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Green Growth Strategy

Defining Green Growth30 May 2011

Nathalie GIROUARDGreen Growth Strategy Coordinator, OECD


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The Green Growth Strategy

Requested by Ministers of Finance, Economy & Trade, at the 2009 OECD

Ministerial Council Meeting (MCM).

Multi-disciplinary inter-governmental process, involving 25 OECD

Committees: delegates from Ministries of Finance, Economy,

Environment, Agriculture Development Co-operation, Industry, etc.

Key deliverables in May 2011:

Synthesis Report: Towards Green Growth

Toolkit: Tools for delivering on green growth

Communication from the Freedom of Investment Roundtable

Indicators Report: Towards Green Growth: Measuring Progress OECD

Indicators


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Towards Green Growth: structure (1)

Reframing growth

Green growth dividends: fostering new markets and activities;

raising resource efficiencySystemic risks and imbalances

The need for

green growthstrategies

Policy design considering cross-country differences

Market instruments: taxes and permits, subsidies

Regulations and the regulatory environment

Measures for enabling changes in consumer behaviour

Innovation policies

Investing in infrastructure: energy, transport, water

Institutional and governance arrangements

Policyframeworkfor greengrowth

Ensure smooth and just labour market transition

Address distributional concerns of firms and households

Promote international co-operation for green growth

Promotingthe transition

Greener

growth


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Towards Green Growth: structure (2)

Measurement framework and principles

Emerging messages: relative but not absolute decoupling

Other measurement issues, e.g. availability ofinternationally comparable data

Measuringprogress

Mainstream green growth policies in government policies,

e.g. green growth toolkits

Identify country-specific policy priorities, e.g. countryreviews, GG reports for emerging and developingeconomies

Issue-specific and sector-specific studies, e.g. food andagriculture, energy sector, water, etc

Delivering ongreen growth

Greener

growth


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What is green growth? (1)

Green Growth and Sustainable Development: Sustainable development provides important context for green growth

Green growth as a subset of sustainable development: narrower; an operational policy

framework to help achieve concrete, measurable progress

Green growth focus on fostering innovation, investment and competition that can give

rise to new sources of economic growth

Green growth strategies need to pay attention to social issues and equity concerns as a

result of greening the economy

Green growth means fostering economic growth and development while ensuring that natural

assets continue to provide the resources and environmental ervices on which our well-being

relies. It catalyses investment, competition and innovation which will underpin sustained

growth and give rise to new economic opportunities.


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Decoupling trends CO2 and GHG emissions

1. Real net national income for OECD, and real gross national income for BRIIC.

Source: OECD-IEA, UNFCCC

What is green growth? (2)


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Green growth can open up new sources of growth

Enhanced productivity Innovation

New markets

Boosting confidence

Macroeconomic stability

Green growth can reduce risks of negative shocks to growth from:

Resource bottlenecks

Imbalances in natural systems


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Key environmental challengesAir pollution, water stress, biodiversity loss, GHG emissions


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The essentials of green growth policies

General points

Governments need to draw from a wide menu of policies

Involve a mix of policy instruments which differ across countries

Central element is to put a price on pollution or on the over-exploitation of scarce

natural resources

Criteria for choosing the policy mix

Cost-effectiveness

Effectiveness in stimulating innovation and technology adoption

Effectiveness in ensuring adoption and compliance incentives


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A framework for green growth indicators

Economic activities (production, consumption, trade)

Consumption

Households

Governments

Investments

Outputs Inputs

Energy & raw materialswater, land, biomass, air

Pollutantswaste

Policies,measures,

opportunities

TaxesSubsidies,

Regulations

InvestmentsInnovation

TradeEducation &

training

4

Production

Multi-factor

productivity

Recycling,re-use,

re-manufacturing,substitution

IncomeGoods& services

Residuals

LabourCapitalResources

2

13

The natural asset baseResourcefunctions

Sinkfunctions

Amenities, health& safety aspects

The socio-economic context and characteristics of growth

1: Indicators monitoring environmental and resource productivity2: Indicators monitoring the natural asset base3: Indicators monitoring the environmental quality of life4: indicators monitoring economic opportunities and policy responses


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Timeline Deliverables

2011 MCM

Green Growth Strategy Synthesis Report Green Growth Indicators Report

2011/2012

Green growth monitoring work: green growth indicators, further green growth

chapters in Economic Surveys and Environmental Performance Reviews

Green Growth Reports for Emerging Economies

Report on Green Growth and Developing Countries

A Green Growth Strategy for Food and Agriculture (preliminary report) Joint IEA/OECD Green Growth Study for Energy

Monitoring green investment protectionism concerns

Report on Green Innovation

Green Growth and Biodiversity

Green Cities Programme

Project on Green Financing

Green Growth and Water

Project on green financing

Environmental regulations and growth

Green fiscal revenue

Job potential of a shift towards a low-carbon economy

Directions for future work


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Green Growth Reports on Partner Countries(Brazil, China, India, Indonesia, South Africa)

Europe2020

AgendaInterimReport

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Green GrowthRoundtable

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UN COP16

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Rio +20

201205/11

SynthesisReport &Indicators

Report

Mainstreaming green growth in OECD workprogram

Country Economic Surveys and EnvironmentalPerformance Reviews(Green Growth chapters)

The Timeline

OECD GreenGrowth

Workshop

02/11


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Join the discussion!

International Green GrowthDialogue online community

A secure site for sharing yourperspectives and initiatives, and

discussing the development ofthe Green Growth Strategy.

To register, email your contactdetails to:

[email protected]
mailto:[email protected]:[email protected]

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