BMU Brochure- Green Economy- June 2012

7/27/2019 BMU Brochure- Green Economy- June 2012

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Green Economy20 Jahre nach dem Erdgipfel Rio 1992: neuer Schwung fr Nachhaltigkeit

Green EconomyNew Impetus for Sustainability


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IRIN

Published by: Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)Division ZG III 2 11055 Berlin GermanyEmail: [email protected] Website: www.bmu.de/english

Edited by: Peter Franz, Dr. Florian Kammerer, Divisions ZG III 2, KI I 1, KI II 4, WA II 1, WA III 1

Design: design_idee, bro_fr_gestaltung, ErfurtPrinted by: Silber Druck oHG, Niestetal

Photo credits: Cover: Ralph Kerpa/Alimdi.netDate: Juni 2012First Print: 1,000 copies


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Green EconomyNew Impetus for Sustainability

20 years after the 1992 Rio Summit: new impetus for sustainability

Concentrating societys resources via the green economy concept

Using the opportunities for environmentally compatible growth

The framework for a green economy

Areas for action: Setting a course towards a green economy

0406

08

09

10


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20 years after Rio 1992, the Earth Summit in Brazil, the United Nations is

again holding a conference in Rio de Janeiro on sustainable development

(Rio +20), in order to secure renewed political commitment to that guiding

principle. While much has been achieved in this area since 1992, global en-

vironmental problems have been intensifying, creating enormous challenges.

And while the term sustainability has become widely accepted, many of

the objectives linked with that concept have not been achieved, and new

challenges have arisen. Green economy in the context of sustainable devel-

opment and poverty eradication, one of the global summits focus themes,

involves finding ways of achieving the objectives of sustainable development.

Population growth, scarcities of water and natural resources and climate

change all entail economic, social and ecological impacts and risks foreconomic and social development, now and in the years to come. For this

reason, an international discussion regarding suitable new guiding prin-

ciples for addressing these issues has begun. The debate about a green

economy is a response to the ecological and social impacts of prevailing

economic structures and methods, which do not take adequate account of

environmental damage and risks and their social consequences. At the same

time, the discussion is highlighting the economic opportunities inherent

in a green economy. The green economy concept recognizes the naturalfoundations of life as the basis and limits for all economic activity for both

industrialised countries and developing/emerging countries.

4

20 years after the 1992 Rio Summit:

new impetus for sustainability


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Source: World Economic Forums Global Risks Survey 2011

Worldwide risks

1.000

500

250

100

50

Fiscal crises

Global governance failuresGlobal imbalancesvolatility

Weapon of massdestruction

Chronic diseases

Regulatory failures

Food security

Air pollution

Migration

Economic Risks

Enviromental Risks

Societal Risks

Geopolitical Risks

Technological Risk

Higher perceived likelihood

Higher perceived impact

unlikely likely

Perceived likelihood to occur in the next ten years

Perceivedimpactin

BillionUS$

very likely

Earthquakes andvolcanic eruptions

Extreme commod-

ity price volatility

Infrastructure fragility

Threat from newtechnology

Illicid trade

Terrorism

Online data andinformation security

Extreme consumerprice volatility

Ocean governance

Space security

Critical informationinfrastrucure breakdown

Slowing Chinese Economy

Retrenchmentfrom globalization

Fragilestates

Organ-izedcrime

Liquidity/credit chrunch

Asset price collapse

Water security

Demographic challenges

Corruption

Flooding

Storms andcyclones

Biodiversity loss

Geopolitical conflict Climate change

Economic disparity

Infectiousdiseases

1,000

Extreme energyprice volatility


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We see the green economy as a concept for linking environmental and

economic aims in positive ways, in order to increase social prosperity and

well-being. Via such links, economic growth becomes environmentally com-

patible. At the same time, as we move towards a green economy, we have to

consider the social aspects and consequences of such change, along with the

ways such change relates to other policy areas, such as education, research

and development co-operation.

Concentrating societys resources viathe green economy concept

Key efforts in achieving a green economy

Source: Federal Ministry for the Environment, Nature Conservation and Nuclear Safety

Key efforts inachieving a

green economyinclude

Conservingand restoring

biological diversityand ecosystems

Achievingan energy systemthat is based on

renewable energysources

Preventingharmful emissions

and pollutantdischarges

Replacingnon-renewableresources by

sustainably producedrenewableresources

Reduction,recycling and

environmentally sounddisposal of waste, andclosing substance

cycles

More efcient useof energy, raw materials

and other naturalresources

Reducing the use ofnon-renewable

resources


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The transition to a green economy will affect all areas of the economy. This

means it will necessitate developing the potential of future markets andorienting existing economic sectors to ecological megatrends, in order to

strengthen them economically and enhance their competitiveness.

That process, in turn, will call for entrepreneurs who have the courage to

both seize the relevant economic opportunities and assume social respon-

sibility, by developing sustainable entrepreneurial strategies and business

models that can combine business success with positive contributions to the

sustainable development of the entire society.

Green techs share of the global market volume in selected industries(in EUR billion) in 2010

1,930 1,930

42 %~1,500

20 %

~1,600

2 %

~2,600

6 %

~2,650

12 %

Green

technology

Electrical

engineering

Chemicals Automotive

engineering

Mechanical

engineering

Environmental

technology

Source: GreenTech made in Germany 3.0. Environmental Technology Atlas for Germany


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The experience of the financial and economic crisis has shown that growth

needs to be oriented to sustainability. Environmental technologies and in-

novation are important economic drivers in such orientation. The emerging

green markets include environmentally friendly energy generation, energy

efficiency, resource/material efficiency, sustainable mobility, sustainable

water management and sustainable waste and closed cycle management.

Both globally and in Germany, such markets have already become important

economic factors. In 2011, the global market for environmental technology

and resource efficiency had a volume of 2,044 billion euros. Worldwide, the

six lead markets for environmental technology are forecast to grow to a total

volume of 4,400 billion euros by 2025. That figure translates into average

annual growth of 6.5 percent.

Using the opportunities for environmentallycompatible growth

Growth forecast for the global green tech and resource efciencymarket in 2011, 2015 and 2025 (EUR bn, average annual change20112025 in percent)

Source: GreenTech made in Germany 3.0. Environmental Technology Atlas for Germany

2011 2015 2025

4,403

2,625

2,044 Germanys market share

Germany

Rest of World

~ 15 % ~ 15 % ~ 15 %

5.6 %

1,744 2,237 3,729

674

389

300


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Germany has already moved to modernise its economy and society in keep-

ing with ecological criteria: Between 1990 and 2010, its energy productivity

grew by 38.6 percent, while its resource productivity grew by a total of 46.8

percent. It has also made good progress in controlling air pollution: Dur-

ing the same period, emissions were reduced by 56.4 percent, with respect

to their corresponding levels in 1990. In addition, Germany now recycles

some 90 percent of all construction waste and 63 percent of municipal and

production waste.

Areas for action: Setting a course towards agreen economy

its successes in the area of social security are all conducive to developmenttowards a green economy and, thus, to the sustainable development of the

economy and of society. However, in addition to a social framework an eco-

nomic model must also include sound ecological guardrails for the economy

and society. And in this regard the social market economy also provides

an outstanding basis for the transition to a green economy. On a basis of

ambitious environmental policies, interacting with an innovative, efficient

economy and a good position in the market for environmental and efficiency

technologies, Germany has already made progress in many areas towards

a green economy. For example, production of products for environmental

protection has continued to grow disproportionately in Germany over the

past few years. Germany now accounts for a large share of global trade in

products for environmental protection. This success has made itself apparent

in the labour market: According to recent figures, the environmental protec-

tion sector now has nearly 2 million employees.

Internationally in particular, the transition to a green economy can contribute

significantly to poverty eradication, by generating income and jobs and bypreventing creation of poverty for example, by preventing environmentally

related health damage, soil erosion and overfishing. At the same time, efforts

to solve social problems will require additional measures, beyond the scope of

the green economy, in areas such as social and education policy. The transi-

tion to a green economy will succeed only if all social forces get behind it.


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With the transformation of its energy system, its Closed Cycle ManagementAct and its Resource Efficiency Programme, the Federal Government has taken

key measures towards a green economy. With the national projects described

below, Germany is seeking to send out the message that it is possible to com-

bine growth, resource conservation, technological innovation and sustainability:

Achieving an energy supply system that is at once reliable, affordable and environmen-

tally compatible is one of the great challenges of the 21st century. To bring about such

an energy system, the Federal Government has adopted an energy concept that calls

especially for vigorous expansion of renewable energy sources and sharp increases in

energy efficiency.

The concept is aimed at making the German economy a) one of the most energy-efficient

and environmentally friendly economies worldwide and b) an economy with competitive

energy prices and a high standard of living. Security and economic viability of energysupply, and effective policies for protecting the climate and the environment, will play a

central role in ensuring that Germany remains competitive in the long term as a centre for

industry. We want to strengthen competition and market-economic orientation in energy

markets. In doing so, we will be safeguarding lasting economic prosperity, good jobs, in-

novation and ongoing modernisation in our country. We stand at the beginning of a gradual

transformation of our energy supply system.

Significantly, the fundamental transformation of our energy system will create opportun-ities for future generations. Our country is a pioneer on the road to the energy system of

the future. We can become the worlds first major industrialised country to achieve a highly

efficient, renewable energy system. This will require the entire energy sector to make

investments worth billions of euros. Such investments, however, will generate technological

and economic opportunities for Germany and safeguard Germanys competitiveness as an

economic centre and as an exporting country. The political sector is charged with further

improving the framework for innovation and investments, and with eliminating pertinent bar-

riers, to ensure that the necessary long-term investments are made in time. The fundamental

transformation of the energy system will succeed only with the broadest possible publicsupport for the transformation and for the requirements it will impose on us all.

Ushering in the era of renewable energy sources and energy efficiency


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With its new Closed Cycle Management Act, Germany has taken another major step to-

wards true closed cycle management. In such a system, waste is a resource, and economic

and ecological interests go hand-in-hand. Efficient use of ever-scarcer resources and

energy sources plays a key role in the global competition between national economies.

Modern closed cycle management, with extremely stringent requirements pertaining to

recycling, intelligent methods for recovery of valuable raw materials and energy sources

and environmentally compatible waste-disposal technologies, has already become a reality

in Germany.

The new act combines the objectives of reliability, resource efficiency, legal certainty and

close interaction with citizens. True closed cycle management, with high recycling rates,

can be achieved when citizens, municipalities and private-sector waste-management

companies all accept joint responsibility for achieving it. The key aspects of such respon-

sibility include application of the polluter-pays principle, internalisation of ecological and

social costs, stringent legal requirements and proper enforcement of such requirements.In accepting such responsibility, we prevent waste on an ongoing basis, meet stringent

recycling requirements and use resources more efficiently and carefully.

Moving towards true closed cycle management


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Resource efficiency reduces environmental burdens, strengthens global competitiveness

and creates new high-quality jobs. Germany wishes to take a leading role in the necessary

global transition towards resource-efficient economies. We want to show how, in a highly

developed industrialised country, resource efficiency can be enhanced, without any cost to

prosperity, and overall consumption of raw materials can be reduced.

That is why Germany has adopted its Resource Efficiency Programme (ProgRess). The

aim of the programme is to make extraction and use of natural resources more sustain-

able and to reduce the pertinent environmental burdens to the greatest possible degree.

Resource-efficiency policies will help us accept our global responsibility for the ecological

and social consequences of resource use. ProgRess describes new approaches, measures

and examples for enhancing resource efficiency. In the process, it takes account of the

entire value chain: It is aimed at safeguarding a sustainable supply of raw materials,

enhancing resource efficiency in production, making consumption more resource-efficient,expanding resource-efficient closed cycle management and making use of cross-sectoral

instruments. To achieve those aims, it relies on market incentives, information provision,

advising, education, research and innovation, and it seeks to strengthen relevant voluntary

measures and initiatives on the part of industry and society. Examples of such measures

include expansion of efficiency advising for small and medium-sized companies; support

for environmental management systems; intensified orientation of public procurement to

use of resource-efficient products and services; support for voluntary product labelling

and certification systems; expansion of closed cycle systems; and intensification of tech-nology/knowledge transfers to developing and emerging countries.

Reducing environmental burdens and increasing competitiveness via resourceefficiency


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Many current environmental problems, such as climate change, losses of biological diver-

sity and ecosystem services, desertification and pollutant inputs via global distribution of

persistent toxins, are interregional or global. They can be solved only via a combination of

national efforts and international co-operation. Although many countries see and accept

the need for change, global emissions continue to rise, especially but not only in devel-

oping and emerging countries.

Increasingly, the green economy concept is being seen as a central part of global

sustainability policies. For developing and emerging countries in particular, this insight

presents the opportunity to leapfrog over the phase of emissions-/resource-intensive

industrialisation and to achieve prosperity for broad segments of their populations via

significantly more environmentally compatible approaches. Such an approach is indispens-

able if the ambitious international objectives for climate/environmental protection are to

be achieved.

Furthering the green economy concept worldwide will call for a wide range of measures, at

the bilateral and multilateral levels, in all relevant sectors. With its social market economy,

Germany accepts international responsibility


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which includes a regulatory framework oriented to environmental policy, and with its

experience in developing and introducing environmental standards and environmental

policy objectives, Germany can play an important role in relevant bilateral and multilat-

eral activities. Germany already has a range of close environmental partnerships, with

co-operative relationships and with networks that can be expanded and strengthened.

It maintains such partnerships in the expectation that good bilateral relationships,

with strategically relevant partner countries, can support success at the multilateral

level. Germany is in the favourable situation of having ambitious, tested environmental

concepts/standards and cutting-edge environmental technologies. Consequently, efforts

need to be made to involve the German environmental technology sector in relevant

activities.

The Rio+20 conference is a central milestone at the multilateral level. Germany is sup-

porting efforts to adopt, at the conference, a UN Green Economy Roadmap that provides

for country-specific advising services, via the UN system, in support of the transform-

ation towards a green economy. Reform of the United Nations environmental governance

institutions is expected to provide an effective UN structure alongside existing bilateralinstruments for supporting transformation towards a global green economy.


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This publication is part of the public relations work of the Federal Ministry for theEnvironment, Nature Conservation and Nuclear Safety. It is distributed free ofcharge and is not intended for sale. Printed on recycled paper.

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BMU Brochure- Green Economy- June 2012

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