ECONOMY FOR A LIVING PLANET

Panel 3

Finance Instruments for Green Economy Transition

June 8 2017Sofia Bulgaria

Julio TresierraWWF NL

“Life is much less a competitive struggle for

survival than a triumph of

cooperation and creativity”

~ Fritjof Capra

On September 25th 2015, countries adopted a set of goals to end poverty, protect the planet, and ensure prosperity

for all

To achieve this we need AN ECONOMY FOR A LIVING PLANET

Major barrier to achieve a more equitable world

NATURE CONSERVATIONECONOMIC DEVELOPMENT

SINCE 1990 (RIO) THE WORLD IS TRYING TO RECONCILE THIS DICHOTOMY

Poverty Eradication

MDG: 2000- 2015 : 8 goals .Eradicating poverty in all its forms remains one of the greatest challenges facing humanity.

• “despite many successes, millions, the poorest and most vulnerable people are being left behind.” Wu Hongbo, UN under-secretary-general for Economic and Social Affairs.

• Globally, more than 800 million people are still living on less than US$1.25 a day,• Many people – young, rural, minority women, for example – are doubly or triply

marginalized.• 2015: More than 880 million live in slum conditions.• 2000: 792 million• 1990: 689 million

SDG: 2016- 2030 : 17 goals: “environmental change is a much bigger focus”

Biodiversity loss

• Carbon dioxide emissions have risen by more than 50 percent in the past 25 years. • Overexploitation of marine fisheries is rising. • Between 1998 and 2011, the number of countries experiencing water stress

increased from 36 to 41.• Water scarcity currently affects more than 40 percent of the world population and

rising.

Deforestation

FAO• net forest loss 2010-20915: 3.3

million has.

• Australia: 1995:41 m/has. Forest/2000: 150 m/has.

• Change in the definition of “forest”: logging does not in itself result in deforestation if forest is allowed to regenerate.

• Sources: 234 Govt’s statistics

Global Forest Watch

• Loss: 18 million Has. In 2014. 10 million in the tropics.

• Source: Satellite images

The 85 richest people on Earth now have the same amount of wealth as the bottom half of the global population.”

The richest 5% of the world hold 70.6 % of the world’s wealth. The richest 1% hold 39.9 % of the world's wealth. 13,000 times more than the entire bottom 10 percent.

INEQUALITY AND EXCLUSION: IMPACT OF FINANCE CAPITALON SOCIAL CAPITAL

The persistence of extreme poverty and continued loss of biodiversity appear intimately related. Extreme poverty and biodiversity hot spots are geographically coincident, concentrated in rural areas where livelihoods depend disproportionately on natural capital embodied in forests, rangelands, soils, water, and wildlife

RICH COUNTRIES

EUUSA

EMERGING ECONOMIES

BRICS

UPPER MIDDLE INCOMEBULGARIAROMANIA

LOW INCOMENIGERDRCCAR

MARKET ECONOMY

FINANCE CAPITAL

IMPACT ONSOCIAL CAPITAL

IMPACT ON NATURALCAPITAL

CAN THE MARKET DELIVER A GREEN ECONOMY; AND EQUITABLE SOCIETY AND HEALTHY ECOSYSTEMS? WITHIN THE IRRECONCILIBLE DICHOTOMY………… “NATURE VS THE MARKET”

EU/CHINA DEAL ON CLIMATE:BLOCKED TRUMP PULLS US OUT OF PARIS ACCORD

Social Capital

Natural Capital

the world’s stocks ofnatural assets which include geology, soil, air,water and all living things

Finance capital

r > g that return on capital is generally higher than

economic growth.

Capacity to generate value Transforming nature for Subsistence or for the market

SOCIAL CAPITAL/FINANCE CAPITAL/ NATURAL CAPITAL

SOCIAL CAPITAL: CAPACITY TO GENERATE VALUE (FOR SUBSISTENCE OR FOR THE MARKET) BY APLYING HUMAN ENERGY ON NATURE.

FINANCE CAPITAL: ( r>g ) An inequality whereby RETURN ON CAPITAL IS GENERALLY HIGHER THAN ECONOMIC GROWTH. “r” includes profits, dividends, interest, rents and other income from capital. “g ”is measured in income or output.

NATURAL CAPITAL: WORLD’S STOCKS OF NATURAL ASSETS WHICH INCLUDES SOIL, WATER, AIR AND ALL LIVING THINGS.

FinanceCapital

SocialCapital

NaturalCapital

Area ofgovernance

Area of sustainability