Putting Green Growth at the Heart of Development Summary for Policymakers

Governments that put

green growth at the heart of development can achieve sustainable economic growth and social stability, safeguard the environment, and conserve resources for future

generations.
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Contents
Green growth: what it is and why we need it ew shoots of green growth in developing countries "a#ing action at national and international levels "he time for green growth is now 2

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"his wor# is published on the responsibility of the %ecretary&General of the '(C). "he opinions e*pressed and arguments employed herein do not necessarily reflect the official views of the 'rganisation or of the governments of its member countries. + '(C) ,arch 2-$. '(C) freely authorises the use of this material for non&commercial purposes. /ll re0uests for commercial uses of this material or for translation rights should be submitted to rights1oecd.org.

Green growth: what it is and why we need it

2hat is green growth3
Green growth presents a new approach to economic growth puts human well&being at the centre of development, while ensuring that natural assets continue to provide the resources and environmental services to support sustainable development 4'(C), 2-$$a5. 6y e*plicitly accounting for the environment and the value of natural assets, green growth e*pands traditional definitions of wealth to include well&being, and the 0uality of growth and development. Green growth does not replace sustainable development, but is a means to achieve it 4'(C),2-$$a5. "he concept of green growth is narrower in scope, and provides a policy agenda that can help achieve concrete, measurable progress at the interface of the economy and the environment. Green growth promotes a cost&effective and resource efficient way of guiding sustainable production and consumption choices. 2hen designed to reduce poverty and manage near&term trade&offs, green growth can help developing countries achieve sustainable development.

(mbracing green growth can secure a strong, stable and sustainable future for developing countries. 7n the 2-th century the world8s population multiplied by four, economic output by 22 and fossil fuel consumption by $9 4: (P, 2-$$5. "he resilience of a wide range of socio& economic and environmental systems is now being tested by the re0uirements of a rapidly growing global population and increased levels of economic activity. / #ey challenge will be meeting the energy, food and water needs of ! billion people by 2-;- and ensuring that they have clean and healthy living environments. ,odelling wor# by the '(C), presented in its (nvironmental 'utloo# to 2-;-, foresees large costs and potentially irreversible conse0uences of failing to ad<ust economic growth to avoid environmental ris#s 4'(C), 2-$2a5. (nvironmental ris# will directly affect human health and well&being and the potential for global sustainable development, with the most severe

and dramatic conse0uences occurring in developing countries. 2hat8s more, though global G)P climbed at a steady rate between $!=$ and 2-$-, a wide gap still remains between the developed and the developing world, and the gap between the richest and the poorest is growing in both 4: C"/), 2-$2> '(C), 2-$$a5. Governments that put green growth at the heart of development can achieve sustainable economic growth and social stability, safeguard the environment and conserve resources for future generations. ?econciling development with environmental protection and sustainable natural resource management is critical to avoid natural capital depletion, climate change and social insecurity. "his is particularly true for developing countries because of their acute e*posure and vulnerability to environmental ris#s such as air, water and soil pollution and climate change, as well as their reliance on natural resources for economic growth. 7t

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'(C) engagement with developing countries on green growth

Putting Green Growth at the @eart of )evelopment is the culmination of e*tensive consultations with developing countries, including: a <oint consultation organised with the Global Green Growth 7nstitute in ,ay 2-$2 in %eoul, Eorea> technical and ministerial consultations organised at the ?ioF2- Conference in Gune 2-$2> a <oint wor#shop organised with the /frican )evelopment 6an# in Cusa#a, Hambia

is also in the interest of the development co&operation community because green growth is a cost&effective way to bring more profound and lasting sustainable development. 7ntegrating economic and environmental policies is easy to say, but harder to do. 7t ta#es real leadership to instil change, a common vision of the future and solid co&operation across ministries and levels of government. /nd it involves understanding how trade&offs in the short term need to be managed and reconciled with the long& term benefits that are being aimed for. "he

international community must wor# hand& in&hand with developing countries to ma#e green growth a reality. )eveloping countries will need to use their natural resource endowments in their development process. %ome natural capital may be surrendered to build human and physical capital in its place. Green growth is all about being clear about the nature of that resource use and where society wants to end up in the long term. %ome trade&offs are worth ma#ing, while others may involve irreversible losses that may forever be regretted. Green growth is not about environmental preservation. 7t

is about a no&regr ets approac h to securin g the natural resourc es needed to ma#e develop ment sustain able in the long run.

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"his policy summary outlines a twin&trac# agenda for national and international action to help achieve green growth in developing countries, put forward in the '(C) report Putting Green Growth at the @eart of )evelopment. 7ts aim is to assist governments interested in pursuing green growth in their own countries, or supporting it in others. 7t surveys developing countries8 e*perience with green growth and draws on e*tensive consultations with developing countries and international sta#eholders that provided a forum for discussion of 0uestions and concerns around the concept of green growth. "he report is a companion piece to the 2-$$ '(C) Green Growth %trategy. "he report targets policy ma#ers in both developing countries and the '(C). "he primary audience in developing countries is government officials, particularly those from ministries of finance, economy or development, in addition to ministries of environment or natural resources. "he report tries to respond to concerns raised by developing country policy ma#ers. 2ithin '(C) countries, the intended audience includes policyma#ers who shape development co&operation programmes, as well as technical e*perts who advise, implement or otherwise influence international co&operation policies or provide hands&on support to developing countries.

in Ganuary 2-$.> and two in&depth country case studies on green growth in collaboration with the governments of (thiopia and Cambodia. %ome of the #ey lessons from these consultations and country studies on how to pursue green growth include: advance a long&term vision for national development and green growth, and secure high& level political will and sta#eholder engagement> ensure social e0uity and poverty reduction as a critical dimension in this policy transformation> review green growth and development options in the light of environmental and socio&economic changes> broaden international financing avenues while supporting local financing mechanisms> focus on programmatic rather than pro<ect& based solutions.

2hy is green growth vital for the future of developing countries3

)evelopment that is not based on green growth may lead to prosperity, but only in the short term, and will soon be undermined by insecurity and vulnerability. )eveloping economies tend to be particularly sensitive to environmental challenges, as their economies often rely upon the intensive use of natural resources and are dependent on natural resources for development. atural capital comprises 2;K of total per capita wealth in low&income countries, compared to only 2K in '(C) countries 42orld 6an#, 2--J> '(C),2--L5. "he lin#s between environmental performance, e0uity and poverty are more direct and significant in developing countries than in developed countries. Bulnerability to environmental threats is greatest in developing countries. "he multiple environmental ris#s to human well&being faced by developing countries stem from: $5 unsustainable natural resource e*ploitation> 25 lac# of access to food, water and energy and a lac# of basic infrastructure> .5 deadly air and water pollution in a conte*t of rapid urbanisation and population growth> 95 the large share of rural people8s livelihoods dependent on natural resources> and ;5 high vulnerability to climate change impacts, including a rise in natural disasters such as drought, increased storminess and coastal floods.

)eveloping countries are being affected by increased stress on natural resources and

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2ith growing levels of dangerous emissions from transport and industry, the global number of premature deaths lin#ed to airborne particulate matter is pro<ected to more than double from today8s levels to ..J million a year by 2-;-, widely surpassing malaria as a global #iller.

the environment 4'(C), 2-$2b5. 2ithout new policy action to manage environmental ris#s, an additional $ billion people are e*pected to live in severely water&stressed areas by 2-;-, with developing countries particularly hard hit. )emand for water is pro<ected to grow significantly in developing countries by 2-;-, while it is e*pected to

decrease in '(C) countries. Global terrestrial biodiversity is e*pected to decline by an additional $-K, leading to a loss of essential ecosystem services 4e.g. to support food production5. 2ith growing levels of dangerous emissions from transport and industry, the global number of premature deaths lin#ed to airborne particulate matter is pro<ected to more than double from today8s levels to ..J million a year by 2-;-, widely surpassing malaria as a global #iller 4'(C), 2-$2a5. ,ost of the conse0uences of deadly air

pollution will occur in emerging economies li#e China, 7ndia and 7ndonesia, where premature deaths from particulate matter are e*pected to grow from -.J million in 2--- and $.J million by 2-;- 4'(C), 2-$2a5. Continuing with this business&as&usual growth path could also loc# economics into emission&intensive development, land use and infrastructure. "he conse0uence could be a ;-K increase in global greenhouse gas emissions by 2-;- and an increase in global mean temperatures of .&JMC by the end of the century. Aailing to limit climate change

Global premature deaths from selected environmental ris#s

Particulate matter 7ndoor air pollution 'None :nsafe water supply and sanitationO ,alaria -.$.2...9.2-$2-.2-;-

)eaths 4millions of people5

O ote: Child mortality only. %ource: '(C) (nvironmental 'utloo# 6aseline> output from 7,/G(.

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will lead to more severe and fre0uent natural disasters, and will hit developing countries particularly hard. "his will further threaten water security, the livelihoods of poor people and agricultural productivity. "he 7ntergovernmental Panel on Climate Change 47PCC5 warns that pro<ected reductions in crop yield in some /frican countries could be as much as ;-K by 2-2- and crop net revenues could fall by as much as !-K by 2$-- due to changes in climate patterns and associated e*treme weather events. (nvironmental vulnerability in developing countries is heightened by ine0uality, poverty, and rapid population growth.

"he world8s current growth path is e*pensive, especially for developing countries, who can ill&afford it. Aor e*ample, inade0uate water and sanitation in 7ndonesia already costs the national economy more than 2K of G)P in 2--; 42orld 6an#, 2--!5. (nvironmental degradation in the Central /frican ?epublic is estimated to cost LK of its G)P in the coming years, ta#ing into account impacts on both human and natural capital 42orld 6an#, 2-$-5. "hese costs of our current growth path highlight the urgency of putting green growth at the heart of development policy and planning.

Premature deaths worldwide from e*posure to particulate matter between 2---&2-;'(C) 9...; ..2.; 2.$.; $.-.; -.2--2-92--; 2-9; 2-$2-;2-$; 2-2- 2-2; 2-.- 2-.; (merging economies and ?ussia )eveloping and other economies

otes: '(C) includes ,e*ico and Chile, even though these countries also receive 'fficial )evelopment /ssistance 4')/5. (merging economies includes 6raNil, China, 7ndia, 7ndonesia, %outh /frica. )evelping and other economies includes all other countries, regardless of whether they receive ')/. %ource: '(C) (nvironmental 'utloo# 6aseline> output from 7,/G(

'

Global water demand in 2--- and 2-;J --; --9 --. --2 --7rrigation )omestic Civestoc# ,anufacturing (lectricity

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2ithout action to manage environmental ris#s, an additional $ billion people are e*pected to new policy

live in severely water& stressed areas by 2-;-, with developing countries particularly hard hit.

otes: "his graph only measures blue water demand and does not consider rain&fed agriculture. 6lue water is defined as freshwater in a0uifers, rivers, la#es, that can be withdrawn to serve people. '(C) includes ,e*ico and Chile, even though these countries also receive 'fficial )evelopment /ssistance 4')/5. (merging economies includes 6raNil, China, 7ndia, 7ndonesia, %outh /frica. )eveloping and other economies includes all other countries, regardless of whether they receive ')/. %ource: "he (nvironmental 'utloo# 6aseline> output from 7,/G(.

and ?ussia

other economies

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2hat benefits can green growth bring3

(merging evidence shows that green growth can offer both short and long&term benefits and opportunities to developing countries, including: %ustained natural assets on which to build growth and human well&being: to provide the inputs for mar#etable goods as well as the ecosystem services upon which 0uality of life depends. ?educed poverty, depending on the design of policies for green growth and complementary measures, which will affect how the benefits and costs of development are distributed. ew economic growth opportunities and potentially new <ob opportunities, particularly through ecosystem service provision and technological innovation. ?esilient infrastructure that does not loc# countries into fossil&fuel based energy dependence and emission&intensive pathways. ?educed vulnerability to climate change and natural disasters. Greater access to clean water and sanitation services, diverse energy supplies and greater energy security, accompanied by lower pollution and greenhouse gas emissions. ,ore secure livelihoods for those dependent on sustainable management of natural resources such as agricultural land and soil 0uality, fisheries and forests.

Sustainable management of natural resources can boost wealth

Controlled fishing increases shrimp prices in ,adagascar: the shrimp industry brings ,adagascar over :%) $;; million a year in e*port revenues. (fforts by the private sector and the government to improve the industry have led to significantly rising prices. "hese efforts included controls on overfishing, leading to larger shrimp siNes, and improved access to mar#et and other information through an economic observatory. (*port prices increased by $-K in 2---P-$ and .K in 2--$P-2 4'(C), 2--L5. 7ncreased incomes from organic agriculture in :ganda: :ganda8s organically certified agriculture e*port value <umped from almost :%) . million in 2--. to almost :%) 2. million in 2--L. Price premiums for :gandan farmers of certified pineapple, ginger and vanilla were .--, $L; and $;-K higher respectively than for conventional producers 4: (P, 2-$$5. 6enefits from natural forest regeneration in (thiopia: under the @umbo /ssisted atural ?egeneration Pro<ect, farmer&managed regeneration of natural forest encourages new growth from felled tree stumps. "he regeneration of nearly . --- hectares has resulted in increased production of wood and tree products, such as honey and fruit,

which has increased household revenues. 7mproved land management has also stimulated grass growth, providing fodder for livestoc# that can be sold as an additional source of income. ?egeneration of the native forest is e*pected to provide an important habitat for many local species, as well as reduce soil erosion and flooding 42orld 6an#, 2-$2 citing 6rown et al., 2-$$5.
%ource: '(C) 42--L5, atural ?esources and Pro&Poor Growth: "he (conomics and Politics, )/C Guidelines and ?eference %eries, '(C) Publishing> : (P 42-$$5, "owards a Green (conomy: Pathways to %ustainable )evelopment and Poverty (radication & / %ynthesis for Policy ,a#ers> 2orld 6an# 42-$25, 7nclusive Green Growth: the Pathway to %ustainable )evelopment, 2ashington ).C> 6rown, ). ?. et al. 42-$$5, Poverty /lleviation and (nvironmental ?estoration :sing the Clean )evelopment ,echanism: / Case %tudy from @umbo (thiopia, (nvironmental ,anagement, /ugust 2-$$, Bolume 9L, 7ssue 2.

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)esigning green growth policies to ta#e into account the interests of the poor and of vulnerable can help reduce poverty and achieve social e0uity.

Can green growth reduce poverty and address social e0uity3

%ustaining and enhancing natural capital & the wealth of poorer countries & achieves development ob<ectives and addresses ine0uality. 2hen green growth policies are designed to ta#e into account the interests of the poor and of vulnerable groups, they can have profound impacts on poverty reduction and social e0uity. Aor instance: ?emoving fossil fuel subsidies can improve the living conditions of the poorest if some of the money is reallocated to providing cheaper public transport or more accessible health care services. %ustainable certification schemes and eco&labelling programmes can become a new source of income in many developing countries with abundant forests and agricultural production. 6ut the benefits to the poor will be greatest if land tenure is secured, and the certification schemes give special premium to community&managed forests or small landholders. Payments for ecosystem services programmes can reduce poverty if they e*plicitly target local communities and include capacity development to boost local households8 ability in negotiating payment contracts.
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Green growth can improve the resilience of developing economies by reducing the ris# of negative shoc#s to growth from resource bottlenec#s or imbalances in natural systems. 7t can open up new sources of income and ta* revenues, employment and opportunity from innovation and the emergence of green goods, services and mar#ets. 7t should contribute to more resilient livelihoods, disaster&proof infrastructure and wider access to energy supply and public transport. 7n this view, the sustainability of natural assets and green innovation determines the potential, longevity and 0uality of a country8s future development. "o deliver short&term benefits for the poor, green growth policies will need to be designed to fairly share the economic and welfare benefits resulting from maintaining natural assets. "his includes the need for investments in human capital and s#ills, which will ensure wor#ers who are employed in the former Qbrown8 economic sectors can 0uic#ly pic# up s#ills re0uired in the Qgreen8 sectors.

2hat special challenges do developing countries face in pursuing green growth3

)eveloping countries are understandably concerned that pursuing green growth could undermine their short&term economic growth and development. 6enefiting from green growth 0uic#ly is possible, but re0uires an understanding of the trade&offs involved, estimating transition costs for certain sta#eholders who may stand to lose, and managing these through complementary policies and measures. "he poorest communities are of particular concern, but there will also be vested interests to address amongst business sta#eholders. 7n balancing these needs and ris#s, developing countries will face challenges, policy choices and trade&offs in pursuing green growth that are different from those of developed countries. "hese include:

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"he lin#s between environmental performance, e0uity and poverty are more direct and significant in developing countries than in developed countries. atural capital comprises 2;K of total per capita wealth in low&income countries, compared to only 2K in '(C) countries.

/ large informal economy & accounting for up to =;K of non&agricultural <obs in %ub&%aharan /frica and over two&thirds in %outh and %outheast /sia 4Parlevliet et al., 2--L5. "his complicates the implementation of the economic, fiscal and regulatory policy instruments needed for green growth. @igh levels of poverty and ine0uality, re0uiring targeted policies to avoid negative effects on the poorest. Iet capacities for designing and financing such policies are limited.

 2ea# capacity and resources for innovation and investment, both public and private. "his limits developing countries8 ability to see# out and e*ploit opportunities that emerge from a green growth agenda. /n urgent need for rapid development, economic growth and welfare improvement. 7n lower& income countries, where natural assets are fre0uently abundant, the welfare returns from transitioning to green growth are not as evident as those from conventional economic development, particularly in the short term. Aew mechanisms to ensure those who protect natural assets 4such as forest land for carbon se0uestration5 receive large enough financial incentives to maintain them. 2ithout strong incentives, the political viability of green growth will be wea#ened. "he characteristic s and priorities of developing country economies will call for a different se0uencing and mi* of policy instruments than for developed countries in any

effort to achieve greener growth. %upport from the international community in terms of finance, technology and trade 4discussed later5, can provide the incentives and political momentum for moving forward.
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ew shoots of green growth in developing countries

,any pioneering environment and natural resource ministries in the developing world are already gathering evidence of the negative conse0uences of their e*isting growth model for the environment and society. "hey are ma#ing the economic case for investing in natural assets for more sustainable future growth. ,any developing countries are already pursuing elements of green growth, at the national and local level, and in the public and private sector 4see map pp. $-&$$5. %ome are focusing on setting out the vision and use of planning tools to integrate green growth, others on policy reform and implementation, and others on developing the human and institutional capacities for good governance. %ome low&income countries, such as (thiopia and Cambodia & have already designed national green growth strategies. "here is also growing e*perience with green growth in middle&income countries. Aor e*ample, %outh /frica has launched a Green Aund in partnership with the )evelopment 6an# of %outhern /frica to provide various types of grants and concessional loans to support green cities and towns, the transition to a low&carbon economy, and environmental and natural resource management.$ China has also prioritised green development in its $2th Aive&Iear Plan, and it is e*perimenting with a range of green growth policies, in particular aiming to reduce poverty through the creation of green <obs in the forestry sector. Government estimates indicate that from 2--; and 2-2-, about $ million <obs per year could be created in planning new forests, reforestation, and forest management activities. /lthough mostly temporary, these activities could provide <ob opportunities for rural migrant and unemployed wor#ers 4'(C), 2-$2d5. / mapping of other selected programmes demonstrates increasing scope and geographical coverage of green growth policies and programmes in different types of developing countries around the world today 4see map, pp $-&$$5.

%ee www.sagreenfund.org.NaPPagesPdefault.asp*.

Green growth strategies in Cambodia and Ethiopia

(thiopia and Cambodia were among the first low&income developing countries to embar# on national green growth strategies. 6oth national green growth strategies rely on attracting 0uality foreign investment for financing. "hey differ, however, in their aim and focus: Cambodia8s strategy focuses on well&being, whereas (thiopia8s strategy focuses on climate change 4and by e*tension, food security5 and aims to raise the country to middle&income status. 7n Cambodia, the 7nter&,inisterial Green Growth 2or#ing Group adopted a ational Green Growth ?oadmap in 2-$-, emphasising access to water, agriculture, sustainable land use, renewable energy and energy efficiency, information and #nowledge, better mobility, and finance and investments. / ational Green Growth ,aster Plan is currently being developed to implement these ob<ectives 4: (%C/P, 2--!5. 7n (thiopia, the main framewor# for green growth is the Climate ?esilient Green (conomy %trategy, launched in 2-$$. Ced by the Prime ,inister8s office, the strategy provides a vision, high&level commitment, plans and an e*tensive portfolio of investments. 'ne goal is to increase G)P per capita by 9=;K by 2-.- so as to move from least&developed to middle&income country status, while reducing greenhouse gas emissions by .;K below 2-$$ levels 4which would be J9K below the pro<ected business&as&usual level in 2-.-5. "he strategy also focuses on climate change adaptation in sectors such as agriculture, forestry and land use 4(P/, 2-$$5.
%ource: (P/ 4(nvironmental Protection /uthority of (thiopia5 42-$$5, Climate ?esilient Green (conomic %trategy, /ddis /baba> '(C), forthcoming 4a5 and 4b5, 7nclusive Green Growth Case %tudies in (thiopia and Cambodia> : (%C/P 4:nited ations (conomic and %ocial Commission for /sia and the Pacific5 42--!5, "he ational Green Growth ?oadmap, Phnom Penh.

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Green growth in practice in developing countries: selected e*amples

:ganda
:ganda: capacity development for green finance. (stablished in 2--J, the :ganda Carbon 6ureau has been training the public, ban#ing and private sectors in climate change and carbon finance. "he aim is to build awareness about climate change, highlight the potential for earning carbon finance and scale up the participation of the financial and private sectors in the carbon mar#et. Aunded by the )anish 7nternational )evelopment /gency 4)/ 7)/5, formal training is currently being provided to staff of the ational 2ater and %ewerage Corporation, the (ast /frican )evelopment 6an#, the :ganda 7nvestment /uthority and the :ganda 6an#ers8 /ssociation 4'(C), 2-$2e5.

6raNil
6raNil8s green stoc# e*change inde*. 7n 2--9, 6raNil8s 6,RA 6'B(%P/ became the first stoc# e*change worldwide to sign the : Global Compact8s ten principles in the areas of human rights, labour, environment and anti&corruption. 7t then signed the : Principles for ?esponsible 7nvestment in 2-$-. "he inde* also launched a Corporate %ustainability 7nde* in 2--;: the only sustainability inde* in Catin /merica. "he aim is to encourage sustainable business practice through financial rewards 4Aavaretto, 2-$25.

?wanda
?wanda8s sustainable public procurement programme 4Common Purchase for Progress5, will purchase 9-K of the national strategic foodstoc# reserves from smallholder farmers8 co&operatives. "hrough the reserve, the government has invested in and installed modern food storage infrastructure. 7ncomes of smallholder farmers are e*pected to improve over time than#s to this guaranteed mar#et for a greater share of their agricultural harvests 42AP, 2-$25.

"anNania
"anNania: public environment e*penditure review 4P((?5. / P((? conducted in 2--9 compared the government8s real levels, trends and distribution of environmental e*penditure to the ideal levels re0uired to meet the country8s lin#ed environmental and poverty reduction ob<ectives. 6y demonstrating the value of environmental investment for livelihoods, it contributed to a five&fold increase in the environment

authority8s budget in 2--J 4,ar#andya et al., 2--J5.

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Philippines
Philippines: institutions for sustainable development. "he $!L= Philippine %trategy on %ustainable )evelopment evolved into a national plan of action: the Philippine /genda 2$ in $!!J. "he process has been guided throughout by a semi&governmental multi&sta#eholder body & the Philippine Council for %ustainable )evelopment & the first of its #ind in /sia. "he council has been influential in advising the President, the legislature and the Cabinet on ways to integrate environmental considerations into economic and social policy ma#ing and planning. "he council has also supported local initiatives to create local councils for sustainable development through technical assistance and training. 6y early 2---, $J local units had been established 477%) and G7H, 2--95. "he important role that local government units play as frontline agencies in the formulation, planning and implementation of climate change was further ac#nowledged in the country8s 2--! ational Climate Change /ct.

Bietnam
Bietnam: strategic environmental assessment. :nder a new law, Bietnam has conducted a strategic environmental assessment 4%(/5 of its overall ational Power )evelopment Plan, rather than conducting environmental impact assessments of individual plans. "he %(/ has helped to clarify strategic economic choices and raise government awareness of biodiversity and tourism issues 4'(C), 2-$2b5.

"hailand
"hailand: encouraging investment in renewable energy. "he %mall Power Producers programme 4%PP5, launched in $!!2, allows independent producers to sell electricity to the national grid. 6y 2--$, $ !;L ,2 of power had been supplied to the grid, but only $9K was renewable energy. %ince capital costs were the most important barrier for renewable energy power generation, a pricing subsidy for renewable energy was introduced and awarded through competitive bidding. "his led to 2- new renewable energy 4biomass5 %PPs, with a total capacity of about 29- ,2. 7n 2--J, the government set a target of ;.- ,2 of renewable energy from %PPs and introduced fi*ed premiums for 2.- ,2 generated from wind, solar, and municipal solid waste 4?uangrong, 2--L5.

7ndia
7ndia: building s#ills for green growth. "he 7ndian government is ta#ing a thematic approach to the shortage of green economy s#ills. 7n some sectors, such as energy efficiency in buildings, agencies li#e the 7ndian Green 6uilding Council and the 6ureau of (nergy (fficiency are conducting training programmes and a national certification e*amination for energy managers and energy auditors. "he ,inistry of ?oad and %urface "ransport is organising s#ill development programmes for drivers and conductors of compressed natural gas 4C G5 buses and attendants at C G filling stations. /gricultural training institutes are providing training in plant protection, integrated pest management and locust control. eeds&based training programmes in new and emerging areas such as organic farming are organised by the 7ndian Council of /gricultural ?esearch 4%anghi and %harma, 2-$25.

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7ndonesia
7ndonesia8s energy subsidy reform. %ince the early 2---s, the 7ndonesian authorities have attempted to reduce energy subsidies. ,ost early attempts failed due to poor communication and stiff opposition to reforms. 7n 2--;, the 7ndonesian government managed to double the price of diesel fuel and to almost triple that of #erosene. "his was accompanied by an effective compensation policy & an unconditional cash transfer programme of :%) $- to $! million to low income households. @owever, subse0uent attempts to phase out energy subsidies in 7ndonesia faced strong public opposition and failed to get parliament8s approval, despite the use of compensation programmes. "he recent decision to give the government leeway to lower energy subsidies without parliament8s approval is a step in the right direction. 7mportantly, communicating the benefits of reform and that it will not harm the poor will be crucial to overcome public resistance 4,ourougane, 2-$- and '(C), 2-$2c5.

"a#ing action at national and international levels

/n agenda for national action
2hile an increasing number of developing countries are implementing innovative policies to pursue green growth, these efforts are recent and limited in scope. %uch efforts will need to be scaled up and broadened significantly to improve economic and environmental outcomes across the developing world. Aor this, developing countries will need to ta#e full ownership of this transformative agenda. "here is a need to recognise and e*ploit an untapped opportunities, including to use green growth policy reforms to boost domestic fiscal revenues and attract 0uality investment for years to come. Governments will also need to mobilise ministries of finance, development planning, labour affairs and line ministries> to mainstream green growth ob<ectives and policies into every government department and most importantly, national budgets. /s noted, it will be important to move away from pro<ect level to programmatic activities and policy level change. / practical three&step agenda for action can help to guide developing country policy ma#ers as they e*plore and pursue green policies: $5 (stablish leadership, a vision and plan for green growth: ational leadership, vision and strategies for green growth are critical to mainstream green growth ob<ectives into e*isting development plans and policies, and to build support for national policy priorities in partnership with public, private and civil society sta#eholders. "his involves goal setting and integrating green growth considerations into e*isting planning processes, such as national development plans and budgetary systems. %trategic environmental assessment and public environmental e*penditure reviews

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)eveloping country governments will need to mobilise ministries of finance, development planning, labour affairs and line ministries to mainstream green growth ob<ectives and policies into every government department and most importantly, national budgets.

are two policy instruments that have proven useful in integrating green growth into development, infrastructure and budgetary planning processes. 25 )esign, reform and implement policies that stimulate green growth: these policies must broadly value natural assets and align incentives with green growth policy goals. ?elevant policy instruments include: "a*es, pricing instruments, and mechanisms that value natural assets. "hese include, for e*ample, reforming energy, water and agriculture subsidies> ta*ing air and water pollution> placing royalties on mineral e*traction> and payments for ecosystem services. ?egulations, standards and information policies. "hese include standards and certification of sustainable production, sustainable public procurement, and clear land tenure rules. 'ther types of regulatory policies are also relevant, including regulation of

water, the energy efficiency of industrial production, of buildings, or of consumer products, as well as land&use regulations to ensure that new development in growing urban areas is environmentally sustainable and resilient to climate change. / set of cross&cutting policies to stimulate green growth in a systemic way: investment policy> innovation and research and development policy> labour s#ill policy> and resilience and climate adaptation policy.
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/n agenda for national action on green growth in developing countries

E!D" SE# #HE $%S%&'" P !' (&) G)EE' G)&*#H
+ eadership and communication around a common vision + %ntegrating green growth ob,ectives into plans and budgets e-g- 'ational development plans" infrastructure plans" regional plans and budgets

%'$ES#.E'# P& %C/

DES%G'" )E(&). !'D %.P E.E'# P& %C%ES (&) G)EE' G)&*#H
+ (iscal and pricing instruments" valuing natural assets 0 )eform of energy" water" agriculture subsidies 0 #a1es on pollution and other fiscal instruments 0 Payment for ecosystem services 2PES3 + )egulations" standards and information 0 Standards and certification of sustainable production 0 Sustainable public procurement 0 and tenure rules %''&$!#%&' !'D )ESE!)CH 4 DE$E &P.E'# P& %C%ES

G&$E)'" DE$E &P C!P!C%#/ !'D )ES&5)CES" E!)'

+ .ultilevel governance among institutions and stakeholders + Capacity development and institutional reform + .onitoring and evaluation" assessment" and enforcement + Education policy" information and awareness raising belongs to all sta#eholders, including the private sector, civil society groups, academia, and ordinary citiNens. 2hile all .5 %trengthen governance, develop capacity and resources, for learning and sound decision ma#ing to monitor, implement and enforce green growth policies effectively. "his includes developing capacity and human resources in technical and managerial areas, and in assessment and monitoring at all levels of government. ,echanisms are also needed for broad multilevel governance and sta#eholder engagement, education and raising awareness, compliance and enforcement capacity, and monitoring and assessment. "his three&step agenda for action on national green growth and development
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three areas are #ey for developing a robust policy framewor#, this agenda should be treated as a guide rather than a blueprint. )ecision ma#ers can pic# and choose the most suitable entry points and policy mi*es for their countries that will provide the incentives, allocate fiscal budgets, assess opportunities and progress and engage all sta#eholders in learning and decision ma#ing to sustain natural resources and human well&being.

%i* policy tools to integrate the environment into economic decision ma#ing
Policy tool growth Contribution to green (*amples from developing countries Cessons learned to date

"a*es, pricing instruments, and mechanisms that value natural assets (nergy subsidy (nergy subsidy reform is an
important 7ndonesia: removing energy subsidies and providing direct cash transfer to low income households Ghana: removing energy subsidies and promoting higher governmental spending on other public development ob<ectives S (arly research and sta#eholder consultation is important S / coherent reform strategy with clear ob<ectives needs to be accompanied by flan#ing measures to compensate disadvantaged groups S Public e*penditure freed up from energy subsidies should be used to finance other public priorities S ?eform needs to fit implementation capacity S ,ap out and engage the winners and losers of these policy reforms S /llocate some of the revenues to sustaining the ta*ed resource, e.g. monitoring and enforcement of ta*ed activities, helping firms invest in pollution control technologies S ,atch instruments to implementation capacity S 6uild the capacity and credibility of implementing agencies S (ffective P(% programmes should clearly identify ecosystem service providers. "hey should have differentiated payment levels to reflect different levels of environmental service provision S P(% design should specifically tac#le high transaction costs for small&scale providers> government needs to establish clear P(% regulations to protect the economic gains of those providers with limited bargaining power S Capacity development measures should be part of P(% implementation

reform

step in getting the price right to reduce G@G emissions and air pollution and free up government money to promote long&term growth through improved health and education. (nergy subsidy reform can also reduce energy demand by avoiding artificially low fuel prices. (nvironmental fiscal measures and fees5 can raise fiscal while furthering environmental "hey can also free up economic resources or generate revenues that can help finance the poor8s access to water, sanitation and electricity services. P(% can increase the efficiency of resource management by putting or a value on provision of goods and services. 6y doing so, P(% encourages the conservation and even enhancement of natural assets while contributing to local livelihoods and increasing the incomes of those who manage the resources.

?eform of
4ta*es

environmental
revenues goals.

ta*es and fees

Cameroon: ta*ation on forest management Colombia: water pollution ta* China: pilot pollutant trading schemes

Payments for
natural a price

ecosystem services 4P(%5

ecosystem

Costa ?ica: targeting bundled services of carbon, water, biodiversity and landscape ,e*ico: watershed services China: sloping lands conversation programme

?egulations, standards and information policies %tandards and certification of sustainable production
Goods and services that are certified as having been produced in a way that sustains natural assets can increase in mar#et value and mar#et share, which can benefit participating producers, improve environmental practices and help maintain the long& term sustainability of natural assets. %ustainable public procurement ,alaysia, 7ndonesia and %olomon 7slands: forest certification Eenya, "anNania and :ganda: (ast /frican 'rganic Products %tandard S (nsure that certification programmes address local differences in conditions S (nsure that smallholder farmers can access and benefit from the certification schemes and that these schemes can be used by informal economy producers S Aoster demand of certified products while retaining the appropriate degree of rigour in the standards and assessment

%ustainable

can

public

shape consumption and

production

procurement
ob<ectives,

to support green growth generate new domestic mar#ets and provide e*amples of good practice for business and consumers.

Colombia: green criteria attached to procurement policy including life&cycle analysis of products Costa ?ica: pursuing sustainable procurement by outsourcing the supply chain management of car tires

S Cin# green procurement with value in the conte*t of life&cycle costs and benefits assessment S 7dentify and prioritise high&impact goods and services S 6uild multidisciplinary teams including government procurement officers, lawyers and environmentalists S Consider pilot initiatives with built&in incentive& based instruments S Provide suppliers with advance information on procurement policy changes

Cand tenure

/ well&defined and transparent tenure rights system can provide income&generating opportunities for land holders, improve the management of natural assets, and also enable efficient collection of property revenue via district ta*es and fees, so as to allow public authorities to support sound land management practices and planning.

,alawi: land reforms targeting community&based land development with complementary capacity development measures ?wanda: systematic land tenure registration

S %ecure the right land rights for the right people S 7nvest in technical and institutional infrastructure for land tenure administration S :nderstand local conte*t and involve non& governmental actors

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Cross0cutting policies for growing green

7nvestment, innovation, s#ill and labour force development, resilience and climate adaptation are priority policy areas as they provide the conditions for stimulating and sustaining growth. Green investment policies can help governments create the enabling conditions to shift and scale&up private sector investment in resource efficient and more resilient, greener sectoral practices, while also creating opportunities for green businesses. 7nvesting in green infrastructure delivers basic services more efficiently> minimises wasted energy, water or other natural resources> supports the sustainable production of natural resources> reduces greenhouse gas emissions> and increases resilience to climate change and natural disasters. %uch investment needs to be bac#ed by relevant planning mechanisms and financial policies and regulations that provide incentives and transitional support for new green technologies, green innovation and mar#et creation. 7nformation policies, corporate environmental reporting, education, consumer awareness and public outreach will also promote green business activity and change consumer behaviour. Green innovation policies can lower the costs of green growth in developing countries. "his involves not only the development and diffusion of new and e*isting technologies, but also collaboration between countries and different actors, as well as new approaches to planning, systems and wor# practices that can contribute to greener growth. 6ottom&up approaches which adapt readily available and low&cost technologies may be more suitable to developing country conte*ts. %uch innovation can be stimulated by fostering e*isting s#ills to match local innovation and ideas to local needs. (fforts to stimulate green innovation should thus also focus on building the s#ills to adopt and adapt imported technologies. Greening s#ills development policies. %hifting to green growth can mean new s#ills, particularly for wor#ers who need to shift from brown to green industrial practices. Cabour mar#et policies and s#ills development programmes can: $5 identify the s#ills needed through surveys and other instruments> 25 inform people of available training and education opportunities> .5 provide income support, such as unemployment benefits, to help wor#ers ad<ust> and 95 engage with enterprises to up&s#ill their wor#ers as an integral part of their business development. Climate adaptation policy can ma#e growth more resilient. Green growth cannot be sustained without resilience to climate change impacts and natural disasters and protecting human well&being and natural and economic assets. %ome of the most relevant measures include: $5 timely and comprehensive climate change ris# and vulnerability assessments> 25 insurance and ris#&sharing mechanisms> .5 sector&specific policies such as integrated water resource management and ecosystem&based adaptation> and 95 social protection tools. %ome of these measures will directly avert negative impacts on income, physical

assets and human welfare 4e.g. ensuring basic services and businesses are not disrupted by e*treme events, or that they can continue under increasingly severe climatic conditions5. 'ther adaptation measures will support more general economic and development aims, such as protecting infrastructure networ#s and people.

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/n agenda for international co&operation to support green growth in developing countries

%uccessfully shifting to a model of growth that sustains natural assets over time will re0uire the engagement of all countries. "he international community can play a crucial role in helping developing countries ma#e the shift, especially by providing assistance to manage the short&term trade&offs of going green. ?ecognising developing country concerns that implementing green growth will be e*pensive, international co&operation can also ensure access to e*ternal and domestic sources of green financing and investment, technology and innovation, and facilitate trade in green goods and services. /n agenda for action for international co&operation will be built on at least three pillars. 6ut fundamentally, donors need to integrate green growth into all development co&operation activities, and ensure they support partner countries in their pursuit of specific green growth goals. "he three main pillars of an agenda for international co&operation are: $5 %trengthening green finance and investment, including through better targeting use of official development assistance 4')/5, other types of official development finance and private investment. 25 Promoting green technology innovation through co&operation and building capacity for endogenous green innovation and adoption, as well as to protect intellectual property rights and enabling conditions for successful technology transfer. .5 Aacilitating trade in green goods and services through fostering international mar#ets, removing tariff and non&tariff trade barriers, and building capacity in developing countries to allow more producers to participate and benefit from growing international mar#ets.

/n agenda for international co&operation on green growth in developing countries

Pillar 6- Strengthen green finance and investment
Smart use of official development finance Catalysing private investment and attracting new sources of capital

Strengthening international economic instruments

'!#%&'! !GE'D! (&) !C#%&' &' G)EE' G)&*#H

Pillar 7- Promote green technology innovation through co0operation
Science and technology co0operation #echnology transfer Protecting intellectual property rights

Pillar 8- (acilitate trade in green goods and services

(ostering international markets for green goods and services )emoving trade barriers

Contributors to success of international co0operation for green growth

E (&

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"he agenda for international co&operation offers many opportunities to help accelerate the transition to green growth in developing countries. Aor e*ample: (merging evidence shows that investing in natural capital pays higher social dividends than investing in polluting and resource&intensive conventional infrastructure, on which development programmes have largely focused in past decades. @ence donor countries are committed to stepping up their efforts to mainstream green growth into development co operation and can help developing countries strengthen strategic planning to better access available official development finance for green growth through a range of instruments: from sectoral support to budgetary support, and from grant instruments to providing ris# guarantees to leverage private capital. / country&owned agenda for action on green growth is needed to guide successful development co&operation. /s part of the broader flows of official development finance for environment, climate change finance is set to increase substantially throughout the ne*t decade as developed country governments and private sector agents scale up resources to meet the target of :%) $-- billion annually by 2-2- as pledged by industrialised countries under the Cancun /greement of the : Aramewor# Convention on Climate Change 4: ACCC5. / #ey to effective use of such funding is to ensure it delivers outcomes with

multiple co&benefits for sustainable development. )eveloping countries can benefit from creation of international and national economic instruments such as payments for ecosystem services, to deliver global environmental benefits including biodiversity or carbon se0uestration> opportunities already e*ist to sell carbon credits to developed countries through the Clean )evelopment ,echanism> similar international schemes may be feasible for biodiversity. Aor e*ample, rough estimates suggest that as many as 2;&;million low& income households in developing countries could benefit from policies to reduce 4greenhouse gas5 emissions from deforestation and forest degradation 4?())5 by 2-.- 4,ilder et al., 2-$-5. )eveloping countries that promote green growth with sound green investment policies can mobilise domestic resources for development and attract e*ternal finance, including foreign direct investment. Aor e*ample, (thiopia has estimated that implementing Climate ?esilient Green (conomy %trategy will cost $;- billion over the ne*t 2- years, and a significant amount of that is e*pected to come from e*ternal development finance. "echnology co operation and international commitment in removing tariff and non&tariff trade barriers for green goods and

services are also important factors in easing developing countries8 green growth transition.

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)7) I': E '23

?ough estimates suggest that as many as 2;&;million low&income households in developing countries could benefit from policies to reduce emissions from deforestation and forest degradation.

"rends in '(C) )/C member countries8 environment aid

)7) I': E '23

"he amount of annual average bilateral aid commitments from )/C members targeting environment as a principal ob<ective has more than doubled since 2--J&=, reaching :%) $= billion in 2-$-&$$. /nnual average bilateral aid commitments targeting climate change as a principal ob<ective have 0uadrupled since 2--J&-=, reaching almost :%) $2 billion in 2-$-&$$.
.2; 2$; $;

4including climate&related aid5, 2--J to 2-$$

Commitments in billion :%), constant 2-$- prices

(nvironment aid 4e*cluding climate&related aid5: principal ob<ective Climate&related aid: principal ob<ective "otal environment aid 4including climate&related aid5: both principal and significant ob<ectives

2--J&-=

2--L&-!

2-$-&$$

otes: i5 / number of activities fall under climate&related aid, and are thus included here, however they are not recorded as environment aid 4:%) 2.= billion in 2-$-&$$5> this might for e*ample include a large hydro&electric facility. ii5 Climate&related aid covers both adaptation and mitigation aid as from 2-$- only. %ource: '(C)P)/C Creditor ?eporting %ystem 4C?%5.

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%nternational co0operation for green growth9 some e1amples

:sing ')/ to boost energy access through renewable energy technologies. 6ilateral ')/ for power generation has been increasing on average and in 2--! stood at almost :%) . billion & over 9-K of which funded power generation from renewable sources. / number of feasibility studies, research ventures in solar and renewable energy are also currently being funded with ')/. 7n 2-$-, %pain lent :%) $.! million to ,orocco for constructing a solar&thermal plant. %pain has provided almost :%) .-- million to "unisia for two wind energy par#s. (nergy access is also a #ey focus of bilateral support. "hrough the /CP&(: (nergy Aacility the (: has been involved in more than $.- pro<ects in /frican, Caribbean and Pacific countries. 2ith resources of about (:? .9- million committed, this facility has attracted co&financing of about the same amount from other public and private sources. 'verall, the countries involved have been able to bring modern energy services to between $2 and $. million people 4'(C), 2-$2d5. Climate Public Private Partnership for developing countries. "he :E government, in collaboration with the 7nternational Ainance Cooperation and /sian )evelopment 6an#, launched the Climate Public Private Partnership in Ganuary 2-$2. "hrough two new commercial funds, this initiative is designed to leverage up to .- times of private capital for every one pound provided by the :E ta*payer. "he partnership will support pro<ects to deliver clean, renewable and efficient energy, new technology and protect natural resources in emerging and developing countries. 7t is estimated that the initiative could generate more than =G2 of clean, reliable energy & e0uivalent to JJK of current :E renewable energy capacity & and create 9-,--- <obs 4)A7), 2-$25. "echnology co&operation for building a low&carbon society. "he government of Gapan carries out technological collaboration with developing countries through its %cience and "echnology /gency. Aor e*ample, it is wor#ing with the government of ,alaysia to develop a policy roadmap for a low carbon society through its programme on Cow Carbon %ociety %cenarios for /sian ?egions. 7t is also collaborating with the 7ndian government to develop a low&energy consumption sewage treatment technology 4see www.<st.go.<pP globalPenglishP#adaiPinde*.html5. /id for trade in fostering mar#ets for green goods and services. ,otivated by the role of trade as an engine of economic growth and poverty reduction, development co&operation agencies have been supporting the /id&for&"rade 7nitiative. "his initiative aims to strengthen the trade capacity of developing countries 4such as in trade policy and regulations5, address any ad<ustment costs incurred by trade reforms, support trade infrastructure development and production capacity, and assist in implementing trade agreements. /idfor& "rade has been growing significantly, and reached :%) .. billion in 2-$-. "he donor community increasingly considers the /idfor&"rade 7nitiative as a mechanism for facilitating action on climate change and stimulating green growth in developing countries, in part because of the stringent environmental conditions attached to regional trade agreements, but also because such support often targets capacities for trading environmental goods and services. ?ecently these programmes have helped developing countries adopt organic standards> enhance value chain development> and train officials in trade policy on environmental goods and services and environmental protection measures, and participating in regional and multilateral trade and environmental negotiations 4'(C), 2-$2 f R g5. (nhancing capacity to green national development processes. 7n ,oNambi0ue, more than =-K of public investment comes from international development assistance. )evelopment co&operation agencies therefore have an important role to

play in supporting the national goals to address environmental issues through development planning and policy and through greening other national policies and mechanisms. "he etherlands and )enmar# have provided capacity support to the ,inistry of Co&ordination of (nvironmental /ction. 2ith the support of the 2orld 6an#, environmental units have also been created in various line ministries. evertheless, institutional capacity remains wea# and core environmental functions are not yet fully effective. 'ne of the problems is institutional comple*ity at the sector level. /nother may be that donor capacity building initiatives tend to be geared towards delivering pro<ect outputs rather than on the performance of core or programmatic environmental functions of the government. / lesson from the ,oNambi0ue case is to target core environmental functions across multiple government domains at programmatic level rather than directing them towards a pro<ect8s specific ob<ectives and activities 4'(C), 2-$2e citing Cabral and Arancisco, 2--L5.
%ource: '(C) 42-$2d5, )evelopment Co&operation ?eport: Cessons in Cin#ing %ustainability and )evelopment, '(C), Paris> )A7) 42-$25, ,itchell: Private %ector to "ac#le Climate Change, Press ?elease, Condon> Gapanese %cience and "echnology /gency, http:PPwww.<st.go.<pPglobalPenglishP#adaiPinde*.html> '(C) 42-$2f5, /id for "rade and Green Growth: %tate of Play, '(C), Paris> '(C) 42-$2g5, /id for "rade in 2-$-: Continued Growth, ,odest 'utloo#, '(C), Paris> '(C) 42-$2e5, Greening )evelopment: (nhancing Capacity for (nvironmental ,anagement and Governance, '(C), Paris> from Cabral, C. and ). Arancisco 42--L5, (nvironmental institutions, public e*penditure and the role of development partners: ,oNambi0ue case study, Ainal ?eport, )A7), Condon.

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7mplementing the three pillars of international co&operation on green growth

P% !)S .&$%'G (&)*!)D
+ Provide more timely and targeted development co0operation support through green growth mainstreaming" stakeholder engagement and awareness raising + Support developing countries: policy reform processes designed to attract and boost private investment + 5se e1ternal public finance to more effectively engage the private sector at early stages of development + .obilise new sources of capital" e-g- pension funds and other institutional investor

Strengthen green finance and investment

Promote green technology innovation through co0operation

+ %nvolve developing countries in defining science and technology research agendas" priorities for international co0operation" and participation in collaborative research + ;uild endogenous capacity for innovation within developing countries" including through education + Promote strong intellectual property rights systems and encourage knowledge sharing across national boundaries

(acilitate trade in green goods and services

+ Supporting market development for green goods and services + #arget demand0side policies" such as public procurement policies and consumer education programmes+ )emove non0tariff trade barriers" build capacity for international trade and ensure developing countries: e<ual participation in international standard setting" such as labelling and eco0certification regimes

"he success of international support to green growth in developing countries will depend on a number of factors. Airst and foremost is the need for developing countries to determine their own agenda for actions and priorities for green growth in a manner that resonates with their national circumstances and development conte*ts. "hese priorities should guide the support from international community. %econd, international institutions will need to be fle*ible enough to respond to these inevitably different needs and to help developing countries fill #nowledge and e*perience gaps, and to advance their green growth priorities including #ey

policy reforms. "hird, a strengthening of international collaboration through multilateral environmenta l agreements and other international 4binding and voluntary5 policies on trade, development and resource management & such as the

Convention on 6iological )iversity and the (*tractive 7ndustry "ransparency 7nitiative & can provide resources and technical support for developing countries pursuing green growth. Aourth, '(C) countries will also need to reform their own national policies to ma#e them more coherent and consistent with development policies and developing countries8 efforts to green growth. "his is vital because incoherent policies are both inefficient and can undermine any progress made in simultaneously promoting green growth and development. Ainally, more informal or voluntary international partnerships on green growth, both public and private, can facilitate peer&to&peer learning and share lessons. 6uilding on e*isting e*perience, a few recommendations are proposed here on how best the international community can move forward with providing tailored support for green growth to developing country partners.

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@ow to monitor progress towards green growth3

,easuring progress is an integral component of any national or international green growth policy. 2ithout a measurement agenda or robust statistics, countries will not #now whether they are ma#ing progress towards their green growth ob<ectives. "he '(C) has developed a green growth measurement framewor# that divides indicators into four groups reflecting the main features of green growth: the environmental and resource productivity of the economy, the natural asset base, the environmental dimension of 0uality of life and the economic opportunities and policy responses 4'(C), 2-$$b5. "he international community is now also moving ahead & notably through a partnership between the '(C), : (P, the 2orld 6an# and the Global Green Growth 7nstitute & to adopt a common framewor# for measuring and monitoring progress on green growth.2 "hese same international organisations have committed to continue to wor# with developing countries to strengthen their capacity to measure progress towards green growth and some are already implementing a green growth measurement framewor#. 'ne important development is the %ystem of (nvironmental&(co nomic /ccounting 4%((/5, which is the first international statistical standard for environmental&eco nomic accounting.. ations are now implementing the %((/ and it will help improve the comparability and consistency of the data needed to develop green growth indicators. %upport for implementation of %((/ is part of broader international co&operation efforts that aim to enhance capacity in developing countries for inclusive and relevant statistical systems, in

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particular through the Partnership in %tatistics for )evelopment in the 2$st Century Consortium 4P/?7%2$5.9
"he Green Growth Enowledge Platform 4GGEP5 scoping paper Covering on a set of green growth indicators will be launched at its /nnual Conference, ta#ing place in Paris on 9&; /pril 2-$.. . %((/ website: www.unstats.un.orgPunsdPenvaccountingPseea.asp. 9 %ee www.paris2$.org.
2

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6y e*plicitly accounting for the environment and the value of natural assets, green growth e*pands traditional definitions of wealth to include well&being, and the 0uality of growth and development.

"he time for green growth is now

"he national and international initiatives presented here show the many sustainable development co&benefits of green growth. ow is the time to seiNe the opportunities and start to deliver these benefits on a large scale. "he ,illennium )evelopment Goals 4,)Gs5, which have guided development co&operation efforts and development policies over the last decade, are due to e*pire in 2-$;. "he international community is wor#ing towards a new development framewor#, and this will incorporate the sustainable development goals 4%)Gs5 as agreed at the :nited ations Conference on %ustainable )evelopment in 2-$2 4?ioF2-5. Green growth is emerging as a guiding framewor# for delivering these goals, so we now have the opportunity to scale up efforts to achieve sustainable development. "o truly get to Nero 4i.e. eradicate absolute poverty5, a new commitment from global leaders to combat poverty while greening national growth patterns is needed. "his is a cost&effective way forward, which will allow countries to benefit from greater efficiency and productivity of natural resource use, greater and more appropriate innovation to promote green growth and sustainable development, and new mar#ets & international and domestic & for green technologies, goods and services. 6ut more importantly, if we do not act today, the development achieved so far could be significantly eroded and future opportunities for growth seriously compromised.

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6ibliography
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Photo Credits
Aront cover page + )esignshot X )reamstime.com> %uspension bridge: + mwellis & Aotolia.com> 6usy wal#ing street + "he Power of Aorever Photography & istoc#photo> 6lue %olar panel: + )ominic %ansoni & 2orld 6an#> %eller of Aish: + /le*ey EuNnetsov & Aotolia.com> Green rice terraces in 6ali: + Iong @ian Cim & Aotolia.com> ?ails: + Gordya & Aotolia.com 7nside cover page Pali dans le coucher du soleil: + )ho*a*P%hutterstoc#.com 7nside bac# page 6ridge to the <ungle: + l#unl & Aotolia.com 7nside pages 7ndia Chinese fishing nets: + ",/W & Aotolia.com Construction site: + EaNhdan & shutterstoc#.com Green rice terraces in 6ali: + Iong @ian Cim & Aotolia.com 'verview of /ddis /baba: + /rne @oel & 2orld 6an# 2oman with full dish of crab: + ?C@ & Aotolia.com 6usy wal#ing street + "he Power of Aorever Photography & istoc#photo %ellers in a floating mar#et: + e#o & Aotolia.com @igh&rise construction site: + 6ill Cyons & 2orld 6an# Green crops in a field: + ?afael 6en&/ri & Aotolia.com %eller of Aish: + /le*ey EuNnetsov & Aotolia.com ?ails: + Gordya & Aotolia.com 6lue %olar panel: + )ominic %ansoni & 2orld 6an# 2indturbine: + %asha ?adosavl<evic & istoc#photo "he dam: + tramp;$ & Aotolia.com Container ship: + il&fede & Aotolia.com /gricultural irrigation: + brane* & Aotolia.com 6i#e ?io: + Cesar '#ada & istoc#photo 'pen road in the mountains: + Curt Carnemar# & 2orld 6an# /frican bus: + (ric ,iller & 2orld 6an# Cargo loading machine: + )ominic %ansoni & 2orld 6an# :sine industrie installation: + shoc#y & Aotolia.com %afety engineer: + p.studioJJP%hutterstoc#.com %uspension bridge: + mwellis & Aotolia.com Arog: + o#san#ashP%hutterstoc#.com Country road: + Curt Carnemar# & 2orld 6an# 6amboo forest bac#ground: + silver&<ohn & Aotolia.com Construction site: + EaNhdan & shutterstoc#.com

"his document and any map included herein are without pre<udice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
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not a lu*ury & it is a way of delivering sustainable development and global security for all

Green growth is

Cast updated $= /pril 2-$.

www.oecd.orgPdacPgreengrowth