules play in the transition to a GE
– Prospects for a GE to become basis for a new development push will
depend on how its benefits are perceived and how the burden of the
transition costs is ultimately shared (climate finance is essential!!)
– Illustrative real cases of spending wisely towards a GE would help
– UNCTAD Expert Meeting on The Green Economy: Trade and
Sustainable Development Implications, 7-8 October 2010, Geneva,
Switzerland and publication on the green economy late 2010
Thank you
[email protected]
www.unctad.org/climatechange