This report explores inclusive green growth (IGG) in Africa, an issue of significance for the region due to its potential implications for transformation and sustainable development. It examines the challenges and opportunities for inclusive green growth in selected sectors of the economy, in which targeted investments with accompanying enabling measures could spur transformational sustainable development. The case studies contained in the report were largerly informed by the following four country studies on inclusive green growth:
Taking the case of Morocco, this paper aims to explore the challenges to system-building initiatives for the development of the solar energy sector. Drawing on innovation systems literature, the author examine factors that contribute to the emergence of a solar energy sector and delve into how complex governance dynamics affect such developments in Morocco. Aside from low capabilities and knowledge on solar energy technologies, a key challenge to the development of an innovation system in Morocco is the lack of a strategic approach that not only engages all relevant stakeholders but also integrates diverse objectives. The role played by the state (and its supported institutions) in the society and its participation in the economy is likely to explain why these processes are slow to prevail.
The Green Action Plan (GAP), proposed by the European Commission in 2014, is aimed at helping SMEs turn environmental challenges into opportunities. It focuses on resource efficiency, green entrepreneurship and green skills, eco-innovation, greener value chains, and facilitating market access for SMEs. It also provides tools for the internationalisation of European SMEs, taking advantage of Europe's leadership in green technologies. The Plan complements other EU initiatives, such as the Green Employment Initiative, a Roadmap to a Resource Efficient Europe, Circular Economy and European Industrial Renaissance, and is intended to create synergies between them, using the financing under existing programmes. The actions proposed are intended not only to benefit SMEs and the economy, but also to help address environmental challenges related to resource scarcity, waste management and climate change.
This publication provides an opportunity for Asia and the Pacific policymakers and stakeholders, such as those from the private sector, academia and civil society organizations, to actively engage with the global negotiations, and to lay out the financing and partnership frameworks for the development agenda beyond 2015 from the regional perspectives.
The publication calls for the Asia-Pacific region to work together to raise and channel more substantial financial resources to invest in the social sector, infrastructure development and efforts to tackle climate change in order to ensure a transformative change to bring about inclusive growth and sustainable development.
Although there is progress in developing green sectors in North America and East Asia, the key challenge facing the expansion of economy-wide green innovation and structural change in these regions is the absence of relevant policy follow-up to the green stimulus enacted during the Great Recession. The boost to green sectors provided by such measures is waning quickly, given that much of the green stimulus focused on energy efficiency.
The biggest obstacles to sustaining green growth in North America and East Asiaare major market disincentives, especially the under-pricing of fossil fuels and market failures that inhibit green innovation. A three-part strategy to overcome these obstacles would involve: first, removing fossil fuel subsidies; second, employing market-based instruments to further reduce the social costs of fossil fuel use; and third, allocating any resulting revenue to public support for green innovation and investments. Such a strategy would ensure that green growth is not about promoting niche green sectors but instigating economy-wide innovation and structural transformation in North America and East Asia.
This paper expands upon existing literature by proposing a wider definition of what constitutes green infrastructure. It then develops a holistic cost model by defining and quantifying the investment categories that should be considered part of green infrastructure. This paper achieves three main objectives. First, it advances the concept of green infrastructure as a critical tool for sustainable economic growth. Second, it develops a new cost model and attempts an initial quantification of the additional needs for green infrastructure. Finally, it outlines an agenda for further research required to provide more accurate estimates of such needs.
This paper is part of the working paper series "Infrastructure Finance in the Developing World" and is a joint research effort by GGGI and the G-24, exploring the challenges and opportunities for scaling up infrastructure finance in emerging markets and developing countries.