#development, #sustainable, #green economy, #innovation, #mudombi, #shakespear
Author: Shakespear Mudombi
Type: Thoughts and Perspective
Date: 26 March 2015
Introduction
 |
| Shakes at COP 17, Durban testing the Siemens zero emissions prototype bike |
The green economy has recently gained prominence in various
local, national and international development activities, discussions, and
agendas. While the discourse on the topic is current and well received by researchers
as well as practitioners, it is noteworthy that it is commonly that such hot
topics are less understood by the general public. In other words, such topics have
become elitist discussions among intellectuals, albeit excluding the ordinary people
or the general public, whose role, perceptions and understanding have a strong
influence on the success or failure of such initiatives. Based on literature
review the aim of the article is to discuss and explore what the green economy
refers to, explicate how it converges with the overall sustainable development
agenda, and highlight the critical requirements for a green economy.
What is Green Economy
 |
| Stakeholder engagement with rural community in Hwange District, Zimbabwe |
While the term ‘green economy’ appears to be new or has of
late gained popularity, the literature shows that the term is not necessarily
new. For instance, Wentworth and Oji (2013) posited that the concept has been
around since the 1970s. In fact, the recent elevation of the concept has been
driven mainly in response to the 2008–2009 global economic recession and the
associated market failures (Wentworth and Oji, 2013; UNEP, 2011), since then,
the green economy phenomenon has been growing exponentially (Nhamo and Nhamo, 2014).
The idea of the green economy was seen as a recovery tool to the twin problems
of the economic crisis and climate change (Perrot and Soumonni, 2015). A
valuable lesson from the global economic recession was that the growth path based
on a brown economy (dependent on highly polluting energy sources) was not
sustainable. Hence, the green economy approach is envisaged as an alternative
that will help to bring solutions to the economic challenges as well as steer
development towards sustainable outcomes.
Before delving much into the discussion, it is imperative to
define the term ‘green economy’. The prevalent definition of the term is by UNEP
(2011),
A green economy is one that
results in ‘improved human well-being
and social equity, while significantly reducing environmental risks and
ecological scarcities….can be thought of as one which is low carbon,
resource efficient and socially inclusive.
 |
| Natural capital should be preserved |
In other words, the green economy approach basically emphasises
the integration of economic and environmental activities and policies to create
opportunities for economic growth while preventing unsustainable pressure on
the quality and quantity of the natural assets (EEA, 2011). The “growth” thereof
does not necessarily imply economic output growth, but should indicate “sustainable
economic progress” (FAO, 2010).
Enabling conditions for the take-off of the Green Economy
There are some myths about the green economy, which
negatively affect how the approach is perceived and embraced - in some
sections - it is viewed with suspicion. The UNEP (2011) noted two common myths
about the green economy. The first myth is that there is an inevitable
trade-off between environmental sustainability and economic progress. The
second myth is that a green economy is a luxury that can only be afforded by
rich countries; moreover, it is a developed-world imposition to constrain development
and perpetuate poverty in developing countries. These myths are evidence that
while the green economy approach is being embraced and gaining prominence,
there are widely held contestations and debates on the appropriateness of the approach
and its application to different socio-economic environments.
The proponents of the green economy argue there is no
trade-off between economic progress and environmental sustainability. In fact,
these objectives can be achieved concurrently and in a complementary manner,
resulting in a win-win situation. What is required is a shift in thinking that “green”
is not against “growth” (Myung-Bak, 2010). A transition to a green economy
requires a range of building blocks. These are categorised as: minimising
losses and avoiding inappropriate trade-offs; investing in environmental
infrastructure; active management of environmental risks; proactive investment
in natural capital; further eco-efficiency for relative decoupling; and
absolute decoupling of the economy from resource use and its negative impacts (ten
Brink et al. 2012).
 |
| The A Re Yeng Bus Rapid Transport system, Pretoria, South Africa |
The green economy is associated with a number of
opportunities. For instance, the South African government seeks to explore the
rolling out of solar-water heating systems; procurement of renewable energy; promotion
of biofuels for vehicles; launching clean-coal initiatives; promoting energy
efficiency across the economy; retrofitting of domestic, industrial and
commercial buildings to promote energy efficiency; waste-recycling; improved
mass transport system; electrification of poor communities and reduction of
fossil-fuel open-fire cooking and heating; promotion of localisation, youth
employment, cooperatives and skills development; and increasing investments in
the green economy (The Economic Development Department, 2011).
A critical aspect for the success of the green economy is
that its activities have to be attractive, viable, profitable, and supported by
society - which requires certain conditions to be changed, shifted or created
(FAO, 2010). These conditions are referred as “enabling conditions”. In this
context, Myung-Bak (2010) outlined three key enabling conditions for the green
economy to work. Firstly, there is need to have a strong political will and
leadership to make the transition to a new paradigm. Secondly, the public has
to embrace the new paradigm and discard old habits of thinking and acting.
Thirdly, there is need for a technological revolution to support the first two
requirements.
 |
| Pretoria, South Africa |
Similarly, the South African government’s Green Economy
Accord stresses the following enabling conditions. Firstly, innovation – the country can utilise
its technological, research and manufacturing base to generate new processes and
products. Secondly, responsibility –
the government should create an enabling environment for businesses and
citizens to do things differently. Thirdly, partnership – it is necessary to harness the combined
efforts of all stakeholders to achieve the goals of the green economy. From the
enabling conditions that have been highlighted, it is clear that for the green
economy to be successful, these enabling conditions ought to be present, they
are necessary. Additionally, every stakeholder should play their part. With proper
coordination and collaboration, it is possible to create and strengthen synergistic
relationships and partnerships which will enhance the achievement of the green
economy objectives.
It is worthwhile to highlight some of the challenges that relate
to the establishment of the enabling conditions. In relation to having strong
political will and leadership, a serious challenge is that it is actually lacking
or absent in most countries - developing and developed countries alike. For
some countries, the political leadership change rapidly and there is no
continuity in policies and programmes. In such cases it is difficult to sustain
the green economy and its associated initiatives. In addition, the benefits of
adopting a green economy might accrue in the long run although the costs are concentrated
in the short run i.e. experienced immediately. This actually acts as a
disincentive for politicians to embark on projects whose benefits will accrue
long after they are out of power – they want instant tangible benefits to
please their constituencies.
As the public embraces the green economy, there is need to
have an enabling environment with relevant policies and technologies. An
important aspect of the green economy is the need to create more jobs. At the same
time, innovation has been emphasised. For instance, ten Brink et al. (2012)
asserts that the economy has to be decoupled from resource use and its negative
impacts through more radical innovation and changes in demand. It is noteworthy
to highlight that while innovation is critical to have new processes and
products, it should not be labour-displacing - otherwise the drive towards
green economy will result in more unemployment and other negative effects. Labour-displacing
technologies contribute to high unemployment with detrimental effects on the
socio-economic situation.
 |
| Inclusion is key |
In this context, Kaggwa et al. (2013) stress that green
economy transition should be supported by appropriate and inclusive green
technology. Appropriateness relates to acquisition and maintenance costs versus
benefits to communities, skills needed to operate or benefit from the
technology, and the ability of locals to localise the technology to suit their
needs. Inclusive green technology enables more people to become part of the
production systems rather than exclude them (ibid). This is very critical
particularly in developing country context, where labour-displacing
technologies are usually imported from developed countries on the guise of
efficiency enhancement. Therefore, decisions and actions to import technology
and products have to be informed by comprehensive and holistic cost-benefit
analyses covering economic, social, and environmental aspects, so as to
determine their appropriateness and inclusivity at the local level.
Public understanding and perceptions are crucial in the
success of the green economy. For example, how consumers perceive the green
technology and products will affect their adoption and demand (Mudombi, 2013).
Related to this, O’Connor et al. (2002) found that people would want to reduce
emissions if they understand the causes of climate change, if they perceive
substantial risks from climate change, and if they think climate change
mitigation policies will not cost them their jobs. Public perceptions need to
be changed favourably if the green economy is to be adopted and embraced by the
public. Thus, a green economy must emphasise the central role of education in
general, and education for sustainable development and climate change in
particular (Nhamo, 2013). While this article does not dwell much on the research
on knowledge, attitude, behaviour and practice (KABP), it is notable that this
can provide greater insight and help to inform how people’s understanding,
perceptions and awareness influence how they respond to programs, events and
risk. Incorporating KABP insights into the design of green economy initiatives
and programmes will enhance their embracement and support by the public.
For the green economy to be sustainable, the benefits have
to outweigh the costs, and this should be evident to the implementers as well
as the beneficiaries. A transition to
a green economy needs to take into account not only the opportunity of
win-wins, but also the risks of losses for certain groups and trade-offs across
sectors and over time (ten Brink et
al. 2012). The opportunities
created by the green economy should be more than the opportunities that are
lost as a result of adopting the green economy. By the same token, the costs or
losses incurred by moving towards a greener economy should not be overall
higher than pre-green economy era - otherwise there will be fewer incentives to
adopt it. Nevertheless, it has to be emphasised that not all green economy
benefits can be given a monetary value, this has implications on the evaluation
process of costs and benefits. For example, one of the key outcomes of a green
economy is equity - this outcome has many socio-economic benefits but such
benefits cannot be easily quantified and compared using simple financial
analysis per se. Hence, as highlighted before, there will be need for
comprehensive and holistic cost-benefit analyses covering all aspects namely
economic, social, and environmental.
One of the main objectives of the green economy is to reduce
greenhouse gas (GHG) emissions. In this regard, it has been noted that reducing
emissions especially in the energy sector will face significant barriers. These
barriers arise due to the pressing need for a rapid transition, while at the
same time, the transition must confront a cheap, plentiful, and socially
embedded energy system based on fossil fuels (Arundel et al. 2011). With the
adoption of the green economy, a larger share of energy will be provided by renewables
– this will have negative feedback effects due to the decline in demand for
fossil fuels which further lowers their prices. The relatively cheaper fossil
fuels will in turn be more attractive to consumers compared to environmentally
beneficial technologies (ibid). Ghanashyam
(2010) corroborates that the current high cost of green technologies and
low cost of brown technologies deter the deployment of green technologies. This
calls for greater innovation to develop and avail cheaper cleaner renewable
energy technologies.
The convergence between the Green Economy and Sustainable Development
The discussion on green economy cannot be separated from
that of sustainable development. As such, it is important to discuss and
explore how the green economy approach converges with the overall sustainable
development agenda. The importance of the green economy concept in the context
of sustainable development is evident in various national and international
discussions. For example, the Heads of State and Government and high level
representatives met in Rio de Janeiro, Brazil (20-22 June 2012) and agreed on
the ‘
The Future We Want: Our CommonVision’. In this vision, they agreed that,
…we consider green economy in the
context of sustainable development and poverty eradication as one of the
important tools available for achieving sustainable development and that it
could provide options for policy making but should not be a rigid set of rules.
We emphasize that it should contribute to eradicating poverty as well as
sustained economic growth, enhancing social inclusion, improving human welfare
and creating opportunities for employment and decent work for all, while
maintaining the healthy functioning of the Earth’s ecosystems.
It should be highlighted that the adoption of green economy
will help to contribute to sustainable development goals; nonetheless the two
should not be equated. In fact, the green economy should only be a means to
sustainable development and not an end (Perrot and Soumonni, 2015). The relationship between green growth and
sustainable development can be depicted as shown in Figure 1.
 |
Figure 1: Conceptualising the
linkage between green growth and sustainable development
|
.JPG) |
| Natural capital: The Victoria Falls, Zimbabwe |
Sustainable
development is attainable when the environmental, social, and economic
dimensions converge. In the same way, the green economy as a pathway to
sustainable development should ensure the convergence of the three dimensions. Economic
growth should be achieved while ensuring that both the environmental and social
dimensions are not constrained. In terms of the environmental dimension it should
ensure appropriate responses to climate change, loss of natural capital,
resource and water scarcity, and environmental degradation. Ultimately, the
social dimension should not be left out in the process of seeking to ensure
economic growth and environmental integrity. The FAO (2010) points out that a
green economy is historically understood as an economic system that is
compatible with the natural environment, today, the concept of green economy
has evolved to consider also social issues. Accordingly, the green economy
should enhance attainment of social objectives such as equity, food security, health,
poverty reduction, employment creation, and youth and gender empowerment.
Tackling the ever growing unemployment is a very serious challenge
facing policy makers and various stakeholders the world over. The green economy
has been lauded as a potential source of employment creation. For instance, the
South African government envisages the green economy as a unique opportunity to
create jobs through a partnership to promote the green economy and processes to
green the economy (The Economic Development Department, 2011). The FAO (2010)
noted that green job creation is expected to offer decent jobs that offer
adequate wages, safe working conditions, job security, reasonable career
prospects and workers’ rights. As a result of adopting a green economy there will
be an employment shift. Alternative green jobs will be created, some will be
substituted, certain jobs will be eliminated without direct replacement, while many
existing jobs will simply be redefined and profiles will be greened (ibid). The
crucial issue is whether the green economy will result in greater employment
versus greater unemployment. If it creates more unemployment through labour
displacement, replacement and substitution, then it would have worked against
the social objectives of sustainable development which emphasise equity within
and across generations.
As the article has focused on the two aspects namely green
economy and sustainable development, it is necessary to briefly stress the need
for clarity in their use and what they entail. In reference to sustainable
development, Connelly (2007) pointed out that, ‘as long as sustainable
development is viewed as ‘everything and nothing’ it is weakened as a policy
goal’. Similarly, if green economy is viewed as everything it will be weakened
as development goal. Notable, their overuse and over emphasis as a panacea to
almost all challenges will reduce their relevance and effectiveness, in the end
magnifying their shortcomings. So it is necessary to be clear on what these
concepts refer to, what they entail, and what they can achieve. Rather than
just theoretical conceptualisation, of importance too, is their practical
application. Strandenaes asserts that concepts
often remain concepts in search of application.
Going forward
 |
| Shakes presenting at the Adaptation Futures Conference, University of Arizona, USA |
The green economy cuts across various sectors and should be
embedded in every sector; it is not a single way but a collection/combination
of many ways of doing things. In responding to development challenges it is
necessary to address causes rather than the symptoms, hence the need to address
unsustainable consumption, production and life style patterns (Ghanashyam, 2010). The green economy approach
emphasises the need to change ways of doing things. That is doing things (processes
and ways) differently using different means (knowledge, skills and technology) and
resources (clean and renewable rather than dirty and non-renewable) with the overall
objective of achieving positive and sustainable socio-economic-environmental
outcomes.
To that end, green economy planning has to be flexible and
tailor-made to fit the conditions on the ground. The planning process has to be
an iterative process, adapting to local conditions and responding to the needs of
stakeholders nationally and locally (Low, 2011). Perrot and Soumonni (2015)
emphasised that the mere “greening” of economic activities would not help much.
What is required are adaptive socio-economic and bottom-up measures rather than
top-down approaches only, as often advocated for by proponents of the green
economy (ibid). It has to be interactive and responsive to the needs of all
regions and contexts, ensuring that there are tangible, equitable and inclusive
opportunities for job creation and natural capital conservation (Nhamo and
Nhamo, 2014). Essential in shaping the green economy transition is political
will to help come up with a shared vision (Nhamo, 2013) as well as co-leadership
among member states in sharing experiences (Nhamo and Nhamo, 2014).
Though there are various contestations on what the green
economy is and what it entails, one aspect that is clear is that the green
economy is a development path that converges with or works towards sustainable
development objectives. As various green economy initiatives are being adopted
and implemented across the world, it remains to be seen how the triple
economic, environmental, and social objectives of sustainable development are
achieved. Of importance is that,
these green economy initiatives should result in enhanced
convergence of the three dimensions rather than their divergence, or else the
attainment or moving towards sustainable development will remain a pipe dream.
References
Arundel
A, Kanerva M and Kemp R. 2011. Integrated Innovation Policy for an Integrated
Problem: Addressing Climate Change, Resource Scarcity and Demographic Change to
2030. PRO INNO Europe: INNO-Grips II report, Brussels: European Commission, DG
Enterprise and Industry.
Connelly
S. 2007. Mapping Sustainable Development as a Contested Concept, Local
Environment: The International Journal of Justice and Sustainability, 12(3):
259-278.
EEA.
2011. Europe's environment: An Assessment of Assessments (Chapter 3: Green
Economy). European Environment Agency (EEA).
FAO.
2010. Stakeholders Consultation: payments for environmental services
within the context of the green economy. Natural Resources Management and
Environment Department, Food and Agriculture Organization (FAO), Rome, 27-28
September 2010.
Ghanashyam
A R. (The Joint Secretary (UNES); Ministry of External Affairs, Government of
India). 2010. Statement during the session on “Green Economy in the context of
sustainable development and poverty eradication”, 2nd PrepCom of Rio+20, 7
March 2010, New York.
Kaggwa
M, Mutanga S, Nhamo G and Simelane T. 2013. South Africa’s Green Economy
Transition: Implications for Reorienting the Economy Towards a Low-Carbon
Growth Trajectory. SAIIA Economic Diplomacy Programme. Occasional Paper 168.
Low
L P. 2011. Green growth: implications for development planning. Climate and
Development Knowledge Network (CDKN).
Nhamo
G. 2013. Green economy readiness in South Africa: A focus on the national
sphere of government, International Journal of African Renaissance Studies -
Multi-, Inter- and Transdisciplinarity, 8:1, 115-142, DOI:
10.1080/18186874.2013.834628.
Nhamo
S and Nhamo G. 2014. Mainstreaming green economy into sustainable development
policy frameworks in SADC. Environmental Economics 5(2).
O’Connor
R E, Bord R J, Yarnal B, and Wiefek N. 2002. Who Wants to Reduce Greenhouse Gas
Emissions? Social Science Quarterly, 83(1): 1-17.
Perrot
R and Soumonni D. 2015. The green economy in Africa: A critical overview.
Foresight For Development.
Strandenaes
Jan-Gustav. Sustainable Development Governance towards Rio+20: Framing the
Debate. Sdg2012, Stakeholder Forum.
ten
Brink P, Mazza L, Badura T, Kettunen M and Withana S. 2012. Nature and its Role
in the Transition to a Green Economy. United Nations Environment Programme
(UNEP).
UNEP.
2011. Towards a Green Economy: Pathways to Sustainable Development and Poverty
Eradication - A Synthesis for Policy Makers, www.unep.org/greeneconomy
Wentworth
L and Oji C. 2013. The Green Economy and the BRICS Countries: Bringing Them
Together. Occasional Paper No 170. Economic Diplomacy Programme, South African
Institute of International Affairs (SAIIA).
_.png)
.JPG)
.png)
.JPG)
.png)
