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Rio+20: A chance to 'green' the global economy

January 14, 2011
Rio+20: A chance to green the global economy

GLOBE-Net, January 13, 2011 - The main focus of media attention given over to recent United Nations (UN) deliberations on climate change has been the progress (or lack thereof) of an international consensus on a viable emissions reduction regime to replace the Kyoto Protocol after it expires in 2012.  

Some gains were made at the recent Cancun Summit, in particular, the deal between developed and developing countries that the post-2012 climate change system would include emissions reduction commitments and international monitoring for all major economies. However, it is still unclear whether these commitments will be part of a legally binding protocol. (See GLOBE-Net article Cancun - another step on the long road to Rio).  

More UN meetings are planned in the months ahead, but it is unlikely that this issue will be resolved until at least the Earth Summit in 2012, also known as Rio+20, taking place twenty years after the inaugural landmark summit in Rio de Janeiro in 1992.  

But the Rio Summit will go far beyond the issue of emissions reduction.  UN event planners are hoping it will lead to a political document to guide action on sustainable development policy for decades to come and will give birth to a new World Environment Organization.   

Recent Meetings

A UN planning meeting held this week saw a mixed group of stakeholders voice their expectations for the Rio+20 Summit. Contributions to the summit's discussions were submitted by UN member states, major stakeholders, and international organizations ahead of the meeting.

report summarizing their submissions suggests that the green economy will rely on "rigorously enforced environmental laws, taxation based on environmental impact", and "personal carbon quotas".

Canada's official submission to this meeting placed considerable emphasis on the 2010 Federal Sustainable Development Strategy, which dealt with limitations of Canada's previous approaches by formulating  an integrated, whole-of-government approach to achieve environmental sustainability.

The concept of personal carbon quotas or "carbon credit cards" has generally been regarded as an idea ahead of its time in terms of public acceptability and the technology needed to implement it, though a variant concept that might gain traction is the idea of a "Robin Hood tax" on currency conversions or customs duties to prevent unfair competition from exporting countries which have lower environmental regulations.

Green Governance Issues

With respect to international environmental law and green governance, many of the stakeholders backed the idea of a World Environment Organization (WEO) by significantly upgrading UNEP and possibly even setting up an International Court for the Environment (ICE) as a way to deal with disputes related to international environmental law.

Enforcement of international sustainable development commitments, even with the threat of an International Court with jurisdiction on such matters, in all likelihood will take years to unfold. Even then, making recalcitrant industries or nations change their behaviour could be equally problematic.

It's in the area of transitioning to a 'greener' economy that Rio +20 could generate the most lasting benefit. While the concept of the green economy is not well understood and is variously interpreted (see GLOBE-net article Greening the Economy - A Discussion Paper) research conducted by the GLOBE Foundation confirms that continued job growth, improved global competitiveness, and energy security are the primary benefits of reorienting the economy toward the realities of a lower carbon future.

The stakeholders assembled at the UN planning session appeared to believe that the transition to a green economy will involve some winners and some losers and that there was no guarantee that a green-based economy will provide sufficient replacement jobs.

On the contrary, the GLOBE research has shown that while some jobs may be lost in traditional economic sectors as they phase out carbon-intensive practices, many new jobs will be created and many new skills and knowledge requirements will emerge that will stimulate education and trades training activities.

Greening the Economy

To realize the full benefits of the transition to a greener economy, governments must provide incentives (not necessarily artificial subsidies) so businesses in all sectors will see the practical benefits of adopting lower carbon-intensive practices. At the same time, policies must be put in place that set market-based prices on carbon, particularly for high carbon emitters.

Canada is more fortunate than many other economies for the abundance of its natural energy resources. But the basic fact remains, greening the economy is the key to economic and social survival in the carbon-constrained world of tomorrow.

That being the case, one might ask why is this transition is not proceeding at a faster pace around the globe?

The reasons are many, not the least of which are a lack of urgency and understanding on the need for transitioning to more sustainable economies; the lack of a clear vision of what the future will hold; deeply embedded structural, social, and political systems which make accepting the new energy and economy paradigms difficult; and a lack of finance and capital needed to invest in a greener economy and transition away from our traditional economy.

Fear of the future was a common theme running through the concerns expressed by the stakeholders at the UN meeting, particularly fears that inaction on climate change would lead to increased conflicts related to food and water insecurity, or more frequent occurrences of natural disasters may make parts of the world uninhabitable, fueling rising levels of migration, which in turn was seen as a threat to national security.

These negative impacts could very well transpire as changing climatic conditions impact on established agricultural and industrial bases of many economies. These impacts are inevitable; but that does not mean we cannot be better prepared to deal with them. That, in fact, is one of the prime motivating factors for accelerating the transition to a greener economy.

What Priorities?

In terms of the priorities that should be pursued at preparatory meetings for the 2012 Rio+20 Summit, specifically as these may relate to greening economies worldwide, the following points are relevant:

  • The post-Kyoto regulatory regime must not be simply a wealth transfer mechanism designed solely to alleviate poverty or compensate developing world countries for climate change impacts that may or may not have been caused by them. 
     
  • What the Rio+20 Summit must provide are practical incentives for on-the-ground changes that create opportunities for all to improve their standards of living and to halt environmentally damaging practices that in many cases are sanctioned by the very governments now seeking compensation.
  • The business community must be empowered through the post-Kyoto regulatory regime to put in place emission reducing technologies and solutions that create jobs, that raise standards of living, and that address major environmental problems that are being exacerbated by climate change.
  • Governments must provide  stable and predictable policy climates that foster private sector engagement and investment, where companies large and small can plan for the investments needed to implement lower-carbon practices.
  • These policies must stimulate the more efficient use of all available energy resources and minimize the wasteful use of other critical natural resources such as water, forests, minerals, agricultural lands, and air.
  • Governments must also stimulate the development and deployment of innovative technologies which could provide the basis for product development for export or import substitution purposes.
  • Lastly, governments must stimulate a greater awareness of the need to adopt lower carbon-intensive lifestyles in both the present and future generations of consumers and workers and engage them to take action and to set the stage for higher education and skills training programs needed to better prepare future generations of workers for  a lowcarbon economy.

The UN is currently preparing a study on the benefits and challenges of a green economy, but more than just another study is needed. The most significant possible outcome of the 2012 Rio+20 Summit could be providing an international framework that accelerates the transition to greener, more sustainable economies worldwide.

In all respects, this is the most important priority for the 21st Century, and its resolution would be a fitting milestone for the 20th anniversary of the first Earth Summit. It will also be the guiding premise for the Conference sessions at GLOBE 2012 (find out more by visiting http://www.globeseries.com/).

John D Wiebe

President & CEO

 

 
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