How has Rio +20 promoted future national level efforts to move towards greener and fairer economic models? 17 September 2012, Stockholm Tom Bigg, IIED

Real world context for GE, Rio Knock on effect of the Eurozone crisis 2.Push for reform of financial systems 3.Impacts of climate change and unpredictability (increasing food prices etc.) 4.Shale gas becoming widely available and cheap due to hydraulic fracturing (‘fracking’) 5.Financial crisis accelerating the shift in economic power to emerging economies

About the Rio Summit 3 1.Formal agenda focused on two broad themes: Green economy in the context of SD and poverty eradication Institutional framework for SD 2. New voices, perspectives evident – but participation was uneven 3. Many parallel strands to Rio – not all about the official negotiations

4 5 Fault lines on GE in Rio 1.Putting a price tag on nature: protection or commodification? Differing views ALBA Group (Latin America) - European Union 2.Interests of OECD / emerging economies / LDCs on GE not aligned Least Developed Countries Group Middle Income Countries Civil society in emerging economies 3.Top down vs. bottom up models Caribbean Action Learning Group on GE Global Green Growth Initiative

5 Fault lines on GE in Rio (2) 4. SD Goals vs. post 2015 framework for development assistance Potential for new aid narrative (however, risks undermining poverty reduction, core development objectives) Focus on universality in SDGs 5. What’s in a name: green economy or green growth? Mckinsey Brazilian govt

5 key Rio Commitments: 6 The Future We Want. 1.Role of co-operatives and micro enterprises 2.Job creation 3.Plurality of different GE approaches Voluntary Commitments. 4.50:50 Action on Natural Accounting campaign (World Bank) Country Commitments. 5. Gabarone Declaration

… and 4 Rio failures: 7 1.No agreement on constraining or limiting the unsustainable activities of corporations 2.Resistance to any acknowledgement of planetary boundaries or ecological limits 3. Process was flawed – typified by ‘take it or leave it’ text dropped in by Brazilian govt in place of negotiated agreement 4.Outcome document failed to establish SD as the basis for solutions to the current economic, environmental and social crises

Implications for development 8 co-operation 1.OECD work on green growth in developing countries – draft available and consultation underway. 2.Cautious interest from members of the LDC Group  Against a single approach  Must lead to short term mainstream improvements  Long term resilience and resource security  Improve equity  Sustainable development remains the goal – GG a means to an end, but must be well governed

What kinds of policies have helped 9 GG in developing countries? Many proven/promising mechanisms & instruments:  Focus on governance of public expenditure and markets  Others create green incentives for investors, business and households

e.g. Government expenditure review 10 Routine Qs for all departments:  Expenditure on env?  % return on env investments?  Sensitivity to env risks?  Can env revenue be increased? Tanzania review led to env budget increase by 500%

e.g. Sustainable public procurement 11 Public procurement 25-30% of GDP in LICs Govt green procurement can lead markets Risk: initial lack of experience and suppliers can lead to monopoly and vested interests

Possible GE research and action agenda 12 What research and analysis is particularly needed in the near future? More context specific assessments Connections with other linked research agendas and policy regimes Dialogue and collaborative research in particular developing countries South-South sharing of experience and tools Increased focus on informal economy Explore sectors / opportunities with high potential for poor rural and urban dwellers that also produce environmental benefits

Transforming economies and societies 13 What broader framework for progressive actors to use GE to achieve major change? Listen more and impose less Inclusion and equity Value changes Structures and systems Macroeconomic research, case-making and policy options Green financing models Green accounting and accountability

Further resources