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LDCs can lead green economy transition
May 17, 2011, Tuesday
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THE world is preparing for the 2012 UN Conference on Sustainable Development (Rio+20), where one of the themes will be "green economy in the context of sustainable development and poverty eradication."
We now examine the idea that Least Developed Countries possess the economic conditions, the natural and cultural assets, and the policy setting to embrace, if not lead, a green economy transition, which would in turn accelerate their development.
In its simplest expression, a green economy can be described as one that is low carbon, resource efficient and socially inclusive.
A green economy can take advantage of new growth trajectories designed to be more socially inclusive, as well as responsive to poverty reduction and economic diversification objectives.
The conditions in LDCs provide a basis to pursue a low-carbon and resource efficient path of economic growth and development, anchored in investment and policy reform designed to enhance livelihoods for the poor, create employment opportunities and reduce poverty.
The 48 LDCs currently present a low-carbon profile, due to their low levels of carbon emissions. Their economies rely significantly on natural capital assets such as agriculture, forest resources, biodiversity, tourism, minerals and oil extraction. There also exists a large potential for renewable energies.
While other countries face sizeable economic and social costs of "decarbonization," alongside costs linked with retiring inefficient fossil fuel-based technologies, LDCs can jump start the green economy transition by maintaining and expanding the sustainable practices that already exist.
For example, practices such as low-carbon, labor-intensive agriculture and community-based forestry, which have existed for decades in these countries, will be central elements to the greening of these sectors.
Structural constraints, including dependence on fragile agriculture, limited access to energy and low economic diversification, which have previously prevented LDCs from significantly reducing poverty and achieving higher rates of development, resulted from policies and investments that undervalued the importance of the economic sectors most relevant to the livelihoods of the poor.
Huge potentials
Refocusing policies and investments to target sectors and areas including renewable energy, agriculture, forestry, tourism and enhanced ecosystem services can lead to the economic empowerment of low income populations, be more conducive to inclusive growth and jobs and make a significant contribution to achieving the Millennium Development Goals in the poorest countries.
Already, decision makers in a number of LDCs are taking bold measures that can set the course for this transition to occur.
Bringing energy to the rural poor is one of the most important contributions that a green economy can make to LDC economies. After decades of national and global efforts, it is now becoming clear that decentralized forms of energy supply offer LDCs the most effective approach to rural energy access.
In this regard, it is encouraging to observe that many LDCs have started to initiate policies and innovative approaches to tap into their potential for adaptable, clean energy solutions.
In addition to energy, there is growing evidence that sustainable forms of agriculture, a sector which accounts for a large share of GDP in LDCs, can increase yields and revenues, open up new market opportunities and reduce climate change and environmental vulnerability.
For LDCs to succeed in this journey, there must be a supportive international policy framework in which risks and uncertainties originating in other countries are prevented from jeopardizing the progress achieved in the more vulnerable economies.
The international community must provide the necessary support to leverage financial resources and help LDCs build capacity in order to seize the opportunity for transformative change that is conducive to sustainable development and poverty reduction.
(The article is adapted from the forward of a latest report jointly written by the UNEP, the UNCTAD and the Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States.)
We now examine the idea that Least Developed Countries possess the economic conditions, the natural and cultural assets, and the policy setting to embrace, if not lead, a green economy transition, which would in turn accelerate their development.
In its simplest expression, a green economy can be described as one that is low carbon, resource efficient and socially inclusive.
A green economy can take advantage of new growth trajectories designed to be more socially inclusive, as well as responsive to poverty reduction and economic diversification objectives.
The conditions in LDCs provide a basis to pursue a low-carbon and resource efficient path of economic growth and development, anchored in investment and policy reform designed to enhance livelihoods for the poor, create employment opportunities and reduce poverty.
The 48 LDCs currently present a low-carbon profile, due to their low levels of carbon emissions. Their economies rely significantly on natural capital assets such as agriculture, forest resources, biodiversity, tourism, minerals and oil extraction. There also exists a large potential for renewable energies.
While other countries face sizeable economic and social costs of "decarbonization," alongside costs linked with retiring inefficient fossil fuel-based technologies, LDCs can jump start the green economy transition by maintaining and expanding the sustainable practices that already exist.
For example, practices such as low-carbon, labor-intensive agriculture and community-based forestry, which have existed for decades in these countries, will be central elements to the greening of these sectors.
Structural constraints, including dependence on fragile agriculture, limited access to energy and low economic diversification, which have previously prevented LDCs from significantly reducing poverty and achieving higher rates of development, resulted from policies and investments that undervalued the importance of the economic sectors most relevant to the livelihoods of the poor.
Huge potentials
Refocusing policies and investments to target sectors and areas including renewable energy, agriculture, forestry, tourism and enhanced ecosystem services can lead to the economic empowerment of low income populations, be more conducive to inclusive growth and jobs and make a significant contribution to achieving the Millennium Development Goals in the poorest countries.
Already, decision makers in a number of LDCs are taking bold measures that can set the course for this transition to occur.
Bringing energy to the rural poor is one of the most important contributions that a green economy can make to LDC economies. After decades of national and global efforts, it is now becoming clear that decentralized forms of energy supply offer LDCs the most effective approach to rural energy access.
In this regard, it is encouraging to observe that many LDCs have started to initiate policies and innovative approaches to tap into their potential for adaptable, clean energy solutions.
In addition to energy, there is growing evidence that sustainable forms of agriculture, a sector which accounts for a large share of GDP in LDCs, can increase yields and revenues, open up new market opportunities and reduce climate change and environmental vulnerability.
For LDCs to succeed in this journey, there must be a supportive international policy framework in which risks and uncertainties originating in other countries are prevented from jeopardizing the progress achieved in the more vulnerable economies.
The international community must provide the necessary support to leverage financial resources and help LDCs build capacity in order to seize the opportunity for transformative change that is conducive to sustainable development and poverty reduction.
(The article is adapted from the forward of a latest report jointly written by the UNEP, the UNCTAD and the Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States.)
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