SOLUTIONS

16
Ethiopia’s strategy is also integrated into its
broader development plan. It seeks to make
best use of its water and land resources, seeking
to improve crop and livestock practices to
increase yields, food security and income,
restore forests for economic and ecosystem
services, expand electric power generation from
renewable sources and support modern, energy
efficient technologies in transport, industry
and buildings. 12 The strategy articulates
the economic, health and welfare benefits of
adopting the new approach. It emphasizes the
multiple benefits of green growth approaches in
particular sub-sectors. Improved, fuel-efficient
wood stoves, for example, reduce wood use
and land degradation, while improving health
outcomes from reduced smoke inhalation,
especially for women and small children.
Expanding hydro-electric energy, both
large and small, including through regional
integration, increases energy access without
increasing GHG emissions, bringing economic
and welfare benefits, while also increasing
export revenues.
Green economy strategies for middle income
countries often stress the potential gains from
policy reform: for South Africa, one of the most
water-stressed countries on the continent and a
high GHG emitter, price reforms (with stepped
tariffs to ensure adequate service to lower income
households) in energy and water can improve
efficiency, while implementation of pollution
charges can improve air and water quality and
bring welfare gains. Energy subsidies are neither
inclusive nor green nor economically efficient.
For Egypt, for example, energy subsidies have a
substantial macro-economic cost 13 and budget
burden, though, as with Nigeria, there are difficult
political economy constraints to overcome in
reform programs.
12 Ethiopia’s Climate Resilient, Green Economy Strategy: Pathway to
sustainable development 2012. The Global Green Growth Institute
worked with GoE in articulation of the strategy.
13 According to a discussion with a WB chief economist energy subsidies
in Egypt are equivalent to 8% of GDP and 20% of expenditure. They also
contribute to congestion and pollution in the major cities.
The AfDB Green Growth framework summarizes
support that AfDB has provided to Sierra Leone
and Mozambique in articulation of their own
inclusive green growth strategies. In Sierra Leone
the AfDB was able to respond to a request to
mainstream inclusive green growth into their
PRSP (Agenda for Prosperity). The AfDB is
planning to assist the Government of Kenya with
preparation of an inclusive green growth strategy.
As well as the Green Growth Institute, the
Climate and Knowledge Development Platform
supported by DIFID provide opportunities for
partnership. The UK ODI (Overseas Development
Institute) is helping AfDB develop a toolkit for
mainstreaming green growth into CSPs.
Some countries have taken advantage of
Development Policy Lending (budget support)
to implement inclusive green growth strategies,
though not yet through AfDB supported
operations. 14 Morocco, for example, is
implementing a policy loan (US$ 300 million)
with the support of the World Bank to promote
revenue diversification in rural Morocco,
improve management of natural resources and
encourage a shift towards low carbon growth
(with less dependence on imported thermal
resources. Himachal Pradesh In Northern India
is taking a package of two DPLs totaling US$ 200
million to support adoption of environmentally
sustainable and socially responsible hydropower,
climate responsible development, empowerment
of local communities in watershed management,
environmentally sustainable industrial and
tourism development and improved GIS and
spatial information systems. Mozambique,
highly vulnerable to floods and droughts, is
implementing a Climate Change Development
Policy Loan for US$ 60 million with many
green growth elements. Its objective is to build
effective institutional and policy frameworks
for climate resilient development through
14 World Bank DPL for Inclusive Green Growth in Morocco, Project Appraisal
Document 2013; World Bank Project Information Document for Second
Inclusive green Growth DPL to Himachal Pradesh India Februrary 2014,
World Bank Mozambique Climate Change Development Policy Loan,
Project Appraisal Document, November 2013.
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