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The report highlights occupational safety and health (OSH) as an integral part of the promotion of green jobs and a greener economy to achieve an economic and social development that is also environmentally sustainable. The report looks at different “green industries” from an OSH perspective, and shows that while green jobs improve the environment, revitalize the economy and create new employment opportunities, they may also present a number of known and unknown risks for workers. The greening of traditional sectors which will continue to provide the bulk of all employment and harbour most occupational safety and health risks can provide a major opportunity to make them safer and healthier, as well as energy efficient and environmentally sustainable, provided the right measures are taken.

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Global warming and other impending environmental mega-problems call for a new technological paradigm. The urgency of the development and deployment of technological solutions is such that governments will need to make widespread use of ‘carrots and sticks’ to ensure that next-generation technologies are developed and deployed, more demanding standards and regulations are applied and stricter enforcement is guaranteed. To capture the main elements of this paradigm shift, we introduce the concept of Sustainability-oriented Innovation Systems (SoIS). SoIS make particularly high demands on governance, because governments need to disrupt unsustainable technological pathways and encourage alternative technologies long before they reach the stage of commercial viability. This implies picking winners in situations of technological uncertainty and highly disparate stakeholder preferences. SoIS also build on new types of policies that help to internalise environmental costs. The policy-driven nature of technological development may possibly result in a wide divergence of national technological trajectories.

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The term 'green jobs' can refer to employment in a narrowly defined set of industries providing environmental services. But it is more useful for the policy-maker to focus on the broader issue of the employment consequences of policies to correct environmental externalities such as anthropogenic climate change. Most of the literature focuses on direct employment created, with more cursory treatment of indirect and induced job creation, especially that arising from macroeconomic effects of policies. The potential adverse impacts of green growth policies on labor productivity and the costs of employment tend to be overlooked. More attention also needs to be paid in this literature to how labor markets work in different types of economies. There may be wedges between the shadow wage and the actual wage, particularly in developing countries with segmented labor markets and after adverse aggregate demand shocks, warranting a bigger and longer-lasting boost to green projects with high labor content. In these circumstances, the transition to green growth and job creation can go hand in hand.

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The montane forests of Kenya, better known as Kenya’s “Water Towers”, produce direct economic value for its citizens. This value accrues not only from the production of various timber- and non-timber forest products, but also from a range of regulating ecosystem services that provide an insurance value to several key economic sectors. There is also a secondary or indirect multiplier effect associated with the direct economic value of the Water Towers.

This report estimates these economic values, by means of best international analytical practices and environmental and economic evidence from Kenya, and shows that montane forests have consistently been undervalued in conventional national accounting. The findings underline the need for better management, increased investment in montane forests and innovative policy instruments (such as Reducing Emissions from Deforestation and forest Degradation (REDD+)).

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The need to reform water policies is as urgent as ever. Water is essential for economic growth, human health, and the environment. Yet governments around the world face significant challenges in managing their water resources effectively. The problems are multiple and complex: billions of people are still without access to safe water and adequate sanitation; competition for water is increasing among the different uses and users; and major investment is required to maintain and improve water infrastructure in OECD and non-OECD countries.   Despite progress on many fronts, governments around the world are still confronted with the need to reform their existing water policies in order to meet current objectives and future challenges. Building on the water challenges identified by the OECD Environment Outlook to 2050, this report examines three fundamental areas that need to be addressed whatever reform agendas are pursued by governments: financing of the water sector; the governance and institutional arrangements that are in place; and coherence between water policies and policies in place in other sectors of the economy.

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The concept of a green economy has become the new buzz word in sustainability discourses, particularly in light of the Rio+20 Conference. Because of the current economic crisis and the perception that sustainability politics cannot be implemented efficiently, politicians have set their hopes on greening the economy. However, there are major problems with the aims and strategies linked to this concept. Specifically, if political, economical, and cultural constraints are not considered, green economy strategies will not be successful in their goals to end environmental degradation and reducing poverty.