14 th Meeting of the Mediterranean Commission on Sustainable Development Milocer (Budva), 30 May – 1 June 2011 Moustapha Kamal Gueye United Nations Environment Programme

UNEP Green Economy Report Investing 2% of global GDP into ten key sectors for a transition towards a low-carbon, resource-efficient economy. Key findings Investing in natural capital, resource and energy efficiency can lead to: –Higher rates of GDP growth over time and enhanced wealth –Reduced poverty –Decent employment

A green economy can create employment Agriculture - over the next decade, shifting to sustainable agriculture could increase global employment by as much as 4% Forests - forest conservation and reforestation could boost formal employment in this sector by 20% by 2050 Transport - improved energy efficiency across all transport modes combined with modal shift would increase employment by about 10% above business-as- usual by 2050 Energy - expansion of renewables and investments in energy efficiency could generate employment that is 20% higher than business as usual by 2050

Opportunities for green jobs Source: Green Jobs Report (UNEP 2008) 20.4 million jobs by 2030 in renewable energy 6. 3 million jobs by 2030 Source: Greenpeace and EPIA Solar PV 12 million jobs by 2030 Source: Greenpeace and GWEC Biofuels 2.1 million jobs by 2030 Source: Worldwatch Institute (2006) Wind power Turnover of the Environmental Goods and Services Sector in the EU - Actual: Euros 319 billion in 2008 (2.5%of GDP)

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

…while reducing ecological scarcities and environmental risks

Green Economy and Water –Under the green investment scenario, all the MDGs for water are achieved in 2015, making a major contribution to poverty and water borne diseases.

Enabling conditions for a green economy Establish sound regulatory frameworks Remove harmful subsidies (e.g. fossil fuels, fisheries) Prioritize green investment Utilize market mechanisms and taxation Build capacity through training and technology transfer

Incentives for Eco-Innovation UNEP – GREEN ECONOMY INITIATIVE Source: OECD (2010), The Invention and Transfer of Environmental Technologies Incentive for eco-innovation : CLEAR POLICY SIGNAL!

Financing the green economy Investment in greening key sectors is growing but needs further expansion –Investments in clean energy were $ bn in 2010, up from $46 bn in 2004 Scope for increasing green investments from international finance institutions and national development banks - investing USD350 bn/yr Need for additional innovative mechanisms and tools –Green Climate Fund –Payments for Ecosystem Services (e.g. REDD+) –Environment, social and governance reporting

China – Solar Water Heaters Economic Benefits Economic Benefits Industry/ Highly profitable Household/ save fuel costs ($50 - $500 ) Environmental Benefits Environmental Benefits Reduce fossil fuel consumption Save 348,000 tsce of fossil energy/ year Social Benefits Social Benefits Reduce risk of CO poisoning, Rheumatoid arthritis 600,000 employed

Tunisia – Clean Energy $1200m Energy savings from Plan Solaire 2004 Renewable Energy Law Energy efficiency, Wind, Solar Thermal (Prosol) Economic Benefits $1200 million savings in energy bill s= 9.6% of primary energy consumpti on Energy gains to grow to 20% of total energy consumption in 2011 New renewable energy market and job creation Policy to transform energy 2004 Renewable energy law Law was amended in February 2009 support clean electricity by industrial sector PROSOL: As of 2009, Tunisian banks have provided loans totaling over $12 million – five times the $2.4 million cost of the programme

Brazil – Sustainable Cities Population increase in a sustainable way 361,000 (1960) – 1,797,000 (2007) Transport Planning City Management Urban Planning Sustainable Planning Initiatives UNEP – Green Economy Initiative Economic Benefits Per capita loss from severe congestion times less than other cities Annual fuel losses (per capita) times less than others Fuel usage is 30 percent lower than other cities Policy to transform city and industry Flood control -> turned vulnerable areas into parks Park with buses and bi-cycle path (ecological asset + green infrastructure) Curitiba Industrial City (CIC) 700 companies, 50,000 direct jobs, 150,000 indirect jobs

Thank You UNEP Green Economy report