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6 GREEN ECONOMY Challenges and opportunities Preface Environmental issues have become increasingly incorporated in the scientific agendas of the most diverse fields of knowledge and in local, national, regional and global political agendas. Its growing relevance originates from the widespread understanding that environmental sustainability is indispensable to the long term development of societies. On one hand, from an alarmist perspective, neglecting this issue would probably result in perverse effects on human beings and development, as pointed out currently by many studies 1 . From a strategic perspective, possibilities and opportunities have been identified deriving from its effective incorporation, once it could contribute to achieving more sustainable development processes in various dimensions (economic, social and environmental) 2 . The challenge of moving towards a more egalitarian and sustainable society is, more than ever, on the agenda. It is in this context that the green economy concept has emerged. Defined by the UNEP as that which “results in improved human well-being and social equality, while significantly reducing environmental risks and ecological scarcity” 3 , green economy will be one of the key topics 4 of <strong>Rio+20</strong>, the United Nations Conference on Sustainable Development that will take place in 2012 in Rio de Janeiro. The challenge is not simple and discussions are only beginning. Despite having a formal conceptualization, precise delineations are still to be determined. After all, what is a green economy? Which economies are closer to reaching it? How to measure the degree of “greening” of an economy? What does it mean, concretely, to achieve transition to a green economy? What is the role of the state in this transition? How to finance the transition? Which sectors will be most affected? Which will be most benefitted? How would the transition affect the daily lives of citizens? What are the risks of not transforming to a green economy? And in the case of Brazil, what has the country done and what is left to do to advance towards a green economy? How is the country doing, compared to the others? What are the main obstacles and challenges? How to address them? What would a transition mean for society, productive sectors, for government, for consumers? How can developed and developing countries cooperate in this transition? How can international promotion and cooperation organizations align themselves with these objectives? How can United Nations Nº 8 • June 2011 1. In global terms, see Stern (2007) and IPCC (2007). For an analysis of the Brazilian case, see World Bank (2010), Marcovitch (coord.) (2010) and NAE (2005). 2. TEEB (2011) and UNEP (2011). 3. UNEP (2011). 4. The two key topics to guide the Conference are: (i) green economy in the context of sustainable development and poverty eradication; and (ii) institutional framework for sustainable development.
7 GREEN ECONOMY Challenges and opportunities Preface priority international initiatives, such as the Climate Change and the Biodiversity Conventions, encourage and implement common agendas aimed at achieving these objectives? Green economy raises many questions that do not have simple and straight answers. We know, however, that the transition requires substantial efforts and engagement from all segments of society, especially government and the private sector. It demands that governments level the playing field for greener products by removing perverse incentives, revising policies and incentives, strengthening market infrastructure, introducing new market mechanisms, redirecting public investment and “greening” public procurement. The private sector, on the other hand, will need to respond to these policy reforms through increased financing and investments, as well as by creating innovation skills and capabilities to make the best of green economy opportunities. The timing to discuss an alternative paradigm, where the generation of wealth does not increase social disparities or produce environmental risks, nor ecological scarcities, could not be more opportune. The 2008 crisis, from which the global economy is still trying to recover, could be an opportunity to think about and formulate the economic model that we wish to follow. The transition to a green economy could benefit Brazil in various ways. The green economy demands greater social equity, something that is especially necessary in Brazil, which is among the ten countries with the worst income distribution on the planet 5 . The transition could, thus, serve as a platform for poverty eradication. Furthermore, Brazil has greatly favorable natural conditions: the richest biodiversity on the planet, ample water resources, large continental and coastal areas, ocean resources yet to be discovered; that is, a natural that albeit threatened is still abundant. In a green economy, natural capital becomes an asset that generates dividends and produces a competitive edge. Thus, the pre-requisites are in place that enable Brazil to be more than a beneficiary, but rather capable of leading the green economy transition, and assuming a role as global agent for change. Nº 8 • June 2011 Change can already be seen in various parts of the world 6 . The transition to a green economy is both a global and a national movement, where cooperation and coordination are paramount. The reversal of the processes of natural capital loss and increased social inequality require the efforts of all nations. These efforts tend to convert themselves into competitive advantages, a situation that already has become reality in some economies and sectors today. Developing countries, as keepers of a large portion of the planet’s natural capital, could exercise a more strategic role. Developed countries, despite already having consumed a large share of their natural capital, are developing significant 5. UNDP (2010). 6. TEEB (2011).
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101 GREEN ECONOMY Challenges and op
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