But Overall Size of
Global Green New
Deal Investments is Half that Needed, UNEP
Report Advises as G20 Meet in Pittsburgh
Pittsburgh/Nairobi, 24 September 2009-The
Asian economies of China and the Republic
of Korea are emerging as global leaders
in their commitments to invest significant
slices of their stimulus packages in environmental,
'green new deal' projects.
A Global Green New Deal
update by the UN Environment Programme (UNEP),
launched as G20 nations meet in Pittsburgh,
Pennsylvania, shows that over a third of
China's recovery spending is being focused
on areas ranging from railways and water
infrastructure to energy efficiency and
renewables like wind and solar.
The Republic of Korea
is going even further in terms of setting
the stage towards a transition to a low
carbon, resource efficient Green Economy.
Close to 80 per cent
of its stimulus package or around $31 billion
is aimed at promoting energy efficient buildings
and water and waste management-but also
investments in areas such as renewable energy,
low emission vehicles and railways.
Other countries that
have in part seized the economic crisis
as an opportunity for a different development
path include Australia, the United States,
Japan, Germany, South Africa and France.
Yet UNEP and economists
are warning that major pitfalls remain in
terms of the overall size of the green component
of the global stimulus package. This currently
falls short of the $1000 billion or one
per cent of global GDP that is recommended
for reducing carbon dependency and seeding
the process of transition.
In addition there are
log-jams in many countries in terms of the
speed at which funds are being spent and
red-tape surrounding access to green new
deal money which is hindering the pace of
transformational change.
Achim Steiner, UN Under-Secretary
General and UNEP Executive Director, said:
"This progress report, coming some
12 months since the economic crisis emerged
and less than 80 days before the crucial
UN climate convention meeting in Copenhagen,
is both cause for optimism and cause for
concern".
"An estimated 15
per cent of the estimated $3.1 trillion-worth
of global stimulus packages are green in
nature and this is a positive development
and a sign that some governments in particular
have seen an opportunity to make their recovery
strategies part of a new and more sustainable,
longer-term development path, "he added.
"But this transition
is patchy, far from embedded and in many
cases well below the recommended one per
cent of global GDP which economists advise
is the sum that can catalyze real and sustainable,
world-wide change," said Mr Steiner.
"The G20 meeting
in Pittsburgh is a moment in time for nations
representing close to 70 per cent of the
world's population and 90 per cent of global
GDP, to re-confirm their pledges and review
their options so that the investments being
made in addressing the crises of the here
and now carry forward a double, triple and
quadruple dividend-addressing climate change,
natural resource scarcity and decent employment
possibilities for two billion people,"
he added.
The update makes a series
of recommendations to deepen green investments
and embed them in a broader transition including:-
Reducing perverse subsidies
in areas such as fossil fuels and agriculture-up
to $250 billion-worth of fossil fuel subsidies
are operating across the G20
Just three per cent
of the overall G20-announced green investments
have been spent over the first half of 2009-the
speed and pace of disbursement needs to
be stepped up in 2009 and into 2010.
Mechanisms and processes
are needed to mitigate any negative environmental
and social impacts of new spending-including
the planned investments in railways-and
to ensure that these are truly green
In order to peak C02
emissions and keep the global temperature
rise to under two degrees C, investments
in sustainable energy need to more than
double to $500 billion a year-the global
stimulus packages need to reflect that reality
Green stimulus packages
need to be 'proofed' to ensure that that
do not inadvertently undermine the competiveness
of developing country businesses and exports
Stimulus packages need
to be complemented by more comprehensive
policy reforms including greater use and
deployment of incentives such as emissions
trading and levies
Governments need to
Seal the Deal at the crucial UN climate
convention meeting in Copenhagen in December
as one significant way of turning essentially
national 'green new deals' into a global
Green Economy phenomenon
With its broad membership,
the G20 offers a chance to commit to working
closely with developing countries and provide
international financing mechanisms that
would allow these countries to strengthen
and expand their own green stimulus packages.
Highlights from the
UNEP Update
The update has looked
in detail at seven G20 countries which are
China, France, Germany, the United States,
Mexico, the Republic of Korea and South
Africa.
It also carries data
on a further six countries covering such
statistics as the total sums being spent
on green investments and how this relates
to for example their total stimulus packages,
as a percentage of GDP and green spending
per capita.
The report notes that,
according to recent HSBC figures, among
the seven countries studied in detail the
Republic of Korea's green component represents
79 per cent of its overall planned stimulus
followed by China, 34 per cent; France,
18 per cent; Germany, 13 per cent; the United
States, 12 per cent; South Africa, 11 per
cent and Mexico, 10 per cent.
Other countries with
significant green spending as a percentage
of their stimulus packages-studied in less
detail- are Australia, over 20 per cent;
the United Kingdom, 17 per cent; Canada,
eight per cent; Spain, six per cent and
Japan, six per cent.
In terms of the green
stimulus per head of population, the Republic
of Korea also emerges as a forerunner with
over $1,230 per person followed by Australia,
$420 per person; the United States, $365
per person and Japan, over $280 per person.
Analysis by HSBC indicates
that overall the G20's spending on environmental
investments is highest on rail, with $120
billion being spent, or planned to be spent,
in this sector.
Investments in rail
are followed by improvements to electricity
grids including smart grids, just over $90
billion; water and waste projects, $80 billion;
energy efficiency in buildings, just under
$70 billion; renewable energy, just under
$40 billion; areas including carbon capture
and storage, $30 billion and low carbon
or emission vehicles, $15 billion.
Notes to Editors:
The Global Green New
Deal update is available at: http://www.unep.org/pdf/G20_policy_brief_Final.pdf
The UNEP Global Green
New Deal/Green Economy initiative web site
http://www.unep.org/greeneconomy/
Nick Nuttall, UNEP Spokesperson/head of
Media
Further Resources
Global Green New Deal - G20 Update
UNEP: Green Economy Initiative
Towards a Green New Deal - Video
Green Economy Report
