RIO+20 summit showed that developing countries in South Asia were very cautious on the Green economy model
Some developing countries, particularly in
South Asia, are fearful that environmental and economic issues are to take
precedence over social, poverty and equity issues. They ask that developed
countries refrain from practicing protectionism under the pretext of pursuing a
green economy agenda.
They fear that a few
powerful countries write the rules of global trade, finance, and environmental
action harming the environment and people in the South. They think that further
privatization, commoditization and financialization of nature and its ecosystem
functions, could lead to further concentration of control, land-grabs,
bio-piracy, displacement and marginalization of communities most dependent on
access to these resources, and loss of cultural identities."The southern voices are getting marginalized," Mohan
Munasinghe, chairman of the Sri Lanka-based think-tank, Munasinghe
Institute for Development, told the NGO SciDev.Net. But our world today is locked in social, political,
economic, and environmental crises as the huge increase of food and commodity
prices due to extraction pressure put on the environment showed prior the 2008
crisis.
Are China environmental commitments as expressed
during the RIO+20 summit really serious?
China had boasted its solemn commitments to its own people and the international community at large:
- In the past six years,
China’s energy consumption per unit of GDP was cut down by 21%, equivalent
to 1.6 billion tons of CO2, and the total discharge of main pollutants
dropped by around 15%
- Reforestation has
increased its forest by 620,000 square kilometers, which was the largest
increase in the world.
- In future China will
strive to meet the obligatory targets set for the year 2015, namely:
- To lower CO2 emissions and energy
consumption per unit of GDP by 17% and 16% respectively,
- To raise the proportion of non-fossil
fuels to 11.4%
- To cut total discharge of main pollutants
by 8% to 10% all from the 2010 levels.
But are these
achievements really true? Five researchers have compared figures
released between 1997 and 2010 by the Beijing National Statistics Bureau of the
30 provinces emission inventories (see Figure 1).
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Figure 1 |
No real surprise, the numbers do not
match. Published in Nature Climate Change (NCC),
the results of the analysis show a difference of 1.4 billion tons of CO2 by
2010. The figure is equivalent to Japan’s annual CO2 emissions,
the world’s fourth largest emitter, with 5% of the global total! The
Middle Kingdom count of carbon is wrong by 18%. We understand better under
these circumstances, the reluctance of Beijing to see progress in negotiations
on international control of releases of greenhouse gases.
Chinese authorities claim, in fact, that national
emissions rose by just over 7% per year between 1997 and 2010. In reality, says
NCC, that growth rate would be closer to 9% per annum.
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Figure 2 |
In 2011 China (see Figure 2) is the biggest CO2
emitter in the world around 9.7 billion tons CO2 more than US (5.42 billion
tons) and EU (3.79 billion tons) together (From PBL 2012 Report- Trends in
Global CO2 Emissions).
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Figure 3 |
Among the biggest head count CO2 emitters (see Figure
3) are US: (17.3 ton CO2 per capita), Saudi Arabia (16.5 ton CO2) and Canada
(16.2 ton CO2) but Asian Pacific countries are now the fastest growing
source of Carbon emissions. Among the top 10 head count CO2 emitters in 2011
there are now four Asian Pacific countries: Australia, South Korea, Taiwan and
China, which have now the same emission level than European Union.
The concept of green growth is a condition to overcome increasingly resource constraints, environmental risks and uncertainties that threaten stability and prosperity of the Asian Pacific region
This is
shown in the last ESCAP-ADB-UNEP 2012 report on Green Growth, Resources, and
Resilience in Asia and the Pacific prepared
for the RIO+20 summit. This study demonstrates that a green growth is the only
available path in the future!
The region as a whole is still on track for achieving the first Millennium Development Goal – halving, between 1990 and 2015, the proportion of people below the poverty line – but hard-won gains in reducing poverty and improving people’s lives are now in danger of being reversed in some countries. Poor communities in both rural and urban settings are the most vulnerable to the negative impacts of climate change, with those in small island developing states facing perhaps the most immediate challenges. Bangladesh which is one of the poorest countries could be one of the first plagued by rising sea levels due to global warming with climate refugees while its footprint is one of the world’s smallest.
In Asian Pacific region as in other emerging countries economical and environment achievements are inextricably entangled:
- Food Supply: There are growing concerns about both the
adequation and stability of food supply, particularly in light of the
continuing food price rises. Food supply is being affected by a number of
factors, including low crop yields, rising input costs, competing demands
for freshwater, loss of farm land for housing and industry and neglect of
investment. Climate-related extreme weather events are compounding these
challenges. In addition, the competition for land and changing market
forces mean that production of non-food crops is expanding faster than
production of food crops, including in South Asia and East Asia, where
hunger and undernourishment challenges persist or are growing. Wealthier
countries with limited agricultural land have sought to secure access to
land for agricultural production in other countries.
- Water: Seasonal shortfalls in the availability of water are another
present and growing crisis in many parts of Asia and the Pacific. While
the region has the world’s largest share of renewable freshwater
resources, on a per capita basis, it has the lowest availability of water.
Complex, evolving, and interrelated water security challenges include
competing demands for water, including for agriculture, energy, industry,
and domestic use; declining water quality; and vulnerability to climate
and ecosystem changes. Seasonal water shortages have become more
severe in certain parts of the region as now in the Klang Valley Malaysian
area.
- Energy: As energy demands mount, countries in the region
will become increasingly vulnerable to price shocks, especially those that
import energy and have high energy intensity (i.e., energy consumed per
unit of gross domestic product). Vulnerabilities linked to energy import
dependence, aggravated by the volatility of energy prices, will continue
to have far-reaching implications for the financial ability of countries
to meet their energy demands. A number of countries, especially those in
South Asia, face these challenges as they also attempt to greatly increase
energy access for their populations. This vulnerability is illustrated by
the race for oil resources between China and some ASEAN states and the
rising tensions resulting from China ascertaining strategy in the South
China Sea. We also see that the problems of energy prices and state
subsidies in the region block any important actions of energy conservation
or renewable energy development
- Biocapacity is declining: Ecosystem
goods and services provided by natural capital are also in decline due to
poor natural resource management decisions, growing human populations and
increased per capita consumption. As of 2008, the Asian and Pacific region had the highest number of
threatened species; while net gains in forest cover for the region overall
hide continuing conversion of primary forested lands, which has
accelerated in several countries.
- Carbon and others Greenhouse gas (GHG) emissions: Although the majority of the historical
build-up of atmospheric greenhouse gas (GHG) emissions is the result of
emissions from developed countries, Asian developing countries account for
the fastest growing source of new emissions. In 2005 Asian Pacific emitted
around 11 billion tons of CO2 or 38 per cent of worldwide CO2 emissions.
The figure above relative to China shows a steep increase during
2005-2010.
As of 2005, the Asian and Pacific region required three times the input of resources as the rest of the world to produce one unit of GDP
Between 1998 and 2008 (see Figure 4), Asian and Pacific consumption of four main types of materials – biomass, fossil fuels, metal ores/industrial minerals and construction minerals – grew by 45 per cent, from 48.7 billion tons to around 69.4 billion tons. Since 2005, the region has accounted for well over half of global material use, overtaking all other regions combined.
Ominously, DMC input in the Asia Pacific GDP increased from 2000 to 2008, reversing previous trends. The main reason for this reversal is that economic activity in the region is shifting away from relatively more efficient centers, such as Japan, to relatively more resource-intensive centers, such as China. The enormity of this shift has been enough to affect regional and global efficiency trends. If these trends continue, extractive pressures on the environment will increase even faster than the rapid rates of economic growth.
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Figure 4 |
East and North-East Asian countries (China, Korea, Japan, Mongolia..)
economically diverse and dynamic but resource constrained are importing
increasing quantities of resources per capita to satisfy their growing rate of
material consumption. South-East (Brunei, Cambodia, Indonesia, Malaysia,
Singapore..) and South and South-West Asian countries (Afghanistan, India,
Iran…) , regions with high poverty rates and low per capita access to
resources, have physical trade balances that are also increasing – signaling
increasing reliance on imports.
Based on modeling conducted if these current trends continue, the Asian
Pacific region will consume at least 80 billion tons of materials and 700
exajoules of energy per year and CO2 emissions are likely to more than triple
by 2050.
Sustainable growth can only happen through a second industrial revolution characterized by systems innovation, high resource use efficiency, and a greatly reduced reliance on hydrocarbons
Such
strategies can help build a “green economy,” characterized by substantially
increased investments in economic activities that build on and enhance the
earth’s natural capital, while reducing ecological scarcities and environmental
risks – activities such as renewable energy, low carbon transport, energy- and
water-efficient buildings, sustainable agriculture and forest management and sustainable fisheries.
Addressing
the “time gap” between short-term costs and long term benefits of green
investments will require collaborative action between governments and the
private sector to overcome the present financial barriers and risks that
restrict capital flows into green sectors, thereby leading to increased
investment.
To help
provide this momentum, eco-tax reform offers a key cross-cutting, integrative
policy tool that can help to secure a “double-dividend” for both the economy
and the environment by emphasizing a shift from taxing the “goods” (for example
labour) to taxing the “bads” (resource use and pollution).
Two
examples of changing price signal are particularly important in Asia Pacific
region for addressing the necessary Green growth implementation:
- Subsidy reform on fuel prices and poverty reduction in Indonesia: the removal of subsidy on the costs of energy in emerging countries is a prerequisite for the development of renewable energy. While subsidies are politically attractive, they can discourage conservation and efficiency improvements and do not always benefit lower income group. In Indonesia an estimated 40 per cent of the high income households benefitted from 70 per cent of the fuel subsidies, while 40% of the poorest only benefitted from 15 per cent. Energy subsidy reductions were coupled with cash transfers to low-income households to mitigate the impacts of the resulting higher energy prices. The need for subsidy reform is becoming widely acknowledged, with the G-20 agreeing in September 2009 to gradually phase out fossil fuel subsidies.
- Water prices set at a level to recover the full costs of producing and supplying fresh water, as well as to reflect the higher incremental cost of additional supplies as has been done in Singapore. Having water tariffs that reflect the true cost of water production, supply and treatment free up other funds for research and development to identify innovative and more efficient ways of treating and distributing water, and to construct new water supply sources to meet future demand. Other enabling conditions are high level of government effectiveness, strong political will and effective legal and regulatory framework
