This essay discusses some current proposals for improving global environmental governance and suggests that the debate be shifted to the emerging paradigm of how to organize to achieve a green economy.
The rhetorical zeal for green enterprise as a global fix for the tripartite challenges of economic recession, environmental degradation and social inequality is increasingly visible in state and non-state pronouncements around the globe under the banner of ‘The Green Economy’. In particular, many policy-facing statements call for transitions leading to a transformation in development practices. Yet there is little detail either in policy or research regarding the types of transitions needed and how they are to be initiated, nor agreement about what a transformed economy might look like. Despite this, there are emergent activities within the cleantech arena which are being heralded as actually existing examples of green economy activities. One means through which these activities are seeking to exert influence over development trajectories is by clustering both at the subnational and transnational level. While diverse in formation, many of these clusters are hybridised, involving actors from public, private and civil society sectors.
One main theme in the Rio+20 Conference was how to facilitate the growth of green industries. How can politicians more specifically promote renewable green industries such as wind turbines or solar energy? How can we get prices right in the market? Prices can be adjusted by the use of economic instruments such as taxes and subsidies. In this way, renewable energy sources and green industries become more competitive, thus enhancing the transition from brown to green economy. Not only can these economic incentives accelerate the so-called switch point in time from fossil fuel–based energy sources to those not based on fossil fuel, they also encourage innovation. An illustrative example of this logic in practice is the case of Danish wind energy production.
Green growth involves transforming production and consumption processes in order to maintain or restore the regulatory functions of the planet's natural capital. It requires that environmental factors be treated as an essential factor of production and not merely an externality. In practice, this transition depends on advances being made in four areas: widening the concept of efficiency; energy transitions; inclusion of the value of natural capital in economic life; and a revision of the scale of risks within the financial system whose innovations for allocating resources at low cost to green growth would be greatly facilitated by effective pricing of environmental pollution.
This report examines the diverse realities of Small Island Developing States (SIDS) through an integrated approach. While SIDS have bountiful supplies of renewable resources and unique cultural assets, they often face daunting challenges resulting from isolation and remoteness coupled with climate change, natural disasters, and out-migration. Furthermore, global financial shocks and increasing fuel and food prices are threatening core economic sectors such as tourism.
Built on combinations of realistic outlooks, this report develops an ensemble of four island-centric futures: the blue-green economy; technology leapfrogging; priority to island community and culture; and reconnecting with nature, to help individual states consider policy choices that best respond to their needs. This report shows that there is much that SIDS can do proactively to anticipate environmental problems and their economic consequences or even avoid them through innovative planning and action.