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32<br />

GREEN ECONOMY<br />

Challenges and<br />

opportunities<br />

The necessarily<br />

systemic character<br />

of the transition to a<br />

green economy<br />

Alexandre d'Avignon<br />

Luiz Caruso<br />

Growth”, first published in 1972, later reissued as “Beyond the Limits” in 1992<br />

and finally republished in 2004 under the title “Limits Growth: 30-Year Update”,<br />

which showed that there was still hope because we had not yet exceeded the<br />

limits of no return. The limits model, based on the systems dynamics of Jay<br />

Forrester, operated in a highly aggregated fashion without taking into account<br />

political changes, war or widespread shortages.<br />

The second myth discussed in the UNEP publication – that the transition<br />

would be a way for rich countries to perpetuate poverty in developing countries<br />

– has thornier issues to address. According to Kemp and Soete (1992), we<br />

are already in a transition from a fossil fuel-based economy to a low-carbon<br />

economy. In this phase, greener economic activities would primarily use end<br />

of pipe technologies and some cleaner technologies. Moving toward a lowcarbon<br />

economy requires investments in the generation and diffusion of cleaner<br />

technologies. The diffusion of a range of cleaner technologies is subject to<br />

changes in the institutional framework that supports economic activities. A<br />

reorientation of policies related to education, and science and technology, and<br />

the integration of environmental policies with those of other sectors, would also<br />

be necessary.<br />

In the long term, many green economic activities will derive from the<br />

convergence of technologies such as nanotechnology, biotechnology and<br />

information and communication technologies. The UNEP publication calls<br />

attention to the fact that the transition from the current economy to a green<br />

economy requires a well-planned regulatory framework that creates incentives<br />

to drive green economic activities, as well as to remove barriers to green<br />

investments. However, the transition depends not only on institutional but<br />

also technological innovations. Some of these innovations are complex,<br />

multidisciplinary, and require complementarities between companies and<br />

research institutes. Miles and Leite (2010), on citing Roco (2007), identify<br />

four generations in the process of developing nanotechnologies: passive<br />

nanostructures; active nanostructures; systems of three dimensional nanosystems;<br />

and nano-systems comprised of heterogeneous molecules. Only in the<br />

first generation do we find some evidence of efforts in research and generation<br />

of innovations in developing countries.<br />

Nº 8 • June 2011<br />

According to Fonseca, Bianchi and Stallivieri (2010), the core of modern<br />

biotechnology is built around the basic knowledge of genetic engineering, i.e.,<br />

molecular biology, genomics and proteomics. In 2009, however, of the total<br />

projects in genomics, 91% were concentrated in the United States, Britain,<br />

Japan, France and Germany. If this indicates a trend toward domination of new<br />

technologies by developed countries, it is appropriate to add a further reflection<br />

regarding socio-technical transition. According to Geels and Schot (2007),<br />

the socio-technical regime is an extended version of the technological regime<br />

of Nelson and Winter (1982), which refers to shared cognitive routines in an

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