in a Changing Arab World Green Economy in a Changing Arab World

21/07/2011
Green Economy
in
in a Changing Arab World a Changing Arab World
Najib Saab – Secretary General ‐ AFED
• Corporate‐AFED partnership to re‐think strategy, re‐align priorities, and re‐define value‐creation for businesses
• CER mission is to provide roadmap for navigating a transition to green enterprises
• Motivation:
– Business is a powerful and networked institution in society
– Business can change the rules and has capability to play a long game
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• Green finance workshops
Sustainability reporting workshops
• Sustainability reporting workshops
• Arab Water Efficiency Roadshow – workshops and on‐site water audits
• Energy efficiency workshops – Environmental Housekeeping Handbook
• CER‐green economy workshops held in 7 Arab cities CER green economy workshops held in 7 Arab cities
in 2009, in collaboration with UNEP
• AFED CER Summit / Abu Dhabi Declaration 120 corporations pledge 20% reduction in water & energy consumption
Navigating a Transition to an Arab Green Economy
KUWAIT
BEIRUT
AMMAN
DUBAI
DAMMAM
MANAMA
ABU DHABI
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• Companies focused on social philanthropy, while ignoring environmental performance
while ignoring environmental performance
• Lack of market signals, environmental liability risks, and regulatory pressures
• CER not perceived as priority for business strategy
• Lack of awareness
• Lack of capacity
DRIVERS
Demographic transitions
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Economic vulnerability
Degradation to air, water, and land
Water and food security threats
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Physical infrastructure inadequate
Outdated and inefficient technologies
• Inadequate policies and/or regulations
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Drivers:
• Population growth: 150M (1980) ‐> 317M (07) ‐> 395M (2015)
• Increased urbanization: overcrowded and unhealthy living Increased urbanization: overcrowded and unhealthy living
conditions (38% urban in 1970, reaching 55% in 2005)
• Youth: 60% is under 25 years old
• Demands for housing, education, health care, transportation systems, food, and other services
• More significantly, demands for decent employment may go unfulfilled
Can strained Arab economies deliver?
Drivers:
• High unemployment: average rate 15%
• Youth unemployment rate
up to 45% is double that in the world at large
world at large
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Drivers:
• Low‐value, undiversified economies:
¾Capital intensive, low employment rates
¾Capital
intensive low employment rates
¾Extraction (e.g. oil, natural gas, gold, iron, phosphates)
¾Commodity products (e.g. fertilizers, cement, aluminum)
¾Vulnerable to global price volatilities
¾Distorted prices for local water and electricity consumption
¾Inefficient economies: highest CO2 emissions per GDP
¾Inefficient economies: highest CO2 emissions per GDP (2008) in the world
¾Some Arab countries have highest CO2 emissions per capita in the world
Drivers:
• Cost of environmental degradation is 5% of GDP on average for region
average for region
• Environmental problems related to water costs 0.5‐
2.5% of GDP every year
• Air pollution health costs from transport is $5 billion/year
• Adaptation measures to climate change are weak
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• Desertification: degradation is 34% for irrigated farmlands, 67% for rainfed farmlands, and 83% for rangelands 5
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Drivers:
• By 2015, average annual freshwater availability in most Arab countries will be below 500 m3/capita, the most Arab countries will be below 500 m
/capita the
severe water scarcity mark
• 50 million lack access to safe drinking water
• 97 million lack clean sanitation
• High commodity food prices
• Climate change will worsen water availability and agricultural productivity
• Average daily water consumption is 0.3‐0.75 m3 per capita in GCC countries, highest in world
Drivers:
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Use concept of green economy as a basis to change course
Two Phases
• Conceptual Phase I: AFED 2011 Annual Report Transitioning to the Green Economy
• Implementation Phase II: Demonstration projects
Phase I: AFED 2011 Annual Report
• Motivate and assist governments and businesses make transition to a green econom
a green economy
• Articulate enabling public policies, business models, green investment opportunities, innovative approaches, and case studies
• Address eight sectors: energy, water, agriculture, transportation, cities/buildings, tourism, industry, and waste management
• Consultation meetings to be held with experts to present findings and generate feedback
and generate feedback
• Report structure:
¾Implications of current policies in sector
¾Enabling policies and conditions
¾Economic, social, and environmental implications of green transition
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Phase II: Demonstration Projects
• Putting
Putting recommended policy options into practice
recommended policy options into practice
• Developing and supporting demonstration projects with national institutions as partners • Taking different forms:
¾ Building institutional capacity
¾ Promoting corporate sustainability strategies (e.g. water audits)
¾ Conducting workshops (e.g. green finance)
¾ Practical user manuals (e.g. Water Efficiency Handbook, Environmental Housekeeping Handbook)
¾ Designing web‐based public awareness campaigns (using social media)
Environmental
Housekeeping
Handbook
Consumer
Awareness
Public
Policy
Sectoral
Green
Energy
Initiative Efficiency
Economy
Corporate
Environmental
Responsibility
Water
Efficiency
Handbook
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Benefits
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Bolster economic competitiveness and diversification
Enhance public institutional capability to adopt green economy
Create decent jobs
Combat poverty
Protect economic development from global economic crises and volatilities
Ensure food, water, and energy security
Manage natural resources – water, soil, land – sustainably
Restore and protect ecosystems
Reduce air pollution and smog from Arab cities ‐‐ improve air quality
Address climate change
Maintain social stability and cultural identity
www.afedonline.org info@afedonline.org
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