Download Green Growth and Water Raekwon Chung Director Environment and Development

Green Growth and Water
Raekwon Chung
Director
Environment and Development
Division, UN ESCAP
Vicious cycle/Maximization of Short
Term Quantity of Growth (GDP)
Human Capital
Worsening social exclusion
Low labor productivity
Widening income gap
Exploiting
Natural Capital
Low economic
Dynamism/ resilience
High economic vulnerability
High resource intensity
Low resource efficiency
Ecological unsustainability
Undermining
economic vitality
Virtuous cycle/Pursuing Long Term
Quality of Growth (GDP)
Human Capital
High labor productivity
Social inclusion
Equitable income distribution
Natural Capital
High resource efficiency
Low resource intensity
Ecological sustainability
Investing
High economic
Dynamism/ resilience
Low economic vulnerability
Reinforcing
economic
vitality
Sustainable Development Model: Purple & Green
Growth have to go hand in hand (integration of 3 pillars)
GG: new paradigm for system change
 Green Growth: shifting from intensive to
energy/resource/carbon/water Efficient pattern
 Different pattern of ecological footprint: Japan/4ha,
Europe/6ha, US/9ha per capita
 Green Growth: process to arrive at Green Economy
 GG:
trade-off to synergy
Time Gap: Long Term vs Short Term
Efficiency Gap: Economic Efficiency
vs Ecological Efficiency
Price Gap: Market Price vs Real Value
 Fundamental Transformation of Economic System
Invisible Structure: Fiscal Policy, lifestyle, regulations,
Visible Structure: Physical Infra, urban design, Water infra
 Leading Role of public sector
Closing Time & Price gaps
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Fundamental reason for failure of
investing in natural capital
Time gaps - gap between investments in
returns from natural capital and other
capitals: expand the time horizon of
development planning to long term
Price gaps – gap between the ecological
price & market price; introducing fiscal
reform and ETR; double dividend
Strategy for SD/SDG
Ecological tax reform: Double Dividend /
Revenue Neutrality
Powerful tool for GG/GE and sustainable development
• Double Dividend of improving ecological efficiency and increasing
Employment and Growth simultaneously (GE) is possible.
• Provides opportunities for financing the “Goods” – revenue recycling into
socially and environmentally desirable investments
- Taxing the “Bads” not the
“Goods”
- Shifting investments to
natural & human capital
- Revenue neutrality supports
political acceptability
Well-design environmental tax reforms can have
positive impacts: carbon tax combined with
Income, Consumption, Corporate Tax Reduction
It could help some
Southeast Asian countries
to escape the middleincome trap and achieve
high-income status.
Environmental tax reform for low carbon green growth: major findings and policy
implications from a multi-regional economic simulation analysis (UNESCAP 2012):
US$10 ton carbon tax with reduction of income, consumption, corporate tax
Low-carbon green growth roadmap
& e-learning facility
ESCAP Low Carbon Green
Growth Roadmap - 5 tracks
http://www.unescap.org/e
sd/environment/lcgg/
1. Improving the quality of growth and
maximizing net growth
2.Changing the invisible structure of the
economy: Closing the gap between
economic and ecological efficiencies
3.Changing the visible structure of the
economy: Planning and designing ecoefficient Infrastructure
4.Turning green into a business opportunity
5. Formulating and implementing low carbon
development strategies
63 fact sheets, 51 case studies &
8 policy papers
Online e-learning facility
Low Carbon Green Growth Roadmap;
Fundamentals of Green Growth; Liveable
Cities;
Sustaining Growth
http://www.greengrowth-elearning.org/lms/
Applying GG for Water
 Water: core of Natural Capital
 Shifting from short term Exploitation to long term
Investment in Water infra: closing time gap
 Improving Water Efficiency both in water Supply
and Consumption: closing price/efficiency gap
 Shifting from trade-off to synergy between Water
and Economic Growth;
 Re-balancing the role of public and private sector
 Any success story? Costa Rica, tax on fossil fuel
invested in Forestry/Water resources  Ecotourism  high quality Economic Growth,
“Green growth is not a separate strategy from long-term
economic growth and higher levels of well-being, but
rather is a means to achieve them.”
OECD(2014), Towards Green Growth in Southeast Asia
Development in Southeast Asia is
leading to natural capital depletion
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Natural capital is being depleted at
different rate across ASEAN countries
This rate of depletion across the region
prove unsustainable development
Natural capital has been depleted at an
increasing rate in ASEAN countries
Percent GNI, yearly average 2001-2012
Total: Net forest depletion, Energy depletion and Mineral depletion
Green growth objectives in Southeast Asian
countries’ national development plans
Cambodia
Indonesia
Lao PDR
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam
Resilience to natural disaster
s/adaptation
to climate change
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Sustainable forest and land
management
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Renewable energy
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Air pollution ,water pollution
and waste
Water
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Energy security
Yes
Yes
No
Yes
No
Yes
Yes
Yes
Yes
Food security
Yes
Yes
Yes
No
Yes
Yes
Yes
No
Yes
Sustainable fossil fuel and
minerals extraction
No
No
Yes
Yes
Yes
Yes
No
Yes
Yes
Green technology
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Energy efficiency
No
Marginal
Margin
al
Yes
Yes
Yes
Yes
Yes
Yes
Climate change mitigation
No
Yes
No
Yes
No
No
No
No
Yes
Green growth is increasingly integrated
into ASEAN national development plans
Lao PDR Strategy on
Climate Change of the
Lao PDR (2010)
Myanmar National
Sustainable
Development
Strategy of Myanmar
(2011)
Thailand National
Strategy on Climate
Change 2008-2012
Thailand Climate Change
Master Plan 2012-50 ;
National Strategy on
Climate Change
Malaysia National Green
Technology Policy(2009)
National Policy on Climate
Change (2009)
Indonesia National Action
Plan Addressing Climate
Change (2007)
Indonesia Climate Change
Sectoral Roadmap(2009)
The National Action Plan for
Greenhouse Gas Emissions
Reduction(2011)
Vietnam National Green Growth Strategy for the period 2011-20 with a
vision to 2050
National Action Plan on Green Growth for Period 2014-20
Sustainable Development Strategy for 2011-20
National Strategy on Climate Change for 2011-20
Cambodia The National Green Growth Roadmap (2009)
Climate Change Strategic Plan 2014-23
Singapore Singapore
sustainable Development
Blueprint (2009)
National Climate Change
Strategy (2012)
Philippines National Framework Strategy
on
Climate Change 2010-22
National Climate Change Action Plan
2011-28
Green growth is not a separate strategy from long-term
economic growth, but rather is a means to achieve
them
Vietnam
•National Green Growth Strategy for the period 2011-20 with a vision to
2050
•National Action Plan on Green Growth for Period 2014-20
•Sustainable Development Strategy for 2011-20
•National Strategy on Climate Change for 2011-20
•Environmental Protection Tax Law
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Doubling GDP per capita compared to 2010 levels
Reducing energy consumption per unit of GDP by 1.5-2% per year
Reducing the intensity of greenhouse gas emissions per unit of GDP
by 8-10%.
Amount of 16-20% with international support
Thailand
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National Strategy on Climate Change 2008-2012
Thailand Climate Change Master Plan 2012-50 ; National Strategy on Climate Change
Pollution Management Plan (2012-2016)
Inter-ministerial Coordinating Board for implementation of the Green Growth Strategy
A long term strategy laid out in the 20-year Energy Efficiency Development Plan 2011-2030
Economic Instruments for Environmental Management Act
•Under the assumption that the annual economic growth rate will be at 4.2% in average
•The cumulative final energy saving up to 2030 will be an annual average of 14,500 ktoe, and avoided CO2 emission an
annual average of 49 million tons.
•About 50 million tons of avoided CO2 emission can be achieved.
•Overall, the environmental quality improvement and a positive impact on the macroeconomic arena can be expected
Removing fossil fuel energy subsidies is
integral to green growth
•In June 2013, Indonesia increased petrol prices by
44% and diesel by 22% to cut its annual subsidy bill
of $20 billion
•Promoting natural gas use in transport to reduce oil
subsidies
•Continuing successful kerosene to LPG conversion
program , which started in 2007
•Electricity tariffs are set to rise by 15% in 2013
(based on quarterly increase for all but consumers
with the lowest level of consumption
•Set a target for clean cooking to 85% by2015 from
only 45% today (OECD/ IEA 2013)
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Generating a permanent real GDP gain of between 0.4% and 0.7% by 2020.
Reducing Indonesian greenhouse gas (GHG) emissions by between 7.9%8.3%
Reducing CO2 emissions from fuel combustion by 10.8% and 12.6% by 2020
Expecting other environmental co-benefits such as improvements in air quality