Putting Green Growth at the Heart of Development

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Green growth is vital to secure a brighter, more sustainable future for developing countries. Developing countries will pay a high price for failing to tackle local and global environmental threats because they are more dependent on natural resources and are more vulnerable to resources scarcity and natural disasters.

This book presents evidence that green growth is the only way to sustain growth and development over the long-term. Green growth does not replace sustainable development, but is a means to achieve it. Green growth values natural assets, which are essential to the well-being and livelihoods of people in developing countries, and if policies are designed to respond to the needs of the poorest, green growth can contribute to poverty reduction and social equity.

Building on experience with green growth policies in developing countries and extensive consultations with developing country stakeholders, this report provides a twin-track approach with agendas for national and international action. It responds to developing country concerns about the technical challenges arising from early efforts to “go green” and documents a wealth of examples from developing countries. Green growth objectives and policies will need to be mainstreamed into every government objective and most importantly, into national budgets. Green growth policies can use untapped opportunities to boost domestic fiscal revenues and attract quality investment for years to come. International co-operation is needed to help mitigate the short-term costs that may be associated with pursuing green growth. International flows of money, trade and technology know-how is vital to encourage pursuit of green growth in developing countries.

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An agenda for action on national green growth policy

This chapter outlines an agenda for action to plan, design and implement green growth policies in developing countries. It provides many practical examples of different policy instruments and mechanisms that are being successfully used in developing countries today. Each of these tools is assessed for its economic, environmental and social implications; its uptake in developing countries; and lessons learned to inform any future scaling-up or wider use. Tools range from energy subsidy reform, payment for ecosystem services and fiscal instruments to production and procurement standards, certifications, and land tenure regulations. The chapter also reviews the type of cross-cutting policies that will be essential for mainstreaming green growth, especially policies related to investment, innovation and research and development, labour and skills development, and climate change adaptation and resilience. The chapter concludes by reviewing the institutional mechanisms and resources required to govern, develop capacity, implement, measure progress, enforce and learn from the implementation of green growth strategies.

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