Trade and the Green Economy

Trade and Green Economy

United Nations Environment Programme

Dr. Moustapha Kamal Gueye

Joint UNECA-UNEP-ICTSD event UN Conference on Sustainable Development (Rio+20)

Regional Preparatory Meeting for Africa 19 October 2011 ~ Addis Ababa, Ethiopia

What is a Green Economy?

A Green Economy is one that results

in increased human well-being and

social equity, while significantly reducing

environmental risks and ecological

scarcities.

A green economy stimulates growth, exceeding BAU over

time…

GDP growth (%)

…while reducing ecological scarcities and environmental

risks

Composition of exports in (monetary units) by world

regions, 2006

Share of NR in total value of Africa’s exports

Source: Aryeetey

1995 2000 2006

Manufactured goods 24.3 21.5 18.0

Natural resources 60.7 68.9 74.9

Food items 15.0 9.6 7.1

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Natural resources

Manufactured goods

Food products

Raw material extraction & trade

Resource curse of leapfrogging?

• Growing faster than ever before

• Diversification, resource sector down to 24%

• But primary resources still 80% of exports

• Prices are too low

• Resource rents not properly invested

• Decoupling helps Africa to rethink development

Source: UNEP, International Resource Panel, 2011

Green economy and trade: Linkages

• Trade effects

• Trade-related concerns

• Trade opportunities

• Trade tools

• Development needs

What does a green economy mean for trade in

Africa?• How might countries’ Green

Economy strategies affect trade with and between African countries?

• What effects might a transition to a Green Economy have on Africa’s key economic sectors?– Agriculture– Natural resources– Services– Manufacturing

Enabling Africa’s transition to a green economy

• What policies and tools can facilitate a Green Economy transition in Africa?– Standards– Investment

• How do we achieve a Green Economy in an efficient and equitable manner?– Which actions should be

prioritized?

Uganda – Sustainable agriculture

48-68% less emissions and carbon sequestration

The global market:97% of buyers in OECD countries; 80% of producers in Africa, Asia and Latin AmericaA $ 60 bn market growing at 10% per year

US$ 22.8 mil (2007/8)US$ 6.2 mil (2004/5)US$ 3.7 mil (2003/4)

Role for the international community

• How could the multilateral trade framework support Africa’s transition to a Green Economy?

• Trade-related capacity building and development aid

– What types of international support are most desirable?

Thank you

www.unep.org/greeneconomy