Promoting green growth requires well-designed institutions and environmental policy instruments that are effective in achieving their environmental objectives without imposing excessive burdens on the economy. There is growing recognition in OECD countries that economic instruments such as environmentally related taxes can be effective in stimulating a shift to less-damaging forms of production and consumption while providing producers and consumers with flexibility in making these adjustments. Behavioural changes stimulated by economic instruments may lead to the creation of new jobs and employment opportunities. Investments in new "cleaner" technology can be an important source of employment and business development. Where economic instruments generate revenues, the appropriate deployment of these revenues can also make a significant contribution to enhancing incomes and growth.
Support for carbon pricing is growing around the world. Governments, businesses and investors are recognising that nationally-appropriate taxes and trading schemes, as part of a well-aligned package of policies for low-carbon change, can reduce greenhouse gas (GHG) emissions without harming the economy. Strong, predictable and rising carbon prices send an important signal to markets, helping to align expectations on the direction of change, thereby steering consumption choices and the type of investments made in infrastructure and innovation. They also raise fiscal revenues that can be put to productive uses. Around 40 national jurisdictions and over 20 cities, states and regions, have adopted or are planning explicit carbon prices, covering about 12% of global GHG emissions. The number of carbon pricing instruments implemented or scheduled has almost doubled from 20 to 38 since 2012. Over 1000 major companies and investors have endorsed carbon pricing, and around 450 now use an internal carbon price (US$40/t CO2 or higher for some major oil companies) to guide investment decisions, up from 150 companies in 2014.
The global failure to develop in a sustainable manner has led to attempts to adopt green economy approaches in the context of poverty alleviation and sustainable development. Given South Africa’s high carbon footprint and other negative environmental externalities, the government, in partnership with civil society and the private sector, is taking steps to green its economy. The efforts range from large-scale solar installation projects to small-scale grassroots level projects where green jobs are created for the poor, predominantly women, by paying them for environmental services. This paper addresses if and how green economy can be used to alleviate poverty and protect the environment at a grassroots level. In a project under the management of a local environmental non-governmental organisation (ENGO), poor urban women in Pietermaritzburg, South Africa, are utilising the concept to generate income, improve their livelihoods and contribute to environmental sustainability.
The paper investigates the current practices of the green economy, and challenges and opportunities in the Limpopo Province of South Africa. The paper is based on a baseline study designed to gather data from key informants in Limpopo provincial, district and local municipalities. Twenty-three key informants in the province were interviewed. Primary data collected from key informants was supplemented by secondary data from document reviews. Descriptive statistics were used to analyse data on the current practices of green economy, and challenges and opportunities in the province. Findings from the study suggest that there is generally significant awareness of the green economy concept across the provincial district and local municipalities in Limpopo Province. However, there are gaps in terms of information gathering, storage and sharing on green economy activities in the district municipalities, provincial and national departments.
The final report of the UNEP Inquiry argues that there is now a historic opportunity to shape a financial system that can more effectively finance the development of an inclusive, green economy. This opportunity is based on a growing trend in policy innovation from central banks, financial regulators and standard setters, who are incorporating sustainability factors into the rules that govern the financial system. The report draws together practical examples of policy changes in banking, capital markets, insurance and institutional investment, drawing on detailed work across a number of countries.
Environmental impacts are increasing due to human activities. The overuse of the benefits nature provides us is the direct result of our failure to put a price on these benefits. One way of addressing this is to require environmental compensation.
This study provides an overview of key conditions for increased, flexible and cost-effective application of compensation. It shows that for a relatively small cost, society can make a significant investment in the provision of biodiversity and ecosystem services by requiring compensation.
The study outlines three main recommendations on how to increase the use of environmental compensation: stimulating supply of, and demand for compensation; clarifying guidelines and legal framework; and strengthening Nordic cooperation on compensation.