Principles of green economic growth

Dr. Shakeel Ahmad

Assistant Professor
Department of Soil and Environmental Sciences
 Outline
 What is green economic growth
 Green growth and green economy
 Green growth and sustainable development
 Green jobs/career and skills
 Benefits of green growth
 Principles of green growth
 Factors affecting/challenges/obstacles in green
growth
 Strategies to promote green growth
 Potential Green Economy Initiatives for Pakistan
 What is green economic growth?
 Currently the world has to face two key challenges, i.e.
fast growing global population and the related
increasing pressure on the environment.
 It is crucial to balance the economic growth with
potential problems, such as environmental pollution
and exhausting natural resources. The above-
mentioned conditions resulted, among other things, in
the emergence of the concept of green growth.
 In 2009, partly in response to the global financial
downturn, South Korea adopted the National Strategy
for Green Growth and the 5-Year Plan for Green
Growth.
 Cont…
 Since that time South Korea has been the main
ambassador of this concept promoting it throughout the
world, mainly through the Organisation for Economic Co-
operation and Development (OECD) platform.
 Currently, the OECD is a leading institution supporting
the implementation of green growth in respective
countries.
 In addition, many other international organisations
(World Bank, Green Growth Leaders), think-tanks as well
as representatives of the world of science focused on
green growth, which resulted in a number of definitions.
 Cont…
 Green economic growth refers to economic growth with no
or minimum damage to environment, biodiversity and
natural resources.
 According to World Bank, green growth is “a growth that is
efficient in its use of natural resources, clean in that it
minimizes pollution and environmental impacts and
resilient in that it accounts for natural hazard”.
 Green growth advocates to invest in environment or
ecosystem which is a driver for economic growth.
 In 2011 during the OECD forum a package of documents
was presented forming part of the so-called Green Growth
Strategy.
 Cont…
 The strategy is regarded a useful tool for adding dynamics to
the economic growth and creating green jobs through the
more sustainable use of natural resources, increased energy
and material effectiveness and proper valuation of
environmental services.
 The Green Growth Strategy should, in the first place,
contribute to creating and developing a new framework for
national accounts taking into consideration environmental
issues and general social welfare.
 Secondly, it should provide specific tools and
recommendations for formulating national policies to help
governments most effectively change to sustainable economy
and achieve sustainable development.
 Cont…
 Thirdly, it should constitute a significant source of
information on ways to support green growth in countries
with emerging and developing economies.
 Fourthly, the Strategy focuses on employment issues,
including possibilities to create new jobs both in the short
and long run, which is significant from the point of view of
the social dimension of sustainable development.
 According to the OECD, formulating and implementing
national green growth strategies is necessary because the
impact of social and economic processes on ecosystems
causes imbalance, inducing risk to economic growth and
development processes.
 Cont…
 In other words, the purpose of national strategies and
programs of green growth is to motivate businesses and
consumers to undertake more environment-friendly activities.
 Green growth means taking measures conducive to growth
and economic development, while ensuring that natural
assets continue to provide the resources and environmental
services which contribute to the country’s prosperity.
 Push for green economic growth expresses the intention to
direct the economy towards technologies and consumption
patterns that create jobs and economic growth as well as
reduce the impact on the environment.
 Cont…
 It focuses on cost-effective ways of reducing pressure
on the environment allowing for transition to new
models of development, which in turn will avoid
crossing critical local, regional, and global
environmental thresholds.
 According to the assumptions, green growth strategies
developed at the national level should encourage
environmentally friendly behavior of businesses and
consumers, improve the optimal reallocation of labour,
capital, and technology towards greener operations,
and provide motivation for the development of eco-
innovations
 Green growth and green economy
 Green growth is strictly connected with the idea of green
economy oriented at increased overall social welfare and social
justice, at the same time considerably reducing environmental
risks and ecological deficiencies.
 Although the concept of green growth has recently become a
notable issue on the international arena, in scientific
communities it has been subject to discussions and analyses
continuing for decades, in particular in the area of the so-called
environmental and ecological economics.
 For the first time the term green economy was used in the
report entitled Blueprint for a Green Economy of 1989,
prepared for the government of the United Kingdom by a group
of leading environmental economists.
 Cont…
 In 2008 the term was kind of “refreshed” in the context of
measures undertaken in response to the world crisis.
 In October 2008 UNEP initiated the so-called Green Economy
Initiative in order to ensure analyses and political support for
investments in “green” sectors of economy.
 In April 2009 the Global Green New Deal (GGND) report was
issued which contained a proposal of measures for economic
reconstruction and reinforcement of stability of the world
economy.
 In 2011, the UNEP prepared the Green Economy Report which
contained a working definition of green economy, quoted many
times in numerous other publications.
 Cont…
 The UNEP has defined the green economy as “one that
results in improved human well-being and social equity,
while significantly reducing environmental risks and
ecological scarcities. It is low carbon, resource efficient,
and socially inclusive” (UNEP, 2011).
 To date this has been the most comprehensive and agreed
at the international forum definition of green economy.
 Green economy is characterised by a considerable increase
in investment in sectors of economy creating and
reinforcing the natural capital of the Earth or contributing
to decreasing ecological deficiencies and environmental
threats.
 Cont…
 These sectors include, in particular, renewable energy, low-
emission transport, energy-efficient building, clean
technologies, waste management improvement, sustainable
agriculture and forest management and sustainable fishing.
 Without any doubt, the main reason behind the emergence and
development of the concept of green economy and green
growth is the movement towards a more integrated and
comprehensive approach to incorporating the environment in
economic processes.
 Both concepts aim to identify possible ways of improving the
results of economic activity having in mind the existing climatic
problems and increasing deficiency in natural resources, mainly
through resource- and energy-efficient technological
innovations.
 Cont…
 The fact that both concepts aim at a slightly different direction
may be somewhat confusing.
 The concept of green economy aims at economic
transformation to foster improvement of social welfare and
justice, at the same time considerably reducing environmental
threats and ecological deficiencies.
 Such transformation is to be achieved primarily through “green”
investments, creating “green” jobs, creating a market for new
products (e.g. ecosystems service market) supporting
international trade and the so-called circular economy.
 To compare, the main objective of the Green Growth Strategy is
continuing economic growth, and simultaneously recognising
the role of natural capital in planning processes and national
accounts.
Green growth and sustainable development

 In the first place, sustainable development is a concept

which burst into scientific considerations of a wide
spectrum of disciplines in the late 1980s as a result of the
publication of the report “Our Common Future” in 1987.
 The report summarized the achievements and failures of
humanity in the 20th century identifying sustainable
development as a possible way of improving the existing
situation.
 According to the common and frequently quoted definition
of sustainable development, this is development “that
meets the needs of the present without compromising
the ability of future generations to meet their own needs”
 Cont…
 At the beginning of the new millennium the global
trend towards sustainable development slowed down
significantly. Practical measures undertaken by the
states in this respect were insufficient to prevent global
changes in the environment.
 Sustainable development became just one of many
obligations of governments.
 The concept of green growth emerged and was
promoted in 2005 as a possible way of introducing a
new, low-emission model of sustainable development
for fast developing Asian countries.
 Cont…
 Institutions promoting green growth emphasize that it
is not a substitute for sustainable development but a
way to achieve it.
 The primary assumption of the idea of green economy
or green growth is not replacing the concept of
sustainable development
 The building of green economy based on the
assumptions of the strategy of green growth must
become an integral element of economic policy on the
way towards sustainable development.
GG-GE-SD Model
Benefits of green growth
Cont…
Principles of green growth
Challenges/obstacles in green growth
 Lack of effective policy
 Lack of awareness
 Lack of will power/commitment
 Lack of ownership of natural resources
 Lack of infrastructure
 Lack of technology
 Lack of skilled human resource
 Additional cost
 Poor incentivisation
 Poor institutional support
Strategies to promote green growth
An Example of Green Growth Strategy of Vietnam
 Potential Green Economy Initiatives for Pakistan

Renewable Energy Revolution

Pakistan is a sun-blessed country with vast untapped solar
energy potential. Initiatives to harness solar and wind
energy can substantially reduce the nation’s dependence
on fossil fuels, mitigate climate change, and create jobs in
the burgeoning renewable energy sector.
Solar Energy Expansion
Investment in large-scale solar power projects, solar panel
manufacturing, and net-metering programs can make
solar energy accessible and affordable for both urban and
rural communities.
 Cont…

Wind Energy Development

Exploiting wind power through the establishment of wind
farms and wind turbine manufacturing facilities can
further diversify the energy mix.
Sustainable Agriculture Practices
Agriculture is the backbone of Pakistan’s economy,
providing livelihoods to millions. Encouraging sustainable
agriculture practices, such as crop rotation, organic
farming, and efficient water management, can enhance
crop yields while conserving resources and reducing the
environmental footprint.
 Cont…

Drip Irrigation and Precision Agriculture

The adoption of modern irrigation techniques and
precision agriculture technologies can optimize water use
and boost crop productivity.
Promotion of Organic Farming
Encouraging organic farming methods can enhance soil
fertility, reduce chemical use, and cater to the growing
global demand for organic produce.
 Cont…

Afforestation and Biodiversity Conservation

Reforestation and biodiversity conservation efforts can
combat deforestation, enhance carbon sequestration, and
protect fragile ecosystems.
Launching nationwide tree plantation campaigns can
involve communities in restoring forests, combating
desertification, and sequestering carbon.
Expanding and properly managing national parks and
protected areas can safeguard biodiversity, promote
ecotourism, and support local economies.
 Cont…

Circular Economy Practices

Adopting circular economy principles, which prioritize
recycling, waste reduction, and resource efficiency, can
curtail environmental pollution and create new business
opportunities.
Waste Recycling Programs
Establishing recycling facilities for plastics, paper, and
electronic waste can reduce landfill pressure, minimize
waste, and promote recycling industries.
 Cont…

Promotion of Sustainable Products

Encouraging the use of eco-friendly products and
sustainable packaging can stimulate demand for
environmentally conscious goods.
Green Finance and Investment
To fuel these ambitious initiatives, Pakistan must develop
mechanisms for green finance and attract sustainable
investments.
 Cont…

Green Bonds
Issuing green bonds can raise funds explicitly for
environmentally friendly projects, such as renewable
energy infrastructure, sustainable agriculture, and
conservation efforts.
Incentives for Green Investments
Offering tax incentives and subsidies to businesses
investing in green technologies and initiatives can
expedite the transition to a green economy.