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Green Growth: A Sustainable Future for AllAngel Gurría, Secretary-General, The Organisation for Economic Co-operation and Development (OECD) With a rapidly growing population of more than 7 billion and a precarious recovery from the economic crisis, the world in 2012 faces complex economic, environmental and social challenges. To address them, we must work to boost economic growth, create jobs and protect the environment.To be very clear, we can only accomplish these goals simultaneously by shifting towards "greener" and more innovative sources of growth. In this year of Rio+20, we need to re-think the world economy and come up with new approaches that can ensure inclusive, sustainable growth and development. By 2050, the world population is projected to reach over 9 billion people. According to OECD analysis1, fossil fuels will supply 85 per cent of global energy demand, increasing greenhouse gas (GHG) emissions by 50 per cent and further worsening urban air pollution. With global water demand projected to increase by 55 per cent, competition for it would intensify, leaving over 40 per cent of the world's population living in severely water-stressed river basins.The costs and consequences of inaction could be colossal, both in economic and human terms. To avoid such a grim new world, we urgently need new thinking and greener policies. The OECD Green Growth Strategy will help countries tailor their policies according to their level of development, particular resource endowments and environmental pressures. In addition to country-specific actions, the OECD Strategy also calls for common approaches to address shared challenges, including:n Making pollution more costly than greener alternatives (e.g. with environmental taxes and emissions trading schemes); 128 summation " We encourage all governments, all countries, to support national and international efforts to promote green growth, and we stand ready to accompany policy makers in this challenging but necessary endeavour "n Valuing and pricing natural assets and ecosystem services (e.g. through water pricing, payments for ecosystem services, natural park entrance charges); n Removing environmentally harmful subsidies (e.g. to fossil fuels, electricity for pumping water for irrigation); andn Encouraging green innovation (e.g. by making polluting production and consumption modes more expensive, public support for basic R&D).Green growth is relevant for all countries across the development spectrum. With energy efficiency, technology transfer, green investment and innovation, and appropriate governance, green growth can be a win-win opportunity for all. Recent action by emerging economies is strong proof that a cleaner pathway to a strong economy is possible. In 2009, China led the world in renewable energy investment. Its estimated RMB 215.1 billion budget for energy saving and emission reduction actions has leveraged RMB 1.6 trillion of private sector investment2. South Africa - as part of its New Growth Plan - will be investing ZAF 25 billion in the next five years to boost its green economy and create new jobs. To go further, green growth could be anchored in a clear national vision and mainstreamed across all areas of government, including the budgetary process. This has worked well in Korea, and China has already set green development as a strategic priority of its 12th Five-Year Plan. For low-income countries, where up to 25 per cent of their total per capita wealth is in natural capital, sustainable management and productive use of these assets are essential for improving the livelihood and security of the poor. As they grow, developing countries have the opportunity to leapfrog directly to greener and more efficient technologies and infrastructures. From 1998 to 2007, spending on African infrastructure, for example, increased from US$3 billion to US$12 billion - greatly exceeding average growth in infrastructure investment around the world. South Africa recently announced that it will invest US$44 billion in transport, water and energy infrastructure over the next two years3. Scaling up such investments can considerably boost economic growth and bring a range of social benefits. Because many developing countries lack the necessary institutions, capacity and finances, developed countries have a responsibility to support their efforts to join the global move to a green economy. By providing financing, sharing knowledge and new technologies, training workers for a future in "greener" industries and helping build research capacity in developing countries, developed economies can ensure that green drives sustainable global economic growth. We encourage all governments, all countries, to support national and international efforts to promote green growth, and we stand ready to accompany policy makers in this challenging but necessary endeavour. A successful Rio + 20 is our best hope to achieve better policies for better lives. nAbout the AuthorAngel Gurría is the Secretary-General of the Organisation for Economic Co-operation and Development (OECD). He came to the OECD following a distinguished career in public service, including two ministerial posts. As Mexico's Minister of Foreign Affairs from December 1994 to January 1998, Mr Gurría made dialogue and consensus-building one of the hallmarks of his approach to global issues. From January 1998 to December 2000, he was Mexico's Minister of Finance and Public Credit. For the first time in a generation, he steered Mexico's economy through a change of Administration without a recurrence of the financial crises that had previously dogged such changes. As OECD's Secretary-General, since June 2006, Mr Gurría has reinforced the OECD's role as a "hub" for global dialogue and debate on economic policy issues while pursuing internal modernisation and reform.Pictured: Angel Gurría at OECD 2050References1 OECD Environmental Outlook to 2050 (OECD, 2012) 2 China Council for International Cooperation on Environment and Development (13 May 2011) Strategic Framework and Policy Mix for China's Green Economic Development and Transformation 3 Cloete et al, 2010summation 129 |