Can Economic Growth Be Really Green?

  • by IPS World Desk (rome/seoul)
  • Thursday, July 27, 2017
  • Inter Press Service

Sirpa Jarvenpaa. Credit: GGGI

The facts are there. For instance, in 2016, solar power became the cheapest form of energy in 58 lower income countries, including China India and Brazil. In Europe, in 2016, 86 per cent of the newly installed energy capacity was from renewable sources. And solar power will likely be the lowest-cost energy option in almost all parts of the world in less than 10 years.

This bold, fact-based information has been provided by Frank Rijsberman, the Director General of the Global Green Growth Institute (GGGI), a well-known expert in the field of sustainable development and former CEO of the Consultative Group for International Agricultural Research (CGIAR) Consortium.

Frank Rijsberman. Credit: GGGIBuilding on this documented information, Rijsberman, in an article Will fossil fuels and conventional cars be obsolete by 2030?, which was published on 23 February in The Huffington Post, asks "Is it all over for fossil fuels?"

The GGGI chief then answers: "Tony Seba, Author of "Clean Disruption of Energy and Transportation," predicts that the industrial era of centralized fossil-fuel based energy production and transportation will be all over by 2030."

Solar Energy, Self-Driving Electric Vehicles

Solar energy and self-driving electric vehicles will take over, explains Rijsberman. "New business models will allow people to call a self-driving car on their phone for a ride, ending the need for private car ownership."

This change will occur as quickly as the transition from horse-drawn carriages to cars a century ago.

"The Grantham Institute for Climate Change and the Environment at Imperial College London, and independent think-tank the Carbon Tracker Initiative echoed Seba's prediction in their recent report, stating that electric vehicles and solar panels could dominate by 2020, sparking revolution in the energy sector and putting an end to demand growth for oil and coal."

The Global Green Growth Institute invited experts to debate Seba's "clean disruption" last month at the World Economic Forum in Davos (see short summary of our conclusions here).

"We discussed what are the main impediments to a 100% clean energy infrastructure. The most immediate barriers are fossil fuel subsidies and current government legislation. The G20 countries pledged in 2009 to eliminate these subsidies, yet they continue to this day, Rijsberman informed.

"Significant volumes of investment are shifting away from fossil fuels and towards alternative energy services, particularly in countries with binding renewable energy targets such as in Europe."

The Energy Transition

According to the head of GGGI -- a treaty-based international, inter-governmental organisation dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies--the energy transition can accelerate through the removal of fossil fuel subsidies.

Globally fossil fuel subsidies still amount to some 450 billion dollars per year, warned Rijsberman.

Even African governments, with limited budgets and many competing priorities still subsidise fossil fuels to the tune of 20-25 billion dollars per year according to Dr. Frannie Laeutier of the African Development Bank, speaking in Davos, he added.

Rijsberman then underlined that the best way for governments to attract the private sector is to stand aside (i.e., remove impeding policies such as fossil fuel subsidies and enable market access) and let the market develop by itself.

"Easier said than done, of course, for countries with monopolistic power utilities, with large political influence; or for countries with heavy subsidies on electricity prices." Unsustainable Depletion of Natural Resources

The Seoul-based Global Green Growth Institute, which was established in 2012, at the Rio+20 United Nations Conference on Sustainable Development, has been accelerating the transition toward a new model of economic growth –green growth– founded on principles of social inclusivity and environmental sustainability.

In contrast to conventional development models that rely on the "unsustainable depletion and destruction of natural resources," green growth is a coordinated advancement of economic growth, environmental sustainability, poverty reduction and social inclusion driven by the sustainable development and use of global resources, according to GGGI.

Sirpa Jarvenpaa. Credit: GGGIOn this, GGGI incoming Director of Strategy, Partnerships and Communications, Sirpa Jarvenpaa, in an interview to IPS, emphasised the importance of the Institute in "supporting developing and emerging country governments in their transition to an inclusive green growth development."

"We do it through mainstreaming green growth in development and sector plans, mobilising finance to green growth investments, and improving multi-directional knowledge sharing and learning for achieving green outcomes on the ground."

Green Jobs, Clean Energy

Sirpa Jarvenpaa explains that, globally, GGGI's strategy contributes to "reduction of greenhouse gas emissions, green job creation, access to sustainable services (clean energy, sustainable waste management improved sanitation, and sustainable transport), improved air quality, access to enhanced ecosystem services, and climate change adaptation."

In Jordan, for example, GGGI is helping the government prepare a national green growth plan –an overarching and influential policy instrument enabling incorporation of green growth objectives across the national investment planning, Jarvenpaa told IPS.

There, the Institute works in partnership with the Ministry of Environment as well as the German Ministry for the Environment

This interdisciplinary, multi-stakeholder organisation believes "economic growth and environmental sustainability are not merely compatible objectives; their integration is essential for the future of humankind."

For that, it works with developing and emerging countries to design and deliver programs and services that demonstrate new pathways to pro-poor economic growth. And it provides member countries with the tools to help build institutional capacity and develop green growth policy, strengthen peer learning and knowledge sharing, and engage private investors and public donors.

The Global Green Growth Institute supports stakeholders two complementary and integrated work-streams –Green Growth Planning & Implementation and Knowledge Solutions– that deliver comprehensive products and services designed to assist in developing, financing and mainstreaming green growth in national economic development plans.

© Inter Press Service (2017) — All Rights ReservedOriginal source: Inter Press Service

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