A Guidebook To The Green Economy Issue 3: Exploring Green Economy Policies and International Experience With National Strategies

A guidebook to the Green Economy
Issue 3: exploring green economy policies and internatonal experience with

natonal strategies
Division for Sustainable Development, UNDESA
This document was prepared by Cameron Allen, UN Division for Sustainable Development, November 2012
UNPhoto,MarieFrechon
UNphoto,MarieFrechon
Note
TheviewsandopinionsexpresseddonotnecessarilyrepresentthoseoftheSecretariatofthe
UnitedNations;thedesignationsemployedorterminologyusedconcerningthelegalstatusofany
country,territory,cityorareaofitsauthorities,orconcerningthedelimitationoffrontiersdonot
implytheexpressionofanyopinionwhatsoeveronthepartoftheSecretariatoftheUnitedNations.
Thedesignationofcountrygroupsinthetext,figuresortablesareintendedsolelyforanalytical
convenienceanddonotnecessarilyexpressajudgementaboutthestagereachedbyaparticular
countryorareainthedevelopmentprocess.Mentionofnamesoffirmsandcommercialproducts
doesnotimplyendorsementoftheUnitedNations.Thisdocumenthasbeenissuedwithoutformal
editing.
1
AGuidebooktotheGreenEconomy
Issue3:Exploringgreeneconomypoliciesandinternationalexperiencewith
nationalstrategies
1. INTRODUCTION.................................................................................................................................... 3
2. NATIONALGREENECONOMYPOLICIESLESSONSFROMTHELITERATURE........................................... 4
2.1. AREFRESHERONGREENECONOMYDEFINITIONSANDPRINCIPLES ........................................................................ 4
2.2. RECENTPUBLICATIONSONGREENECONOMY................................................................................................... 5
2.3. ATYPOLOGYOFGREENECONOMYPOLICIES..................................................................................................... 7
2.4. RECENTGREENECONOMYPOLICYTOOLKITS .................................................................................................. 10
3. INTERNATIONALEXPERIENCEINIMPLEMENTINGNATIONALSTRATEGIESFORSUSTAINABLE
DEVELOPMENT,LOWEMISSIONDEVELOPMENT,ANDGREENECONOMY................................................... 14
3.1. NATIONALSUSTAINABLEDEVELOPMENTSTRATEGIES...................................................................................... 14
3.2. LOWEMISSIONDEVELOPMENTSTRATEGIES(LEDS) ...................................................................................... 18
3.3. GREENECONOMY&GREENGROWTHSTRATEGIES ........................................................................................ 22
4. SOMEINITIALINSIGHTSFROMTENRECENTNATIONALSTRATEGIESFORGREENECONOMYANDLOW
EMISSIONDEVELOPMENT .......................................................................................................................... 27
4.1. LEADERSHIP,ENGAGEMENT,INSTITUTIONSANDINTEGRATIONWITHNATIONALBUDGETARYPROCESSES.................... 28
4.2. COSTSANDFINANCING............................................................................................................................. 30
4.3. FEEDBACKANDREVIEWMECHANISMSUSEOFTARGETS,INDICATORSANDOTHERTOOLS ..................................... 33
4.4. USEOFAMIXOFGREENECONOMYPOLICYINSTRUMENTS................................................................................ 35
4.5. SUMMARY.............................................................................................................................................. 39
5. CONCLUSION ..................................................................................................................................... 40
6. REFERENCES....................................................................................................................................... 43
7. APPENDICES....................................................................................................................................... 48
APPENDIX1CATEGORIESUSEDFORSUMMARISINGGREENECONOMYANDGREENGROWTHPOLICIESINRECENTPUBLICATIONS 48
APPENDIX2TENRECENTGREENECONOMY,GREENGROWTH,ANDLOWCARBONDEVELOPMENTSTRATEGIES...................... 53
APPENDIX3OVERVIEWOFCOORDINATIONANDINSTITUTIONALARRANGEMENTSFORTENNATIONALGREENECONOMYOR
RELATEDSTRATEGIES ............................................................................................................................................. 56
APPENDIX4OVERVIEWOFPOLICYINSTRUMENTSANDPRIORITYSECTORSFORTENNATIONALGREENECONOMYORRELATED
STRATEGIES.......................................................................................................................................................... 58
APPENDIX5SUMMARYTABLEFROMANALYSISOFTENRECENTNATIONALSTRATEGIES ..................................................... 64
2
1. Introduction
Thegreeneconomyinthecontextofsustainabledevelopmentandpovertyeradicationwasoneof
thetwothemesfortheUNConferenceonSustainableDevelopmentheldinRiodeJaneiroinJune
2012(orRio+20).NegotiationsongreeneconomyintheleaduptoRio+20werechallengingandthe
conceptbecameasourceofcontroversyanddisagreement.Despitethesechallenges,governments
agreedatRio+20toframethegreeneconomyasanimportanttoolforsustainabledevelopment;
onethatisinclusiveandcandriveeconomicgrowth,employment,andpovertyeradication,whilst
maintainingthehealthyfunctioningoftheEarthsecosystems.Importantly,theoutcomedocument
alsorecognisesthatcapacitybuilding,informationexchangeandexperiencesharingwillbecritical
forimplementinggreeneconomypolicies.Inthiscontext,itinvitestheUNtoworkwithpartnersto
providesupporttodevelopingcountriesandtodeveloptoolboxes,bestpractices,methodologies
andmodelstoaidgreeneconomypolicydesignandimplementation.
FollowingRio+20,theUNDivisionforSustainableDevelopmentbeganpublishinganewseriesof
guidebooksonthegreeneconomy.Theseguidebooksprovidepractitionersandotherstakeholders
withconciseresourceguidestothegreeneconomyandrelatedconceptssuchasgreengrowthand
lowcarbondevelopment.Theyaimtoenhanceourunderstandingofthegreeneconomyand
furtherclarifytheconcept.Todoso,theyendeavourtosummarisetherapidlyexpandingliterature
fromexpertsandpractitionersandemerginginternationalexperiencetoshednewlightonwhatwe
meanwhenwetalkaboutthegreeneconomy.
Issue1ofAGuidebooktotheGreenEconomywaspublishedinSeptember2012andprovideda
guidetothehistoryandemergingdefinitionsofgreeneconomyandrelatedconceptssuchasgreen
growthandlowcarbondevelopment
1
.Italsoincludedaconciseguidetoapproximately90recent
greeneconomypublicationsincludingreports,policypapers,toolkitsandnationalstrategies.It
identifiedatleasteightdifferentdefinitionsofgreeneconomyandthirteendefinitionsofgreen
growthpublishedinrecentliterature,mostofwhichembracedeconomic,environmentalandsocial
issues.Morerecentdefinitionsandinterpretationsofgreeneconomyoftenbroadenedtheconcept
tomoreexplicitlyencompassallthreedimensionsofsustainabledevelopment,relabellingitasthe
inclusivegreeneconomy.Theguidebookconcludedthatdespitethecontroversyaroundthe
conceptandcompetingdefinitions,akeybenefitoftheemergenceofthegreeneconomyconcept
hasbeenthatithasstimulatedinternationalattentionandrenewedglobaleffortstotransformour
currenteconomicmodelintoonewhichbetteralignswithsustainabledevelopment.
Issue2ofAGuidebooktotheGreenEconomywillbepublishedinlate2012andwillfurtherexplore
thegreeneconomyconceptbymovingbeyondthesimpledefinitionsofgreeneconomyand
providingabriefoverviewofrecentattemptsatdefiningsetsofgreeneconomyprinciples
2
.Indoing
so,itaimstooutlinesomeprinciplesthatcanbeusedtoguideinterpretationandapplicationofthe
concept,aswellastoidentifysomekeyareaswherethegreeneconomymightbeexpectedto
deliveraddedvaluewithinthebroadercontextofsustainabledevelopmentandpovertyeradication.
Suchdefinitionsandprinciplesforgreeneconomyandgreengrowthcanprovideinsightintothekey
elementsandcharacteristicsoftheseconceptsandaframeworkforpolicydesignand
implementation.Ultimately,however,greeneconomywillneedtobedefinedbynational
governmentsasasuiteofpolicymeasuresselectedanddesignedinaccordancewithnational
prioritiesandcircumstances.
1
SeeAGuidebooktotheGreenEconomyIssue1:history,definitionsandaguidetorecentpublications
http://sustainabledevelopment.un.org/index.php?page=view&type=400&nr=634&menu=35
2
SeeAGuidebooktotheGreenEconomyIssue2:emerginggreeneconomyprinciples,2012forthcoming.
3
Inthispaper,Issue3ofAGuidebooktotheGreenEconomy,theaimistoexploretherangeofpolicy
measuresthathavebeenproposedunderthegreeneconomylabelbyexpertsandpractitionersin
recentpublicationsaswellasbyseveralgovernmentsinrecentnationalplanningdocuments.
Throughthisreview,atypologyofgreeneconomypoliciesisdevelopedandusedtoidentifythe
mostcommonpolicymeasuresthatarebeingproposedbyexpertsandadoptedbygovernments.It
alsoprovidesaguidetosomerecentelaborationsofagreeneconomypolicytoolkit(seeSection
2).
Thefocusofthepaperthenturnstoanalysingtenrecentgreeneconomy,greengrowthandlow
emissiondevelopmentstrategies(Section3and4).Thisanalysisprovidessomeinitialinsightsinto
recenteffortsbygovernmentsinimplementinggreeneconomy,andhowtheyareusingthisconcept
potentiallytoovercomethechallengesexperiencedovermanyyearsofimplementationofnational
sustainabledevelopmentstrategiesinparticular,howtheyareaddressingchallengesrelatedto
politicalleadership,institutionalarrangementsandengagementofcentralfinanceministries,
leveragingabroadermixofpolicyinstrumentsincludingeconomicinstruments,integratedmulti
sectoralapproaches,articulatingcostsandsourcesoffinance,andestablishingmechanismsfor
feedback,analysisofsynergiesandmonitoringofprogress.Insodoing,itprovidessomeinitial
insightsintohowgovernmentsimplementinggreeneconomybasedontheirownnational
circumstancesandlevelsofdevelopment,andhowthegreeneconomymayindeedprovetobean
importanttoolforsustainabledevelopment,aswasaffirmedbygovernmentsatRio+20.
2. Nationalgreeneconomypolicieslessonsfromtheliterature
Deliberatepolicyandinvestmentdecisionswillneedtobetakenbygovernmentstogreentheir
economies,includingtheidentificationofprioritysectorsandtheselectionofthemostappropriate
policyinstrumentstodeliverdesiredoutcomes.Inthisregard,thereisnoonesizefitsalland
governmentswillneedtoidentifyandselectmeasuresthatbestsuittheirlevelofdevelopment,
governanceframeworks,institutions,resourceendowmentsandcapacities.However,thisneedfor
flexibilitycanalsoleadtoambiguity,andthereremainsalackofclarityaroundhowgovernments
shouldapplytheconcept,andhowgreeneconomypoliciesalignwith(ordifferfrom)what
governmentsarealreadydoinginfieldssuchassustainabledevelopment,environmental
managementandclimatechangemitigationandadaptation.
Asubstantialandgrowingvolumeofgreeneconomyliteratureishelpingtoaddressthisknowledge
gap,andisstartingtoclarifythetypesofpolicymeasuresbeingproposedandtheirtargetsectorsor
desiredoutcomes.Somegovernmentshavealsotakentheleadinputtingtheconceptintopractice
andthereisemerginginternationalexperienceinapplyinggreeneconomyaccordingtonational
circumstances.
Thissectionaimstoreviewtherangeofgreeneconomypolicymeasuresthathavebeenproposed
byexperts,internationalorganisationsandpractitionersthroughthedevelopmentofatypologyof
greeneconomypolicymeasures.Itthenprovidesabriefguidetoanumberofgreeneconomy
toolkitsthathavebeendevelopedbyleadinginternationalorganisations.
2.1. Arefresherongreeneconomydefinitionsandprinciples
Issues1and2oftheguidebookseriessummarisedtheemergingdefinitionsandprinciplesforgreen
economyandrelatedconceptsfromthepublishedliteratureaswellastheRio+20outcome
document.Indoingso,itdrewsomeinitialconclusionsregardingtheapplicationofthegreen
economyconcept.Withregardtoemergingdefinitions,itnotedthat,whilethegreeneconomy
4
conceptmightimplyastrongfocusontheintersectionbetweentheenvironmentandtheeconomy,
manyrecentpublicationsbyleadingexpertsandinternationalorganisationshavemadethesocial
dimensionexplicitbybroadeningtheconcepttoinclusivegreeneconomyorinclusivegreen
growth
3
.WhilsttheRio+20outcomedocumentdidnotarriveatanagreeddefinitionongreen
economy,itdidprovidesomeguidanceregardingtheimplementationoftheconceptand
highlightedtheimportanceofintegratingsocialconsiderationsandpovertyeradicationintogreen
economypolicies.
Overall,thedefinitionsofgreeneconomyandgreengrowtharegenerallyconsistent,withthemain
differencebeingthemoreexplicitrecognitionoffiniteenvironmentallimitswithinthegreen
economyconcept(UNDESA,2012).However,theseconceptsarebeingusedinterchangeablyinthe
literaturetoanincreasingdegreeanditislikelythattheconceptswillfurtherconvergeincoming
years.Forthepurposesofthispaper,theyareusedinterchangeably,withlowemission
developmentgenerallyseenasacriticalsubsetofgreeneconomyandgreengrowth.
TheemergingsetsofgreeneconomyprinciplespublishedintheleaduptoRio+20aswellasthe
languageagreedtointheRio+20outcomedocumenthighlightthatgovernmentswillneedtotake
intoaccountthevariouscosts,risks,benefitsandopportunitiesofdifferentpolicyoptionsin
accordancewiththeirinstitutionalandgovernancearrangements,levelofdevelopment,andsocial,
economicandenvironmentalpriorities.Theyshouldconsiderpoliciesthatsupportpoverty
reduction,humanwellbeingandjobcreation,whilstalsodrivingresourceandenergyefficiency,
carbonandemissionsreduction,technologicalinnovationandenvironmentalprotection.New
optionsformeasuringprogressthatgobeyondGDPshouldbeinvestigated,aswellasapproaches
forsustainingdevelopmentwithinecologicallimits.Policiesshouldbedevelopedthroughan
integrateddecisionmakingprocessthatconsidersthethreedimensionsofsustainable
development,isinclusiveandtransparentandissupportedbyeffectiveinstitutionsandregulations.
Internationalcooperationshouldalsobepromoted,includingtheprovisionofmeansof
implementationfordevelopingcountriesthroughcapacitybuilding,financeandtechnologytransfer.
Whilstthisinformationisuseful,itisalsoverygeneralandprovidesgovernmentswithlimited
guidanceindesigningandimplementinggreeneconomypolicymeasures.Furtherclaritycanbe
providedbyexploringtheliteratureingreaterdetailanddrawingoutthekeytypesofpolicy
measuresbeingproposedbypractitioners,expertsandinternationalorganisations.
2.2. Recentpublicationsongreeneconomy
Thedesignandimplementationofpoliciesthatpromoteenvironmentalandsustainable
developmentoutcomesisnothingnew.Thereissignificantandgrowingexperienceinimplementing
measuresthatcouldfallunderthebannerofgreeneconomy.Theseincludeenvironmental
regulation,standards,andcertificationschemes,integratednaturalresourcemanagement,
environmentalfiscalreform,theuseofeconomicinstrumentstopromotesustainablepracticesand
investment,andpaymentsforecosystemservices.Whilstmanyofthesemeasuresweredetailed
andpromotedthroughtheoriginalEarthSummitinRioin1992anditsAgenda21,agreaterfocus
hasbeenplacedongreeneconomy,greengrowthandlowcarbonorclimateresilientpolicy
instrumentsinrecentyearsinresponsetotheglobalfinancialcrisisof2008(e.g.thegreenfiscal
packagesofG20countries)andundertheauspicesoftheUnitedNationsFrameworkConventionon
ClimateChangeandotherinternationalagreements.
Withregardtospecificpolicymeasures,theRio+20outcomedocumentprovideslimitedguidance
forgovernmentsapartfromacknowledgingthatamixofpolicymeasures,includingregulatory,
3
SeeforexamplerecentpublicationsbytheWorldBank(2012)andtheUNEMG(2011).
5
voluntaryandothersappliedatthenationallevelcouldpromotegreeneconomy(paragraph63).
Despitethisgenerality,Rio+20didservetofocusglobalattentionongreeneconomy,andaplethora
ofnewpublications,analysesandpaperswerepublishedintheleaduptoRio+20thatoutlined
policymeasuresandinstrumentsthatgovernmentscouldusetogreentheireconomies.This
includedpublicationsbytheOECD,theWorldBank,UNEP,UNESCAP,UNDESA,UNEMG,UNCTAD,
theILO,theGlobalSustainabilityPanel,theGreenGrowthLeaders,theGlobalGreenGrowth
Institute,theGreenEconomyCoalition,andarangeofacademicsandexperts(includingEdward
Barbier,AaronCosbey,HermanDalyandJoseAntonioOcampo,amongstothers)
4
.
Forexample,theGlobalSustainabilityPanel(2011)highlightsthatpolicyactionisneededinkey
areastomovetowardsgreengrowth,includinginternalisingenvironmentalandsocialcosts,
creatingincentivesforinvestment,increasingfinanceandexpandinghowwemeasureprogress
beyondGDP.TheOECD(2011a)highlightsthatamixofpolicyinstrumentswillberequired,drawing
fromtwobroadareas:(i)frameworkconditionsthatmutuallyreinforceeconomicgrowthandthe
conservationofnaturalcapital;and(ii)policiestargetedatincentivisingtheefficientuseofnatural
resourcesandmakingpollutionmoreexpensive.Itacknowledgesthatthereisnoonesizefitsall
prescriptionforimplementingstrategiesforgreengrowth,andthatthechoiceofinstrumentswill
dependoncountries'policyandinstitutionalsettings,levelofdevelopment,resourceendowments
andparticularenvironmentalpressurepoints.
TheWorldBank(2011)highlightsthatgreengrowthisbestservedbyacombinationofpolicy
instruments,includingpricebasedpolicies,normsandregulations,publicproductionanddirect
investment,informationcreationanddissemination,educationandmoralsuasion,andindustrial
andinnovationpolicies.Similarly,UNEP(2011b)highlightsthatkeypolicyobjectivesinclude
establishingsoundregulatoryframeworks,prioritisinggovernmentinvestmentandspendingin
supportofagreeneconomy,limitinggovernmentspendinginareasthatdepletenaturalcapital,
usingtaxesandmarketbasedinstrumentstopromotegreeninvestmentandinnovation,and
investingincapacitybuilding,trainingandeducation.UNESCAP(2012)indicatesthatpolicypriorities
includereformingtheeconomicincentivesframework,promotingsustainableinfrastructure
investment,andfacilitatinginvestmentinnaturalcapital.
Anumberofauthorsalsohighlightthatmakingpolicymeasuresworkintherealworldiscomplex,
withnumerousbarriersincludinggovernance,institutionalandmarketfailures,vestedinterestsand
entrenchedbehaviours(WorldBank,2012;OECD2011a).Assuch,thepolicymixisalsolikelyto
includeasuiteofcomplementarypoliciesthataddressbarriersandrisks,includingpublic
investment,innovationandindustrialpolicy,educationandtraining,labourmarketandgovernance
reforms,socialprotectionpolicies,andawarenessraisingandcommunicationcampaigns.These
publicationsalsoidentifyanextensiveandvariedarrayofgreeneconomypolicypriorities,
instruments,diagnostictoolsandprocessguidelinesthatareavailabletogovernments.
Anumberofdevelopinganddevelopedcountrieshavealsoreleasednationalgreeneconomy
strategiesforthefirsttime,someofwhichaimtoidentifyinitialgreeneconomypolicyoptions(or
lowhangingfruit)thatexploitpolicysynergiesthatdeliveroutcomesacrossallthreeeconomic,
socialandenvironmentaldimensionsintheshorttomediumterm.Fordevelopingcountries,these
oftenfocusondevelopmentpathwaysthatwouldreducecarbonemissions,increaseclimate
resilience,andtapintoemergingclimatefinancing.ThisisexploredinmoredetailinSection3and4
below.
4
Issue1ofAGuidebooktotheGreenEconomyprovidesaguidetotheseandmanyotherrecentpublications.
Seehttp://sustainabledevelopment.un.org/index.php?page=view&type=400&nr=634&menu=35.
6
2.3. Atypologyofgreeneconomypolicies
Mostpublicationsuseashortsetofintuitivepolicytypesorcategoriesunderwhichavarietyof
specificpolicymeasurescanbegrouped.However,thereislittleconsistencyamongthevarious
categoriesortypesproposedacrosspublications.Forexample,asummaryofthedifferent
categoriesusedinover30recentpublicationsandpapersisprovidedinAppendix1.Thishighlights
that,whilstthetypesofpolicymeasuresbeingproposedoftenoverlap,thereislittleconsistencyin
howthesemeasuresarebeinggroupedandcategorised.Ingeneral,itcanbeseenthatfourmain
approachestocategorisationareused,basedon:(i)thedesiredoutcomeorpathway;(ii)thetype
ofpolicymeasure;(iii)thetargetsectorsortypesofcapital;or(iv)amixedapproachadoptinga
combinationofthese.Thescopeofpolicymeasuresalsovariesbetweenpublications,withsome
authorsfocusingontheinterfacebetweeneconomyandenvironment,whilstotherstakeabroader
approachincorporatingarangeofcomplementarysocialpolicies.Thisbroaderapproachalignsmore
adequatelywithemergingdefinitionsandprinciplesforgreeneconomywhichintegrateastrong
socialcomponent(i.e.theinclusivegreeneconomy).
Forthepurposesofthispaper,atypologyofgreeneconomypolicieshasbeendevelopedwhich
drawsuponthecategoriesusedinrecentpublicationsbyanumberofleadinginternational
organisationsandexperts(inparticular,seeBarbier,2011;Cosbey2011;OECD,UNandtheWorld
Bank,2012;andILO,2012).ThistypologyofgreeneconomypoliciesissetoutinTable1belowand
proposessixcategoriesthatcoverthebreadthofgreeneconomyandcomplementarypolicy
measuresaddressingallthreedimensionsofsustainabledevelopmentandusinganintuitiveformat
basedaround6Is:Internalising;Incentivising;Institutions;Investment;Information;and
Inclusion
5
.
Withinthesesixcategories,Table1alsooutlinesaconsolidatedlistof20greeneconomyand
complementarypolicysubcategoriesthatwereidentifiedthroughthedesktopreviewofgreen
economypublications.Inmanycases,thisinvolvedintuitivelygroupingspecificandrelatedpolicy
measurestogethertostreamlineandavoidduplication(forexampletaxes,chargesandfeesare
groupedtogether).Thistypologyenablesustoexploretherangeofpolicymeasuresandmost
commoninstrumentsthatarebeingproposedbypractitionersandexpertstotransitiontowards
greenereconomies.
Table1Typologyofgreeneconomypolicymeasures
PolicyCategory:
6Is
PolicySubCategories
Internalising
(externalities)
1. Taxes,charges,fees,leviesonbads(i.e.pollution,resourceuseorproxy)
2. Capandtradepermitorcertificatesystems
Incentivising 3. Investmentincentiveslowinterestloans;microfinancing;taxexemptionsetc.
4. Subsidies,feedintariffsandotherdirectsupportforgoods
5. Removingpolicyinduceddistortionsandperverseincentives(e.g.harmfulsubsidies)
6. LeveragingfinancePPPs,longtermguarantees,phasedoutsupport,removalofbarrierstoFDI,
loweradministrativeburden,creditguarantees
Institutions 7. Regulationsnorms,standards,infodisclosure,labelling,prohibitions,finesandenforcement,
mandatorytargets
8. Propertyrightandaccessrightlaws,includingIPR
9. Governance&institutionalcapacitiesaccountability,transparency,enforcement,anti
corruption
5
ThisadaptsandexpandsontheapproachbyEdwardBarbier(2011)basedon5Is:Incentives,Institutions,
Investment,InfrastructureandInformation,howeverthescopeisbroadenedtoincludeawiderrangeofpolicy
measuresandadjustedtoavoidduplicationbetweencategories.Thereisalsoscopetoexpandthisapproach
furtherto8Is,byestablishingseparatecategoriesforInfrastructureandInnovation.
7
8
10. Integratedplanning,decisionmakingandresourcemanagementEIA/SEA,IWRM,ICZM,LCA,
MCA/CBA,disasterpreparedness,otherdiagnostictools
Investment
(innatural
capital,
agriculture,
humancapital,
infrastructure,
andinnovation).
11. Sustainablepublicprocurement
12. InvestmentinnaturalcapitalPES,protectedareas,directmanagementandrehabilitation
13. Investmentinsustainableagriculture
14. Investmentinhumancapitalcapacitybuilding,training,skills
15. Investmentininfrastructureenergy,water,transport,waste,ICT
16. InvestmentininnovationR&D,deployment,informationsharing
Information 17. Voluntaryapproachesinformationprovision,labelling,CSR,targets,agreements,educational
initiatives
18. Measuringprogressgreenaccounting,greentargetsandindicators,carboninventories
Inclusion 19. Labourmarketpoliciesskills(re)training,jobsearchassistance,incomesupportandbenefits
20. Socialprotectionfloorsunemploymentinsuranceandpensions,cashtransfers,compensation
forpriceincreases,healthcare
Table2belowusesthisgreeneconomypolicytypologybasedonsixcategoriesand20policysub
categoriestoprovideanoverviewofthearrayofgreeneconomypolicyinstrumentsthatwere
includedin15recentgreeneconomypublications.Basedonthisanalysis,itcanbeseenthatawide
varietyofmeasuresarebeingproposedinmostpublications,fromeconomicinstrumentsand
regulatorymeasures,toinformationbasedmeasuresandsocialpolicies.Themostcommongreen
economypolicymeasuresthatwereproposedacrossallofthepublicationsweremeasuresfor
internalisingexternalities(suchastaxesandcapandtradesystems)andregulatorymeasures(such
asstandards,labelling,prohibitionsandcompliance).Otherpoliciesthatwereproposedinmostof
thepublicationsincludedinvestmentininfrastructure(suchassustainableenergy,water,transport
andwaste)aswellasinvestmentininnovation(throughmeasuressuchasfundingforR&Dand
deployment).Greeneconomypolicymeasuresthatweretheleastcommonacrossthevarious
publicationsincludedmeasuressuchaspropertyrightsandaccessrights,integratedplanningand
resourcemanagement,sustainablepublicprocurementandsocialprotectionpolicies.
9
Table2Reviewofpolicymeasuresidentifiedinaselectionofrecentpublicationsandinitiatives
Internalising Incentives Institutions Investment Information Inclusion
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x x x x x x x x x x x x
2.4. Recentgreeneconomypolicytoolkits
Forgovernmentstoimplementgreeneconomymeasureswillrequiremuchmorethansimply
selectingapolicyinstrumentorinstrumentsfromalistofgreeneconomypolicymeasures.Itwill
requirethemtoestablishcleargoalsandtargets,toanalysesynergiesandtradeoffsbetween
differentpolicyoptionsforachievingtheirgoals,toeffectivelydesignandimplementpriority
actions,andtomonitorprogressandreviewtheirpoliciesovertimethroughanongoingadaptive
managementprocess.Thiswillbeparticularlychallengingfordevelopingcountriesthatmaylack
theinstitutionalcapacity,adequatedataandinformation,andaccesstofinancingandother
resourcesthatarerequiredforsuccessfulpolicydevelopmentandimplementation.
Recognisingthatabroaderframeworkisrequired,anumberofinternationalorganisationshave
recentlybeguntoelaborategreeneconomypolicytoolkits,expandinguponpublishedlistsand
typologiesofgreeneconomypolicies.Thesetoolkitsvaryintheirapproachandlevelofdetail,but
itcanbeseenthatmorerecentiterationsprovidenotonlyasuiteofgreeneconomypolicy
instrumentsthatcanbeusedbygovernmentstogreentheireconomies.Theyalsoprovidearange
ofdiagnostictoolsthatcanhelpwithpolicydesign,evaluation,andmonitoring,aswellas
mechanismsthatcanhelptomainstreamgreeneconomyintonationaleconomicplanningand
decisionmakingandbuildthenecessaryinstitutionsandenablingconditionstosupportthe
implementationofnationalgreeneconomyplans.TheseareoutlinedbelowandinBoxes1to4
below.Assuch,theyprovideamoreusefulproductforgovernmentsandpractitionersinapplying
greeneconomypolicies.TheyarealsoastepforwardindeliveringonRio+20,whichinvitedthe
developmentofgreeneconomytoolboxesandotherresources.
In2011theOECDreleasedapolicytoolkitforgreengrowthToolsforDeliveringonGreenGrowth
whichprovidesasuiteofpolicyoptionsforaddressinggreengrowthconstraintsandchallenges,
focusingongreeninnovation,infrastructureinvestment,labourmarkettransitions,consumer
behaviour,andcompetitiveness(seeBox1).Manyofthepolicyinstrumentsoutlinedare
economicinstrumentsfocusedoninternalisingexternalitiesandincentivisinginvestment,andthis
islikelytobemoreusefulfordevelopedcountriesasitassumesthatinstitutionalcapacityexiststo
effectivelydesignandimplementsuchpolicies.
Box1.ToolsforDeliveringonGreenGrowth(OECD,2011)
Thefollowingpolicyoptionsarelistedtoaddressspecificpolicyconstraintsas
follows:
1. Inadequateinfrastructure:Taxes,Tariffs,Transfers,Publicprivate
partnerships
2. Lowhumanandsocialcapitalandpoorinstitutionalquality:Taxes,Subsidy
reform/removal
3. Incompletepropertyrights,subsidies:Reviewandreform
4. Regulatoryuncertainty:Settargets,Createindependentgovernancesystems
5. Informationexternalitiesandsplitincentives:Labeling,Voluntary
approaches,Subsidies,Technologyandperformancestandards
6. Environmentalexternalities:Taxes,Tradablepermits,Subsidies
7. LowreturnsonR&D:R&Dsubsidiesandtaxincentives,Focusongeneral
purposetechnologies
8. Networkeffects:Strengthencompetitioninnetworkindustries,Subsidiesor
loanguaranteesfornewnetworkprojects
9. Barrierstocompetition:Reformregulation,Reducemonopolypower

Weblink
http://www.oecd.org/greengrowth/
48012326.pdf
UnitedNations AGuidetotheGreenEconomy:Issue3
Morerecently,in2012theOECDpublishedapreliminarydraftofapolicyframeworkspecifically
targetingdevelopingcountrieswhichbuildsonpreviousanalysesandsetsoutapolicyframework
basedaroundthreebroadcategories:(i)enablingconditions,(ii)mainstreamingmechanismsand
(iii)policyinstruments(seeBox2).Thisexpandsontheprevioustoolkitbyincorporatingnotonlya
listofgreeneconomypolicymeasures,butalsoanumberofmechanismsandtoolstobuild
institutionalcapacityandestablishtheevidencebaseforgreeneconomypolicydesignand
implementation.Thisisanimportantadditiontothepolicytoolkitfordevelopingcountries.
Followingaseriesofconsultationswithdevelopingcountries,thereportwillbefinalisedinmid
2013andwillalsoincludedifferentcountrycasestudies.
Box2.GreenGrowthandDevelopingCountries(OECD,2012)
Thisreportproposesagreengrowthpolicyframeworkfordevelopingcountries
whichincludesasuiteoftoolsacross3categories:
1. SixnationalenablingconditionsforgreengrowthcreatedthroughaNational
GreenGrowthPlan:
o Shiftgovernmentexpenditure;
o Moreeffectiveenforcementoflegislation;
o Educationandtraining;
o Resourceandlandrightsregimes;
o Creatingenablingconditionsforpsychologicalandbehaviour
change;
o Facilitatingbusinessestofullyintegratesustainabilityandequity
concerns.
2. Fourgreengrowthmainstreamingmechanisms:
o PublicEnvironmentalExpenditureReview;
o StrategicEnvironmentalAssessment;
o CouncilsforSustainableDevelopment;
o GreeningAccounting/AlternativeDevelopmentMeasures.
3. Eightgreengrowthpolicyinstruments:
o CertificationofSustainableProductionandTrade;
o SubsidyReform;
o PaymentsforEcosystemServices;
o EnvironmentalFiscalReform;
o GreenEnergyInvestmentFrameworksandIncentives;
o InclusiveGreenSocialEnterprise;
o SustainablePublicProcurement;
o GreenInnovation.
Weblink
http://www.oecd.org/dac/environ
mentanddevelopment/greengrowth
anddevelopment.htm
UndertheMexicanPresidency,theG20isalsopursuingthedevelopmentofanonprescriptive
goodpracticeguideandtoolkitforenablingnationalpolicyframeworksforinclusivegreengrowth.
Aspartofthisprocess,twoproductsareofparticularnote.Thefirstisareportproducedbythe
OECD,UNandWorldBankonincorporatinggreengrowthpoliciesintostructuralreformagendas
whichdrawsheavilyonthegreengrowthworkoftheOECD(seeBox3).Thereportwasprepared
primarilyforG20countriesandfocusesonimprovingframeworkpolicies,removingpolicyinduced
distortions,andasuiteofenvironmentalpolicyinstruments.Assuch,itdoesnotincorporatetools
forevaluating,selectinganddesigningpolicies.
Box3.Incorporatinggreengrowthandsustainabledevelopmentpoliciesinto
structuralreformagendas(OECD,WorldBank,UN,2012)
Thereportoutlinesanumberofbroadelementsofstructuralpackagesto
promotegreengrowthandsustainabledevelopmentasfollows:
Reformingthestructureoftaxesandchargestopromoteeconomicgrowth
andmakeitgreener
Strengtheningmarkets
11
Inducinggreenerbehaviourthroughregulatoryandinformationpolicies
Gettinginfrastructureright
Targetingandleveraginginvestmentbyinternationalcorporateplayers
Fosteringinnovationforgreeninggrowth
Loweringbarrierstothediffusionofgreengoods,servicesandtechnologies
Encouragingjobcreationandequityforinclusivegreengrowth
Thereportalsoincludesalistofstructuralpolicyinstrumentsacrossthreebroad
categoriesasfollows:
1. Improvingframeworkpolicies:competitionpolicies;taxreform;labour
marketpolicies;investmentpolicies;networksectorpolicies;and
innovation.
2. Removingpolicyinduceddistortions:removalofperversesubsidies;
removalofbarrierstotradeandinvestmentingreengoodsand
services;ensuringwelltargetedcompensatorymeasuresforthepoor.
3. Implementingenvironmentalpolicyinstruments:capandtradepermit
systems;taxesorchargesonpollutionorproxy;baselineandcredit
permitsystems;subsidiesandotherdirectsupport;depositrefund
systems;performancestandards;technologystandards;voluntary
approaches;informationandregulatorypolicies.
Weblink
http://www.oecd.org/eco/economi
cpoliciestofostergreengrowth/G20_
report_on_GG_and_SD_final.pdf
Thesecondisapreliminarytoolkitofpolicyoptionstosupportinclusivegreengrowthdeveloped
bytheAfricanDevelopmentBank(AfDB),OECD,WorldBankandUN
6
(theIGGToolkit)(seeBox
4).ThistoolkitwasdevelopedforG20countriesandfocusesonacombinationofpolicy
instrumentsforincentivisinginvestmentandinternalisingexternalities,aswellasanumberof
toolsforpolicyevaluation,integrateddecisionmaking,monitoringofprogressandattracting
finance.Assuch,itadvancesbeyondprovidingashortlistofpolicyinstrumentstoembracea
broaderrangeoftoolsthatgovernmentscanusetosupportmoreeffectivedesign,evaluationand
implementationofgreeneconomypolicies.
Box4.AToolkitofPolicyOptionstoSupportInclusiveGreenGrowth(AfDB,
OECD,UNandWorldBank,2012)
Outlinesapracticalandflexiblegreengrowthpolicytoolkit,whichincludesa
stepbystepguide.Ithasfourmaincategoriesofpolicytools:1.Incentivize:
Toolsforpricingpollutionandnaturalresourceuse;Toolstocomplementpricing
policies;andToolstofosterinclusiveness;2.Design:Toolstomanage
uncertainty;3.Finance:Financingandinvestmenttools;and4.Monitor:
Monitoringtools.Anumberofpolicytoolsarelistedthatfallintooneormoreof
thesecategories:
Environmentalfiscalreform
PublicEnvironmentalExpenditureReviews
SustainablePublicProcurement
StrategicEnvironmentalAssessments
SocialProtectionInstruments
PaymentsforEcosystemServices
CertificationforSustainableProduction
Greeninnovationandindustrialpolicies
ProjectLevelImpactAssessment
IntegratedWaterResourcesManagement
GreenAccounting.

Weblink
http://sustainabledevelopment.un.
org/index.php?page=view&type=40
0&nr=695&menu=35
6
BothreportswerepreparedfortheG20SummitinLosCabosinJune2012
(http://www.oecd.org/document/10/0,3746,en_2649_37465_44076170_1_1_1_37465,00.html)
12
TheparticipatingorganizationsoftheIGGToolkitareworkingduringtheremainderofMexicosG
20presidencytofinalizethetoolkit,includingintegrationofneworbettertoolsonenergy,water,
andclimatechange.Theauthorsarealsodiscussinghowbesttodisseminatethetoolkitand
transformitintoalivingdocumentorwikiplatform,possiblytobehostedbytheGreenGrowth
KnowledgePlatformoroneofitsaffiliatedprograms(UNDESA,2012).
Thereissubstantialscopetorefinefurtherthesetoolkitssothattheyareintuitive,usefuland
easilyaccessible.Thefurtherdevelopmentofgreeneconomytoolboxescoulddrawfromrecent
experienceinrelatedfields,inparticularlowcarbondevelopment,whereprocessguidelinesand
toolkitsaremoreadvanced.
Forexample,theLEDSGlobalPartnership(establishedbyOpenEnergyInfoorOpenEI,aninitiative
sponsoredbytheUSGovernment)listsover40differentLEDSsupporttoolsthatareavailable
online
7
.ThisincludesasuiteoftoolsandguidelinesdevelopedbytheUNDPfordevelopinglow
emission,climateresilientdevelopmentstrategies.Similarpublicationshavebeenauthoredbya
rangeofotherorganisations,includingUNEP,OECD,theClimateDevelopmentKnowledge
Network(CDKN),theWorldBanksEnergySectorManagementAssistanceProgramme(ESMAP),
theInternationalEnergyAgency(IEA)andothers.OpenEIalsoincludesanonlineLEDSgateway
whichassemblesseveraltoolkitsandresourcesandacompleteLEDSdevelopmentprocessbased
onprovenbestpractice
8
.Manyofthesetoolstendtobestepbasedprocessguidelinesfor
developingnationalstrategiesratherthantoolkitsofdifferentpolicymeasuresandevaluation
tools.AnotherexampleofawebbasedtoolboxistheGlobalWaterPartnershipsonlinetoolbox
forIntegratedWaterResourcesManagement
9
.
Inadditiontothesegreeneconomytoolkits,anumberofUNagenciesanddevelopmentbanks
havebeenactiveindevelopingbestpracticesinapplyinggreeneconomypolicymeasures,
includingthedevelopmentofpolicyspecificguidelinesandtoolsaswellasprocessguidelinesfor
theelaborationoflowcarbonstrategies.Forexample,UNEPhaspreparedpolicyguidelinesonthe
developmentandapplicationofgreeneconomyindicatorsatthecountrylevel,UNOPSandUNEP
havedevelopedguidelinesonsustainableprocurement,theADBhaspreparedasuiteoftoolsand
guidelinesfocusedonclimatechangeadaptation,UNHABITAThasreleasedasuiteofguidelineson
urbanpatternsforagreeneconomy,UNESCAPhasdevelopedatrainthetrainerstoolboxon
greengrowth,theUNDPhasproducedprocessguidelinesforlowcarbondevelopment,andthe
UNStatisticalCommissionhascoordinatedtherevisionoftheSystemofEnvironmentalEconomic
Accounting(SEEA)whichprovidesaconceptualframeworkforgreenaccounting.
AnumberofUNagenciesandotherorganisationshavealsodevelopedmethodologiesforthe
analysisofgreeneconomypolicies.Suchmethodologiesarenowbeginningtoformanintegral
partofthegreeneconomytoolkit,ascanbeseenintheIGGtoolkit(Box4)andOECDdeveloping
countriestoolkit(Box2).Thesetoolkitsincorporateanumberofdiagnostictoolsandindices,such
aslongtermplanningandmodellingtools,labourmarketandincomeanalysis,strategic
environmentalassessment,publicexpenditurereviews,andgreenaccountingwhichcanhelpin
theselection,designandimplementationofpolicies.Thereisscopetocompilefurtherinformation
onthesevariousmethodologies,exploretheirutilityindifferentcountrycontextsforanalysing
greeneconomypolicies,anddrawtogetherexamplesandcasestudies.
7
Seehttp://en.openei.org/wiki/LEDS_Global_Partnership_Activities
8
Seehttp://en.openei.org/wiki/Gateway:Low_Emission_Development_Strategies
9
GlobalWaterPartnershiptoolbox:http://www.gwptoolbox.org/
13
3. Internationalexperienceinimplementingnationalstrategiesfor
sustainabledevelopment,lowemissiondevelopment,andgreen
economy
Whilstmostcountriesdonotyethaveanoverallnationalstrategyforagreeneconomy,thereis
emerginginternationalpracticeinthedesignandimplementationofgreeneconomypoliciesin
bothdevelopedanddevelopingcountries.Thishasbeencatalysedthroughinternational
agreementswhichhavepromotedthedevelopmentofnationalstrategiesforsustainable
development,climatechangeandenvironmentalmanagementspanningbackatleast20years.In
thiscontext,thedevelopmentofnationallowcarbon,greeneconomyandgreengrowthstrategies
canbeseenasmorerecentiterationsofnationalsustainabledevelopmentstrategies,whichaim
tobuildonpastexperienceandmoreeffectivelyintegratethethreedimensionsofsustainable
developmenttoaddressongoingglobalcrisesandemergingpriorities.Nationalgovernment
effortshavealsobeenfacilitatedbyanumberofinternationalorganisations,includingUN
organisations,thatarecommittedtoadvancingthedevelopmentofnationalstrategiesthrough
advisoryandtechnicalassistanceservicesandcapacitybuilding.
Thissectionprovidesasummaryofrecentexperienceinthedesignandimplementationof
nationalsustainabledevelopmentstrategiesintheformoflowemissiondevelopment,green
economyandgreengrowthstrategies.Italsoprovidessomeinitialinsightsintohowgovernments,
throughtheirgreeneconomystrategies,aretryingtoovercomesomeofthekeychallenges
experiencedovermanyyearsofimplementationofsustainabledevelopment.Inparticular,these
includechallengesassociatedwithinstitutionalcapacities,financingandintegration.Italso
includesabriefoverviewofkeyinternationalpartnersandpractitionersfacilitatingthiswork;this
lattertopic,however,willformthebasisforasubsequentpublicationinthisseriesofgreen
economyguidebooks.
3.1. NationalSustainableDevelopmentStrategies
Chapter8ofAgenda21agreedattheUNConferenceonEnvironmentandDevelopmentinRioin
1992calledforthedevelopmentofNationalSustainableDevelopmentStrategies(NSDS).Ten
yearslater,theWorldSummitforSustainableDevelopmentin2002alsourgedstatestotake
immediatestepstoprogresstheirnationalstrategiesandbeginimplementationby2005.In
response,alargenumberofcountrieshavedevelopedwhathavebeen(oftenloosely)definedas
NSDS.UNDESAreportsthat,asat2009,106countrieswereimplementingaNSDSbasedon
reportingtotheUNCommissiononSustainableDevelopment
10
.However,someofthese
strategiesarenowquitedatedanditisuncertainiftheycontinuetobeimplemented.
ANSDShasbeendefinedasacoordinated,participatoryanditerativeprocessofthoughtsand
actionstoachieveeconomic,environmentalandsocialobjectivesinabalancedandintegrative
manner(UNDESA,2002).ThiswouldimplythataNSDSwouldnotsimplybealistofpolicy
measures,programmesandprojects,butwouldalsoestablishthenecessaryinstitutional,
informationandfinancialarrangementsforimplementationaswellasafeedbackmechanism
comprisingcleartargetsandindicatorsformeasurementofprogressandongoingpolicyreview
andadaptivemanagement.TheparticularlabelappliedtoaNSDSisnotimportant,aslongasthe
underlyingprinciplescharacterizingaNSDSareadheredtoandthateconomic,socialand
environmentalobjectivesarebalancedandintegrated.
Overthepasttwodecades,avarietyofstrategieshavebeenpreparedonthebasisofnational
needsandpriorities.Manywereeithersponsoredbymultilateralfinancialinstitutionsorwere
10
Seehttp://www.un.org/en/development/desa/climatechange/strategies.shtml).
14
advocatedbyglobalconventionswithfinancialsupportprovidedfortheirformulation.Avarietyof
approacheshavebeenadopted,includingstrategiestargetingsustainabledevelopment,strategies
dealingwitheconomicrecoveryandgrowth,strategiesprovidingalongtermnationalvision,
strategiessupportingsocialdevelopment/povertyreduction,andstrategiesfocusedonintegrating
environmentalconservationintodevelopment.
Numerousinternationalorganizationshavebeeninvolvedinsupportingthedevelopmentofsuch
strategies,includingtheWorldBank,theInternationalMonetaryFund(IMF),UNDESA,UNDP,the
InternationalUnionfortheConservationofNature(IUCN)andtheOECD.Forexample,theWorld
BankandIMFhavesupportedavarietyofprogramsandapproachesincludingstrategiesfor
economicgrowthandrecovery(e.g.StructuralAdjustmentProgrammes,Comprehensive
DevelopmentFrameworks),strategiesforpovertyreduction(e.g.firstandsecondgeneration
PovertyReductionStrategies),andstrategiesdealingwithintegratingenvironmentand
conservationintodevelopment(e.g.NationalEnvironmentalActionPlans).Thebroadscale
adoptionoftheMillenniumDevelopmentGoalsasanoutcomefromtheMillenniumSummitin
2000(whichincludedagoalrelatingtoenvironmentalsustainability)providednewimpetusand
guidanceforthesestrategies.
AnumberofUNconventionshavealsodriventhedevelopmentofstrategies,includingNational
BiodiversityActionPlans(undertheConventiononBiologicalDiversityandfundedbytheGlobal
EnvironmentFacility),andNationalActionProgrammesagainstDesertification(introducedunder
theConventiontoCombatDesertificationandDroughtandsponsoredbytheUNDP).Other
organizationssuchastheIUCNandUNDPhavesupportedstrategiestargetingenvironmental
protection,suchasNationalConservationStrategiesandNationalAgendas21.Morerecently,the
proposalforlowemissiondevelopmentstrategies(LEDS)hasemergedundertheUNFCCC,andthe
developmentofgreeneconomyandgreengrowthstrategieshasreceivedimpetusfrom
discussionsinthecontextofRio+20andhasbeenpromotedbyvariousinternational
organizations.
Anumberofreviewshavebeenundertakenandpolicyguidelinesdevelopedovertheyearsto
enhancethedesignandimplementationofNSDS.Forexample,overtheperiod1992to2002,at
least30separatepapersandguidelineswerepublishedbyexpertsandinternationalorganizations
onNSDSexperienceandpractice(DalalClaytonandBass,2002).Buildingonitsexperiencein
supportingthedevelopmentofNSDSindevelopingcountries,theOECDsDevelopmentAssistance
Committeearticulated12principlestoguidethedevelopmentofNSDS(OECD,2001).Guidelines
fordevelopingNSDSwerealsopublishedbyUNDESAin2002,andin2006theOECDalsopublished
bestpracticesinstrategydevelopmentusedbyOECDcountries.Asummaryofprinciplesandbest
practicesforNSDSisprovidedinTable3below.
UsingtheprinciplesoutlinedintheOECDDACguidelines,areviewofexperiencesineight
developingcountrieshighlightedanumberofproblems,includingthatmanystrategieswerenot
integratedintoacountrysmainstreamstrategicplanningsystem,andthatmostwerewishlists
whichlackedclearobjectivesandachievabletargets
11
(DalalClaytonandBass,2002).Thesame
reviewhighlightedthatachievingsustainabledevelopmentrequiresdeepstructuralchanges,
includingthepromotionofeconomicgrowthpatternsthatfavorthepoor,fiscalpoliciesthat
promoteenvironmentalprotection,andamarketpricingstructureinwhichpricesreflectthefull
socialandenvironmentalcostsofproductionandconsumption.
11
Bolivia,BurkinaFaso,Ghana,Tanzania,Namibia,Pakistan,NepalandThailand(seeDalalClaytonandBass,
2002at
http://books.google.com/books?id=bbWCHRN4h_sC&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onep
age&q&f=false)
15
16
Buildingonpreviousstudies,areviewofNSDSexperiencein19developinganddeveloped
countriesconcludedthatfewcountrieswereactingstrategicallyandthatmanychallenges
remained(Swanson,Pinter,Bregha,VolkeryandJacob,2004).Thisincludedthelackofan
integratedsetofindicatorstoallowanalysisoftheinherenttradeoffsandinterlinkagesamong
theeconomic,socialandenvironmentaldimensionsofsustainabledevelopment.Anotherkey
challengewasthatmostNSDSremainedattheperipheryofgovernmentdecisionmakingand
failedtoengagefinanceministriesandcentralplanningagenciesinthestrategydevelopment
process.Assuch,theyfailedtointegratetheobjectivesofsustainabledevelopmentwithfiscal
prioritysettingandnationalexpenditureandrevenuegeneration.Anotherimportantconclusion
wasthat,whilstmanycountrieswereimplementingamixtureofpolicyinitiatives,economic
instrumentsandenvironmentalfiscalreforminitiativeswereunderutilized.Untilnationsleverage
theinstrumentsofenvironmentalfiscalreform(e.g.ecologicaltaxes,subsidyreform,userfees
etc.)andeconomicinstrumentssuchasemissionstrading,thereviewconcludes,effortstoward
sustainabledevelopmentwillbeplayingatthemargin(Swansonetal.,2004).
TheUNDESAalsohighlightedanumberofsimilarshortcomingsinearlyexperiencewithNSDS,
includingthelackofaclearandpragmaticvisionfordevelopment,limitednationalownershipand
lackofpublicconsultation,alackofintegrationwithbroaderdevelopmentpolicyandlimited
monitoringandevaluation(UNDESA,2002).However,italsonotedthatexperiencewithNSDShas
hadnotableachievementsinsomeareas.Forexample,earliereffortsindevelopingNSDShad
somesuccessinsupportingeconomicrecovery;buildingawarenessaboutsustainable
developmentandtheenvironment;capacitybuildinganddevelopmentofinstitutions;andthe
adoptionofenvironmentallawsandlegislation(UNDESA,2002).
Overall,itwouldappearthattheNSDSexperiencehashadatbestmixedresults,withnotable
achievementsinsomeareasbutseriousshortcomingsinothers.Forgreeneconomystrategiesto
overcometheproblemsandchallengesoutlinedaboveandbecomeanimportanttoolfor
implementingsustainabledevelopment,itiscriticalthatwelearnfromtheexperiencegainedover
20yearsofNSDSimplementation.Indeed,morerecentiterationsofNSDShaveattemptedto
addressthechallengesoutlinedabovebyadoptingmoreintegratedandparticipatoryapproaches,
focusingoninstitutionalreformsandenablingconditions,usingmoreadvanceddiagnosticand
measurementtoolsforpolicyevaluation,andapplyingeconomicinstrumentsandmarketbased
measures.
Table3.Principlesandgoodpracticesfordevelopingnationalsustainabledevelopmentstrategies
MainElement OECD(2006) UNDESA(2002) OECD(2001)
Policy
integration
Policyintegrationnationalstrategiesshouldgiveconsideration
toenvironmental,economicandsocialconcernsinintegrated
approachescontainedinnationalplansandreports.
Integrateeconomic,socialandenvironmental
objectives.Linkdifferentsectors
Integrateeconomic,socialandenvironmental
objectives.Ensurecomprehensiveand
integratedstrategy
Inter
generational
timeframe
Intergenerationaltimeframenationalstrategiesshouldadopt
longtermtimeframeswhichenableinclusionofintergenerational
principlesandindicators.
Developsharedstrategicandpragmaticvision.
Linkshorttermtomedium/longterm
Developconsensusonlongtermvision.
Analysisand
assessments
Analysisandassessmentsintegratedassessmenttoolsshould
beusedinnationalreportstoidentifytheenvironmental,
economicandsocialcostsandbenefitsofpolicyandstrategy
options.
Anchorstrategyinsoundtechnicaland
economicanalysis.Buildonexisting
mechanismsandstrategies.
Basestrategyoncomprehensiveandreliable
analysis.Buildonexistingprocessesandstrategies.
Coordination
and
institutions
Coordinationandinstitutionsawiderangeofgovernment
departmentsandagenciesshouldbeinvolvedintheformulation
andimplementationofnationalstrategies,withoverall
responsibilityintheofficeofthePrimeMinisterorequivalent.
Ensureastronginstitutionorgroupof
institutionsspearheadingtheprocess
Embedstrategyinhighlevelgovernment
commitmentandinfluential
leadinstitutions
Localand
regional
governance
Localandregionalgovernancelocalandregionalauthorities
shouldbefullyinvolvedinthedevelopmentofnational
strategies,withcertaindeliveryaspectsdevolvedtosubnational
levels.
Linknational,regionalandgloballevels
Linknationalandlocallevels
Stakeholder
participation
Stakeholderparticipationstakeholders(e.g.,business,unions,
nongovernmentalorganisations)shouldparticipatewith
governmentrepresentativesincommissionsresponsiblefor
developingandimplementingnationalstrategies.
Ensureaccesstoinformationforall
stakeholders,transparencyandaccountability.
Developpartnershipsamonggovernment,civil
society,privatesectorandexternalinstitutions.
Ensureeffectiveparticipation.Developapeople
centredstrategy.
Indicatorsand
targets
Indicatorsandtargetsstrategiesshouldbebasedonstructured
indicatorsystems(enumeratedinnationalplansandreports)to
assistinmonitoringprogressandtoserveasquantitativetargets.
Basestrategyonrealistic,flexibletargets Includetargetswithclearbudgetarypriorities
Monitoring
and
evaluation
Monitoringandevaluationindependentbodiesorprocesses
shouldbeestablishedtoactaswatchdogsmonitoring
implementationofnationalstrategiesandproviding
recommendationsfortheirimprovement.
Includeintegratedmechanismsfor
assessment,followup,evaluationandfeedback
Incorporatemonitoring,learningandimprovement
3.2. LowEmissionDevelopmentStrategies(LEDS)
AlthoughtheintroductionofLEDSterminologyemergedonlyrecentlyinUNFCCCnegotiations,
planningforeconomicdevelopmentthatincorporatesclimatechangemitigationandadaptationis
notanewconcept,andbothdevelopedanddevelopingcountrieshavebeenactiveinproducinga
varietyofnationalclimatechangeplansandstrategiesoverthepasttwodecades.ALEDScan
perhapsbestbedescribedasadevelopmentparadigmthatcontributestoaddressingthetwin
challengesofaddressingclimatechangeandadvancingdevelopment(VanTilburg,Wurtenberger,
Coninck,andBakker,2011).Itseekstopromoteeconomicgrowthorsustainabledevelopment
whilekeepinggreenhousegas(GHG)emissionslow,orlowerthanwithoutinterventions,and
increasingresiliencetoclimatechangeimpacts.
Theterminologyusedandthebreadthofissuesconsideredhaveevolvedovertime,movingfrom
GHGinventoriesandmonitoringcapabilities,toseparateplansconsideringGHGmitigationand
climatechangeadaptationinisolation,andthentolowcarbonorclimatecompatible
developmentplansthatattempttointegrateclimatechangeoutcomes(bothmitigationand
adaptation)intonationalsocioeconomicdevelopmentplanning.
Theevolutionoftheseplanstowardsenhancedintegrationwithcentraldevelopmentplanning
anddecisionmakinghasthusfollowedasimilartrajectorytotheexperiencewithNSDS.Clearly,
theprocessisevolvingascountriesandinternationalpartnersaimtodevelopamore
comprehensiveandintegratedapproach,focusingonactionsthatsupportnationaldevelopment
andeconomicprioritiesthataresimultaneouslylowcarbonandclimateresilient.Thisisessentially
aprocessofidentifyingtradeoffsandfocusingonsynergies.WhiletheterminologyLEDSmight
implyanarrowfocusoncarbonreductioninalimitedrangeofkeysectors(energy,transport,
agriculture,forestry),itoftenaddressesafarbroaderrangeofsocial,economicandenvironmental
issuesinsearchofpoliciesandactionsthatwillincreasesocietysresiliencetoclimatechange
impactsandexternalshocks.
Thisconceptofresilience,whilstdifficulttopinpointorquantify,hasbecomeacommongoal
sharedbyenvironmentalanddevelopmentalpractitionersalikeandextendsfarbeyondclimate
changeadaptation.Itiscloselylinkedwithourcapacitytocopewithshockswhilemaintaining
function,whethertheseshocksarerelatedtoclimatechange,food,oil,energy,financialorother
crises.Afterall,respondingtoclimatechangeismoreaboutcopingwithanincreasingfrequency
andseverityofexistingthreatsratherthanaddressingnewthreats.Assuch,measuresthatwe
taketoincreaseadaptivecapacityandbuildresiliencetoclimatechangearelikelytopermeate
acrossallthreedimensionsofsustainabledevelopment.
Internationalexperienceinlowcarbondevelopmentisgrowingrapidlyby2010,atleast46
countrieshadproducedanationalclimatechangestrategyorLEDS,includingbothdeveloped(30)
anddevelopingcountries(16)(OECD,IEA,2010).TheUNDPestimatesthetotalnumberisnow
wellover80countries
12
andhighlightsthatthishasbeendrivenbyapproximatelyUSD290mof
financingthroughtheGEFTrustFund,LeastDevelopedCountriesFund,SpecialClimateChange
FundandtheAdaptationFund.Withthisgrowinginternationalexperience,anumberofreviews
havebeenconductedwhichprovideguidanceoninternationalgoodpractice(forexample,see
12
See:
http://www.undp.org/content/undp/en/home/ourwork/environmentandenergy/focus_areas/climate_strat
egies/undp_projects_thatcontributetogreenlecrds.html
OECD,IEA2010;ODI,2009;VanTilburgetal,2011;ProjectCatalyst,2009;andPye,Watkiss,
SavageandBlyth,2010).
Theearliestclimatestrategiesdatebackmorethan20years,someofwhichcontainelementsofa
lowcarbondevelopmentstrategy(VanTilburgetal,2011).Overthepastfiveyears,several
emergingeconomieswithsubstantialGHGemissions(notablyBrazil,China,India,Indonesia,South
AfricaandSouthKorea)havedevelopedintegratedstrategiesonclimatechangeanddevelopment
orlowcarbongrowth.Moreover,anumberofleastdevelopedcountrieshaveelaborated
integratedclimateanddevelopmentstrategies,forinstancePapuaNewGuinea,Bangladesh,
RwandaandKenya.Lowcarbondevelopmentobjectiveshavealsobeenincorporatedintorecent
nationaldevelopmentplanningdocumentsreleasedbyanumberofcountries,includingChina
(Chinas12
th
FiveYearPlan,2011),Japan(JapansNewGrowthStrategy,2011),andEurope
(Europe2020:AStrategyforSmart,SustainableandInclusiveGrowth).
Veryrecently,severalcountrieshavepreparedstrategiesthataremoreclearlydefinedasLEDS,for
exampleGuyanasLowCarbonDevelopmentStrategy(2010),theUKsLowCarbonTransitionPlan
(2009)andIndonesiasCreatingLowCarbonProsperityinJambi
13
(2010).Boxes5to7below
provideaquickreferenceguidetothesestrategies,whileAppendices2to5provideamore
detailedoverviewofthekeyelementsofthesestrategies,including(whereavailable)theiraims,
institutionalarrangements,predictedcosts,policymeasures,prioritysectorsandpartners.
Box5.RepublicofGuyana:ALowCarbonDevelopmentStrategy(LCDS)
TransformingGuyanasEconomyWhileCombatingClimateChange(2010)
ThedocumentsetsoutGuyanasstrategytoforgeanewlowcarboneconomy
overthecomingdecade.Itidentifies8prioritiesthatwillbetheinitialfocusof
LCDSimplementationin2010and2011,givesanoutlineofprioritiesforthe
period201215,andsetsouttheframeworkforfurtherconsultationandstrategy
developmentonGuyanaslongtermlowcarbondevelopment.Thestrategy
focusesonavoidingdeforestationandusingfundingtoenablelowcarbon
economicdevelopmentofnewsectors.Thestrategywillleadtoactioninfour
areas:
Investinginlowcarboneconomicinfrastructure
Facilitatinginvestmentandemploymentinlowcarboneconomicsectors
Sustainablymanagingforestbasedeconomicsectors,inparticularforestry
andmining
Generallyenhancingthenationshumancapitalandcreatingnew
opportunitiesforforestdependentandotherindigenouscommunities.
ThedevelopmentofthestrategywasledbytheOfficeofthePresidentwiththe
assistanceoftheGovernmentofNorwayandtheInternationalInstitutefor
EnvironmentandDevelopment.ThestrategyaugmentsthecountrysNational
DevelopmentStrategyandNationalCompetitivenessStrategy,identifyingareas
wherethesebroaderdevelopmentgoalsandtargetscanbeachievedinalow
carbonmanner.
Weblink
&nr=11&menu=1299
13
Thisisaprovincialstrategyratherthananationalstrategy,butissupportedbythenationalgovernment.
19
Box6.UnitedKingdom:TheUKLowCarbonTransitionPlanNationalStrategy
forClimateandEnergy(2009)
ThisWhitePapersetsouttheUKstransitionplanforbecomingalowcarbon
country:cuttingemissions,maintainingsecureenergysupplies,maximizing
economicopportunities,andprotectingthemostvulnerable.Theplanincludesa
seriesoftargetsacrossfivekeyareaswithina2020timeframe:
Protectingthepublicfromimmediaterisk.
Preparingforthefuture.
Limitingtheseverityoffutureclimatechangethroughanewinternational
climateagreement.
BuildingalowcarbonUK(aimingtocutUKemissionsby34%by2020andat
least80%by2050comparedwith1990levelsthroughinvestmentin
energyefficiencyandcleanenergytechnologies,).
Supportingindividuals,communitiesandbusinessestoplaytheirpart.
TheplanwasapprovedpursuanttotheUKsClimateChangeActandthe
DepartmentofEnergyandClimateChangehasoverallresponsibilityforits
delivery.AnindependentCommitteeonClimateChangewasresponsiblefor
settingemissionsreductiontargetsandhasanongoingreviewfunction.Under
theplan,eachgovernmentdepartmentisissuedwithacarbonbudgetandmust
publishaplanonhowitwillachievethis.
Weblink
http://centralcontent.fco.gov.uk/ce
ntralcontent/campaigns/acton
copenhagen/resources/en/pdf/DEC
CLowCarbonTransitionPlan
Box7.JambiProvince,Indonesia:CreatingLowCarbonProsperityinJambi
(2010)
ThisreportevaluatesthepotentialforlowcarbonprosperityinJambiProvince,
Indonesia.Thereportoutlinesahighlevelastrategyfordeliveringeconomic
growthwhilemakingdeepcutsincarbonemissions.Itfocusesonthreecore
elements:
1. CO2mitigation:estimatingthesizeofcurrentandfutureemissions;
assessingthetechnicalabatementpotentialandfeasibilityofabatement
levers;developinganactionplantocaptureprioritisedabatement
opportunities.
2. Economicdevelopment:analysingexistingcompetitivestrengthsand
weaknesses;prioritisinggrowthopportunitiesbasedonimpactand
feasibility;developinganactionplantocaptureprioritisedgrowth
opportunities.
3. Institutionalenablers:developingastrategyforcriticalenablersthatwill
underpinthesuccessofthelowcarbongrowthstrategy(institutions,
monitoringandevaluation,financialmechanisms,spatialplanning).
ThereportwasledbytheOfficeoftheGovernoroftheProvinceofJambi,the
DewanNasionalPerubahanIklimandIndonesiasNationalClimateChange
CouncilwiththesupportoftheAgenceFrancaisedeDeveloppement,the
ClimateWorksFoundation,theNorwegianGovernmentandthePackard
Foundation.AnalyticalsupportwasprovidedbyMcKinseyandCompany.
Weblink
http://photos.mongabay.com/10/ja
mbi_report_090810_english.pdf
CommonelementsofLEDSthathavebeenformallycommunicatedtotheUNFCCCinclude:
reducingenergydemand,suchasthroughinvestmentsinenergyefficiencyandinfrastructure;
ensuringenergysecuritybasedonincreasingrenewableandlowcarbonsourcesofenergyasa
proportionoftotalenergyused;adoptingsupportivetechnologiesandpoliciesinnonenergy
sectors;andmanaginglandsustainably(UNESCAP,2012).
Suchmeasuresarelikelytobearsignificantfinancialcostsandfacesignificantchallengesand
barriersinimplementation.Lowcarbongrowthpolicyisalongtermprocessandthereisoften
significantinstitutionalinertiaamonglocalregulatorsandpolicymakersduetoperceived
20
institutionalrisksofadoptingnewtechnologies,existingvestedinterests,andalackofcapacityto
assesseconomicbenefitsandcosts(Pyeetal,2010).Intermsoffinancing,evenwherepositive
netpresentvaluesareestimatedformitigationmeasures,upfrontinvestmentsmaystillbe
significant,andmayrequirehigherlevelsofinvestmentthantraditionalalternatives.Akey
shortcomingformanyLEDS(aswellasforNSDSmoregenerally)isthattheyhavefailedtoprovide
clearpathwaystofunding.Thismaybeduetoagenerallackofrevenuefortheimplementationof
policyinitiatives(oftenfacedbydevelopingandtransitionalcountries)and/orfromalackof
linkagewithcentralplanningandbudgetallocationprocesses.
Recentinternationalclimatenegotiationshaveresultedinsignificantcommitmentstoincreasethe
flowofclimatefinancefromdevelopedtodevelopingcountries,inparticulartheCopenhagen
AccordwhichcommitstoUSD30billioninFastStartfinancingfortheperiod20102012,and
USD100billionperyearby2020.OtherfundsincludetheAdaptationFundmanagedbyGEF(80
330m),theClimateChangeFundoftheAsianDevelopmentBank(40m)andtheStrategicClimate
FundoftheWorldBank(6billion).Thisinjectionoffinancewillassistwiththeeffectivedesignand
implementationofLEDSandhascatalysedtheeffortsofanumberofquicktomovedeveloping
andleastdevelopedcountries.Bymovingearlyanddemonstratingnationalleadership,these
developingcountrieshaveattractedsignificantinternationalfinanceandassistance(VanTilburget
al,2011).
Indevelopingcountries,nationalinstitutionalcapacities,informationanddata,andaccessto
financialresourcesareoftenlimited,andforthedevelopmentandimplementationofaLEDSthey
relyheavilyoninternationalsupportforanalyticalwork,processsupport,fundingandtechnical
assistance(VanTilburgetal,2011).Inresponse,therehasbeenaproliferationofinternational
organisationsandinitiativesprovidingassistancetocountriestoundertakeresearchanddevelop
LEDSandotherclimatechangeplans.Forexample,therecentlyestablishedLowEmission
CapacityBuildingProgramme(aninitiativeofUNDP,theEuropeanCommission,theGovernment
ofGermany,andtheGovernmentofAustralia)issupportingtheeffortsofover30countriesin
developingLEDS
14
.OtherkeyplayersincludetheWorldBankLowcarbonGrowthCountryStudies
program(partofESMAP),theClimateandDevelopmentKnowledgeNetwork(fundedbytheUK
andDutchGovernments),theClimateWorksProjectCatalyst(ofteninvolvingMcKinseyand
Company)andtheUSGovernmentsLEDSprogram.Globally,thereareover200LEDSrelated
supportactivitiesunderway
15
,andtherehasalsobeenaproliferationofover50networksand
knowledgeplatformssupportinglowemissionandclimatecompatibledevelopmentplanning,up
fromfewerthan10onlythreeyearsago(CLEAN,2011).Amorecomprehensiveoverviewof
practitionersandpartnerswillbeaddressedinasubsequentgreeneconomyguidebookinthis
series.
Clearly,developmentofLEDSisnolongerinitsinfancyand,aswithinternationalexperiencein
implementingNSDS,alotcanbelearnedfromthisexperienceforthedevelopmentofgreen
growthandgreeneconomystrategies.Arangeofnationalandinternationaldevelopment
organisations,practitioners,researchinstitutesandprivateconsultancyfirmshavebeenactively
workingondevelopingandrefiningmethodologicalapproachestosupportcountriesinthe
developmentofLEDS.Withregardtotheprocessofstrategydevelopment,keysuccessfactors
andlessonslearnedhavebeenderived,manyofwhicharenotspecifictoLEDS,butaredrawn
fromintegratedormultisectoralplanningmorebroadly,orreflectbestpracticethinkingin
developmenttheory(VanTilburgetal,2011).AnumberofrecentreviewsofLEDShavebeen
14
CountriesincludeArgentina,Bhutan,Chile,China,Colombia,CostaRica,DemocraticRepublicofCongo,
Ecuador,Egypt,Ghana,Indonesia,Kenya,Lebanon,Malaysia,Mexico,Moldova,Morocco,Peru,The
Philippines,Tanzania,Thailand,TrinidadandTobago,Uganda,VietnamandZambia.
15
OpenEILEDSGlobalPartnershipdatabasehttp://en.openei.org/wiki/LEDS_Global_Partnership_Activities).
21
undertakenwhichidentifychallengesandlessonslearned,assummarisedinTable4below.Again,
itwillbeimportantthatgovernmentsandpractitionerslearnfromthisexperiencewithLEDSinthe
developmentofgreeneconomystrategies.
Table4LessonslearnedfordevelopingLEDS
Category LessonsLearned
1.Factbase ALEDSneedstobuildonastrongbasisofhighqualityandtimelydataonGHG
emissionsandsocioeconomicindicators,andthecredibilityoftheresearchdependson
thequalityofandavailabilityofdata.
2.Capacity Analyticalcapacityisneededforvarioustasksintheprocess,suchasassessingthe
currentsituationandidentifyingalternativedevelopmentpathways.Collaborationwith
internationalexpertsmayimprovetheanalysis,butnationalcapacityisessentialto
ensurethatthestrategyissufficientlyrootedintherealityofthespecificcountry.
3.Awareness
andleadership
Government,theprivatesectorandcivilsocietystakeholdersneedtobeawareofhow
lowcarbondevelopmentcanaffectthem.Thisawarenessisessentialtocreatebuyin
forthestrategyanditsimplementation.Strong,seniorleadershipfromgovernmentisa
keysuccessfactorfordevelopingaLEDSthatisintegratedacrossallpolicyareas.
4.Government
coordination
Clearrolesandpolicymandatesneedtobeestablished.Governmentsonthesub
nationallevelneedstobeengagedinthestrategyasearlyaspossible,sincetheyare
typicallycrucialfortheimplementation.Toestablishmomentumforimplementation,a
LEDSideallyneedstobeintegratedintothemainstreamnationaldecisionmaking
process.
5.Stakeholder
Involvement
Engagestakeholdersfromthestartoftheprocesstoprovideandimproveinput,andto
createsupportforthestrategy.Lackoftime,resourcesandcommitmentmayleadto
lateinvolvementandanarrowbaseforparticipation,whichinturnmaycreateagap
betweenthestrategyandonthegroundrealities.
Source:adaptedfromVanTilburgetal(2011);ProjectCatalyst(2009);Clappetal(2010),Koketal(2008),ESMAP
(2009b).
3.3. GreenEconomy&GreenGrowthStrategies
BuildingoninternationalexperiencewithNSDSandLEDS,anumberofcountrieshavebegunto
developnationalgreeneconomystrategies.Whiletheseconceptsareallcloselyrelated,green
economystrategiescouldbeseenasafurtherstepintheevolutionofintegratedsustainable
developmentstrategies,promisingnewtoolsandafreshapproachforovercomingthegapsand
challengesexperiencedoverthepast20yearsintheimplementationofNSDS.
Thecentralfocusontheeconomycouldassistwithengagingcentralplanningandfinance
ministries,integratingwithnationalexpenditureandfiscalprioritysetting,andtheutilisationof
economicinstrumentsandfiscalreformtoimplementsustainabledevelopment.Buildingon
recentexperiencewithLEDS,theshifttogreeneconomystrategiescouldmovebeyondthe
integrationofclimatechangewithdevelopmenttoaddressawiderrangeofenvironmental,social
andeconomicissuesinamorecomprehensiveandintegratedmanner.
Internationalexperiencewithgreeneconomypolicydevelopmentisrapidlyexpandingacrossthe
globe.Overtheperiod2010to2011,greeneconomyscopingstudieswerecompletedin25
differentcountriesunderUNEPsGreenEconomyInitiative.TheGlobalGreenGrowthInstitute
(GGGI)iscurrentlysupportingthedevelopmentofnationalgreengrowthplansintwelve
countries,namelyBrazil,Indonesia,Cambodia,Thailand,UnitedArabEmirates,Kazakhstan,
Ethiopia,Mongolia,thePhilippines,Rwanda,ChinaandVietnam.Toundertakethiswork,theGGGI
haspartneredwithrespectivenationalgovernmentsaswellasanumberofotherorganisations,
includingUNESCAP,theKoreaInstituteforInternationalEconomicPolicy,theKoreaLegislative
ResearchInstitute,theEuropeanBankforReconstructionandDevelopmentandUNEPRisoe.The
22
EuropeanCommissionalsorecentlyfundedastudyongreeneconomyoptionsintheEastern
PartnershipCountries(Armenia,Azerbaijan,Belarus,Georgia,RepublicofMoldovaandthe
Ukraine)
16
,astudyiscurrentlyunderwaylookingatgreengrowthpoliciesforMediterranean
countries(fundedbytheWorldBankandothers)
17
,andtheUNEconomicCommissionforAfrica
recentlypreparedadiscussionpaperwithUNEPongreeneconomyimplicationsforAfrican
countries
18
.
TheOECDisalsoprovidingregularguidancethatistailoredtotheneedsofindividualcountries
throughitscoreadviceincountryspecificreviews(e.g.theEconomicSurveys,Environmental
PerformanceReviews,InvestmentPolicyReviewsandInnovationReviews)andmultilateral
surveillanceexercises,suchastheGoingforGrowthflagshipreport,coveringadvancedand
emergingeconomies.InadditiontheOECDhasdevelopedasetofgreengrowthindicatorsand
measurementtoolsthatcountriescanusetomonitortheirprogressinthisarea.Countrieslikethe
CzechRepublic,DenmarkKoreaandtheNetherlandshavealreadyappliedtheOECDgreengrowth
measurementframeworkandindicatorstotheirspecificnationalcontextstoassesstheirstateof
greengrowth.WiththesupportofOECD,theLatinAmericaDevelopmentBank,theLatin
AmericanandtheCaribbeanEconomicSystemandtheUnitedNationsIndustrialDevelopment
Organization,workisunderwayinMexico,Colombia,CostaRica,Ecuador,Guatemala,Peruand
ParaguaytoapplytheOECDindicatorsasawaytoidentifykeyareasofnationalconcernandthe
scopeforimprovingthedesign,choiceandperformanceofpolicyinstruments.
Althoughmuchofthisworkremainsatascopingorearlyanalyticalphase,anumberofcountries
havenowpublishednationalgreeneconomystrategiesorroadmaps.TheRepublicofKoreahas
beenafrontrunnerintheseefforts,finalisingitsNationalStrategyforGreenGrowthandFiveYear
Planin2009.Othernationalgreeneconomystrategiesarealsostartingtoemerge,including
CambodiasNationalGreenGrowthRoadMap(2009),FrancesNationalSustainableDevelopment
Strategy:TowardsaGreenandFairEconomy(2010),EthiopiasClimateResilientGreenEconomy
Strategy(2011),SouthAfricasGreenEconomyAccord(2011),RwandasGreenGrowthand
ClimateResilienceNationalStrategyforClimateChangeandLowCarbonDevelopment(2011),
andGrenadasRoadmaponBuildingaGreenEconomyforSustainableDevelopmentinCarriacou
andPetiteMartinique,Grenada(2012).Boxes8to14belowprovideashortreferenceguideto
thesepublications,whileAppendices2through5provideamoredetailedoverviewofthekey
elementsofthesestrategies(whereavailable),includingtheiraims,institutionalarrangements,
costs,policymeasures,prioritysectorsandpartners.
16
OpportunitiesandOptionsforPromotingaGreenEconomyintheEasternPartnershipCountries,
ConsortiumSafege,2011.
17
TowardGreenGrowthinMediterraneanCountriesImplementingPoliciestoEnhancetheProductivityof
NaturalAssets,2012MEDReportOverview.
18
AGreenEconomyintheContextofSustainableDevelopment:WhataretheimplicationsforAfrica?,
UNECA,UNEP,2011.
23
Box8.RepublicofKorea:NationalStrategyforGreenGrowthandFiveYear
Plan(2009)
In2008,partlyinresponsetotheglobalfinancialcrisis,theRepublicofKorea
(RoK)adoptedlowcarbongreengrowthasthecountrysnewdevelopment
vision,whichwasfollowedshortlyafterbythereleasein2009oftheirNational
StrategyforGreenGrowthandFiveYearPlanforGreenGrowth.Theirstrategy
hasthreeobjectives:
1.Promoteasynergisticrelationshipbetweeneconomicgrowthand
environmentalprotection.
2.Improvepeoplesqualityoflifeandpromoteagreenrevolutionintheir
lifestyles.
3.Contributetointernationaleffortstofightclimatechangeandother
environmentalthreats.
ThedevelopmentofthestrategywasledbyaPresidentialCommissiononGreen
Growthwhichwasestablishedin2009.Theadoptionofthestrategywas
formalisedthroughthecountrysNationalAssemblyandtheenactmentofa
FrameworkActonLowCarbonGreenGrowth.

Weblink
http://english.mest.go.kr/web/4220
8/en/board/enview.do?bbsId=265&
pageSize=10&currentPage=13&boar
dSeq=1226&mode=view
Box9.KingdomofCambodia:NationalGreenGrowthRoadMap(2009)
CambodiasRoadmapisaninitialattempttooutlinethepossibilitiesforgreening
economicgrowth.Itrecognisesthatuncoordinated,illsequencedand
disconnectedsectoralpolicieswillnotgreentheeconomy,andthatthe
Roadmapwillneedtoalignwithcentraldevelopmentplansandstrategiesand
developmentgoals.Itfocusesonprovidingadditionalitytothedevelopment
objectivesarticulatedintheNationalStrategicDevelopmentPlanandthe
GovernmentsRectangularStrategy.
Theroadmapaddressessevenaccessareas:accesstocleanwaterandsanitation;
accesstorenewableenergy;accesstoinformationandknowledge;accessto
meansforbettermobility;accesstofinanceandinvestments;accesstofood
security(agriculture)andnonchemicalproducts;Accesstosustainablelanduse.
TheroadmapwasledbytheMinistryoftheEnvironmentthroughaninter
ministerialworkinggroupandproposestoestablishanewNationalMinisterial
GreenGrowthCouncilforimplementation.Thedevelopmentoftheroadmap
wassupportedbytheUNEconomicandSocialCommissionforAsiaandthe
Pacific.
Weblink
http://www.greengrowth.org/sites/
default/files/pictures/Final%20Draft
%20Roadmap,%20Feb262010.pdf
24
Box10.RepublicFrancaise:NationalSustainableDevelopmentStrategy
TowardsaGreenandFairEconomy
Bydevelopingadecarbonisedeconomyusingfarfewerresources,thestrategy
aimstomakeFranceamajorplayerinthegreeneconomywhilstpursuingsocial
justiceandequity.Thestrategyaimstoensurecoherenceandcomplementarity
ofFrancesinternationalandEuropeancommitmentsandnational,crosscutting
andsectoralpolicies.Itisbasedonninestrategicchallengeswhichmustbetaken
uptomovetowardsagreenandequitableeconomy.Foreachchallenge,the
strategyprovidescontext,priorities,objectiveswithquantitativetargets,and
policymeasures.
ThedevelopmentofthestrategywascoordinatedbytheMinistryof
Environment,SustainableDevelopmentandEnergy,howeveritreflectsthe
outcomesofanextensivestakeholderconsultationprocessundertakenthrough
thegrenelledelenvironnement.
Thestrategyincludesasustainabledevelopmentscoreboardwithcomprisinga
setofquantitativeindicatorsacrosskeysectoralandcrosssectoralissues.
Weblink
http://www.developpement
durable.gouv.fr/IMG/pdf/NSDSp60.
pdf
Box11.FederalDemocraticRepublicofEthiopia:EthiopiasClimateResilient
GreenEconomyGreenEconomyStrategy(2011)
TheobjectiveofEthiopiasstrategyistoidentifygreeneconomyopportunities
thatcouldhelpEthiopiareachitsambitiousgrowthtargetswhilekeeping
greenhousegasemissionslow.Thegovernmentintendstoattractdevelopment
partnerstohelpimplementthisnew,sustainablegrowthmodel.
Thevisionistoachievemiddleincomestatusby2025inaclimateresilientgreen
economy.ThestrategyispartofthebroaderClimateResilientGreenEconomy
initiativeledbythePrimeMinistersOfficeandwhichhasthreeobjectives:
Fosteringeconomicdevelopmentandgrowth;
Ensuringabatementandavoidanceoffutureemissionsi.e.totransitionto
agreeneconomy;
Improvingresiliencetoclimatechange.
Thefourpillarsofthestrategyare:adoptionofagriculturalandlanduse
efficiencymeasures;IncreasedGHGsequestrationinforestry;deploymentof
renewableandcleanpowergeneration;anduseofappropriateadvanced
technologiesinindustry,transportandbuildingsleapfroggingtomodernand
energyefficienttechnologies.
ThestrategyisalignedwithEthiopiasGrowthandTransformationPlanwhich
hasthegoalofreachingmiddleincomestatusby2025.Thestrategyfollowsa
sectoralapproachandidentifiesandprioritisesmorethan60initiativeswhich
supportachievementofdevelopmentgoalsandreduceGHGemissions.
Weblink
http://www.epa.gov.et/Download/
Climate/Ethiopia's%20Climate
Resilient%20Green%20economy%2
0strategy.pdf
25
Box12.RepublicofSouthAfrica:NewGrowthPath:Accord4GreenEconomy
Accord(2011)
SouthAfricasGreenEconomyAccordwasledbytheEconomicDevelopment
Departmentandisapartnershipbetweengovernment,thebusinesscommunity,
thetradeunionmovementandcommunityorganisationstocreatelarge
numbersofjobs,provideaspurforindustrialisationandhelptocreatea
sustainablefutureforcurrentandfuturegenerations.Itisoneofaseriesof
agreementsinwhichsocialpartnerscommittoworktogethertoachievethe
goalsitscentraldevelopmentstrategytheNewGrowthPath,includingagoal
offivemillionnewjobsby2020.Inthiscontext,theAccordhasagoalofcreating
atleast300,000jobsby2020inthegreeneconomyandactivitiesthatgreenthe
economy.
Weblink
http://www.info.gov.za/view/Down
loadFileAction?id=159756
Box13.RepublicofRwanda:GreenGrowthandClimateResilienceNational
StrategyforClimateChangeandLowCarbonDevelopment(2011)
Thepurposeofthestrategyisthreefold:
1. Toguidenationalpolicyandplanninginanintegratedway.
2. Tomainstreamclimatechangeintoallsectorsoftheeconomy.
3. TopositionRwandatoaccessinternationalfundingtoachieveclimate
resilienceandlowcarbondevelopment.
ThestrategywillcontributetoRwandasVision2020developmentstrategy
whichaimstotransformRwandafromasubsistenceagricultureeconomytoa
knowledgebasedsociety,withhighlevelsofsavingsandprivateinvestment,and
therebyreducethecountrysdependenceonexternalaid.Itincludestheaimof
reachingmiddleincomestatusby2020.
Thestrategyoutlines3strategicobjectiveswhichareguidedby5principles.
Specificactionsarerequiredin14ProgrammesofActionacross13sectors.Five
enablingpillarsestablishtheprocessesandenablingenvironmentrequiredto
mobilisethestrategy.
ThedevelopmentofthestrategywascoordinatedbytheMinistryofNatural
Resourcesandwasdirectedthroughaninterministerialcommittee.Thestrategy
wassupportedbytheUKGovernmentandCDKN,withanalysisundertakenby
theSmithSchoolofEnterpriseandEnvironmentatOxfordUniversity.
Weblink
http://www.smithschool.ox.ac.uk/w
p
content/uploads/2011/03/Rwanda
GreenGrowthStrategyFINAL.pdf
26
Box14.CarriacouandPetiteMartinique,Grenada:RoadmaponBuildinga
GreenEconomyforSustainableDevelopmentinCarriacouandPetite
Martinique,Grenada(2012)
Theprimaryobjectiveofthisroadmapistohelpdesignanintegratedstrategy,
basedongovernmentcriteriaandexpertassessment,forthetransformationof
theeconomyofCarriacouandPetiteMartiniqueintoagreenerandmore
sustainableeconomy.TheRoadMapsetsoutalistofpotentialprojectsand
initiativesacrosskeysectors.Thestudyservesasastartingpointforthe
developmentofamoreindepth,systematicassessmentfordesigninggreen
economiesinsmallislanddevelopingstates.
Itrepresentsanattempttoformulateagreeneconomyroadmapforthe
transitiontowardssustainabledevelopmentinatimeframeofoneortwo
decades.Thestudyassessesandpresentsproposalsforchangeinmajor
developmentblocksincluding:energy,water,education,employment,transport,
agricultureandfoodsecurity,ecotourismandenvironmentalissues.
ThestudywasledbytheUNDivisionforSustainableDevelopmentin
cooperationwiththeMinistryofCarriacouandPetiteMartiniqueAffairsandthe
MinistryofEnvironment,ForeignTradeandExportDevelopmentofGrenada.
Weblink
0&nr=523&menu=35
4. Someinitialinsightsfromtenrecentnationalstrategiesforgreen
economyandlowemissiondevelopment
Experiencewithdesigningandimplementingnationalgreeneconomystrategiesisrapidly
emerging.Appendices2to5provideanoverviewoftenrecentgreeneconomy,greengrowthor
lowemissiondevelopmentstrategiesthathavebeenpublishedforbothdevelopinganddeveloped
countries.Inthissection,thetermstrategyisusedquitebroadly,asthedocumentsreviewed
varyinformulationandcontent.Someoftheseareobviouslypreliminaryscopingstudies,road
mapsorwishlistsofpotentialoptionsandprojects(e.g.Cambodia,Grenada,JambiProvincein
Indonesia),whereasothersaremoresophisticatedanalysesthatuseresearchandpolicy
evaluationtoselectinitialpriorityactionsandmeasurestobuildthenecessarycapacitiesfor
implementation(e.g.Ethiopia,Rwanda,Guyana,andtosomedegreeJambi,Indonesia).Others
canbetterbedefinedaswhitepaperpolicydocumentsincorporatingnationalmidtermandlong
termtargetsandindicators,policymeasures,costingsandresponsibilitiesforimplementation(e.g.
RoK,UKandtosomedegreeFranceandSouthAfrica).
Assuch,thelessonsfromthisreviewarenotmeanttobeconclusiveorareflectiononaparticular
countryorprocess,butratherthereviewattemptstoprovidesomeinitialinsightintothe
applicationofthegreeneconomyconceptbyasmallgroupofdevelopinganddeveloped
countries.Thereviewwasbasedonlyontheinformationcontainedinthestrategydocuments
themselvesalongwithanysupportingdocumentswhereavailable.
Despitetheselimitations,thereviewhopestoprovidesomenewinsightintorecenteffortsby
governmentsinimplementingsustainabledevelopment,andhowtheyareusingconceptssuchas
greeneconomytopotentiallyovercomethechallengesexperiencedovermanyyearsof
implementationofNSDStypestrategies.Inparticular,thesechallengesrelateto:
thelevelofpoliticalleadership,institutionalarrangementsandcapacitiesforstrategy
developmentandimplementation,engagementofcentralfinanceministries,andintegration
withnationalbudgetaryprocesses;
thecalculationofcostsforstrategyimplementationandclearlinkagestosourcesoffunding;
27
theestablishmentoffeedbackandreviewmechanismsformonitoringprogress,includingthe
useofquantitativetargetsandindicatorsandothertoolsforidentifyingpolicysynergiesand
tradeoffs;and
theuseofintegratedapproachesandabroadmixofpolicyinstrumentsincludingeconomic
instruments.
4.1. Leadership,engagement,institutionsandintegrationwithnational
budgetaryprocesses
Achievingsustainabledevelopmentdependsagreatdealonhighlevelpoliticalcommitment,well
functioninggovernmentinstitutionsandovercomingcoordinationfailuresinpublicpolicies(OECD,
2006).Inordertodevelopandimplementanationalstrategy,strongleadershipisrequiredalong
witheffectiveinstitutionalarrangementstoensurethetransparentandeffectiveflowof
information,knowledgeandfinancialresources.Involvingarangeofgovernmentdepartments
andstakeholdersisimportanttofacilitatetheseflowsandalsoassistswiththeidentificationof
tradeoffsandsynergiesacrosspolicyareas.
OneofthekeychallengesexperiencedinthedesignandimplementationofNSDShasbeenthe
lackofhighlevelpoliticalleadership,failuretoinvolvecentraleconomicplanningandfinance
ministries,andlackofintegrationwithbudgetaryprocessesandlinkageswithsourcesoffinance.
Toovercomethisrequiresinstitutionalandgovernancearrangementsthatensuresenior
leadershipwithingovernment,engagementacrossthevariousagenciesandlevelsofgovernment
duringstrategydevelopmentwithclearrolesandpolicymandates,broaderconsultationwith
stakeholdersandthepublic,andintegrationwiththemainstreameconomicdecisionmaking
process.Forexample,thepreferredapproachwouldbetoplaceoverallleadershipand
coordinationresponsibilitywiththeofficeoftheprimeministerorequivalentsupportedbya
wholeofgovernmentinterministerialcoordinatingcommittee.
Appendix3providesabriefoverviewofthecoordinationandinstitutionalarrangementsadopted
forthedevelopmentandimplementationofthetenstrategiesbeingreviewed.Itcanbeseenthat
fivecountriesputinplacearrangementsthatensureseniorgovernmentleadershipofthe
developmentofthestrategy.Thiswaseitheratthemostseniorlevelfromtheofficeoftheprime
ministerorpresident(e.g.Guyana,RoK,Indonesia
19
)orbycentralisedeconomicdevelopmentor
planningagencies(e.g.Ethiopia,SouthAfrica).Foranumberofotherstrategies,theprocesswas
ledbylineagencies,inparticularenvironmental,naturalresourceandenergyministries.Whilethis
willnotnecessarilydefinethesuccessorotherwiseoftheplan,theriskofcoordinatingline
agenciesisthattheydonotgenerallyhavethesamelevelofpoliticalcloutascentralisedagencies
anditmayleadtoproblemswithgovernmentengagement,financingandfollowup.Leadershipat
themostseniorlevelismorelikelytoensurethatthereisengagementandcommitmentacross
governmentandthattheprocessisadequatelylinkedtocentralfinanceandbudgetprocesses.
Fromthestrategiesreviewed,itcanalsobeseenthatcountriesareusingarangeofdifferent
institutionalsupportstructuresandarrangementsforwholeofgovernmentengagementinthe
developmentandimplementationofthestrategy.Sucharrangementsareparticularlyimportant
wherealineagencyistheleadtoensureengagementacrossgovernmentandtheinvolvementof
centraleconomicplanningandfinanceministriesandabroaderrangeofstakeholders.
Inmanycases,newinstitutionalarrangementswereestablishedtopreparethestrategiesandin
somecasestheseremaininplacetocoordinateimplementationandfollowup.Itwouldappear
thataprimarypurposeofthesemechanismswastoenablewholeofgovernmentinputintothe
19
LedbytheGovernorofJambiprovince.
28
developmentofthestrategy,aswellastoprovideopportunitiesforbroaderstakeholder
consultation.Forexample,whilstCambodiasroadmapwasledbyitsMinistryofEnvironment,it
establishedaninterministerialworkinggroupcomprisingatleast17ministries,including
ministriesofeconomyandfinance,whichprovidedanimportantlinktothesecentralagenciesand
budgetaryprocesses.Similarly,whileRwandasstrategywascoordinatedbytheMinistryof
NaturalResources,itwasdevelopedthroughasteeringcommittee(NationalClimateCommittee)
comprisingtenCabinetministries,includingthoseforfinanceandeconomicplanning.RoK
establishedaPresidentialCommissiononGreenGrowthtoleaditsstrategy.Ethiopiaestablished
sophisticatedarrangementsincludinganinterministerialsteeringgroupandsevensectoralsub
committeesofgovernmentrepresentativesandexperts.Francesstrategywasinitiallyledbyits
Comitnationaldudveloppementdurableetdugrenelledelenvironnementandcoordinated
throughaninterministerialCommitteeforSustainableDevelopment.TheUKcoordinateditsplan
throughtheirnewlyestablishedDepartmentofEnergyandClimateChange.
Basedonthisbriefreview,itwouldseemthatmostcountriesareutilisingwholeofgovernment
coordinatingbodiestodeveloptheirnationalstrategies,someofwhichremaininplacetosupport
strategyimplementation.Buildinginstitutionalcapacityforstrategyimplementationwasalsoa
keyprioritytargetedinsomeofthedevelopingcountrystrategiesreviewed,inparticularGuyana,
RwandaandEthiopia.Thisincludestheestablishmentofnewcoordinationoffices,technical
committees,researchcentres,andfunds(seeBox15below).IndonesiasprovincialplanforJambi
alsoincludessomeusefulrecommendationsregardingtheproposedestablishmentofanew
coordinationanddeliveryunitforlowcarbondevelopment(seeBox16below).
Box15:ProposedinstitutionalarrangementsforstrategyimplementationinGuyana,Rwanda&
Ethiopia
Guyana(RepublicofGuyana,2010)
Toensuresuccessfulexecutionofitsstrategy,Guyanaisdevelopingfivenewenhancedinstitutional
capabilities:
1. AnOfficeofClimateChange(OCC)establishedintheOfficeofthePresidenttoconsolidateand
streamlineexistingGovernmenteffortstoencompass,amongotherthings,thecoordinationof
engagementwithmultilateralprocessesandnegotiationsincludingUNFCCC.Ithastheoverall
coordinatingresponsibilityforthestrategy.
2. AstrategyProjectManagementOfficeestablishedtodrivekeyprojectsunderthestrategyandreport
directlytothePresident.
3. AGuyanaREDDInvestmentFund(GRIF)willbeestablishedtomanageforestpayments,toreducethe
costofcapitalonotheressentialinvestments,andoverthelongtermtoactasapermanentinvestment
fundforlowcarboninvestments.
4. AstrengthenedEPAwillensurethatsocialandenvironmentalsafeguardsareappliedtotheappropriate
internationallyrecognisedstandardsforallGRIFinvestments.
5. TheREDDSecretariatattheGuyanaForestryCommissionwillbetheimplementingagencyforREDD
readinessactivities,includingaMRVsystem.
Rwanda(RepublicofRwanda,2011)
Thestrategyacknowledgesthatitwillrequirelargeamountsoffinanceandhumancapacitytobe
implemented,requiringsignificantsupportfromdevelopmentpartners,civilsocietyandtheprivatesector,
andleveragingofforeigndirectinvestment.Capacitybuildingisunderwayingovernmentbutneedstobe
scaleduptomeettheneedsofthestrategy.Initially,thiswillrequiretechnicalassistancefromthe
internationalcommunity,andlocalstaffwillneedtostudyandgainexperienceabroaduntilthetechnical
coursesarerunninginRwanda.
Movingforward,thegovernmentisfinalisinglegislationforaNationalFundforClimateandthe
EnvironmentwithintheMinistryofFinanceandEconomicPlanningasabasketfundthatwillplayakeyrole
inmanagingclimatefundsthatflowintoRwanda.Twoadditionalneworganisationalstructureswillalsobe
29
establishedaCentreforClimateKnowledgeforDevelopment(CCKD)andaTechnicalCoordinating
Committee(TCC)toleadandfacilitatetheflowofknowledgeamongthedifferentorganisations.
TheCCKDwillbeafocusorganisationforinterpretingclimateinformationintheformrequiredforeach
sector.Itwillbeamultidisciplinaryorganisationwithexpertiseinclimatechangeandsectors.Itwillwork
withtheTCCtoprovideinformationtorelevantMinistriesandstakeholders.TheTCCwouldcomprise
departmentheadsfromtheRevenueAuthority,RwandaNaturalResourcesAuthority,theEnergyWaterand
SanitationAuthority,theRwandaHousingAuthority,theRwandaTransportDevelopmentAgency,the
PrivateSectorFederation,theRwandaDevelopmentBoardandotheragenciesandrepresentativesfrom
civilsociety,academia,developmentpartnersandtheprivatesector.
Ethiopia(FederalDemocraticRepublicofEthiopia,2011)
TheGovernmentisestablishingapermanentplatformforimplementationofthestrategy.Overall
responsibilitywillliewithEthiopiasEnvironmentalCouncil,whichischairedbythePrimeMinisterand
comprisesmembersdrawnfromFederalMinistries,PresidentsofNationalRegionalStates,and
representativesofnongovernmentalbodies,theprivatesectorandtradeunions.AMinisterialSteering
CommitteeandaTechnicalCommitteesitundertheEnvironmentalCouncil,aswellaseightsubtechnical
committeesfocusingonspecificsectors.TheGovernmentwillinstallasubsidiarybodytogovernthe
ClimateResilientGreenEconomyinitiativeunderthecoresponsibilityoftheMinistryofFinanceand
EconomicDevelopmentandtheEPA.
Box16.RecommendationsforJambis(Indonesia)DeliverySupportUnit
ThisstrategyfromIndonesiaisattheprovinciallevelforJambiProvince,butneverthelessincludessome
usefulrecommendationsforestablishingadeliveryunitforimplementinglowcarbonstrategiesasfollows:
1. Itmusthaveadirectrelationshipwithandaclearmandatefromthehighestlevelsofgovernment;
2. Itneedstoincluderepresentativesfromdifferentlevelsofgovernment;
3. Relationshipsanddecisionmakingrightsmustbeclearlydefinedbetweenthenewunit,ministries,and
otherstakeholders;
4. Employeecompensationandvaluepropositionmustbecompetitivewiththecommercialsectorto
attracttoptalent;and
5. Arigorousperformancemanagementframeworkaroundafewpriorityoutcomesmustbedeveloped.
Whereexternalfinancingwillbecriticalforstrategyimplementation,somestrategiesalsopropose
theestablishmentofnewfinancialmechanismsandinstitutionalarrangements.ForEthiopia,the
Governmenthasdevelopedanactionplantoestablishapermanentfinancialmechanism,and
proposesthattheclimatechangeandgreeneconomyworkwillbethecoresponsibilityofa
partnershipbetweentheEPAandtheMinistryofFinanceandDevelopment.TheUNDPhas
offeredtosupportthisbyestablishingaMultiDonorTrustFundwithinthefinanceministry
throughwhichinternationalfundscanbechannelled.
Similarly,Rwandasstrategyflagstheneedforaninstitutionalarrangementthatensures
transparentandeffectiveflowsofinformation,knowledgeandfinancialresources.Assuch,a
NationalFundforClimateandtheEnvironmentisbeingestablishedandwillplayakeyrolein
managingclimatefundsthatflowintoRwanda.TheFundwillseektoemployawiderangeof
publicfinancingmechanisms,suchasperformancebasedgrants,loanguarantees,linesofcredit,
andpublicventurecapitaltocreateanattractiveinvestmentenvironmentforlowcarbon
activities.Issuesrelatingtofinancingarediscussedinmoredetailbelow.
4.2. CostsandFinancing
Itisimportanttoundertakesoundanalysisofpolicymeasures,identifytheunderlyingtradeoffs
andsynergiesamongeconomic,environmentalandsocialobjectivesandusethisinformationto
setpolicypriorities.Animportantcomponentofthisiscostbenefitanalysiswhichrequires
adequateinformationonthecostsassociatedwithimplementingpolicies.Itisunlikelythat
30
policieswillbeimplementedunlessthecostsarecalculatedandaclearpathwaytofundingis
provided,particularlywherethesecostsarehigh.Thelackofadequateinformationoncostsand
sourcesoffinancinghasbeenanotherchallengeexperiencedintheimplementationofNSDSover
theyears.
Fromthetenrecentstrategiesreviewed,sixstrategiesoutlinedtheprojectedcostsassociated
withimplementationofthemeasuresoutlinedinthestrategy.Theseindicativecostsareoutlined
inTable5below.Thishighlightsthesignificantfundingthatwillbeneededtosupportgreen
economyaswellastheneedtomobilisecapitalinvestmentintheearlyyearsofdevelopment.
However,itisalsorecognisedthatnotallofthisexpenditureisnecessarilyadditionaltobusiness
asusualinvestment.
Thenecessaryinvestmentvariessignificantlybetweencountriesanditisevidentthat,for
developingcountriesinparticular,therequiredinvestmentasapercentageofannualGDPis
substantial.Forexample,Ethiopiasstrategywillrequirefundingof25%ofannualGDP(asat2010)
peryearover20years.UpfrontcostsforGuyanarepresent90%ofannualGDPasat2010;
howevernotimeframeisgivenforthisinvestment.TherequiredinvestmentfortheUK,RoKand
SouthAfricarelativetoGDPismuchlower,rangingfrom0.17%to2%ofannualGDP.
Table5Indicativecostsofimplementinggreeneconomystrategies
Country Costsindicatedinstrategy
Ethiopia ThestrategywillrequireUSD150billionover20years,including80billionincapital
investmentand70billioninoperatingandprogrammeexpenses,withhighinitialcapital
expenditureofUSD22billionrequiredby2015.ThisaveragesoutatUSD7.5billionper
annum,whichisaconsiderable25%ofEthiopiasannualGDPofUSD29.7billion(asat
2010).
Guyana ThestrategyidentifiesarequirementforUSD1billioninessentialcapitalprojectsfullyor
partiallyfundedthroughprivateinvestmentassistedbyREDD+payments,whichrepresents
almost45%ofannualGDP(USD2.23billionin2010).AfurtherUSD1billionisalsopredicted
toberequiredforclimatechangeadaptation,bringingtotalcoststoalmost90%ofGDP.
However,thereisnosettimeframefortheseinvestmentsandthismaybeexpendedover
severalyears.
South
Africa
TotalfundingidentifiedinSouthAfricasgreeneconomyaccordamountstoUSD28.46billion
overapproximately5years
20
,orapproximatelyUSD5.7billionperannum.Thisrepresents
approximately1.56%ofannualGDPofUSD363.9billion(asat2010).
RoK ThegovernmenthasearmarkedUSD97billionofpublicinvestmentforsupportinggreen
growthfrom2009to2013,whichisabout2%ofthecountrysannualGDP.
UK Theplanestimatesthattotalnetcostsofpoliciessetoutinthe10yearplanincludingboth
publicandprivatecostsarebetweenUSD39billionandUSD49billion.AveragedatUSD3.9
to4.9billionperannumover10years,thisrepresents0.17to0.21%ofannualGDP(i.e.of
USD2.25trillionasat2010).
Jambi,
Indonesia
Inthefirstyear,betweenUSD19millionand39millionwillberequiredtoestablishbasic
readinessfunctionstosupportlowcarbongrowth.From20112030,ongoingrunningcosts
tosupportimplementationofcarbonabatementandsustainablelivelihoodopportunities
willgraduallyincreaseandreachbetweenUSD373millionandUSD676millionin2030,
assumingcaptureofthefull55MtCO2einpotentialabatement.
Inadditiontothecountriesoutlinedintheabovetable,Francesnationalstrategyprovidessome
financingtargetssuchastheallocationof3%ofGDPtoresearchanddevelopmentfrom2010
onwards(tobefinancedbybothgovernmentandbusiness)aswellasmobilising1billion
20
Notethatwhilstmostcostingsprovidetimeframeswithinthenext5years,thisisnotalwaysmadeclear.
31
additionalEurosforresearchanddevelopmentonsustainabledevelopmentby2012.Grenadas
roadmapalsoincludessomecostingestimatesforpotentialenergyrelatedprojects.
Linkedtotheissueofcostsassociatedwithstrategyimplementationistheneedtoidentifyclearly
sourcesoffundingandestablishtheappropriateinstitutionalarrangementstoattractexternal
funding.Asmentionedabove,aclearobjectiveinsomeofthestrategiesreviewedfordeveloping
countriesistofacilitateaccesstoemergingclimatefinance.Forexample,thestrategiesfor
Guyana,RwandaandEthiopiaallprioritisetheestablishmentofappropriatefinancialframeworks
necessaryforattractingandmanagingclimatefinance(seeTable6).Rwandasstrategyhighlights
thatafinancialframeworkisjustasimportantasaninstitutionalframeworkandneedstobe
implementedassoonaspossibletoallowclimatefinancetoflowintothecountry(Republicof
Rwanda,2011).
Table6FinancialFrameworksforattractingclimatefinance
Country FinancialFrameworks
Guyana AGuyanaREDDInvestmentFund(GRIF)willbeestablishedtomanageforestpayments,to
reducethecostofcapitalonotheressentialinvestments,andoverthelongtermtoactasa
permanentinvestmentfundforlowcarboninvestments.
Rwanda ANationalFundforClimateandtheEnvironment(FONERWA)isbeingestablishedandwill
playakeyroleinmanagingclimatefundsthatflowintoRwanda.TheFundwillseekto
employawiderangeofpublicfinancingmechanisms,suchasperformancebasedgrants,
loanguarantees,linesofcredit,andpublicventurecapitaltocreateanattractive
investmentenvironmentforlowcarbonactivities.TheGovernmentisintheprocessof
finalisingaBilltooperationalisethisbasketfundwhichwillbehousedintheMinistryof
FinanceandEconomicPlanning.
Ethiopia TheGovernmentplanstogoverntheClimateResilientGreenEconomyinitiativeunderthe
coresponsibilityoftheEPAandtheMinistryofFinanceandEconomicDevelopment
(MoFED).TheUNDPhasoffereditssupportinestablishingaMultiDonorTrustFundwithin
MoFEDthroughwhichinternationalfundscanbechannelled.
Thesecountriesalsoidentifyparticularsourcesofclimatefinancewhichbestalignwiththeir
naturalresourceendowmentsandnationalcircumstances.Asanationwithsignificantforest
resources,GuyanaaimstofinanceavoideddeforestationbytargetingREDD+funding,whichitwill
directtowardlowcarboneconomicdevelopmentinnewsectors,includinghydropower,
agricultureandaquaculture.GuyanaalsoaimstotargetFastStartFundingforadaptation
priorities,inparticulartoaddressrisksfromcoastalflooding.Ethiopiaaimstofasttrackaseriesof
prioritymeasuresthatpromoteimmediategrowth,capturelargeabatementpotential,andattract
climatefinancefortheirimplementation,includinginvestmentinhydropower,largescale
promotionofadvancedcookingtechnologies,andefficiencyimprovementsinlivestock.Itwillalso
targetREDD+paymentsforforestrestoration.Rwandaaimstoimplementbigwinsthatwillmake
asignificantimpactonadaptation,mitigationandeconomicdevelopmentwhilstincreasingfood
andenergysecurityandreducingvulnerabilitytooilpricespikes,aswellasashortlistofpriority
quickwinsthatincludemeasurestoputinplaceinstitutionalarrangementsnecessarytoaccess
FastStartFinanceforadaptation.
Box17belowprovidesasummaryofsourcesoffinanceidentifiedbyRwandaandEthiopia.Whilst
thisisidentifyingaclearpathwaytopotentialfunding,itremainsuncertainwhetherornot
fundingwillbeforthcomingand,ifso,whetherornotitwillbesufficienttoimplementtheir
strategies.InthecaseofEthiopia,giventhesignificantfundingtargetof$20billionannually,this
seemsunlikely.Assuch,additionalsourcesoffinancingwouldbecritical.
Box17Identifiedfundingsourcesandfinancingprioritiesfordevelopingcountries
32
Rwandasprioritiesforstrategyfinancing(RepublicofRwanda,2011)
The5prioritiesforthefinancepillarare:
OperationalisetheNationalFundforClimateandtheEnvironment
SecuregrantsfromtheGreenClimateFund,theAdaptationFundandotherclimatefundstargetedat
LDCs
PromoteCDMandvoluntarycarbonprojectsandpushforsimplifiedbaselinecalculationsand
monitoringmethodsatUNFCCC
Investigateandemployenvironmentalfiscalreforms,afeedintariff,agreeninvestmentindexand
publicfinancingmechanismstoencouragegreenconsumerismandinvestment
EncourageconversationthroughPESschemes.
Ethiopiasproposedfundingsources(FederalDemocraticRepublicofEthiopia,2011)
Afundingpoolofatleast$20billionannuallyshouldbeobtainedfromvariousclimatefinanceschemesset
uptofosterthegreeneconomyinitiativesofdevelopingcountries.Intheshorttermthiscouldtakethe
followingforms:
Bi/multilateralgrantsprimarilyforprojectsetup,capacitybuilding,technologydevelopmentand
dissemination
Bi/multilateralpayforperformancedeals,i.e.,paymentslinkedtoverifiedGHGabatement
Tradingschemesoroffsetmarkets,i.e.,emissionreduction,forexampleresultingfromtheCDM,soldto
companies(ETS)orcommittedcountries(capandtrade)orviavoluntarycarbonmarkets.
4.3. Feedbackandreviewmechanismsuseoftargets,indicatorsandother
tools
Clearquantitativetargetsandindicatorsmakeiteasierforgovernmentstoidentifyandassess
tradeoffsandsynergiesamongtheeconomic,environmentalandsocialdimensions.Theyalso
providethemeanstomeasureprogress,undertakepolicyreviewandcorrectivemeasures,and
enhancepolicytransparencyandaccountability(OECD,2006).
AnotherchallengeidentifiedthroughinternationalexperienceinNSDSimplementationhasbeen
thatfewcountrieshavedevelopedquantitativetargetsandanintegratedsetofindicatorstoallow
themeasurementofprogress,aswellastoanalysesynergies,tradeoffsandinterlinkages
betweenpolicyoptionsandoutcomes.
Fromthestrategiesreviewed,fourofthestrategiesattemptedtoarticulateclearquantitative
targetsand/ordevelopsetsofindicatorstomeasureprogressandassesssynergiesandtradeoffs
(seeTable7below).ThebestexamplesofthiswereFranceandRoKwhoclearlyestablishedaset
ofquantitativetargetsandassociatedindicatorsasamechanismformonitoringprogressand
providingfeedbackintoongoingpolicyreview.Forexample,Franceoutlined50quantitative
targetsandassociatedindicatorsandhasdevelopedasustainabledevelopmentscoreboard.The
UKalsohadaninnovativeapproachformonitoringprogresswherebyanoverallemissions
reductiontargetwasestablishedinlegislationataleveladvisedbyanindependentexpertgroup,
andwithinthistargeteachgovernmentdepartmentwasallocateditsowncarbonbudget
accordingtoitscorefunctionsandresponsibilities.Eachdepartmentwasthenrequiredtopublish
aplanandseekfundingthroughtheTreasurytomeetitsobligationsforGHGmitigation.
Table7TargetsandIndicatorsIdentifiedinNationalStrategies
Country Targetsandindicators
RoK CleartargetsformajorgreenindicatorsCo2,afforestation,energyintensity,shareofrenewables&
nuclear,shareofecoagriculturalproducts,marketshareandspecialistsingreentech,recycling,green
exports,greenpartnerships,greenindustry,foreignpatents,telecomexports,carbonmarket,public
investmentingreentechandindustry,greenenterprises,publictransport,nationalparks,labelling,
procurement,greenODA.
33
UK Establishesclearmidterm(18%by2020)andlongterm(80%by2050)targetsforGHG
mitigation.Additionalquantitativetargetssetforspecificsectoraloutcomes:homesand
communities;workplacesandjobs;powerandheavyindustry;transport;farmingandland;
andwaste.Eachgovernmentdepartmentisissuedacarbonbudgetbasedonitsfunctions,
andhastopublishaplanonhowitwillmeetthisbudget.Treasurysroleissupportingthe
deliveryofcarbonbudgets.TheCommitteeonClimateChangehasanongoingreview
functionandreportseachyearonprogressagainsttargetsandbudgets.
South
Africa
Setsoutquantitativetargetsforarangeofoutcomes,including:greenjobs;renewable
energies;energyefficiency;waster,recycling,reuseandrecovery;biofuels;etc.Theparties
totheAccord,withinthebroaderframeworkoftheNewGrowthPathdialogue,willmeetat
leasttwiceayeartoreviewprogressandassessnecessarychanges.
France Establishes50quantitativetargetsandobjectivesacrosskeysectoralorcrosssectoral
issues.AlsoestablishesaNSDSscoreboardcomprisingcontextindicators,15headline
indicators,and35additionalindicatorsacross9challenges:1.sustainableconsumptionand
production;2.knowledgesociety;3.governance;4.climatechangeandenergies;5.
sustainabletransportandmobility;6.conservationandsustainablemanagementof
biodiversityandnaturalresources;7.publichealth,riskpreventionandmanagement;8.
socialinclusion,demographyandimmigration;and9.internationalchallengesofsustainable
developmentandworldpoverty.
Rwanda Identifieskeyindicatorsthatcouldbeusedtomeasuresuccessofpolicyinterventions
across14programareas.
Inadditiontothecountrieslistedabove,Rwandaalsoidentifiedpotentialkeyindicatorsthatcould
beusedtomeasuresuccessofpolicyinterventionsacross14programareas.Howeveritisunclear
atthisearlystageofimplementationwhetherRwandahasestablishedtheinstitutionalcapacity
anddatarequiredtomeasuretheseindicatorsorputaframeworkinplacetoundertake
monitoringandreview.
ItisnotedthatmostofthecountrieslistedinTable7aredevelopedoremergingeconomies,and
thereforeitislikelyanareawherealackofinstitutionalanddatacapacityislimitingtheabilityof
developingcountriestoestablishadequatemeasurementandfeedbackmechanisms.As
developingcountriesmovetowardsagreeneconomy,theywillrequiregreatergovernment
capacitytoanalysechallenges,identifyopportunities,synergiesandtradeoffs,prioritise
interventions,implementpoliciesandevaluateprogress.
Anumberofstrategiesfromdevelopingcountriesclearlyacknowledgethisgapincapacityand
proposeinitialactionstobuildinstitutionalcapacityingovernment.Forexample,Rwanda
proposestoestablishaCentreforClimateKnowledgeforDevelopmentandaTechnical
CoordinatingCommittee,andithasalsoestablishedeighttechnicalexpertgroupsforeachofits
keysectorstoundertakemeasurement,reportingandverificationofprojectoutcomes.
Inlieuofhavingameasurablesetofindicatorsandsupportingdatatoenablethemeasurementof
progressandanalysepolicytradeoffsandsynergies,itisinterestingtonotesomeofthe
evaluationanddiagnostictoolsusedbydevelopingcountriestoidentifyinitialsynergiesamong
theeconomic,environmentalandsocialdimensions.Theseincludetheuseofmodellingand
analysisagainstBAUdevelopmentscenarios(supportedbypartnersandexpertadvisors),the
identificationofpotentialpolicyoptions,andtheuseofpolicyscreeningframeworksandmultiple
criteriaanalysistoselectasmallsuiteofpriorityoptions(seeBox18below).
Box18Policyscreeningprocessesforidentifyingpolicysynergies
Ethiopia(FederalDemocraticRepublicofEthiopia,2011)
Ethiopiaundertookapolicyscreeningexercisetoprioritisepossiblepolicyoptionsusingthreekeycriteria.
Toberetainedinthestrategyasapriority,eachpolicymeasurehadto:
34
passaninitialassessmentofrelevanceandfeasibilityinthelocalcontext;
enableapositivecontributiontoreachingthetargetsofthenationaldevelopmentplan(theGrowthand
TransformationPlan);and
providesignificantabatementpotentialatreasonablecostfortherespectivesectors.
Ofthe150potentialgreengrowthinitiativesthatwerescreened,approximately60wereshortlistedfor
inclusioninthestrategy.Adiagrammaticrepresentationofthisscreeningframeworkisprovidedbelow.
Rwanda(RepublicofRwanda,2011)
Similarly,Rwandasstrategyusedascreeningtemplatetoreviewitsprogrammesofactionbasedon:
1. Alignmentwithstrategicdevelopmentobjectives;
2. Whichenablingpillarsarerequiredtosupportimplementation;
3. Whatkeyindicatorscouldbeusedtomeasuresuccess;
4. Anestimateofcomparativecosts;
5. Impactonemissionsreductionandclimateresilience;
6. Anindicativetimescaletoinitiationandprogrammelength;and
7. Potentialsourcesofclimatefinancethatcouldfundimplementation.
Usingthistemplate,initialpriorityactionswereidentifiedforimplementation.Thesewereclassifiedas:(i)
bigwinsorlargescaleeconomywideprogrammesthatwilltakeyearstofullyimplementandwouldmake
asignificantimpactonadaptation,mitigationandeconomicdevelopment;and(ii)quickwinsoractions
thatcanbeimplementedimmediatelytobeginaddressingtheenablingpillarsrequiredtoimplementthe
strategyandfocusonmainstreamingclimateresilienceandlowcarbondevelopmentintoinitiativesthatare
currentlyunderway.
Rwandasstrategyacknowledgesthatfurtherworkisrequiredtoquantify,inmonetaryterms,eachofits
programmesofaction,andthatcostbenefitanalysisshouldbeconductedinanintegrated,crosssectoral
approach(includingfuturegenerationsandvaluingofecosystemservices)tohelpprioritiseactionsand
developatimeline.
4.4. Useofamixofgreeneconomypolicyinstruments
AsoutlinedinSection2,governmentshaveamixofpolicyinstrumentsattheirdisposaltogreen
theireconomies,includingeconomicinstrumentsforinternalisingexternalities,measuresfor
incentivisinggreenorsustainablepractices,measurestoenhanceinstitutionalcapacityand
35
regulatorycapabilities,greeninvestmentacrosskeysectors,informationbasedandvoluntary
measures,andcomplementarysocialpoliciestodriveinclusion.
ExperiencewiththeimplementationofNSDShighlightsthatwhileamixofpolicymeasureshas
beenpursuedbycountries,economicinstrumentsappeartobeunderutilized.Thisisproblematic
becausecountriesincreasinglyrelyonthemarkettoallocateresourcesefficientlyandmarket
basedinstrumentscanthusprovidethepolicyleversnecessarytochangebehavioursanddeliver
desiredpolicyoutcomes,inprincipleatleastcost.Marketscompriseacomplexarrayofactors
suchasconsumers,producers,investors,andlenders,eachofwhomhavethepotentialtoimpact
ontheenvironmentalandsocialsystemsthatsupportourwellbeing(Swansonetal,2004).
Establishingappropriatemarketconditionsthrougheconomicpolicies,incentivesandmarket
basedmeasuresiscriticalforestablishingappropriaterulesofplayandsendingtherightmarket
signalsthatensurethatresourcesareallocatedasefficientlyaspossible(e.g.bytaxingbadsand
insomeinstancessubsidisinggoods).
Thepolicyinstrumentsutilisedandprioritysectorstargetedinthetenstrategiesthatwere
reviewedvaryfromcountrytocountrybasedonnationalcircumstancesandaresummarisedin
Appendix4.Toprovideabriefanalysisofthescopeandbreadthofthepolicyinstrumentsused,
thestrategieswereanalysedusingthegenericgreeneconomypolicytypologydevelopedinTable
2ofSection2above.Table8belowprovidesanoverviewofthisanalysis,whichhighlightsthe
greatdiversityinpolicyinstrumentsthatarebeingincorporatedbygovernmentsintotheir
nationalstrategies.
Fromthisanalysis,itcanbeseenthatonlytheUK,RoKandFranceadopteconomicinstrumentsin
theirstrategiesforinternalisingexternalities,suchastaxes,chargesandleviesonpollutionand
resourceuse,orcapandtradepermitsystems
21
.However,almostalldevelopedanddeveloping
countriesadopteconomicinstrumentsthatprovideincentivesforgreeninvestment,including
lowinterestloans,microfinancingandtaxortariffexemptions
22
.Fordevelopingcountries,these
tendedtobesmallscaleinvestmentincentivessuchasmicrofinancing,microinsurance,small
grantsandgovernmentbackedloans,rebatesandcashbackschemes.Again,thishighlights
potentialgapsassociatedwithinstitutionalcapacitiesindevelopingcountries(orcouldalsobe
associatedwithalackofpoliticalwillingness,resistancefromstakeholdersorotherfactor)to
implementmorecomplexfiscalreformsandmarketbasedinstruments.
Otherareasofpolicyfocusforbothdevelopedanddevelopingcountriesappeartobegovernment
investmentininfrastructure,inparticularintheenergyandtransportsectors,aswellastheuseof
regulationssuchastechnicalandperformancestandards,buildingcodes,environmental
regulation,andmandatorytargets.
Fordevelopingcountries,therewasalsoatendencytofocusongovernanceandinstitutional
reformstobuildcapacities,includinginanalysis,implementation,andenforcement.Other
commonpolicymeasuresincludedinvestmentinhumancapitalthrougheducationandtraining
schemes,investmentinnaturalcapital(includingthroughREDD+,paymentsforecosystem
services),andinvestmentinsustainableagriculture.
21
However,itisnotedthatCambodiaalsoincludessuchmeasuresinitsstrategy;howevertheyare
identifiedasapotentialmeasureratherthanameasurethatwillbeimplemented.
22
NotethatIndonesiasstrategyisaprovinciallevelplan.Atthenationallevel,Indonesiaisutilizing
economicinstrumentsforsustainabledevelopment,includingitsworkinphasingoutfossilfuelsubsidies
andvaluingnaturalresources.
36
37
Withregardtodevelopedandemergingeconomies,theirstrategiestendedalsotoincorporate
measuresforinvestmentininnovation(includingR&D),voluntaryapproachestargetingawareness
raising(e.g.focusingonconsumption),aswellasmeasuringprogressthroughtargetsand
indicatorsandestablishinginstitutionalarrangementstomonitorprogressandcoordinatefollow
upactionsasrequired.
Table8.Analysisofpolicyinstrumentsadoptedintenrecentgreeneconomy,greengrowthandlowcarbondevelopmentstrategies
Internalising Incentives Institutions Investment Information Inclusion
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e
Ethiopia(2011) x x x x x Xewt
Rwanda(2011) x x X x x X x x Xit x
Guyana(2010) x x x x x X x x Xeti x
Cambodia(2009) x x x x x x x x x x x Xe x
Grenada(2012) x x x x x x Xewt
Jambi,Indonesia
(2010)
x x x x x x x x x
SouthAfrica
(2011)
x x x x Xet x x x
RepublicofKorea
(2009)
x x x x x Xet x x x x
UK(2009) x x x x x x Xet x x x x
France(2010) x x x x x x x x x Xt x x x x x
4.5. Summary
Fromthisbriefdesktopreviewoftenrecentnationalstrategiesforgreeneconomy,greengrowth
andlowemissiondevelopment,someinitialinsightscanbedrawn.Whilethestrategiesreviewed
varyinformulationandcontent,thereissomeemergingevidencethatthemoreadvancedgreen
economystrategiesareattemptingtoaddresssomeofthekeychallengesexperiencedin
developingandimplementingNSDS.Thisisparticularlythecasewithstrategiesfordeveloped
countries,suchasthoseforRoKandtheUK,butalsoforanumberofdevelopingcountries,in
particularRwanda,EthiopiaandGuyana.Overall,however,itcanalsobeseenthatresultsare
mixedandtherearesomekeygapsthatremain.Atablesummarisingtheoutcomesoftheanalysis
fromthissectionisincludedatAppendix5.
Withregardtopoliticalleadershipandinstitutionalarrangementstofacilitatewholeof
governmentengagementandlinkageswithcentralfinanceministriesandbudgetaryprocesses,it
canbeseenthatseveralstrategieswerebeingledatthemostseniorlevelbytheofficeofprime
ministerorequivalent,orthroughacentralisedeconomicdevelopmentagency.However,thiswas
notalwaysthecaseandenvironmentallineministriesalsoledinanumberofcountrieswhichmay
createproblemswithgovernmentengagement,financingandfollowup.
Foralmostallofthestrategiesrevieweditcouldbeseenthatcountriesestablishedinstitutional
arrangementsforthedevelopmentofthestrategythatfacilitatedwholeofgovernment
engagementaswellasbroaderconsultation.Thisgenerallytooktheformofaninterministerial
steeringcommittee,workinggrouporcommission,chairedbytheleadministryandincluding
representativesfromfinanceministries.Incaseswherethiswasnotdone,thestrategiestendedto
taketheformofinitialscopingstudiesratherthanapolicydocument.
Foranumberofdevelopingcountries,theestablishmentofnewinstitutionswasidentifiedand
prioritisedintheirstrategies.GoodexamplesofthiscanbeseeninthecaseofGuyanaand
Rwanda,wherenewcoordinationoffices,technicalcommittees,researchcentresandfundsare
proposedtoassistwithimplementation.
Aroundhalfofthestrategiesreviewedincludedinformationonthecostsassociatedwithstrategy
implementation.Wherecostswereincluded,theyhighlightedthesignificantlevelsoffundingthat
willberequiredforcountriestogreentheireconomies.Thiswasparticularlythecasefor
developingcountrieswherehighupfrontcapitalinvestmentwouldbenecessaryintheearlyyears
ofstrategyimplementation(e.g.seeEthiopiaandGuyana).
Whereexternalfinancingwillbecriticalforstrategyimplementation,anumberofdeveloping
countriesalsoclearlyidentifiedpotentialsourcesoffinancingforimplementationoftheir
strategies,primarilytargetingemergingclimatefinance.Asaninitialpriorityintheirstrategies,
countriessuchasRwanda,GuyanaandEthiopiaareestablishingnewfundsandinstitutionsto
betterattractandmanageclimatefinance.Thesecountriesalsoidentifyparticularsourcesof
climatefinancethatbestalignwiththeirnaturalresourceendowmentsandnational
circumstances;howeveritseemsunlikelythatthesignificantlevelsoffundingrequiredwillbe
availablethroughemergingclimatefinancealone.
Alimitednumberofstrategiesfromdevelopedcountriesattemptedtoarticulateclear
quantitativetargetsand/ordevelopsetsofindicatorstomeasureprogressandassesssynergies
andpolicytradeoffs.Thishighlightsanareawherealackofinstitutionalcapacityanddataislikely
limitingtheabilityofdevelopingcountriestoestablishadequatemeasurementandfeedback
mechanisms.However,Inlieuofhavingameasurablesetofindicatorsandsupportingdatato
enablethemeasurementofprogressandanalysisoftradeoffsandsynergies,developing
countriesareworkingwithpartnersandexpertsandusingarangeofpolicyevaluationand
screeningtoolstoidentifyinitialpolicysynergiesamongtheeconomic,environmentalandsocial
dimensions.
Finally,itcanbeseenthatallcountriesareusingeconomicinstrumentstoincentivisegreen
investment,includinglowinterestloans,microfinancingandtaxortariffexemptions.For
developingcountries,thesetendedtobesmallscaleinvestmentincentivessuchasmicro
financing,microinsurance,smallgrantsandgovernmentbackedloans,rebatesandcashback
schemes
23
.Onlydevelopedcountriesidentifypolicyinstrumentsforinternalisingexternalitiesin
theirstrategies,suchastaxes,chargesandleviesonpollutionandresourceuseorcapandtrade
permitsystems.Again,thishighlightspotentialgapsassociatedwithinstitutionalcapacitiesin
developingcountriestoimplementmorecomplexfiscalreformsandmarketbasedinstruments.
5. Conclusion
Deliberatepolicyandinvestmentdecisionswillneedtobetakenbygovernmentstogreentheir
economies.Theoptionsthatareopentothemandhowtheyevaluatealternativesandselectthe
bestcourseofactionwillvaryfromcountrytocountrydependingontheirlevelofdevelopment,
governanceframeworks,institutionalcapacitiesandresourceendowments.Inthisregard,there
willbenosinglegreeneconomy,butrathernumerousgreeneconomies.However,withthis
flexibilityalsocomesambiguityaboutwhatactionisrequiredofgovernments.
TheRio+20outcomedocumentstatedgreeneconomyprinciplesbutdidlittletoclarifythetypes
ofpolicymeasuresthatgovernmentsmightimplement.Fortunately,asubstantialandgrowing
volumeofgreeneconomyliteratureishelpingtoaddressthisknowledgegap,andsome
governmentsareleadingthewayinapplyingtheconceptaccordingtotheirownnational
circumstances.Ofcourse,theimplementationofpolicymeasuresthatcouldfallunderthebanner
ofgreeneconomyisnothingnew,andcountrieshavedecadesofexperienceinenvironmental,
sustainabledevelopmentandclimatechangepolicies.Butitremainstobeseenhowgreen
economybuildsupon(ordiffersfrom)whatcountriesarealreadydoing,andhowitmightproveto
beanimportanttoolforsustainabledevelopmentthathelpsgovernmentstoovercomethe
challengesandbarriersexperiencedoverthepast20yearsofimplementation,e.g.,ofnational
sustainabledevelopmentstrategies.
Basedonthereviewofemergingliteratureusingagreeneconomypolicytypology,itcouldbe
seenthatthemostcommonmeasuresbeingproposedwerepoliciesforinternalisingexternalities
(suchastaxesandcapandtradesystems)andregulatorymeasures(suchasstandards,labelling,
prohibitionsandcompliance).Otherpoliciesthatwereproposedinmostofthepublications
includedpublicinvestmentininfrastructure(suchassustainableenergy,water,transportand
waste)aswellaspublicinvestmentininnovation(throughmeasuressuchasfundingforR&Dand
deployment).Anumberofgreeneconomypolicytoolkitsarebeginningtoemerge,whichgo
beyondtheidentificationofgreeneconomypolicyinstruments,toprovidingpolicytoolsthatcan
helpcountriesmoreeffectivelytodesign,evaluate,implementandmonitorthesepolicies.
Whilstmostcountriesdonotyethaveanoverallnationalstrategyforagreeneconomy,thereis
emerginginternationalpracticeinthedesignandimplementationofgreeneconomypoliciesin
23
Beyondthesecountrycases,asignificantnumberofdevelopinganddevelopedcountriesmakeuseofa
varietyofeconomicinstrumentsforpromotingsustainableenergyandotherenvironmentallysound
technologyscaleup;e.g.,asizeablenumberofcountrieshaveintroducedfeedintariffsforrenewable
electricity.
40
bothdevelopedanddevelopingcountries.Thishasbeencatalysedthroughinternational
agreementsonsustainabledevelopment,climatechangeandbiodiversity(amongstothers)which
havepromotedthedevelopmentofnationalstrategiesandactionplans.Thepast20yearshave
seenmostcountriesdevelopnationalsustainabledevelopmentstrategiesinvariousforms,and
lowemissiondevelopmentstrategiesandgreeneconomystrategiescanbeseenasanextension
ofthiswork.
However,experiencehasshownatbestmixedresults,withnotableachievementsinsomeareas
butseriousshortcomingsinothers.Keychallengeshaveincludedalackofseniorpolitical
leadership,inadequateinstitutionalarrangementsandcapacitiesforstrategydevelopmentand
implementation,lackofengagementofcentralfinanceministriesandlinkageswithcentral
budgetaryprocesses,lackofcapacityorfailuretoassesscostsandbenefits,failuretoidentifya
clearpathwaytofunding,lackoffeedback,monitoringandreviewmechanisms,andfailuretouse
abroadmixofpolicyinstrumentsincludingeconomicinstruments.Forgreeneconomystrategies
toovercomethesechallengesandbecomeanimportanttoolforimplementingsustainable
development,itiscriticalthatwelearnfromtheexperiencegainedover20yearsof
implementationofNSDSand,morerecently,LEDS.
Anumberofcountrieshavebeguntotakealeadershiproleinthedevelopmentofnationalgreen
economystrategies.Suchstrategiescouldbeseenasafurtherstepintheevolutionofintegrated
sustainabledevelopmentstrategies,promisingnewtoolsandafreshapproachforovercomingthe
gapsandchallengesexperiencedoverthepast20yearsintheimplementationofNSDS.The
centralfocusontheeconomycouldassistwithengagingcentralplanningandfinanceministries,
integratingwithnationalexpenditureandfiscalprioritysetting,andtheutilisationofeconomic
instrumentsandfiscalreformtoimplementsustainabledevelopment.Buildingonrecent
experiencewithLEDS,theshifttogreeneconomystrategiescouldmovebeyondtheintegrationof
climatechangewithdevelopmenttoaddressawiderrangeofenvironmental,socialandeconomic
issuesinamorecomprehensiveandintegratedmanner.
Basedonapreliminarydesktopreviewoftenrecentnationalgreeneconomyandlowemission
developmentstrategies,thereisclearevidencethatsomestrategiesarelearningfromour
experiencewithNSDSandareattemptingtoovercomethesechallenges.
Foranumberofcountries,thepolicyprocessisbeingdrivenatthemostseniorlevelbytheprime
ministerorequivalent.Mostcountriesareestablishingwholeofgovernmentcoordinatingbodies
andotherinstitutionalorgovernancearrangementstodeveloptheirstrategies,facilitating
engagementfrombothcentralplanningandfinanceministriesaswellasrelevantlineagencies.
Further,somedevelopingcountriesareclearlyprioritisingactiontobuildinstitutionalcapacityin
analysis,implementation,monitoring,andfinancialmanagementintheearlyyearsofstrategy
implementation.
Onlyaroundhalfofthestrategiesreviewedincludedinformationregardingthecostsofstrategy
implementation.Wherecostswereincluded,theyhighlightedthesignificantlevelsoffundingthat
willberequired,particularlyfordevelopingcountrieswherehighupfrontcapitalinvestmentwould
benecessaryintheearlyyearsofstrategyimplementation.Whereexternalfinancingwillbe
criticalforstrategyimplementation,somestrategiesalsoproposetheestablishmentofnew
financialmechanismsandinstitutionalarrangements,includingnewbucketfundsforattracting
climatefinanceanddeliveringthesefundsthrougharangeofpublicfinancemechanisms,suchas
grants,loans,linesofcreditandpublicventurecapital.
41
Itwouldappearthatarticulatingclearquantitativetargetsanddevelopingsetsofindicatorsto
measureprogressandassesssynergiesandtradeoffsisanareathatrequiresfurtherdevelopment,
particularlyfordevelopingcountries.However,itisnotedthatinlieuofinstitutionalcapacityand
datatoadequatelyestablishthesefeedbackmechanismsandanalysepolicies,developing
countriesareworkingwithpartnersandexpertsandusingarangeofpolicyevaluationand
screeningtoolstoprioritizeandtoidentifypolicysynergiesamongtheeconomic,environmental
andsocialdimensions.However,itisnotedthatthesemethodologiescanonlygosofarandthat
thesegapswillneedtobeaddressedifgreeneconomypoliciesaretobeeffectivelyimplemented
inthemidtolongterm.
Finally,basedonthispreliminaryanalysis,thereappearstobeaninterestingdisconnectbetween
thegreeneconomyliteratureandwhatgovernmentsaredoinginpracticewithregardtotheuse
ofeconomicinstruments.WhilstallgreeneconomypublicationsreviewedinSection2proposed
economicpoliciesforinternalisingexternalities,fromthetenstrategiesreviewedonlythethree
strategiesfordevelopedcountriesadoptedsuchpolicymeasures.Thishighlightsapotentialgap
betweengreeneconomytheoryandpracticefordevelopingcountries,whichislikelyrelatedto
institutionalcapacityorcouldalsobeduetoalackofpoliticalappetiteorstakeholderresistanceto
suchmeasures.Nevertheless,itseemsthatmostdevelopingcountriesareusingeconomic
instrumentstoincentivizesmallscaleinvestment,particularlyintheformofmicrofinancing,
microinsurance,smallgrantsandgovernmentbackedloans.
Overall,thereissomeemergingevidencethatgreeneconomyandrelatedstrategiesareheeding
thelessonslearnedfrom20yearsofimplementingsustainabledevelopment.Indeed,morerecent
iterationsofnationalstrategieshaveattemptedtoaddresskeychallengesbyadoptingmore
integratedandparticipatoryapproaches,focusingoninstitutionalreformsandenabling
conditions,usingmoreadvanceddiagnosticandmeasurementtoolsforpolicyevaluation,andto
somedegreeusingeconomicinstrumentsandmarketbasedmeasures.
However,onlytimewilltellifthegreeneconomywillprovetobemorethananewlabelfor
businessasusual,tobeanimportantnewtooltoovercomethechallengesexperiencedtodatein
implementingsustainabledevelopment,tobecomesomethingthatistrulytransformative.Early
evidencesuggeststhatthereisalotofpotentialprovidedwecontinuetolearnfromthelessonsof
thepastandbuilduponandscaleupoursuccesses.
42
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Washington,
http://siteresources.worldbank.org/EXTSDNET/Resources/Inclusive_Green_Growth_May_2012.pdf
WorldBank(2011)FromGrowthtoGreenGrowth:AFramework,WorldBankGroup,Washington,
http://elibrary.worldbank.org/docserver/download/5872.pdf?expires=1352927965&id=id&accname=guest&
checksum=86C5375F1C0B45CF96EC8612610AEE31
WorldBank(2010)ClimateChangeandtheWorldBankGroup:TheChallengeofLowCarbonDevelopment,
WashingtonDC,http://siteresources.worldbank.org/EXTCCPHASEII/Resources/cc2_full_eval.pdf
WorldBank.(2010)BrazilLowcarbonCountryCaseStudy,WorldBankGroup,Washington.
WWF(2011)PlanningDevelopmentinacarbonconstrainedworld,
http://www.wwfblogs.org/climate/sites/default/files/WWFBinaryitem25183.pdf
WWFandPWC(2011)RoadmapforagreeneconomyintheHeartofBorneo:ascopingstudy,
http://awsassets.panda.org/downloads/pwc_report_green_economy_roadmap_1.pdf
7. Appendices
Appendix1Categoriesusedforsummarisinggreeneconomyandgreengrowthpoliciesinrecentpublications
Source Policycategories
OutcomebasedorPathwayApproach
UNEP(2011) Establishingsoundregulatoryframeworks
Prioritizinggovernmentinvestmentandspendinginsupportofagreeneconomy
Limitinggovernmentspendinginareasthatdepletenaturalresources
Usingtaxesandmarketbasedinstrumentstopromotegreeninvestmentandinnovation
Investingincapacitybuilding,trainingandeducation
Strengtheninginternationalgovernance
OECD,UN,WorldBank
(2012)
Reformingthestructureoftaxandchargestopromoteeconomicgrowthandmakeitgreener
Strengtheningmarkets
Inducinggreenerbehaviourthroughregulatoryandinformationpolicies
Gettinginfrastructureright
Fosteringinnovationforgreeninggrowth
Loweringbarrierstothediffusionofgreengoods,servicesandtechnologies
Encouragingjobcreationandequityforinclusivegreengrowth
GlobalSustainabilityPanel
(2011)
incorporatingsocialandenvironmentalcostsintotheregulationandpricingofgoodsandservices,aswellasaddressingmarketfailures;
creatinganincentiveroadmapthatincreasinglyvalueslongtermobjectives;
partneringtoleveragenewinvestments;and
establishingacommonframeworkformeasuringprogress
UNESCAPandKOICA(2012) TRACK1:Improvingthequalityofgrowthandmaximizingnetgrowth
TRACK2:Changingtheinvisiblestructureoftheeconomy:Closingthegapbetweeneconomicandecologicalefficiencies
TRACK3:Changingthevisiblestructureoftheeconomy:Planninganddesigningecoefficientinfrastructure
TRACK4:Turninggreenintoabusinessopportunity
TRACK5:Formulatingandimplementinglowcarbondevelopmentstrategies
Cosbey(2011) Institutional
Economic
Informationbased
Cosbey(2012)
24
Governance
Market
Infrastructure
Information
UNCSDSecretariat(2011b) Greenstimuluspackages
Ecoefficiency
Greeningofmarketsandpublicprocurement
Investmentingreeninfrastructure
Restorationandenhancementofnaturalcapital
Gettingpricesright
Ecotaxreform
Constanzaetal(2012) Sustainablescale:respectingecologicallimits
Fairdistribution:protectingcapabilitiesforflourishing
Efficientallocation:buildingasustainablemacroeconomy
UNDESA,UNEP,UNCTAD
(2011)
Recognisingtheeconomicandsocialvalueofenvironmentalresources.
Conservingresourcesaswellasrehabilitatingdamagedenvironmentsandecosystems
Enablingpricestobetterreflecttheirenvironmentalvalue,whilealsoenablingordinarypeopleandthepoortoaccessbasicgoodsandservices.
Governmentpromotionofenvironmentalobjectivesthroughfinancial,industrialandtechnologicalpoliciesandmeasures,
Regulatingthemarket.
Recognisingthelinkbetweenlivelihoodsandlivingconditionsofsmallruralproducersandcommunitiesandtheenvironment.
Promotionofsustainableconsumptionandlifestyles.
Foodsecurity,rurallivelihoodsandsustainableagriculture.
OECD(2011c) Inadequateinfrastructure:Taxes,Tariffs,Transfers,Publicprivatepartnerships
Lowhumanandsocialcapitalandpoorinstitutionalquality:Taxes,Subsidyreform/removal,
Incompletepropertyrights,subsidies:Reviewandreformorremove
Regulatoryuncertainty:Settargets,Createindependentgovernancesystems
Informationexternalitiesandsplitincentives:Labeling,Voluntaryapproaches,Subsidies,Technologyandperformancestandards
Environmentalexternalities:Taxes,Tradablepermits,Subsidies,
LowreturnsonR&D:R&Dsubsidiesandtaxincentives,Focusongeneralpurposetechnologies
Networkeffects:Strengthencompetitioninnetworkindustries,Subsidiesorloanguaranteesfornewnetworkprojects
Barrierstocompetition:Reformregulation,Reducegovernmentmonopoly
Policybasedapproach
OECD,WorldBank,UN ImprovingframeworkpoliciesCompetitionpolicies;Taxreform;Labourmarket;Investmentpolicies;Networksectorpolicies;Innovation
24
Sourcedfromunpublishedpresentation.
49
(2012) Removingpolicyinduceddistortions:Removalofpoliciesthathavenegativeenvironmentalandeconomiceffects(e.g.subsidies,barrierstoenvironmentalgoodsand
services)
Environmentalpolicyinstruments:Capandtradepermitsystems;Taxesorchargesonpollutionorresourceuse;Taxesorchargesonaproxy(inputoroutput);Baseline
andcreditpermitsystems;Subsidiesandotherdirectsupport;Depositrefundsystems;Performancestandards;Technologystandards;Voluntaryapproaches;Information
andregulatorypolicies
AfDB,OECD,UN,World
Bank(2012)
Incentivize:
o Toolsforpricingpollutionandnaturalresourceuse
o Toolstocomplementpricingpolicies
o Toolstofosterinclusiveness
Design:toolstomanageuncertainty
Finance:financingandinvestmenttools
Monitor:monitoringtools
OECD(2011a) Marketinstruments:Taxesandpermits;andSubsidies
Regulationsandtheregulatoryenvironment
Enablingchangesinconsumerbehaviour
Innovation:Greeninnovation;StrengtheningR&D;Supportinginnovationanddeployment;Demandsidepolicies;Technologytransferanddiffusion
Investingininfrastructure:Energy;Transport;Water;Leveragingpublicandprivatesectorfinance
Institutionsandgovernance
Labourmarketimplications
MeasuringprogressindicatorsbeyondGDP
OECD(2011b) Capandtrade
Taxesorchargesonpollutionoraproxyforpollution
Subsidies
Performancestandards
Technologystandards
Voluntaryapproachesinformationprovisions,voluntaryagreements,CSR
UNESCAP,ADB,UNEP(2012) Reformingtheeconomicincentivesframeworktoclosepriceandtimegaps:Taxingbads,notgoods;Subsidizinggoods,notbads;Internalizingtheeconomicvaluesof
ecosystemservices;Regulation,complianceandenforcement;Financinggreengrowth
Promotingsustainableinfrastructuredevelopment:cleanenergy,waterandsanitation,sustainabletransport,andsolidwastemanagement.
Facilitatinginvestmentsinnaturalcapital:nationalbudgets,landusezoningpoliciesandregulations,directmanagementandrehabilitation,andestablishmentof
protectedareas,PESschemes,sustainableagriculture.
WorldBank(2011) Pricebasedpolicies
Normsandregulation
Publicproductionanddirectinvestment
Informationcreationanddissemination
Educationandmoralsuasion
50
Industrialandinnovationpolicies
UNCSDSecretariat(2011b) Environmentaltaxesandemissionstradingschemes.
Regulationandlegislation
Greenprocurement,notablyforpromotionofresourceefficientandlowemissiontechnologies
Spreadinggreentechnologythroughdevelopmentofstandards,whilstavoidingbarrierstotrade.
SCP
Synergiesbetweenenvironmentalpoliciesandjobcreationinnationalcontexts.
GreenGrowthLeaders
(2011b)
carbonpricingtoincentivizebothtechnologicaldevelopmentandlowemissionsenergyadoption;
technologypolicytosupportresearchanddevelopment
regulatorypolicytochangemarketrulestofavournewformsofenergyproduction,distributionanduse
directstateactionforpublicinfrastructureinvestmentandindustrialpolicy
ILO,EU,IILS(2011) Regulations
Taxinstruments
Tradingsystems(certificatesandlicenses)
Negotiations
R&Dandtechnologicaldevelopment
Publicinvestment
Barbier(2011) Information
Incentives
Institutions
Investment
Infrastructure
SectorbasedorCapitalbasedApproach
UNEP(2011) Investinginnaturalcapital:Agriculture,Fisheries,Water,Forests
Investinginenergyandresourceefficiency:Renewableenergy,Manufacturing,Waste,Buildings,Transport,Tourism,Cities
Cosbey(2011) Agriculture,Cities,Energy,Waste,Buildings,Fisheries,Forests,Manufacturing,Transport,Water
UNEMG(2011) Thefivedriversofgreengrowthare:naturalcapital,humancapital,socialcapital,manufacturedcapital,financialcapital.
UNCSD(2011a) Renewableenergy,energyandmaterialefficiencyimprovements,sustainablebuildings,agriculture,transport.
MixedApproach
OECD(2012)
Sixnationalenablingconditionsforgreengrowth
Fourgreengrowthmainstreamingmechanisms
Eightgreengrowthpolicyinstruments
WorldBank(2012) Influencingfirms,consumersandpolicymakersthroughmarketandnonmarketmechanisms
Greeninnovationandindustrialpolicies
Humancapital:implicationsofgreengrowthpoliciesforlabourmarketsandjobcreation
51
Naturalcapital:managingresourcesforsustainablegrowth
Physicalcapitaltheroleofinfrastructure
ILO(2012) Environmentalandotherpolicylevers
Supportingthegreentransitionatthefirmlevel
Labourmarketpolicies
Socialprotectionfloors
UNEMG(2011) Policymeasures:
Infrastructureinvestment
Investinginsocialcapitalaccesstobasicservices
Investinginhumancapitaleducationandtraining,socialprotection
Privatefinanceprojectinvestmentandpublicprivatecollaboration
FullcostpricingbasedonEnvironmentaleffectiveness,EfficiencyandEquity(3Es)
Regulatoryinstruments
Sustainabletradeandgreenmarkets
Innovationandtechnology
Indicators
Daly(2011) Capauctiontradesystemsforbasicresources.
Ecologicaltaxreform
Limittherangeofinequalityinincomedistribution
Freeupthelengthoftheworkingday,week,andyear
Reregulateinternationalcommerce.
Stoptreatingthescarceasifitwerenonscarce,butalsostoptreatingthenonscarceasifitwerescarce.
Stabilizepopulation.
Reformnationalaccounts
GreenEconomyCoalition Investinginnaturalcapital
InvestinginPeople
Greeninghighimpactsectorsandservices
Drivinginvestmentandfinancialflows
Improvinggovernanceandmeasurement
TheDanish92Group(2012) Sustainableinfrastructure
SCP
Removalofbarrierstotradeandinvestment
Subsidiesremovalofharmfulsubsidies
Greenjobsanddecentwork
52
Appendix2Tenrecentgreeneconomy,greengrowth,andlowcarbondevelopmentstrategies
Country/Strategy Aim/Objectives Partners
1.RepublicofKorea
NationalStrategyfor
GreenGrowthandFive
YearPlan(20092013)
ThreeobjectivesoftheStrategy:
1.Promoteasynergisticrelationshipbetweeneconomicgrowthandenvironmentalprotection.
2.Improvepeoplesqualityoflifeandpromoteagreenrevolutionintheirlifestyles.
3.Contributetointernationaleffortstofightclimatechangeandotherenvironmentalthreats.
2.KingdomofCambodia
NationalGreenGrowth
RoadMap(2009)
TheoverallvisionoftheRoadmapistomakeCambodiaaliveableandlivelycountrysothatCambodiansloveandareproudto
callhome.Thestrategyaddresses7accessareas:accesstocleanwaterandsanitation;accesstorenewableenergy;accessto
informationandknowledge;accesstomeansforbettermobility;accesstofinanceandinvestments;accesstofoodsecurity
(agriculture)andnonchemicalproducts;Accesstosustainablelanduse.
TheRoadmapisaninitialattempttooutlinetheinitialpossibilitiesforgreeningeconomicgrowth.
TheRoadMaprecognisesthatuncoordinated,illsequencedanddisconnectedsectoralpolicieswillnotgreentheeconomy,and
thattheRoadmapwillneedtoalignwithcentraldevelopmentplansandstrategiesanddevelopmentgoals.Itfocuseson
providingadditionalitytothedevelopmentobjectivesarticulatedincentralplans.
UNESCAP
3.EthiopiasClimate
ResilientGreenEconomy
GreenEconomyStrategy
(2011)
TheobjectiveistoidentifygreeneconomyopportunitiesthatcouldhelpEthiopiareachitsambitiousgrowthtargetswhile
keepinggreenhousegasemissionslow.Thegovernmentintendstoattractdevelopmentpartnerstohelpimplementthisnewand
sustainablegrowthmodel.
Vision:toachievemiddleincomestatusby2025inaclimateresilientgreeneconomy.ThePlan:tofollowagreengrowthpath
thatfostersdevelopmentandsustainability.Theinitiativehasthreeobjectives:
Fosteringeconomicdevelopmentandgrowth;
Ensuringabatementandavoidanceoffutureemissionsi.e.totransitiontoagreeneconomy;
Improvingresiliencetoclimatechange.
Thefourpillarsofthestrategyare:adoptionofagriculturalandlanduseefficiencymeasures;IncreasedGHGsequestrationin
forestry;deploymentofrenewableandcleanpowergeneration;anduseofappropriateadvancedtechnologiesinindustry,
transportandbuildingsleapfroggingtomodernandenergyefficienttechnologies
Theplanfollowsasectoralapproachandidentifiesandprioritisesmorethan60initiativeswhichsupportachievementof
developmentgoalsandreduceGHGemissions.
Sectorswereselectedbasedonagreen
growthstudyundertakenforEthiopiaby
theGlobalGreenGrowthInstitute
(GGGI)andEDRI.
4.SouthAfricaGreen
EconomyAccord(New
GrowthPath:Accord4)
(2011)
TheAccordisapartnershipbetweengovernment,businesscommunity,tradeunionmovementandcommunityorganisationsto
createlargenumbersofjobs,provideaspurforindustrialisationandhelptocreateasustainablefutureforthisandthenext
generations.ItisoneofaseriesofagreementsinwhichsocialpartnerscommittoworktogethertoachievethegoalsoftheNew
GrowthPath,includingagoaloffivemillionnewjobsby2020.
53
Ithasagoalofcreatingatleast300,000jobsby2020inthegreeneconomyandactivitiesthatgreentheeconomy.
5.RwandaGreen
GrowthandClimate
ResilienceNational
StrategyforClimate
ChangeandLowCarbon
Development(October
2011)
Thepurposeofthestrategyisthreefold:
4. Toguidenationalpolicyandplanninginanintegratedway.
5. Tomainstreamclimatechangeintoallsectorsoftheeconomy.
6. TopositionRwandatoaccessinternationalfundingtoachieveclimateresilienceandlowcarbondevelopment.
TheStrategyisrelatedtoitsVision2020developmentstrategywhichaimstotransformRwandafromasubsistenceagriculture
economytoaknowledgebasedsociety,withhighlevelsofsavingsandprivateinvestment,andtherebyreducethecountrys
dependenceonexternalaid.Itincludestheaimofreachingmiddleincomestatusby2020.
Avisionfor2050isgiven,alongwith3strategicobjectiveswhichareguidedby5principles.Specificactionsarerequiredin14
ProgrammesofActionacross13sectors.Fiveenablingpillarsestablishtheprocessesandenablingenvironmentrequiredto
mobilisethestrategy.
UKDFID,CDKN,UniversityofOxford.
Developedoveraperiodofninemonths
fromNovember2010toJuly2011asa
collaborativeeffortbetweenthe
GovernmentofRwanda,theSmith
SchoolofEnterpriseandEnvironment
(SSEE)attheUniversityofOxford,and
thedonorinstitutesUKDFIDRwanda
andtheClimateandDevelopment
KnowledgeNetwork(CDKN).The
principalinvestigatorwasProfessorSir
DavidKingandtheProgrammeManager
wasMeganColefromSSEE.
6.FranceNational
SustainableDevelopment
Strategy:TowardsaGreen
&FairEconomy
Bydevelopingadecarbonisedeconomyusingfarfewerresources,thestrategyaimstomakeFranceamajorplayerinthegreen
economywhilstpursuingsocialjusticeandequity.ThestrategypraimstoensurecoherenceandcomplementarityofFrances
internationalandEuropeancommitmentsandnational,crosscuttingandsectoralpolicies.Itisbasedonninestrategicchallenges
whichmustbetakenuptomovetowardsagreenandequitableeconomy.Foreachchallenge,thestrategyprovidescontext,
priorities,objectiveswithquantitativetargets,andpolicymeasures.
7.GrenadaRoadMap
onBuildingaGreen
EconomyforSustainable
Development(2012)
Theprimaryobjectiveofthisstudyistodesignanintegratedstrategy,basedongovernmentcriteriaandexpertassessment,for
thetransformationoftheeconomyofCarriacouandPetiteMartiniqueintoagreenerandmoresustainableeconomy.TheRoad
Mapsetsoutalistofpotentialprojectsandinitiativesacrosskeysectors.
Thispublicationsummarizesinitialanalysis,findingsandproposals.Thestudyservesasastartingpointforthedevelopmentofa
moreindepth,systematicassessmentfordesigninggreeneconomiesinSIDS.
Theeffortrepresentanattempttoformulateagreeneconomyroadmapforthetransitiontowardssustainabledevelopmentin
atimeframeofoneortwodecades.Thestudyassessesandpresentsproposalsforchangeinmajordevelopmentblocks
including:energy,water,education,employment,transport,agricultureandfoodsecurity,ecotourismandenvironmentalissues.
Thestudyresultsincumulativeknowledgeandanalysisusefulforfurtherdevelopmentoffeasibilitystudiesforthebuildingofthe
necessarysystemsandinfrastructurethatcouldallowthemovementtowardsagreenereconomy.Itishopedthatthe
informationwillbeusefulinthepreparationofproposalsforfinancial,technicalandhumansupport.Althoughanattemptis
madetoshowquantitativeassessments,itisclearthatmoredataarenecessary,especiallytimeseriesdata,forthorough
evaluationofpriorityareas.Nevertheless,thelimiteddataavailable,combinedwiththeexpertanalysisandqualitative
UNDSD
54
assessment,provideconclusivedetailsaboutpoliciesandactionsforpursuingamoresustainablefuture.
8.GuyanaALowCarbon
DevelopmentStrategy
(LCDS)Transforming
GuyanasEconomyWhile
CombatingClimate
Change(2010)
ThedocumentsetsoutGuyanasstrategytoforgeanewlowcarboneconomyoverthecomingdecade.Itidentifies8priorities
thatwillbetheinitialfocusofLCDSimplementationin2010and2011,givesanoutlineofprioritiesfortheperiod201215,and
setsouttheframeworkforfurtherconsultationandstrategydevelopmentonGuyanaslongtermlowcarbondevelopment.
Focusonavoidingdeforestationandusingfundingtoenablelowcarboneconomicdevelopmentofnewsectors.Thestrategywill
leadtoactioninfourareas:
Investinginlowcarboneconomicinfrastructure;
Facilitatinginvestmentandemploymentinlowcarboneconomicsectors
Sustainablymanagingforestbasedeconomicsectors,inparticularforestryandmining.
Generallyenhancingthenationshumancapitalandcreatingnewopportunitiesforforestdependentandotherindigenous
communities.
GovernmentofNorwayandIIED
9.IndonesiasCreating
LowCarbonProsperityin
Jambi(2010)
TheStrategyhasthreecoreelements:
4. CO2mitigation:estimatingthesizeofcurrentandfutureemissions;assessingthetechnicalabatementpotentialand
feasibilityofabatementlevers;developinganactionplantocaptureprioritisedabatementopportunities.
5. Economicdevelopment:analysingexistingcompetitivestrengthsandweaknesses;prioritisinggrowthopportunitiesbased
onimpactandfeasibility;developinganactionplantocaptureprioritisedgrowthopportunities.
6. Institutionalenablers:developingastrategyforcriticalenablersthatwillunderpinthesuccessofthelowcarbongrowth
strategy(institutions,monitoringandevaluation,financialmechanisms,spatialplanning).
GovernmentsofFrance&Norway,
ClimateWorks,McKinsey&Company
10.TheUKLowCarbon
TransitionPlanNational
strategyforclimateand
energy(2009)
ThisWhitePapersetsouttheUKstransitionplanforbecomingalowcarboncountry:cuttingemissions,maintainingsecure
energysupplies,maximizingeconomicopportunities,andprotectingthemostvulnerable.
Theplanincludesaseriesoftargetsacross5keyareaswithina2020timeframe.
55
Appendix3Overviewofcoordinationandinstitutionalarrangementsfortennationalgreeneconomyorrelatedstrategies
Country/Strategy Lead InstitutionalArrangements
1.RepublicofKorea
NationalStrategyfor
GreenGrowthandFive
YearPlan(20092013)
Ledbytheofficeofthe
President.
PresidentialCommissiononGreenGrowthestablishedin2009.NationalAssemblyadoptedaFrameworkLawonGreenGrowth.Includesalong
termNationalStrategyforGreenGrowth(to2050)andaFiveYearPlan.
2.Kingdomof
CambodiaNational
GreenGrowthRoad
Map(2009)
PreparedbytheMinistry
ofEnvironmentthrough
itsGreenGrowth
Secretariat.
EstablishedaGreenGrowthInterMinisterialWorkingGroupforinteragencyconsultationwithrepresentativesfrom17ministries,includingthe
MinistryofEconomyandFinance.Forimplementation,proposestheRoadMapproposestoestablishanewNationalMinisterialGreenGrowth
Council.AlsoflagspossibilityofestablishingSubnationalGreenGrowthCentres.
3.EthiopiasClimate
ResilientGreen
EconomyGreen
EconomyStrategy
(2011)
Developedunderthe
ClimateResilientGreen
Economy(CGRE)Initiative
ledbythePrime
MinistersOffice,theEPA
andtheEthiopian
DevelopmentResearch
Institute(EDRI).
TheCRGEinitiativeisdirectedbyaMinisterialCommittee(ChairEDRI)andissupportedbyaTechnicalCommittee(ChairEPA)andsevensub
technicalcommittees.OverallresponsibilityandoversightlieswithEthiopiasEnvironmentalCouncil.Sevensectoralcommitteeswereestablished
withmorethan50expertsfrom20leadinggovernmentinstitutions.Thesewerecoordinatedbyaninterministerialsteeringgroup.Regionaland
sectoralconsultationswereundertaken.
Movingforward,theGovernmentplanstogoverntheCRGEinitiativeunderthecoresponsibilityoftheEPAandtheMinistryofFinanceand
EconomicDevelopment(MoFED).ThenextstepstobetakenincomingyearstoputtheGEstrategyinmotionincludeinstitutionandcapacity
buildingtocreateapermanentinstitutionalsetupforalastingplatform.
4.SouthAfricaGreen
EconomyAccord(New
GrowthPath:Accord4)
(2011)
Thedevelopmentofthe
Accordwasledbythe
EconomicDevelopment
Department.
TheAccordwassignedbyGovernmentandbyitssocialpartners,includingOrganisedLabourorganisations,Business,communityandGovernment
Ministersforarangeofportfolios.Itisanagreementunderthecountryseconomicdevelopmentstrategy,theNewGrowthPath.
5.RwandaGreen
GrowthandClimate
ResilienceNational
StrategyforClimate
ChangeandLow
CarbonDevelopment
(October2011)
Theprojectwas
coordinatedbythe
MinistryofNatural
Resources.
ItwasdirectedthroughaSteeringCommittee(NationalClimateCommittee)consistingoftenCabinetMinistersfromthefollowingministries:
DisasterManagement;AgricultureandAnimalResources,TradeandIndustry,FinanceandEconomicPlanning,Education,Infrastructure,Natural
Resources,LocalGovernment;andHealth.
Movingforward,thegovernmentisfinalisinglegislationforaNationalFundforClimateandtheEnvironmentwithintheMinistryofFinanceand
EconomicPlanning.TwoadditionalneworganisationalstructureswillalsobeestablishedaCentreforClimateKnowledgeforDevelopment
(CCKD)andaTechnicalCoordinatingCommittee(TCC)toleadandfacilitatetheflowofknowledgebetweenthedifferentorganisations.TheCCKD
willbeamultidisciplinaryorganisationwithexpertiseinclimatechangeandsectors.ItwillworkwiththeTCCtoprovideinformationtorelevant
Ministriesetc.TheTCCwouldcomprisedepartmentheadsfromtheRevenueAuthority,RwandaNaturalResourcesAuthority,theEnergyWater
andSanitationAuthority,theRwandaHousingAuthority,theRwandaTransportDevelopmentAgency,thePrivateSectorFederation,theRwanda
DevelopmentBoardandotheragenciesandrepresentativesfromcivilsociety,academia,developmentpartnersandtheprivatesector.
6.FranceNational
Sustainable
DevelopmentStrategy:
TowardsaGreen&Fair
MinistryofEnvironment,
SustainableDevelopment
andEnergy.
ThestrategywasdevelopedandapprovedthroughtheInterministerialCommitteeforSustainableDevelopment.Thestrategywasvalidatedby
theGrenelleofEnvironnementMonitoringCommittee,variouscabinetministers,andtheEconomic,SocialandEnvironmentalCouncil.Abroad
andextensiveconsultationprocesswasdonethroughthegrenelledelenvironnementandtheoutcomesofthiswereincorporatedintothe
strategy.Thedraftwascirculatedtokeystakeholderorganisations;publicconsultationwasundertakenviatheweb.
56
Country/Strategy Lead InstitutionalArrangements
Economy
StatedepartmentsmustreportannuallytoanInterministerialDelegateforSustainableDevelopmentandannualreportingisrequiredto
Parliamentagainstindicatorsandtargetssetoutinthestrategy.
7.GrenadaRoadMap
onBuildingaGreen
Economyfor
Sustainable
Development(2012)
LedbytheMinistryof
Environment,Foreign
TradeandExport
DevelopmentofGrenada
incollaborationwith
UNDSD.
ProducedthroughaninternationalstudyledbyUNDSDincooperationwiththeMinistryofCarriacouandPetiteMartiniqueAffairsandthe
MinistryofEnvironment,ForeignTradeandExportDevelopmentofGrenada.DevelopedbyexpertsfromGrenada,consultantsandUNpersonnel.
Oneofthenextstepsistocontinuetheworkthathasbeenstartedwithafollowup,moreindepthassessmentofspecificaspects,factorsand
problems.
8.GuyanaALow
CarbonDevelopment
Strategy(LCDS)
TransformingGuyanas
EconomyWhile
CombatingClimate
Change(2010)
Thestrategywasledby
theOfficeofthe
President.
Theconsultationprocessandareviewofthedraftwereoverseenbyanationallyrepresentativesteeringcommittee,andtheprocesswas
monitoredbyarespectedinternationalNGO(IIED).Thefirstdraftwaspublishedin2009basedonthePresidentsvision,andwasthesubjectofa
fourmonthnationalmultistakeholderconsultation,whereover10%ofthecountryspopulationparticipateddirectlyininformationsharingand
consultationsessionsonthestrategy.ToensuresuccessfulexecutionoftheLCDS,Guyanaisdeveloping5newenhancedinstitutionalcapabilities:
6. AnOfficeofClimateChange(OCC)establishedintheOfficeofthePresidenttoconsolidateandstreamlineexistingGovernmenteffortsand
coordinatethestrategy.
7. ALCDSProjectManagementOfficeestablishedtodrivekeyprojectsundertheLCDSandreportdirectlytothePresident.
8. AGuyanaREDDInvestmentFund(GRIF)willbeestablishedtomanageforestpayments,toreducethecostofcapitalonotheressential
investments,andoverthelongtermtoactasapermanentinvestmentfundforlowcarboninvestments.
9. AstrengthenedEPAwillensurethatsocialandenvironmentalsafeguardsareappliedtotheappropriateinternationallyrecognisedstandards
forallGRIFinvestments.
10. TheREDDSecretariatattheGuyanaForestryCommissionwillbetheimplementingagencyforREDDreadinessactivities,includingaMRV
system.
LowCarbonProsperity
inJambi(2010)
LedbytheGovernorof
theProvinceofJambi.
TheanalysiswascommissionedbytheGovernmentofJambi,theDNPIandtheNationalClimateChangeCouncilandwassupportedbyworkshops
andmeetingswithgovernment,privatesectorandNGOs.Itproposestoestablishanewinstitution(climatechangedeliveryunit)thatwillserve6
broadfunctionstosupportlowcarbongrowth:
Financecollectionanddistributionattractingclimatefinance
Monitoringandevaluation(MRV)
Policyandspatialplanningregulatoryresponsestosupportcarbonabatement(landtenure,landuseplanning)
Communityengagement
Infrastructuretechnologyandsystemsinfrastructureandhardinfrastructure(energy,transport)
Supportsustainablelivelihoodsstrategiesforgrowthandinvestment
10.TheUKLowCarbon
TransitionPlan
Nationalstrategyfor
climateandenergy
(2009)
Theplanwasledbythe
SecretaryofStateof
EnergyandClimate
Change.
DevelopedasawholeofgovernmentWhitePaperandapprovedbyParliamentpursuanttoitsClimateChangeAct,whichcommitstheUKto80%
reductionofGHGby2050,atargetsetbyanindependentCommitteeonClimateChange.ThestrategyisalsosupportedbyaUKLowCarbon
IndustrialStrategy.TheDepartmentofEnergyandClimateChangehasoverallresponsibilityfordeliveryofthePlan.
TheCommitteeonClimateChangehasanongoingreviewfunctionandreportseachyearonprogress.Eachgovernmentdepartmentisissuedwith
acarbonbudgetbasedontheirfunctions,andhastopublishaplanonhowitwilldoso.
57
Appendix4Overviewofpolicyinstrumentsandprioritysectorsfortennationalgreeneconomyorrelatedstrategies
Country/Strategy Sectors Policymeasures
1.RepublicofKorea
NationalStrategyfor
GreenGrowthandFive
YearPlan(20092013)
Buildings,Transport
Industry,Forests
Energy,Agriculture
Water,Health,Education
TheStrategyincludestenpolicyagendas,withavarietyofpolicymeasuresincluding:
Investmentinnaturalcapitalforestation,fourmajorriversrestorationproject
Investmentinrenewableenergy,nuclearenergyandhydropower
Investmentininnovationdevelopmentofgreentechnologies
SupporttoSMEstogreentheirbusiness
Investmentinhealthcare,education,ITandtourismsectors
Emissionstradingsystem
Ecologicaltaxreform
Publiccreditguaranteestogreenindustry
Investmentinpublictransport
Carbonfootprintlabeling
Sustainablepublicprocurementofgreengoods
Educationongreengrowth
GreenODA
Thereare5policymethodstoachievegreengrowth:
1. GovernmentsinvestmentinR&Dshallbeselectiveandconcentrated.GreentechnologyR&DasapercentageofallR&Dwillincreasefrom16%
asof2009to20%by2013;
2. Regulatorypolicywillbecoordinatedwithinducementpolicyinordertomaximizethecombined;
3. Inducementpoliciessuchassubsidywillbeutilizedattheminimumstimuluslevel.Antiinducementmethodssuchasenvironmentaltaxesshall
utilizemarketmechanismstothefullestextent;
4. Positiveexternalityandnegativeexternalitywillbeinternalized;
5. Moralsuasioncanbeexpectedfromstrengtheningeducationofthecitizensandthroughleadingbyexamplebytheprominentinsociety.
However,consideringthedifficultyinachievinglongtermchangethroughmoralsuasion,Koreashouldconsidermarketinducements,suchas
carbonmileage.
Arangeofincentivesaretobeofferedforprivatesectorinvestments.Theseincludetaxbenefitstoindividualinvestors,theissuanceoflongtermand
lowinterestgreenbondsandsavings,andthecreationofagreenfundaimedatfacilitatingaccesstocreditbysmallandmediumsizedenterprises.
Individualinvestorswillalsobegiventaxexemptionsontheirinterestincomefromgreenbondsandotherfinancialproductstobeissuedbybanks.
Creditguaranteesforgreenprojectswillincreasefrom2.8trillionwon(US$1.9billion)in2009to7trillionwon(US$5.4billion)in2013.Inaddition,
thegovernmentseekstomobilizeinvestmentfrompensionschemesandtolaunchagreenprivateequityfund.
2.Kingdomof
CambodiaNational
GreenGrowthRoad
Ecovillages,Water
Agriculture,Forests
Energy,Waste
Theplanreadsmorelikeashoppinglistofpolicyoptionsthatastrategy,including37priorities.Policymeasuresproposedinclude:
Governanceandinstitutionalarrangements
Indexbasedmicroinsurance,microfinancingandgovernmentbackedloansforsustainableagriculture
58
Map(2009) management,
Transportation
PaymentforEnvironmentalServices
Greentaxandbudgereform,includingtaxesonharmfulsubstances
Environmentaleducationandawareness
Investmentinsustainableinfrastructureandenergy
Investmentinnaturalcapitalreforestation
Propertyrightsreformforland
Waterpricingthroughmeteringandquantitybasedpricingfordomesticandmunicipalsolidwaste
Standardsandcodesfordrinkingwaterandgreenerdesign
EncouragePPPsforelectricityandpublictransport
Investmentinbiogaspilot
Strengthenenvironmentalregulationforestryandprotectedareas,includingparticipationprovisions
Integratedforestmanagement,landmanagementandlanduseplanning
Retrainingloggerstoworkinecotourism
CarboninventoriesforREDDandCDM
Greencertificationandlabellingsystemforagricultureandhotels
Reducingimporttariffsongreentechnologies
Investmentinorganicandsustainableagriculture
3.EthiopiasClimate
ResilientGreen
EconomyGreen
EconomyStrategy
(2011)
Electricpowersupply
Buildingandgreencities,
Forestry,Soil
Livestock,Transport
Industry.
Twosectorsagriculture
andforestryshould
receiveparticular
attention.
ThestrategyfocusesonfourpillarsthatwillsupportEthiopiadevelopingagreeneconomy.Policymeasuresinclude:
Investmentinirrigationandrehabilitatingdegradedland
Investmentinsustainableagriculturemethodsandtechnologies
Investmentinfuelefficientstovesoralternativefuelcooking
Investmentinreforestationandimprovedforestmanagement.
Investmentinrenewableenergy
Tariffadjustments
Governanceandinstitutionalarrangementsforimplementingtheplan,andforattractingclimatefinance
Fuelefficiencystandards
Investmentinelectricrailforfreight,urbanlightrailandpublictransport
Investmentinbiodieselandbioethanol
Thegovernmenthasselectedfourinitiativesforfasttrackimplementation:exploitingthevasthydropowerpotential;largescalepromotionof
advancedruralcookingtechnologies;efficiencyimprovementstothelivestockvaluechain;andReducingEmissionsfromDeforestationandForest
Degradation(REDD).Theseinitiativeshavethebestchancesofpromotinggrowthimmediately,capturinglargeabatementpotentials,andattracting
climatefinancefortheirimplementation.
4.SouthAfricaGreen
EconomyAccord(New
GrowthPath:Accord4)
(2011)
Energy,transport,
buildings,jobsandwaste.
Policymeasuresinclude:
Investmentinsolarwaterheaters,incentivesandregulatorymeasurestopromotegreaterlocalmanufacturingofcomponents,secureguarantees
oninstalledunits
Awarenessraisingcampaigns
59
Technicalandperformancestandards
Investmentingreeninnovation,manufacturingandR&D
InvestmentinrenewableenergyandsolarPVthroughPPPs
Skilldevelopmentinitiatives
Aspirationalefficiencytargets
Fuelregulations,investmentincentivesforbiofuels,includingsupportiveregulatoryenvironment
Regulationtophaseoutincandescentlighting
Investmentinpublictransport
Cooperativesand/orsocialenterprisesofretrenchedemployeestoberetrained,especiallyyoungpeople
Expandtrainingprogramslinkedtoskillsneedsofthegreeneconomy.
5.RwandaGreen
GrowthandClimate
ResilienceNational
StrategyforClimate
ChangeandLow
CarbonDevelopment
(October2011)
Agriculture,water,land,
builtenvironment,
transport,forestry,energy,
industry,health,education,
localgovernment,disaster
management.
Investmentinsustainableagriculture,includingtechniques,technologies,infrastructure,andorganicfairtrade
Integratedwaterresourcemanagement,landuseplanningandmanagement.
InvestmentinspatialdataandICT
RenewableenergyfeedintariffsandPPPs,guidelinesandcodesofpractice
Performancebasedgrants,incentivesandstandardsforconsumerfinanceforsustainableenergyinruralareas.
Investmentinefficienttechnologies,R&D
BuildcarbontradingcapacityforCDM
Energyefficiencystandards,measuringandreporting,includinginbuildingcodes
Capacitybuildingprogramsfornewskillsinenergyandwatermanagement
Regulationsforfuelqualityandcharcoalproduction
Investmentinclimateresilienttransportinfrastructureandsystems
Communitybenefitfundfromtourismrevenues
ParticipatoryPESschemes.
Investmentinreforestationandrehabilitation
Riskassessmentandvulnerabilitymappingforvectorbornediseases.
Earlywarningsystemsanddisasterresponseplansandassociatedregulations
Investmentinclimatechangescience
InitialPriorities:
BigWins:
LowCarbonDevelopment/Mitigation:Geothermalpowergeneration;Integratedsoilfertilitymanagement;highdensitywalkablecities(allof
whichwouldqualifyforclimatefinance).
Climateresilience/adaptation:irrigationinfrastructure;robustroadnetwork;CentreforClimateKnowledgeforDevelopment;andAgroforestry.
QuickWins:
InstitutionalFramework:usetheIntegratedDevelopmentProgrammetoimplementclimateresilientlowcarbondevelopmentinruralareas;
60
Finance:operationalisetheNationalFundforClimateandEnvironmenttoaccessinternationalfinance,especiallyFastStartFinancefor
adaptation.
IntegratedPlanningandDataManagement:implementregularmeasuringandreportingofenergyuseacrosssectors.
Capacitybuilding:expandTechnicalandVocationalEducationandTrainingtodevelopskillsneededforStrategyimplementatione.g.renewable
energy,agroforestryandirrigation.
KnowledgeManagement:setupanonlineClimatePortaltocommunicatetheStrategytothepublicandinternationalcommunity.
Technology:usetheStrategytocompletetheUNEPTechnologyNeedsAssessmenttospeedupTTforkeysectors,particularlyenergy,waterand
agriculture.
Infrastructure:implementresourceefficientdesignintheSpecialEconomicZoneinKigali.
Enablingpillars:
Institutionalarrangements
Finance
CapacityBuildingandKnowledgeManagement
Technology,InnovationandInfrastructure
IntegratedPlanningandDataManagement.
6.FranceNational
Sustainable
DevelopmentStrategy:
TowardsaGreen&Fair
Economy
Waste,agriculture,
industry,education,ICT,
governance,energy,
transport,biodiversity,
health,disaster
management,education,
immigration
Arangeofdifferentpolicymeasures,including:
Education,trainingandcurriculaonSD
Informationandawarenessraising
InvestmentinR&D
PublicPrivateresearchpatentpolicy,competitivenessclusters,centresofexcellence
Efficiencystandards
Integratedlocallevelplanning,Regionaladaptationplanning,townplanningpolicies
CSR
EnvironmentalcertificationISOstandards
SDindicators&nationalscoreboard
ETScarbonpricesignal
Incentivesforrenewablesthroughtaxes,purchasingprices,specificfinancingandinvestmentfunds.
Ecolabeling
Energydiagnostictools
Lifecycleassessment
Interestfreeloansforenergyefficienthousing
Climatemodelling
Investmentinsustainabletransportinfrastructure,majorinvestmentinpublictransport
Sustainableprocurement
Protectedareas
IntegratedCZM
61
Sustainableagricultureandaquaculture
Recycling,reuseandsustainablewastemanagement
Pollutionstandards
Socialinclusionpensions,jobaccess,healthcare,housing
Microcredit
7.GrenadaRoadMap
onBuildingaGreen
Economyfor
Sustainable
Development(2012)
Energy,water,education,
employment,transport,
agricultureandfood
security,ecotourismand
environmentalissues.
Potentialpolicyoptionsidentifiedinclude:
Taxexemptionsforrenewableenergy
Investmentinrenewableresourcesarangeofwind,solar,geothermal,biomassoptionsproposed.
Buildingandefficiencystandardsandcertification
Investmentinwaterinfrastructure
IWRM
Educationandtraining
Investmentinsustainabletransport
Investmentinsustainableagriculture
Environmentalregulation
Investmentinecotourismventureandinfrastructure
Taxreliefincentives
Urbanplanningstandardsandregulationtenure,enforcement
Coastalmonitoring
8.GuyanaALow
CarbonDevelopment
Strategy(LCDS)
TransformingGuyanas
EconomyWhile
CombatingClimate
Change(2010)
Forestry,biodiversity,
agriculture,energy,
disasterpreparednessand
riskreduction,
infrastructure(ICT,
transport),governance
(institutionalcapacity
developmentforREDD+)
andindigenousrights.
Investmentinlowcarboninfrastructuresustainableenergy,transport,irrigation,agriculture,forestry
Regulationreform,monitoringandenforcementforminingandforestry
Investinginhumancapitaleducation,socialservicesandbasicinfrastructure,health,ICT
PropertyrightsforindigenouscommunitiesandvoluntaryinclusioninREDD
Investmentinclimateresilientinfrastructureanddefences
Strengthenbuildingcodes
Earlywarningsystems
Financialandriskinsurancemeasures
InstitutionalandgovernancearrangementsforthestrategyandforREDD,includinganewinvestmentfundandMRVsystem.
LowCarbonProsperity
inJambi(2010)
Forestry,Agriculture,
Transport,Energy,Building,
Industry
Fivecarbonreductionopportunitiesareprioritised:
1. Preventforestandpeatlandfiresbyprovidingpracticaltechnologiesandfinancialincentivesformanuallandclearing,warningsystems,fire
brigades,strongenforcementandlargepenalties,publicawareness.
2. Reducedeforestationthroughmoreeffectivelandallocationpoliciesandimprovingagriculturalproductivity.UseofREDDtopayforservices,and
targetingagriculturalexpansionindegradedareas.
62
3. Rehabilitateidleordegradedpeatlanddevelopguidelines,fundresearch.
4. Manageforestssustainablyenforcement,technicalsupport,improvinggovernance,education.
5. Reforestation
Mappingtheseopportunitiesagainsttheirfullabatementcostandfeasibilitycanhelpprioritize
theimplementationofemissionreductionopportunitiesforJambi
Planalsoidentifies6prioritygrowthsectors:
1. Estatecropsonnonforestedland(13percent1.ofGDPin2006):Developnonforestedarablelandforcropssuchaspalmoil,rubber,coffee,and
spices.
2. Foodcropsonnonforestedland(12percent2.ofGDPin2006):Developnonforestedarablelandforcommercialagricultureofhighvalue
tropicalfruitsandriceforexport.
3. Sustainableforestry(10percentofGDPin2006):Integrateprimaryandsecondaryprocessingoftimberthathasbeenmoresustainablyextracted
understringentcontrolsenablingnaturalregenerationandsufficientregrowthduringtherotationcycle.
4. Ecotourism(2percentofGDPin2006):DeveloptourismbasedonJambisuniquewildlife(e.g.,Sumatrantiger)andbiodiversitythatminimizes
theecologicalimpactofgrowthinthesector.
5. Aquaculture(1percentofGDPin2006):Rearfreshwaterfishandshrimponnonforested,nonarablelandforexportintheformoffresh,frozen,
orprocessedproduct.
6. Financialservices(1percent5.ofGDPin2006):Driveincreasesintheefficiencyandpenetrationoffinancialservices,extendaccessto
microfinance,andtapinternationalsourcesofcapital(e.g.,REDD).
10.TheUKLowCarbon
TransitionPlan
Nationalstrategyfor
climateandenergy
(2009)
Thefocusisonemissions
reductionin5keysectors:
powerandheavyindustry,
homesandcommunities,
workplacesandjobs,
transportandfarming,land
andwaste.
Renewableenergyandemissionstargets
MarketmechanismEuropeanETS
Investmentinrenewableenergy,CCSandgridcapacity
Streamliningregulatoryandplanningprocessesfornuclearpower
Investmentincommunitybasedapproachtoenergyefficiencyinlowincomeareas
Payasyousavemodelsoflongtermfinancingforenergysavingtechnologies
Cleanenergycashbackschemesorrebates.
Informationmeasuressmartmetering,performanceratings
Buildingcodesandstandardszerocarbonhomes
Socialprotectionpaymentsforolderandmorevulnerablepeople,subsidizedenergyefficiencyandnewheatingandothergrants.
Financialsupportandincentivesforlowcarbontechnologies,includingaclimatechangelevy
InvestmentinR&D
Investmentinsustainableinfrastructureandpublictransport
Sustainablepublicprocurementlowemissioncars
Smallgrantsforlowcarbonvehicles
Investmentinsustainableagriculture
63
Appendix5Summarytablefromanalysisoftenrecentnationalstrategies
Country LedbyPMor
Equivalent
Institutional
Arrangementfor
wholeofgovernment
engagementin
Strategy
Development
New
Institutionsfor
Strategy
Implementation
Costsprovided Sourcesof
external
finance
identified
Feedback&
Review
Mechanisms
Economic
instrumentsfor
internalising
externalities
Economic
instrumentsto
incentivise
investment
Ethiopia(2011) Y Y Y Y Y Y
Rwanda(2011) Y Y Y Y Y
Guyana(2010) Y Y Y Y Y Y
Cambodia
(2009)
Y Y Y
Grenada(2012) Y
Jambi,Indonesia
(2010)
Y Y Y Y
SouthAfrica
(2011)
Y Y Y Y Y
Republicof
Korea(2009)
Y Y Y Y Y Y
UK(2009) Y Y Y Y Y
France(2010) Y Y Y Y
64

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