Citola Blog
Investing US $1.3 trillion in Green Sectors would deliver long-term stability to Global Economy
A UN Environment Programme (Unep) report has suggested that investing US $1.3 trillion (£800bn) annually in green sectors would deliver long-term stability to the global economy. And that a green economy model would deliver higher annual growth rates within the next 5 to 10 years then under the current “business-as-usual” scenario.
Unep defines a "green economy" as one that results in "improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities." The definition outlines the value of Natural Capital or the dividend society receives from natural ecosystems.
The report outlines that spending about 2% of global GDP would kick-start a "low carbon, resource efficient green economy." When it came to investing 2% of GDP, the UNep report recommended a number of strategic investments that include:
- $15bn on forestry while receiving "important knock-on benefits for combating climate change";
- $108bn on supporting sustainable agriculture and land-use change;
- $134bn on the infrastructure sector including energy efficiency and sustainability measures;
- $110bn improving commercial fisheries (i.e to reduce unsustainable fishing practise); and
- $110bn on both water and waste treatment and recycling
In relation to forestry, a key message of the report outlines:
Forests are a foundation of the green economy, sustaining a wide range of sectors and livelihoods.
Forest goods and services support the economic livelihoods of over 1 billion people. While timber, paper and fibre products yield only a small fraction of global GDP, public goods derived from forest ecosystems have substantial economic value. Forests sustain more than 50 per cent of terrestrial species, they regulate the global climate through carbon storage, and protect watersheds. The products of forest industries are valuable, not least because they are renewable, recyclable, and biodegradable. Forests are thus fundamental to the earth’s “ecological infrastructure”.
The full summary of conclusions includes:
- Investing just 2% of global GDP into ten key sectors can kick-start a transition towards a low-carbon, resource-efficient economy;
- Greening the economy not only generates growth, and in particular gains in natural capital, but it also produces a higher growth in GDP and GDP per capita;
- A green economy values and invests in natural capital (i.e. Forestry);
- A green economy can contribute to poverty alleviation;
- In a transition to a green economy, new jobs will be created, which over time exceed the losses in “brown economy” jobs;
- Prioritizing government investment and spending in areas that stimulate the greening of economic sectors is on the critical path;
- The scale of financing required for a green economy transition is substantial, but an order of magnitude smaller than annual global investment;
- The move towards a green economy is happening on a scale and at a speed never seen before;
- It is expected to generate as much growth and employment – or more – compared to the current business as usual scenario, and it outperforms economic projections in the medium and long term, while yielding significantly more environmental and social benefits.
As was commented on Twitter
As was commented on Twitter somewhat sarcastically, "only $1.3 trillion" ... I guess the more you look at $1.3 trillion for green sustainability the more you realise the public sector may need a new business model.
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