Tue, Apr 15, 2014 -
The Green Economy Assessment Report: Kenya
Shows Positive Returns Projected within
Seven to Ten Years.
UNEP Executive Director
Achim Steiner (C) with Cabinet Secretary
of the Kenyan Ministry of Environment, Water
and Natural Resources, Prof. Judi Wakhungu
(L) and Nairobi Head of Conservancy, Kenya
Forest Service, Charity Munyasia (R) at
the launch of the Kenya Green Economy report
Nairobi, 15 April 2014
- Kenya's transition to a green economy
could produce major economic benefits -
equivalent to an estimated USD 45 billion
by 2030 - as well as greater food security,
a cleaner environment and higher productivity
of natural resources, according to a new
study launched Tuesday by the Government
of Kenya and the UN Environment Programme.
The Green Economy Assessment
Report: Kenya finds that the transition
to an inclusive, low emission, resource
efficient green economy will result in stronger
economic growth and increased wealth creation
opportunities by 2021.
Under a green economy
scenario, with an investment of two percent
of GDP, national GDP would exceed a business-as-usual
scenario by about 12 per cent, or KES 3.6
trillion (equivalent to USD 45 billion),
by 2030. Per capita national income would
nearly double from KES 39,897 (USD 498.70)
to KES 69,702 (USD 871.30). Under a business-as-usual
investment scenario and a two per cent investment,
GDP would only increase to KES 53,146 (USD
664.30) over the same period of time.
As green economy measures
mitigate the impact of climate change, the
report finds the country's aggregated Green
House Gas Emissions measured in tonnes of
carbon dioxide equivalent would be 9 per
cent lower by 2030 under a green economy
scenario with an investment of two per cent
of GDP compared to a business-as-usual scenario
and a two per cent investment.
In the agriculture sector,
the report finds that green economy investments
would increase the average agriculture yield
by about 15 per cent from its current baseline.
Agriculture accounts for approximately one
quarter of Kenya's national GDP annually
and up to 65 per cent of its exports.
Kenya is already implementing
policies and initiatives to move towards
a green economy, and this approach is recognized
in the country's long-term development blueprint
and in the government's Second Medium Term
Plan (2013-2017).
The report finds that
further green energy investments could lead
to about a two per cent reduction in energy
consumption and an expanded supply of electricity
from renewable sources compared to business-as-usual.
For example, under a green economy scenario,
renewable energy would double geothermal
capacity by 2030, compared to business-as-usual,
and other renewable energy resources would
also grow during this period, contributing
to 20 per cent of the total power supply.
To accelerate these
efforts, the report urges the government
to consider adopting targeted clean energy
solutions for households and institutions,
such as energy efficient lighting and appliances;
and, making additional investments in renewable
energy, such as geothermal, solar, wind
and biofuel energy.
While Kenya's manufacturing
sector has continued to contribute about
10 per cent to the country's GDP for over
many years, it is still one of the largest
in Sub-Sahara Africa and considered a key
pillar for the country's future growth.
However, the report finds that to green
this sector, more public policies are needed
to encourage and incentivize investment
in resource-efficient and clean production
processes, recycling and eco-labelling,
among other transformative strategies.
The country's transport
sector is also critical to its green economy
goals. This sector is expected to triple
between 2010 and 2030, and vehicles on the
road have already doubled during the last
decade. To better regulate this sector and
reduce emission of harmful gaseous pollutants,
the report suggests that the government
needs to create incentives to lower the
age of its passenger and freight fleet,
as well as promote more mass transit and
non-motorized transport.
UNEP supported a consortium
of Kenyan institutions that formed the "Inter-Ministerial
Committee on green economy" to lead
the green economy in the country. The Committee
comprised members from various government
ministries and the private sector organizations.
The report, which examines
the economy-wide impacts of green investments
under different scenarios, reveals that
positive returns could be realized within
seven to ten years.
It confirms that an
overall green economy, resources efficiency
and recycling policy framework is fundamental
to underpin the success of these sector
initiatives. Several areas where further
government action is needed are identified,
from improving regulatory compliance and
developing national standards, resources
efficiency and resource productivity targets
; to securing financial resources and introducing
fiscal instruments like tax rebates on environment
friendly technologies and innovations
Quotes:
Cabinet Secretary of
the Kenyan Ministry of Environment, Water
and Natural Resources, Judi Wakhungu, said:
"Green Economy driven by resource efficiency
is the basis for sustainable development
and poverty eradication. A green economy
revolution is already taking place in Kenya,
where the harvesting of geothermal energy
from the East African Rift is just one of
the many renewable energy projects underway
across the country. By learning to more
accurately value our own natural resources,
Kenya will be able to better harness these
strategies as it moves towards a holistic,
inclusive green economy in the future."
UN Under-Secretary-General
and UNEP Executive Director Achim Steiner
said:
"The next wave of investment and innovation
in Kenya will be driven by the need for
new energy sources, wealth generation and
job creation. Kenya is already demonstrating
leadership by pioneering green economy approaches
in the energy, urban and natural resources
sectors as a vehicle to deliver its national
development goals. This report confirms
that the country can achieve even greater
prosperity and well-being by scaling up
its green investments in key sectors, while
also factoring the conservation and efficient
use of its natural capital into future decisions
related to infrastructure, investment in
the development of the energy, transport,
agriculture and industry sectors."
Notes to editors:
Green Economy Assessment
Report: Kenya was produced jointly by UNEP
and the Ministry of Environment, Water and
Natural Resources of the Republic of Kenya.
The study was conducted by the Kenya Institute
for Public Policy Research and Analysis
(KIPPRA) with support of the US-based Millennium
Institute and input from the International
Institute for Sustainable Development (IISD).
This study used a dynamic simulation tool
called Threshold (T21), which allows insight
into the potential impacts of different
investments on key sectors.
UNEP is grateful for
the financial support provided by the European
Commission and the Government of the Netherlands.
Stakeholder consultations organized for
communities in the coastal region were funded
by WWF.
