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TRACK 4:TURNING GREENINTO A BUSINESSOPPORTUNITY

Lorenzo SantucciEnvironmental Affairs OfficerEnvironment and Development Division

East Asia Low Carbon Green Growth Roadmap ForumSeoul, 25-26 April 2012

• System change for green growth will providesignificant opportunities for businesses

• But government need to create the enablingenvironment

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Green business is already growing

Green sectors are among the most dynamicWorld market of environmental goods and servicesUS$4.7 trillion in 2008 (5% annual increase)Asset finance for clean energy projects reachedUS$41.8 billion in 2011 (9% annual increase)Sales of organic products US$60 million in 2010

Great growth potentialAdditional opportunities estimated around US$3-10trillion annually by 2050Organic products US$ 900 millionCertified forest products US$50 billion

Benefits

Investments and growthJobsEarly mover advantageCompetitiveness and market accessAccess to financingSavings and efficiency gains

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ObstaclesTime and price gaps

Need to create a level playing field for sustainablesolutions

UncertaintyBusinesses need predictable and transparent legislation

Technical know-howSMEs may lack know-how on how to green theiroperations

Consumer awarenessConsumers often unaware of green products, confusedby many labels

A wide range of policy instruments available

Category Sub-category

Regulatory instruments Target setting

Standards

Environmental regulations

Economic instruments Fiscal instruments

Charge systems

Market creation

Financial mechanisms

Information instruments Eco-labelling

Voluntary agreements

CSR and environmental reporting

Partnerships

Education and training

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Three-pronged strategy

1. Green existing industries2. Promote new green products and services3. Turn natural capital into a business

opportunity

Green existing industries

All industries need to improve their environmentalperformanceEnergy and resource efficiency makes business sensebecause it reduces the cost of production as well ascompliance with future environmental standardsSeveral approaches to greening industries:

Circular economyCleaner productionIndustrial symbiosis3R – reduce, reuse, recycle

Governments need to set-up a national framework forgreening industries

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Promote new goods and services

Green growth provides an opportunity for newindustries to emerge

Renewable energy, ESCOs

Governments need to create the necessaryconditions for investments into these sectors,including:

RegulationFiscal incentivesSector-specific strategies, technology roadmapsGreen public procurement

Turn natural capital into abusiness opportunity

Preserving ecosystems and investing in naturalcapital can create opportunities for profit andemployment

Preserved ecosystems can be turned into an eco-tourismattractionSuncheon city, Korea, attracted more than 3 million visitors ayear and generated 6,400 new jobs and economic benefitsof US$89 million by preserving its wetlands

Sustainable (organic) agriculture can marry theneed for profit and for preserving nature

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Thank you for your attention