This paper explores the relative average GHG intensity of production of selected goods in different world regions and the potential for regions to access low-GHG fuels and feedstocks needed to expand low-GHG production. While a complete analysis of shifting trade patterns would assess the economic implications, including the scale effect, the authors present a simplified approach which allows them to gauge what conditions might enable countries to be future low-GHG producers.
They begin by looking at the emissions embodied in trade (Section 2), based on a multiregional input-output model, to help identify significant trade flows for further analysis. Section 3 then examines differences in GHG-intensity among regions for some of the categories identified, while Section 4 asks whether and how shifting the location of steel production could reduce global GHGs. Section 5 assesses a range of national and international policies that could be used to shift trade patterns. Section 6 summarizes the results and identifies areas for further research.
The G20 Development Working Group (DWG) has tasked an informal group of co-facilitators with developing a Dialogue Platform on Inclusive Green Investment (G20 DPGI) to promote the increase of private investment related to green growth and climate-related activities in developing countries, with a specific focus on lower middle income countries. The G20 DPGI will hone in on stocktaking and lessons learned from existing initiatives, as well as an extensive literature review, with the aim to better identify the barriers to private investment and the mechanisms that have been successfully used to overcome these. Drawing on these ideas, the G20 DPGI may also wish to explore new initiatives to attract world-scale institutional funds that could finance large investments. To be successful the dialogue platform should advance mutual understanding between publicly funded, donor programs and the diverse range of potential private investors, in order to better design financing instruments that efficiently use public funds to best mobilize and leverage private funds.
The notion of green economies seems to have gained momentum in both developed and developing countries. For South Africa, the transition to a green economy presents a mix of challenges and opportunities. This stems from the fact that South Africa faces myriad socio-economic realities that force the country to maintain a generation of industries that contribute directly to the production of greenhouse gases in order to reduce unemployment, poverty and inequality. This paper provides an overview of South Africa’s attempts to migrate to a green economy. It specifically looks at the domestic and continental implications of South Africa’s reorientation of its economy towards a low-carbon growth path. While the country has managed to put together impressive policies meant to steer it onto a trajectory of low carbon economic growth, the realities facing South Africa point to an opposite direction.
In June 2012, the Green Infrastructure Finance Framework Report was published to address the constraints in financing green infrastructure and to develop a new approach to accelerate investments in low-emission technologies. The approach includes a financing and advisory interface, which clarifies the principles and concepts of the shared financing roles recommended by the methodology. The Framework attempts to bring clean investments towards a more familiar financing environment and to distance them from the charged political debate that has adversely affected the progress in international climate change discussions for over a decade. The detrimental effect of climate change is growing, yet clean investments are still grossly insufficient making it necessary to rethink the approach to greening the global energy mix. The need for some level of concessional financing or outright subsidy support is widely understood but the approach must be equitable, non-political and deliver a sufficient level of support.
In order to achieve long-term sustainable growth, countries in Sub-Saharan Africa need to adapt their economies and growth models taking 'Green Growth' or 'Green Economy' concepts into account. Only in a scenario, where economic growth and the conservation and sustainable management of natural resources are equally taken into consideration, poverty can be reduced in a sustainable way. On behalf of the German Federal Ministry of Economic Cooperation and Development (BMZ), GIZ supports partner countries in the transition towards a Green Economy, helping them to use upcoming opportunities, manage political risks throughout the transformation process, and tap into new markets and products based on a green economy.