Green Economy and Growth

Green Economy and Growth

By Dr Arvind Kumar

An investment of just two percent, or $1.3 trillion, of global gross domestic product into greening sectors such as construction, energy and fishing can help usger in a move toward a low-carbon world, says so a report recently released by the U.N. Environment Program (UNEP). The sum, currently amounting to an average of around $1.3 trillion a year and backed by forward-looking national and international policies, would grow the global economy at around the same rate if not higher than those forecast, under current economic models. The report sees a Green Economy as not only relevant to more developed economies but as a key catalyst for growth and poverty eradication in developing ones too, where in some cases close to 90 per cent of the GDP of the poor is linked to nature or natural capital such as forests and freshwaters.

The report cites India’s example, where over 80 per cent of the $8 billion National Rural Employment Guarantee Act, which underwrites at least 100 days of paid work for rural households, invests in water conservation, irrigation and land development. This has generated three billion working days-worth of employment benefiting close to 60 million households. Acording to the report, agriculture, buildings, energy supply, fisheries, forestry, industry, tourism, transport, waste management and water are sectors that could do with more greening. Buildings are the single largest emitter of greenhouse gases because of inefficient heating in offices and homes.