The nexus between the green economy and sustainable development

#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).

Much as the terminology and interpretations might differ, the common outcomes should include economic development while responding to challenges such as climate change, loss of natural capital, resource scarcity, together with seeking to achieve social and development objectives such as reducing poverty (Low, 2011). Myung-Bak (2010) asserts that the green economy ‘entails a new social and civilizational paradigm shift away from the business assumptions and lifestyles of the industrial age to a new path that satisfies the need foreconomic growth, social and corporate responsibility, and the integrity of the environment’. Having highlighted what the green economy entails it is imperative to explore some of the necessary conditions for the green economy to take-off.

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.

Drafting the WWF led Youth strategy for learning for Sustainability and Green Economy, Nairobi, Kenya

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

Source:Adapted from Mudombi (2013:158)

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.

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