Chapter 12 - Green Economy in the

Context of Sustainable Development

 Overview
• About Green Economy (GE) in Relation to SD
• Key Development Parameters
• Good Life Within Planetary Boundaries

• General GE Strategies
• Key Enabling Conditions
• Four Visions of GE

• Landmarks on the GE Road

About Green Economy in Relation
to SD
• Green economy: A series of co-ordinated policy changes affecting key
development parameters that make up the core of the country
strategy for SD
• Sustainable development: A type of development that meets the
needs of the present generation without compromising the
possibilities of future generations to meet their needs
Key Development Parameters
• Institutions whose characteristics have important impacts on the

incentive structures for development stakeholders

Examples:
o Tariff systems for basic goods and services, such as water, energy and public transport

(flat rate or per unit; degree of cost coverage; and adjustment for inflation)

o Tax bases, structures and rates (does the system tax good things and subsidise

pollution or vice versa?)

o Temporary or permanent subsidies

Good Life Within Planetary Boundaries
 General GE Strategies
• Reduction in environmental pollution and ecosystem degradation  Strongly benefits the
poor who suffered more

• Gradual recovery of ecosystems and their services to humans, for instance, degraded
lands and forests

• Growth in the number and quality of jobs in sustainable businesses, for instance, in
renewable energy

• Increase in numbers of people having access to renewable energy services

• More energy- and water-efficient infrastructure and buildings in expanding cities

• Access to sustainably produced food for the poor in DCs

 Key Enabling Conditions
• SD as a long-term investment goal of public and private sector
• Effective policy co-ordination between government agencies (both levels and
policy areas)
• Fair public awareness of environment and development issues, which
accepts/supports GE/SD policy rationales
• Customers and citizens willing to accept sustainable options, for instance,
improved public transport and paid parking
• Interests opposing the challenge to their business and short-term profitability
unable to block SD changes
• Improved monitoring and law enforcement
 Four Visions of GE
• Bio-environmentalist: The food system has increased its own financial result by putting burdens on

people and the environment; fair trade over free trade; support biological farming; promote

vegetarian and vegan alternatives

• Institutionalist: Focus on constant productivity increases has led to a system that exhausts soil and

pollutes water with pesticide leftovers; support the shift of public funds to ecological forms of

agriculture

• Market-liberal: IFIs imposed conditions on poor country lenders to minimise regulation, reduce

trade barriers, and privatise technical and market advisory services and cheap lending facilities

• Social Green: Smallholder farmers are business people, educators and stewards of the land; must

have our support against extortive practices by powerful investors (TNCs) from rich countries;

against GMO food

 Landmarks on the GE Road
• Pioneer countries in high-, middle- and low-income country groups that try out the
new concept
• Co-ordinate policies and resources from international donors (development banks)
• Dialogues with stakeholder groups in order to explore common interests and
strengths and inform new priorities
• Mobilise and exchange knowledge on technology and systems in order to improve
planning, measure progress and avoid mistakes that could derail the GE venture
• Gather and analyse statistical and qualitative information about GE initiatives to
promote fast learning
End of Chapter 12 Green Economy is a starter and
sustainable Development
somehow an end stage of the
journey for a good life within
planetary boundaries.
Nevertheless, ongoing
development of a sustainable
nature will take place, preferably
on the basis of a social contract
between leaders and the
community.