Ivan Bondarenko, me110 group, KNEU
What is green economy?
A green economy is an economy that aims at reducing environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment. It is closely related with ecological economics, but has a more politically applied focus.
The 2011 UNEP Green Economy Report argues “that to be green, an economy must not only be efficient, but also fair. Fairness implies recognizing global and country level equity dimensions, particularly in assuring a Just Transition to an economy that is low-carbon, resource efficient, and socially inclusive.”
A feature distinguishing it from prior economic regimes is the direct valuation of natural capital and ecological services as having economic value (see The Economics of Ecosystems and Biodiversity and Bank of Natural Capital) and a full cost accounting regime in which costs externalized onto society via ecosystems are reliably traced back to, and accounted for as liabilities of, the entity that does the harm or neglects an asset. Green Sticker and ecolabel practices have emerged as consumer facing indicators of friendliness to the environment and sustainable development.
Many industries are starting to adopt these standards as a way to promote their greening practices in a globalizing economy. Also known as sustainability standards, these standards are special rules that guarantee the products you buy don’t hurt the environment and the people that make them.
The term “green economy” was first introduced in a pioneering report in Hungary in 1989. A group of leading environmental economists called the “Green Economy Plan” The report was commissioned to advise the UK government on a consensual definition of “sustainable development” and the progress and evaluation of projects and policies.
Apart from the title of the report, there are no further references to the green economy, and also, this term was used as an additional opinion of the authors. In 1991 and 1994, the authors published a continuation of the first report entitled “Concept 2: Greening the World Economy” and “Concept 3: Measuring Sustainable Development”.
Although the theme of the first report was that the economy could come to the aid of environmental policy, the message continued to spread about the problems of the world economy – climate change, ozone management, rainforest use and resource loss in developing countries.
All reports are based on decades of research and practice in the field of environmental economics.
In 2008, the term was introduced in the context of discussions on the implementation of policies to clean up global crises. In the context of the financial crisis and concerns about the global recession, UNEP has advocated for “green stimulus packages” and identified specific areas where large-scale public investment can launch a “green economy”. This has inspired several governments to introduce significant packages of “green stimulus” as part of their efforts to rebuild the economy.
In October 2008, UNEP launched its Green Economy Initiative to provide analysis and political support for investment in green sectors and the greening of environmentally unfavorable sectors. As part of this Initiative, UNEP commissioned one of the original authors of the Environmental Economics Plan to prepare a report entitled The Global Green New Deal (GGND), which was published in April 2009 and proposed to consolidate policies that stimulate economic activity. recovery and at the same time improve the resilience of the world economy.
GGND called on governments to allocate a significant share of incentive funding to the green sectors and identified three goals: economic recovery; poverty eradication; and reduction of carbon emissions and ecosystem degradation; and proposed a framework for a green stimulus program, as well as support for domestic and international policies.
In June 2009, the previous UN Climate Conference in Copenhagen, the UN adopted a statement supporting the green economy as a transformation to address the crisis. The statement includes the idea that economic recovery will be a turning point for an ambitious and effective international response to the content of the crises facing humanity based on the global green economy.
In February 2010, the ministers and heads of delegations of the UNEP Global Environment Ministers’ Forum in Nusa Dua identified in their declaration that the concept of a green economy “can significantly address current challenges and provide economic development opportunities and diverse visas for all countries”. He also acknowledged the leading role of UNEP in further defining and promoting the concepts and challenges. UNEP is contributing to this work through the preparatory process for the 2012 UN Conference on Sustainable Development.
In March 2010, the General Assembly agreed that the green economy would be one of the two specific themes for Rio + 20 in the context of sustainable development and liquidation. This has led to a great deal of international attention to the green economy and related concepts, as well as to the publication of numerous recent reports and other literature aimed at further defining and demystifying the concepts.
One of the key reports was the flagship Report on the Green Economy, published by UNEP in November 2011 as part of the Green Economy Initiative. UNEP has worked with think tanks and businesses to give credence to its economic analysis. Importantly, the report also contains a working definition of “green economy”, which has since been cited in many other publications. A series of other publications by UNEP, UNCTAD, UNDESA and the UNCSD Secretariat have sought to elaborate on the concept and individual guidelines, benefits, risks and international experience.
In December 2011, the United Nations Environment Group (a system-wide coordinating body with more than 40 specialized agencies, programs and UN bodies) also disseminated a system-wide view of the green economy – Working towards a balanced and inclusive green economy – which defines and enhances the green economy. and others related to these terms.
This report adopts the definition set out by UNEP in the 2011 report on the green economy. In recent years, a number of non-proprietary organizations and partnerships have also developed with the aim of abolishing the green economy as a concept and conducting research, analysis and a well-agreed definition of the green economy, and recent publications have identified at least eight separate definitions.
For example, UNEP has defined the green economy as “an economic one that improves human well-being and social justice, while significantly reducing environmental risks and environmental deprivation. It is low-carbon, resource-saving and socially inclusive.”
This definition has been cited in a number of recent reports, including UNEMG and the OECD.
Another definition of the green economy, proposed by the Green Economy Coalition (a group of NGOs, trade unions and others working at the grassroots green economy), succinctly defines the green economy as “a sustainable economy that provides a better quality of life for the world’s ecological boundaries.”
Prospects of green economy in Ukraine
Ukraine remains one of the new energy countries in Europe. In 2010, the energy capacity of the Ukrainian economy was 0.47 toe, while the average for OECD countries is 0.15 toe. In Ukraine, fossil visions remain the main sources of energy that pollute the air the most.
The transition to a “green economy” involves complex changes in all sectors of the economy. The primary sector, which includes agriculture, fisheries, forestry and mining, needs major radical changes, and it is here that products are created to meet the basic needs of mankind. Agriculture is refocused on the production of organic products (without the use of chemical additives).
In 2011, the Federation of the Organic Movement of Ukraine counted 120 farms that produce organic products. Their total area exceeds 270 thousand hectares or 0.7% of agricultural land.
According to this indicator, Ukraine is among the top twenty countries in the world. But 90% of domestic organic products are exported: sales of products at the national level markets have low profitability – 70%, while sales in Europe – 200%.
Greening of agriculture involves not only the production of organic products, but also the cultivation of energy crops and their use for energy purposes. In addition, the reorientation of the agro-industrial complex the direction of the “green economy” will reduce rising unemployment in rural areas, switch to environmentally friendly biofuels, achieve independence from traditional sources energy and reduce installation costs.
The secondary sector of the economy, which includes industry and construction, needs the most rational use of energy resources. In the context of the transition to a “green economy”, the industry of the countries needs deep technological modernization, but production. Power is the basis for the creation of machinery, equipment and facilities that allows you to clean production and use
limited resources. In addition, the “greening” of the economy offers to intensify the waste processing industry. Today, waste, on the one hand, poses undesirable threats to the environment, and on the other – can be used to increase the competitiveness of production, by reducing the cost of raw materials and their reuse.
The role of the “green economy” in the industries of Ukraine requires further in-depth research, the developed development of countries at the present stage form the policy of the neo-industrial type. Improving energy efficiency in construction is one of the promising areas to promote energy conservation, reduce emissions and create new jobs.
In addition to the direct effect, “greening” of the construction industry causes a number of related effects: improving the comfort of housing, extending the service life of buildings, increasing employment in related industries, reducing the consumption of imported resources and more.
The tertiary sector is the link between the primary and secondary sectors, which ensures the implementation of the concept of “green economy”. Such a sector is like a system of industries and activities that are related to the provision of services to both individuals and businesses.
This area includes the implementation of comprehensive research and development, the creation of business plans and programs, the development of energy efficient technologies that can provide quality progress in the direction of landscaping of the primary and secondary sectors.
Creating eco-innovation will improve production processes efficiently to organize business at the expense of economy of resources, and also to improve commercialization and introduction of pure technologies. A well-designed regulatory system can define rights and create incentives to boost the transition to a green economy, as well as remove barriers to green investment.
“Green investment” is an important tool for sustainable economic development of any country. After all, their absence can deepen the difficult environmental situation in the country.
Despite the gradual increase of the environmental tax for pollution environment, financial motivation of polluters to reduce emissions is insufficient. It is more profitable for heat generation companies to pay taxes than to invest in environmental protection measures. Ukraine urgently needs to implement a national system for accounting for greenhouse gas emissions and removals.
The priority areas for the development of the “green investment” instrument are the following:
– detailing of the accounting system to the level of individual stationary sources of emissions;
– formation of a system of accounting for greenhouse gas emissions in transport based on data on consumption of motor fuels and types transport and applied technologies;
– direct observation using geoinformation and satellite technologies on emissions and removals in rural and forestry;
– taking into account the regular accounting system
monitoring based on direct measurements of greenhouse gas concentrations and inspection schemes the results obtained. These areas are priority and relate mainly to the national accounting system greenhouse gas emissions and removals, but
gaps in this area hinder development of “green investments” in Ukraine.
In general, the introduction of “green investment” will improve the environmental situation in country, accelerate the greening of production, to ensure the rational use of natural resources.
The analysis of ways of landscaping of three main sectors of the economy confirms the need to develop a comprehensive state strategy for the transition to a “green economy”. Today in Ukraine only some aspects of it are being developed. The most complex document, which instructs on balancing to abolish the system of nature management and integrate the provisions of certain regulations and target programs, is the “Basic principles (strategy) of state environmental policy of Ukraine until 2020.” The main principles provide for the achievement of the following strategic prices:
– raising the level of public environmental consciousness;
– improving the environmental situation and increasing the level of environmental safety;
– achieving safe health human state of the environment;
– integration of environmental policy and improvement of integrated environmental systems management;
– attribution of loss of biological and landscape diversity and formation of ecological network;
– ensuring environmentally balanced nature management;
– improvement of regional ecological policy.
The development and approval of this strategy by the European Commission testify to significant positive changes in the country in the direction of “greening” the economy.
The priority program of Ukraine’s development in the field of “green economy” is the program “Eastern Partnership GREEN”. “Greening the economy in the Eastern Partnership countries” is a large regional program that implements
The United Nations Economic Commission for Europe (UNECE), OECD, UNEP and UNIDO and which aims to assist the six countries of the European Union’s Eastern Partnership (EaP): Armenia, Azerbaijan, Belarus, Georgia, the Republic of Moldova and Ukraine – to move to ” green “economy”.
The program funded by the European Commission, four implementing organizations and other donors. The purpose of the program is the transition of the Eastern countries partnership (JV) on a “green” model of business development and business through the delimitation of economic growth and environmental degradation and depletion of resources, especially:
– integration of sustainable consumption and production (CER) into national development plans, legislation and regulatory framework in the implementation of a reliable legal framework for the development of policies for “green” increase in accordance with the approaches of the European Union;
– facilitating access to new markets, in particular to the EU market;
– strengthening professional and institutional capacity of state bodies in the field of development and green growth policy;
– poverty reduction and creation new jobs.
The “green” economy is formed on alternative sources of energy and fuel, technologies of environmentally friendly production, clean technologies in agriculture, “green building”, as well as a program of purification of air, water and increase from pollution, recycling and use of waste, etc.
Many scientists are researching this topic, developing new concepts. It is the “green economy” that can become the source of Ukraine’s development. Thus, the prospects for creating a green economy in Ukraine are necessary and quite achievable.