More radical green policies needed
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Natural catastrophes and man-made disasters claimed about 35,000 lives and resulted in record-setting economic losses of over US$370 billion in 2011. That year witnessed 325 catastrophic events, according to a study financed by Swiss-Re.
That huge loss requires all sectors of global society, especially business, to take a closer look at the health of the planet. A change to a green economy is a must, and it needs to start at the policy level, panellists said at the Deutsche Welle Global Media Forum.
“Many countries spent $3 billion-$4 billion on rescue projects. The funds should be redirected,” said Achim Steiner, executive director of the United Nations Environment Programme, who is based in Nairobi, Kenya.
“Economic ministers agreed with public sentiment but said they can’t afford it. Many countries are still reluctant (to pour investment into green projects) and leave their people with pollution.”
Thanks to government initiatives, renewable energy emerged from nothing in the 1980s.
Public policies will guide the direction of environmental regulations. For a greener world, green policies must be part of macro-economic management, he said.
The situation is now better than in the 1990s, said Marianne Fay, chief economist of the Sustainable Development Network of the World Bank. There has been a shift towards a green economy. From nothing, more people now seek green growth strategies with sustainable elements, she said.
Globally, driving this trend is pressure in middle-income countries, which must address a spike in demand in light of their strategy to achieve high-income country status. Companies, particularly in Southeast Asia and Latin America, are adopting green growth plans to maintain competitiveness.
“It’s quite encouraging. Yet, it’s not radical enough to change the mindset,” she said.
Three things must be done – a radical change in mindsets, people must think about people who are not here right now and the cost to GDP in case of ignorance.
Newly urbanised cities in developing countries should pay more attention to efficient transport and land-use planning, as this would have a long-term impact in terms of pollution and commuting.
“Growing now and cleaning up later is not the answer,” she said.
It is the World Bank’s duty to help the governments design a win-win strategy, she added.
Simon Upton, environment director of the Paris-based Organisation of Economic Cooperation for Development, agreed. A good sign emerged in 2011 when the 34 member states sought the OECD’s opinions on green growth strategies, as the crisis served to remind that all must be resource-efficient.
That was the first time, but countries are still suffering a “tsunami of problems” – as interest is not fast and deep enough.
Fuel subsidies are one concern. Countries still resort to the strategy to make fuel cheaper and raise output, een though subsidies boost pollution and healthcare costs.
Steiner attacked governments for selective adoption of policies, despite the availability of radical choices. Ending subsidies would encourage more renewable energy and cut the price and create a cleaner world.
And the tax system is not yet designed to promote a cleaner world. The World Bank and OECD would need to push for that, he said.
Fay said: “There’s a discrepancy in finding a consensus on green growth. Nobody opposes it, but there’s no consensus on how.”
