african development bank - building today, a better africa ...€¦ · 2. crafting an inclusive...

61
1 ʹͲ ǡ ǡ ͳ 1 The UN contribution was coordinated by UNDP and included inputs from in particular FAO, IFAD, ILO, UNEP, and WFP.

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Page 1: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

1

ʹͲǡǡͳ

1TheUNcontributionwascoordinatedbyUNDPandincludedinputsfrominparticularFAOIFADILOUNEPandWFP

2

Contents

Highlights3

1 Introduction4

2 Craftinganinclusivegreengrowthstrategy7

3 ToolsforInclusiveGreenGrowth15

4 KnowledgeSharingandcapacitydevelopment21

Annex25

EnvironmentalFiscalReform(EFR)andCharges26

PublicEnvironmentalExpenditureReviews(PEERs)28

SustainablePublicProcurement(SPP)30

StrategicEnvironmentalAssessments(SEAs)32

SocialProtectionInstruments34

PaymentsforEcosystemServices(PES)37

CertificationforSustainableProduction40

ToolstoframeenvironmentalpoliciesCommunicationandNudging43

Greeninnovationandindustrialpolicies46

Decisionmakingunderuncertainty48

ProjectͲLevelImpactAssessment50

AnalysisofLaborMarketandIncomeEffects52

FrameworkampGuidelinesonLandPolicyinAfrica55

IntegratedWaterResourcesManagement(IWRM)57

GreenAccounting60

3

Highlights

Much of green growth is about good policiesmdashaddressing market failure and ldquogetting the price rightrdquo byintroducing environmental taxation pricing the use of scarce natural resources and pollution (such as carbonpricing)definingandenforcingpropertyrightsandreforminginefficientsubsidiesIntegratedpolicyapproachestogrowtharecritical forenabling theprivate sector toundertakeneeded investmentsand innovationsand forgettingbothconsumersandbusinessestointernalizethetruecostsoftheirbehavior

Thistoolkitfocusesoninclusivegreengrowthmdashgrowththatnotonlyhelpsgreeneconomiesbutalsohelpsmovetowards sustainabledevelopmentby ensuring environmental sustainability contributes toor at leastdoesnotcomeattheexpenseofsocialprogress

Whilewehavegoodreasontothinkthatimprovedenvironmentalperformancewillbenefitthepoorestandmostvulnerablegreengrowthpoliciesmustbecarefullydesignedtomaximizebenefitsandminimizecostsforthemparticularlyduring the transitionThere is thusa criticalneed forpolicydesign thatalsoensures that skillsareupgradedandthatjobsaredecentthatvulnerablegroupsarenotmarginalizedorleftbehindandthatrevenuesfromfiscalreformsarealsochanneledintobroadersocialprotectionandhealthmeasures

Anumberof the tools thatwillbemobilized to implement inclusive green growthpolicies are ldquoclassicrdquopublicmanagement toolsbut thisdocument focusesonlyon themost relevant instrumentsvisͲagraveͲvisgreengrowth indevelopingcountriesastheseinstrumentsarewidelyknownandimplementedtheworldover

WhatthistoolkitaimsforinsteadistoprovidepolicyͲmakerswith

x A framework to help develop inclusive green growth strategies that are well anchored intocountriesregionscitiesrsquobroaderdevelopmentgoalsand thatefficientlyandconsistentlycombines themanyinstrumentsthatareneededinacoherentpolicypackage

x Anoverviewof someof thekey tools thatspecificallyaddress thechallenges raisedbymakinggrowthgreenandinclusiveQuicktechnicaldescriptionsofthesetools(orpolicyinstrumentsmethodologiesandapproaches)areofferedalongwithsuggestedsourcesforfurtherdetails

x A brief discussion of knowledge sharing and capacity building challenges and solutions including theGreenGrowthKnowledgePlatform(GGKP)developedbyanumberofinternationalorganizations(IOs)toidentifyknowledgegapsremediatetheseandcreatecommunitiesofpractice

This toolkitdoesnotpretend tobe exhaustive and shouldbeunderstood as a initial iterationon abroad andemergingpolicyarena Itcould thereforebecomea livingdocument thatcouldbeperiodicallyupdatedasnewtoolsandinstrumentstosupportinclusivegreengrowtharedevelopedFurthercontinuedconsultationonthesetoolsamongstthevariousinstitutions(IOsthinktanksbilateraldonors)thatsupportinclusivegreengrowthcouldhelpleadtocommonapproachesandpracticesandpromoteabetterunderstandingofhowdifferentapproachesandtoolscomplementeachother

Given the relevance of these tools for inclusive green growth a process in which IOs and relevant partnerinstitutionswork together towards theharmonization and complementarityof tools andpractices relevant forfostering inclusive green growth is desirable In particular theG20rsquos highlighting or endorsement (whicheverappropriate)ofoneor severalof these initiatives and knowledge sharing activities (notably theGreenGrowthKnowledgePlatformdescribed inSection4)would facilitatetheworkandyield increasedbenefits forcountriesOneoptiontomakethisalivingtoolkitwouldbetodevelopitinaldquowikirdquotypeapproachasaprogramunderthebroaderKnowledgePlatform

4

1 Introduction

In2012theMexicanPresidencyoftheG20introducedinclusivegreengrowthasacrossͲcuttingpriorityontheG20developmentagendaThesecondmeetingoftheG20DevelopmentWorkingGroup(DWG)hostedbytheGovernmentoftheRepublicofKoreatookplaceinSeoulthe19thand20thofMarch2012As agreed during the first DWG meeting this second meeting focused on the priorities for theirpresidencyinthefirsthalfof2012infrastructurefoodsecurityandinclusivegreengrowth(IGG)AtitsSeoulmeetingtheDWGalsoagreedthatIGGcoͲfacilitatorsandrelevantIOs(theAfDBOECDUNandWorldBank)shouldworktogether in2012todevelopanonͲprescriptiveGoodPracticesGuideToolkitonenablingnationalpolicyframeworksforinclusivegreengrowthtosupportcountrieswhovoluntarilywishtodesignandimplementaffordableandinclusivegreengrowthpolicieswiththeaimofachievingsustainabledevelopmentandpovertyalleviation

WithintheG20processtheDWGhasfullyrecognizedthat inclusivegreengrowth isakeyelementoflongtermsustainabledevelopmentInadditiontheDWGhasemphasizedthatembarkingoninclusivegreengrowthmustnotbecomeaprescriptiveconditionalityfordevelopingcountriesandG20countriesaliketoaccessinternationalassistanceandresourcesInsteadtheinternationalcommunitymustcometogether to support developing countries seeking to put in place countryͲdriven and nationallyͲappropriate tools that fostereconomicgrowthwhich isbothenvironmentally sustainableandsociallyinclusiveInclusivegreengrowthwillnothappenonitsowndeliberatepolicyandinvestmentdecisionsneed to be taken at all levels local to global to ensure that economic growth is in fact green andinclusive

ThepolicypackageneededtoimplementinclusivegreengrowthinstrumentswilldifferacrosscountriesdependingupontheirnationalcircumstancesandlevelofdevelopmentForexamplepoorercountriesaremorelikelytofindsustainableagriculture(Box1)thanimprovedindustrialpracticesattheheartofinclusivegreengrowthTheeconomiesofdevelopingcountriesespeciallylowincomecountries(LICs)frequently exhibit characteristics that can complicate the implementation of inclusive green growthpoliciesTheseofteninclude

x Highdependenceonnaturalresourcesforbothlivelihoodsandeconomicgrowthx Highdegreeofvulnerabilitytoclimatechangex Lackofbasicinfrastructureandservicesx Largeinformaleconomiesx Highlevelsofpovertyandinequalityx Highpopulationgrowthrates

x Rapidurbanizationprocessesandgrowthofurbanareas

x Limitedcapacityforpolicydevelopmentfinancingandimplementationx Limitedpublicandprivatecapacityfortechnologicalinnovationandinvestmentx Severeeconomicsocialandecologicalthreatsfromenergyfoodandwatersecurity

5

Prematuredeathsduetopollutionpoorwaterqualityanddiseasesassociatedwithachangingclimate

x Underdevelopedfinancialmarketsandlimitedaccesstosavingscreditandinsuranceproducts

Box1InclusiveGreenGrowthandagricultureandfisheries

SustainablegrowthinagricultureisakeycomponentofinclusivegreengrowthAgricultureͲcropslivestockforestryandfisheriesͲisthestewardofmostoftheworldrsquosnaturalresourcesThecropandlivestocksectorsuse70percentoffreshwaterresourcesandtogetherwithforestryoccupy60percentoftheearthslandsurfaceOceanscover70percentoftheplanetrsquossurfaceandsustainfisheriesandaquaculturewhichaccountsforagrowingshareoflandandfreshwateruseAgricultureproducesfoodandrawmaterialsforthebioͲeconomyͲincludingtextilesbuildingmaterialsbiochemicalsandrenewableenergyAgricultureisanimportanteconomicactivityespeciallyindevelopingcountrieswhereitisthesourceoflivelihoodforthelargemajorityoftheextremelypoordriveseconomicdevelopmentandcreatesgreenjobopportunitiesAgricultureiscloselylinkedwiththequestforensuringasustainabledevelopmentpaththatcanensurefoodsecurityandpropernutritionfor9billionpeoplein2050

Ultimatelythebillionsofmenandwomenwhofarmkeeplivestockfishmanageforestsandrunagribusinesseswill determine whether inclusive green growth becomes a reality From poor smallholders tomultinationalcorporations they are stewards of natural resources and they take risks andmake investments every day inmanagingtheirenterprisesProperlyappliedthetoolsinthistoolkitcanhelpguidetheirdecisionstoreflecttruescarcity values of resources take account of positive and negative social and environmental impacts and putagricultureontoamoresustainablepath

Themotivationforinclusivegreengrowthpoliciesvariestheneedtobetterharnessnaturalresourcesformeetingbasicneedspovertyalleviationandprovidingsustainablelivelihoodsandjobcreationthedesiretomobilizeresourcesandreduceburdensonpublicfinanceswhile improvingtheenvironmentreducevulnerabilitytoenvironmentalshocksandnaturalresourcebottlenecksorthegoaloffosteringnewgrowthandemploymentopportunities

Implementing inclusive green growth is a significant challenge The scale of changes implies thatcountrieswillhavetotakeldquotransformationalrdquoactionsthatredirect investmentflowswithinandacrosssectorsIsolatedprojectinterventionsalonewillnotsufficeHowevernoteverythinghastobedoneatonce An important contribution that a strategic framework can make is to help identify whichinterventionsareurgentandwhichcanwaitwhichcanhelpaddresssomeoftheimmediateandcriticalchallengesofdevelopingcountriesandwhichimplytradeͲoffs

And there are important complementarities between inclusive green growth and poverty reductionTheseincludemoreefficientandexpandedcoverageofwaterandenergyservicesreducedthehealthimpacts associatedwith environmental degradation reduced costs and increased productivity fromtechnologiesthatalsoeaseenvironmentalpressureGiventhecentralityofnaturalassetsinlowincome

6

countries inclusivegreengrowthpoliciescanreducevulnerabilitytoenvironmentalrisksand increasethelivelihoodsecurityofthepoor2

The international communityrsquos focusmust be to help developing countries catalyze investment forgreenertechnologypracticesandenterprisesthatwillmakegreengrowthpossibleandwillcontributetoanequitabledevelopmentparadigmFortunatelyanumberofinitiativesbyIOsareunderwaytohelpsupportcountriesintheseefforts(Box2)

Box2Selectedinitiativesbyinternationalorganizationstosupportinclusivegreengrowth

TheAfricanDevelopmentBank(AfDB)istakinginclusivegreengrowthtotheheartofitsLongTermStrategyanddesigning itsoperationstoaccountfortheAfricanspecificitiesnotably(i)addressingthe infrastructuregapasafundamentalenablerforeconomicgrowth(ii)managingmoreefficientlyAfricarsquosnaturalresourcesasitsstockofwealth andmain source of income (iii) and boosting economic and social resilience to exogenous shocks InadditiontoitssuiteofgreenfinancinginstrumentssuchasClimDevͲAfricaCongoBasinForestFund(CBFF)AfricanWaterFacility (AWF)andSustainableEnergyFund forAfrica (SEFA)AfDB isdevelopinganAfricaGreenGrowthFacilityforupstreamworkandcapacitydevelopmentoninclusivegreengrowthTheOECDisactivelyengagedwithdevelopingcountriesinmanyareascloselyrelatedtoinclusivegreengrowthIthas synthesized good practices on topics such as Environmental Fiscal Reform Strategic EnvironmentalAssessment Climate Change Adaptation and Capacity Development for Environmental Management andGovernance to supportefforts towards inclusivegreengrowthOECD tracksdevelopment coͲoperation supportwith environmental objectives and is currently alsoworkingwith itsmembers tomainstream green growth inareas of development coͲoperation as diverse as private sector development infrastructure investment andtradeͲrelatedassistanceSeewwwoecdorggreengrowthTheUN system isamajorproviderof support the system itself represents thedifferentelementsof inclusivegreen growthmdashfor example with IFAD focusing specifically on eradicating rural poverty FAO promotingsustainable agricultural practices WFP fighting hunger worldwide ILO promoting green job creation UNEPprotectingtheenvironmentandprovidingadvisoryservicesongreeneconomyUNDPworkingtoreducepovertyandinequalityandstrengthengovernanceandenvironmentalsustainabilityUNICEFandUNFPApromotingyouthempowerment UNIDO supporting sustainable industrial development the UN Secretariat looking at broadereconomicdevelopmentandinvestmentaspects(UNͲDESAUNCTADetc)andWHOaddressinghealthissuesTheWorldBank isworking tomainstream inclusivegreengrowth in itsoperationsandknowledgeactivities Itsreport on ldquoInclusive Green Growth The Pathway to Sustainable Developmentrdquo(wwwworldbankorginclusivegreengrowth) sets the framework for this maintreaming TheWorld Bank haslaunchedaseriesofcomplementaryactivitieswithpartnersSuch initiatives includeWAVES(WealthAccountingandtheValuationofEcosystemServices)LEDs(LowEmissionDevelopment)ClimateFinanceOptionsKnowledgePlatformtonameafewInaddition theGlobalGreenGrowth Institute (GGGI) theOECDUNEPand theWorldBank jointly launched inearly2012 theGGKPaglobalnetworkofresearchersanddevelopmentexpertsseeking to identifyandaddressmajorknowledgegapsingreengrowththeoryandpractice

2SeeforexampletheOECDrsquos2011ldquoTowardsGreenGrowthASummaryforPolicymakersrdquotheWorldBankrsquos2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentUNEPrsquos2011TowardsaGreenEconomyFAOSave Pathways to SustainableDevelopment andGrow 2011PovertyAlleviationUNDPrsquos 2012 ldquoTripleWins forSustainableDevelopmentCasestudiesofSustainableDevelopmentinpracticerdquo

7

This document does not provide a oneͲsizeͲfitsͲall solution to implement inclusive green growthstrategies because the appropriate measures and policies are highly dependent on the contextespeciallyonthemostpressingenvironmentalsocialandeconomicissuesCountrieswillhavedifferentprioritiesdependingonamongothertheirincomelevelsthesectoralcompositionsoftheireconomiesandtherelativeimportanceofsectorsdirectlybasedonnaturalresourcesorwithdependenceonfossilfuels and their specific risk and vulnerabilityprofile from anenvironmental standpoint Thepoliticaleconomy of policymaking around green growthmay also significantly shape the agenda in differentcountriesHencethisdocumentmerelyprovidesaseriesoftoolsthatcanhelpdesignastrategythatisappropriateinagivencontext

ThistoolkitshouldnotbeseenasadefinitiveanswertothechallengesraisedbyinclusivegreengrowthItisratherthefirststepofacollaborativeefforttomobilizethetoolsatthecountriesrsquodisposalintheirdomesticeffortstogreentheireconomies

ThetoolkitisorganizedasfollowsFirstthenecessityofapplyingthedifferenttoolsinthecontextofabroadinclusivegreengrowthstrategy isstressedandaharmonizedframeworkcombiningapproachesandtoolsidentifiedbyallfourIOsissetforthSecondthedocumentoffersanoverviewofkeytoolsthatcanbemobilizedtoimplementaninclusivegreengrowthstrategyQuicktechnicaldescriptionsofthesetools are offered along with suggested sources for further details Finally capacity building andknowledgesharinginitiativesarepresentedwiththeGGKPhighlightedasapowerfulcollaborativetooltoadvancepoliciesforinclusivegreeneconomies

2 Craftinganinclusivegreengrowthstrategy

AsemphasizedinthejointdraftreportfromOECDUNandtheWBtotheG20EnergyandCommodityMarkets Group in the Finance track on ldquoIncorporating green growth and sustainable developmentpolicies into structural reform agendasrdquo tools used to advance inclusive green growth need to bedeployedwithin a coherent overarching strategy An overall vision and strategy for inclusive greengrowthisindispensableforframingpolicyreformsasnationalstrategieswithpositivelongͲtermgoals

The approach should be to integrate green growth into policy processes and national developmentplans rather than create standͲalone policy documents or agencies Doing so increases theacceptability of immediate costs by the population including the private sector It also improvesconsistency among policies and fosters policy certaintymdashwhich creates a friendlier climate forinvestmentsmaking itmore likely that private resourceswill be invested in longͲterm projectsButbuildinganationalstrategycreatessomechallengesof itsown includingtheneedforcoherentcrossͲgovernment collaboration multiͲstakeholder engagement interagency coordination private sectorengagementandthedefinitionofrelevantlongͲtermgoalsandindicators

AheadofanymajorpolicyprocessandmoresowithregardtopoliciesforanallͲencompassinginclusivegreen growth (IGG) approach there has to be amethodology for arriving at specific instrumentsstartingwithasharedvisionstocktakingof issues lessonsandopportunitiessettingofconcreteand

8

realisticcountrygoals identificationandanalysisof technicaloptionsall leading toareformsagendaandorinvestmentplanwithclearactionstimelinesandresourceimplicationsVariousstrategieshavebeendevelopedbydifferentdevelopmentactorsbutallhavecommonelementsandcanthereforebecombinedintoacommonframeworkFigure1summarizesthisframeworkidentifyingthemainbuildingblockswithinwhichdifferenttoolscanbedeployedThesectionthatfollowsdevelopsthisframeworkfurtherprovidingillustrationsofhowdifferenttoolscanbedeployedforthedifferentsteps

9

Figure1Summaryofstepstodevelopaninclusivegreengrowthstrategyanchoredintonationaldevelopmentframework

Thetypeofactionseachofthesestepsmayentailisdiscussedbelow

Vision

bullSettingamediumtolongͲterminclusivegreengrowthvisionforthecountrythatisanchoredintothecountryrsquosnationaldevelopmentstrategy

Diagnostic

bullTakingstockofthemaineconomicandsocialchallengesandopportunitiesthenexamineenvironmentalchallengesandopportunities

GoalSetting

bullDefiningobjectivesandexpectedoutcomesforshortandmediumͲtermthatarelinkedtolongtermvision

Optionsmeasures

bullFocusing onsynergies (arethereIGGpoliciesthatbringimmediateandlocalbenefits)andurgency(whatisneedednowtoavoidlockͲinandirreversibilities)identifyingpolicytechnologyoptionsthatcouldhelpovercomethebarriersidentifiedandseizetheopportunities

FeasibilityAnalysis

bullUndertakingfeasibilityandMCAanalysesoftheproposedpolicytechnologyoptionsinordertorecognizethebestoptionspracticesforthespecificnationalcontext

Implementation

bullDesigningpolicyreformprocessthatreflectsthesebestoptionsandmobilizeadequateupͲfrontfinancingforimplementation

Monitoringamp

Evaluation

bull MampEofpoliciesisneededtocreateafeedbackloopintothedesignofpolicies

10

Asmentioned above any IGG strategymust be anchored into a national development vision that isbroadlyownedwithingovernmentandby itsconstituency includingmarginalizedgroupandthosewhomaybeparticularlyvulnerableduringthetransitiontowardsagreeneconomy Inordertoachievethistheprocessof elaborating the strategy itselfneeds strong andpolitical commitment andbuyͲin at alllevels a network of champions across the government complex to drive the change process at thetechnical level thorough consultationswithdifferent stakeholders andwide sharingof information toensureatransparentdecisionprocess

SCOPESOMECOREELEMENTS STEPSTOOLS

PoliticalcommitmentstronghighͲlevelpoliticalcommitmentandleadershipisneeded at the various stagesof thepolicy cycle toensure theprocess isnotcapturedbyvestedinterestsortakenoverbyotheritemsinthepoliticalpolicyagendaInvolvementofPresidentPrimeͲminsterwithfulltechnicalbackͲupofleadingMinistriesagenciesiscrucial

InstitutionalsetͲupandchampionsachangeinprocessinvolvingcrossͲsectoralcollaborationrequiresacriticalmasspeoplewiththeabilitytounderstandthevision communicate with various stakeholders and technical expertise todesignappraiseapplyandadjustthepolicysolutionsMorethan justsettingͲupteamscommitteesacrossvarioustechnicalareas it is importantthatthesepeoplealsoactasaldquonetworkofchampionsrdquoforIGG

Broad consultations Some steps like the definition of the Vision and theObjectivesExpectedoutcomesrequiresomebroadconsultationswithnationalstakeholders (including civil society private sector development partnersmunicipalitiesadvocacynetworksetc)

Information dissemination and transparency All information generated inpolicyͲmakingprocessshouldbewidelyavailableandtheprocessmustbedonetransparentlyallowingallstakeholdersavoiceandensuringthatdisagreementsarenotedinpublicfora

Ministerial Steering Committee bestchairedbyMinistryof financeeconomyorplanningorViceͲpresidentrsquosoffice

Technical Committees and subͲtechnicalcommittees

Consultation instruments (townhallmeetings focused group discussionsopinionsurveysgovernmentwebPortalNationalamplocalpressradio)

Step1bull VISIONampOBJECTIVES

11

Step two entails a systematic compilation of relevant information to better understandchallengesopportunities in framing IGG objectives In particular it is this stage to identifieseconomicsocialandenvironmentalnaturalcapitalchallengesandopportunities for thecountryclimate risk management issues take stock of existing policy instruments as well as the likelyconstraintstoimplementinginclusivegreengrowth

SCOPESOMECOREELEMENTS STEPSTOOLs

Collect relevant information to understand challengesopportunities and frameobjectives

Identify key economic and social challenges and opportunities using existingdiagnosticsandreviewing

x EconomicSectorsinvalueͲaddedjobcreationenvironmentalimpactsx Povertyinequalityexclusionandvulnerabilityindicatorsx Demographicamplabourmarketstatisticsx UrbanizationTrendsx Urbanruralaccesstobasicservices(educationhealthwaterenergy)x Energyaccessbypopulationgroupsurbanruralareastechnology

Identifykeyopportunitiesandchallengesinnaturalcapitalofcountryregion

x Ecosystemtypeshistoricalcurrentandprojectdistributionsmapsx Spatialmapshighlightingbiologicalrichnessx Mapswithhighaboveorbelowgroundcarbonstocksx AgricultureandbioͲenergylandͲusemapping(FAOmethodology)x Nationalrenewableresourceassessments(windsolarhydrogeothermal)x Spatialoverlaysofareaswithmultiplehighvalueecosystemservices

Andinclimatechangeandclimateriskmanagement

x Disasterstatistics(lossoflivetotalandrelativeeconomiclosses)x Hazard maps (spatial exposure to hydroͲmeteorological and geological

hazards)x Regionaltrendsinkeyclimaticparametersx VulnerabilityandAdaptationAssessments

CountryͲspecificstatisticalbureausortheirequivalents

CountryͲspecific public surveysand inͲcountry thinkͲtanksuniversitiesresearchcenters

National and MDB Data Portal(provides multiple customizedtools to gather and analyzemultipleindicators)

System of EnvironmentalͲEconomic Accounts (UNSEEA)wealth accounting and valuationofecosystemservices(WAVES)

HumanDevelopmentIndex

FAO FAOSTAT FAO CLIMPAG(brings together the variousaspects and interactions betweenweather climate and agriculturein the general context of foodsecurity) FAO Global InformationandEarlyWarningSystemonFoodandAgriculture(GIEWS)

Community mapping toolsparticipatory rural appraisals andother tools to bring out localknowledge about ecosystemsproperty right regimes andpatternsofnaturalresourceuse

Step2bull DIAGNOSTICS

12

SCOPESOMECOREELEMENTS STEPSTOOLs

TakestockofexistingpolicyinstrumentsrelevanttoIGG

x Rules and regulations already in place with regard to natural resourcesenergypollutionemployment

x EnactedeconomicandfinancialinstrumentswithabearingonIGGx In termsofeconomic instrumentsunderstandingwhich revenuesarebeing

collected and bywhom how they are being used and ameasure of theirsuccessonachievingthepolicyobjectives

x In terms of financial instruments understanding subsidy schemes theireffectivenessandmanagementgovernanceinpractice

x In termsofsocialprotectionexistingsocialprotection floorsandsafetynetsystems

x ThenationalbudgetingprocessandentrypointsforIGG

Takestockoflikelyconstraintstoimplementinginclusivegreengrowth

x Politicaleconomyfragilityorbehaviouralchangeissuesx Financialconstraintsx Institutionalorcapacityconstraints

Throughout examine opportunities for synergies (are there IGG policies that bringimmediate and local benefits) and extent of urgency (what are the policies andinvestmentsthatneedtobetakennowtoavoid locking intoanunsustainablefutureandcreatingirreversibilities)

Strategic EnvironmentalAssessment social expenditurereviews (green) publicexpenditurereviews

WFPComprehensiveFoodSecurityandVulnerabilityAnalysis(CFSVA)GuidelinesFoodSecurityandVulnerabilityAnalysisHungerandClimateVulnerabilityIndex

International Rescue Committee(IRC)DisasterRiskDatabases

UNDP Climate Change CountryProfiles

IPCC Assessment Special andMethodologyReports

WorldBankClimatePortal

AfDB Country Policy andinstitutional Assessment AfDBCountryGovernanceProfiles

OECDGreenGrowthDiagnosticframeworkUNEP Green Economy ScopingStudies

AtthisstagecountrieswillsetspecificgoalsandexpectedoutcomesfortheshortandmediumͲtermthatarelinked to their long term vision In particular criteria are defined for prioritizing the various options andmeasures across identified in accordance with countriesrsquo specific development context Aassessments ofinstitutionalfinancialandcapacityconstraintsshouldalsobecarriedouttoensurethatpoliciesarematchedtoinstitutionalcapabilities

Inadditionascountriessettheirgoalstheymay look intovoluntaryguidelinesandstandardsanchored intobestpracticesapproaches Thesemay includeguidelines thatarenotspecificallydesigned topromotegreengrowthpoliciesbutthathaveaddresscore issuesofsustainabilityand inclusiveness inpoliciesand investmentsaffecting

Step3bull GOAL SETTING

13

sectorsthatwouldbemostlikelytobeatthecenterofthesepoliciesinmanylowincomecountriesInrelationtoagriculture for instance useful elements may be drawn from the UN Committee for World Food SecurityrsquosVoluntaryGuidelinesontheResponsibleGovernanceofTenureofLandFisheriesandForestsortheFAOCodeofConductforResponsibleFisheriesamongother

SCOPESOMECOREELEMENTS STEPSTOOLS

Identification of relevant sectors ndash from the diagnostic prioritizesectorssubͲsectorswheremostpotentialexistsfordeliveringIGGandidentifypolicyoptionsforfurtherassessment

Assessment of policytechnological options ndash this includes anextensive reviewof testedpolicytechnologies around theglobe foreachprioritysector inparticularthosewhichhavebeensuccessfullyintroducedincountrieswithsimilarsocioͲeconomicprofiles

Assessment of Institutional Capacity Needs Ͳ Assessments ofinstitutional financial and capacity constraints for implementingpolicies and measures that facilitate transition to Inclusive GreenGrowth It is important to ensure that policies are matched toinstitutionalcapabilitiestoensurethatresultsareachieved

SectorconsultationsandalignmentwithcountryrsquoslongͲtermdevelopmentplanFAOClimateSmartAgricultureCFS Voluntary guidelines on the responsiblegovernanceoftenureoflandfisheriesandforestsPrinciples for Responsible Agricultural Investmentthat Respects Rights Livelihoods and Resources(PRAI)ofFAOIFADUNCTADandWorldBankClimate Technology Wiki UNEP and UNDPrsquosTechnologyNeedsAssessment(TNAs)UNEPGreenEconomyScopingStudiesOECD Policy Guidance on Integrating ClimateChangeAdaptationintoDevelopmentCooperationNationallyAppropriateMitigationActions(NAMAs)SectorMasterPlanStudies

MultiͲcriteriaanalysisare likely tobeneededgiven the limitationof costͲbenefitanalysis in theabsenceofmarketprices (forenvironmentalgoods)and in thepresenceof substantialuncertainty (aboutclimate riskstechnology)Politicaleconomyanalysisaswellasdistributionalassessmentareimportant

Butascountriesseektoprioritizeacrossthemanyurgentand importantstepsthattheycantaketo taketogreentheirgrowthandpromotegreaterinclusiontwoparticulardimensionscanbehighlighted

Step4bull PRIORITYSETTINGANDFEASIBILITYANALYSIS

14

x Synergies theextent towhichgreenpoliciesprovide immediateand localbenefitsandhelpachievemore rapidormore inclusivegrowth Greenpolicies thathave immediateand localbenefitswillalsobenefitfromgreaterpoliticalandsocialacceptabilityndashacriticaldimension ifstrategiesaretoactuallybeimplemented

x Urgencytheextenttowhichapolicycanbepostponedwithoutrunningtheriskofirreversibledamagesorlockingintounsustainablepatternsofgrowth

SCOPESOMECOREELEMENTS STEPSTOOLS

MultiͲcriteria analysis is likely to be needed Political economy analysis as well asdistributionalassessmentareimportantasarethefollowing

x Baselinestudiesfortargetsectorsx Assessmentof firstorder (direct impacts)and2ndorder (coͲbenefits sideͲ

effects)ofshortlistedpolicyinstrumentsonfiscalsystemx Costof implementation includingmitigationofadverse impactsmonitoring

andenforcementx Assessmentofinstitutionalbarriershinderingpolicyimplementationx Understanding of impacts across different interested groups and powerful

factions

Final policy choice should be informed by the combination of urgency synergyefficacy and greatest feasibility given existing power and institutional dynamicsTradeͲoffs should be resolvedwith reference to priority criteria and validatedwithstakeholdersbeforeimplementation

MarginalAbatementCostCurves

MultiͲcriteriaanalysisforcomparisonofpolicyoptions

DecisionͲmakingunderuncertainty

StrategicEnvironmentalAssessments

StakeholderAnalysisampotherPoliticalEconomytools(factionalanalysispoweranalysis)

Implementationofpolicypackageshouldbeanchoredinacleartimeline(sequencingmatters)andunderpinned by realistic resource estimates (financial human and technical) Policies shouldthereforebe integrated into sectorplans andnationalbudget processes Implementation shouldprioritizeldquoquickwinsrdquoorthosepoliciesthatyieldanimmediatepositivereturn(egdirectrevenuescostsavingsjobs)andorhavelowestimplementationcosts

Step5bull IMPLEMENTATION

15

SCOPESOMECOREELEMENTS STEPSTOOLS

Keyelementsincludeacleartimeline(sequencingmatters)and realistic resource estimates (financial human andtechnical)

NationalBudgetprocesses

InvestmentPlanampResourceMobilisationStrategy

Poverty and Social Impact Assessments (PSIA)EnvironmentalImpactAssessments(EIA)

PaymentforEcosystemServices

EnvironmentalFiscalReform

SustainablePublicProcurement

SocialSafetyinstruments

World BankUNDP Climate Options Platform UNDPGuidebook on Blending Climate Finance ThroughNationalClimateFunds

WFPInnovativeriskfinancetransferandinsurance(egWFPLivelihoodsEarlyAssessmentandProtection

MonitoringandevaluationofpoliciesandinterventionsareneededtocreateafeedbackloopintothedesignofpoliciesToolsincludebothstandardmonitoringandevaluationaswellasimpactevaluationgiventheneedforformallearningaboutgreengrowthwhatinterventionsworkbestMoreovertheinclusivenatureoftheIGGagendaisbestservedbyinclusiveMampEprocessesincludingparticipatoryapproachesthatbestcaptureboththesocialandtheenvironmentalimpactofpolicyimplementation

3 ToolsforInclusiveGreenGrowth

Apracticaland flexiblepolicy toolkithasan important role toplay inhelpingdevelopingcountries toidentify and address bottlenecks and constraints to realizing inclusive green growth Such a toolkitrequires details of generic and specific policies ndash environmental economic and social It envisagessignificantlongͲterminvestmentandinnovationbothtechnologicalandinstitutionaltoavoidlockingͲin

Step6bull MampE

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 2: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

2

Contents

Highlights3

1 Introduction4

2 Craftinganinclusivegreengrowthstrategy7

3 ToolsforInclusiveGreenGrowth15

4 KnowledgeSharingandcapacitydevelopment21

Annex25

EnvironmentalFiscalReform(EFR)andCharges26

PublicEnvironmentalExpenditureReviews(PEERs)28

SustainablePublicProcurement(SPP)30

StrategicEnvironmentalAssessments(SEAs)32

SocialProtectionInstruments34

PaymentsforEcosystemServices(PES)37

CertificationforSustainableProduction40

ToolstoframeenvironmentalpoliciesCommunicationandNudging43

Greeninnovationandindustrialpolicies46

Decisionmakingunderuncertainty48

ProjectͲLevelImpactAssessment50

AnalysisofLaborMarketandIncomeEffects52

FrameworkampGuidelinesonLandPolicyinAfrica55

IntegratedWaterResourcesManagement(IWRM)57

GreenAccounting60

3

Highlights

Much of green growth is about good policiesmdashaddressing market failure and ldquogetting the price rightrdquo byintroducing environmental taxation pricing the use of scarce natural resources and pollution (such as carbonpricing)definingandenforcingpropertyrightsandreforminginefficientsubsidiesIntegratedpolicyapproachestogrowtharecritical forenabling theprivate sector toundertakeneeded investmentsand innovationsand forgettingbothconsumersandbusinessestointernalizethetruecostsoftheirbehavior

Thistoolkitfocusesoninclusivegreengrowthmdashgrowththatnotonlyhelpsgreeneconomiesbutalsohelpsmovetowards sustainabledevelopmentby ensuring environmental sustainability contributes toor at leastdoesnotcomeattheexpenseofsocialprogress

Whilewehavegoodreasontothinkthatimprovedenvironmentalperformancewillbenefitthepoorestandmostvulnerablegreengrowthpoliciesmustbecarefullydesignedtomaximizebenefitsandminimizecostsforthemparticularlyduring the transitionThere is thusa criticalneed forpolicydesign thatalsoensures that skillsareupgradedandthatjobsaredecentthatvulnerablegroupsarenotmarginalizedorleftbehindandthatrevenuesfromfiscalreformsarealsochanneledintobroadersocialprotectionandhealthmeasures

Anumberof the tools thatwillbemobilized to implement inclusive green growthpolicies are ldquoclassicrdquopublicmanagement toolsbut thisdocument focusesonlyon themost relevant instrumentsvisͲagraveͲvisgreengrowth indevelopingcountriesastheseinstrumentsarewidelyknownandimplementedtheworldover

WhatthistoolkitaimsforinsteadistoprovidepolicyͲmakerswith

x A framework to help develop inclusive green growth strategies that are well anchored intocountriesregionscitiesrsquobroaderdevelopmentgoalsand thatefficientlyandconsistentlycombines themanyinstrumentsthatareneededinacoherentpolicypackage

x Anoverviewof someof thekey tools thatspecificallyaddress thechallenges raisedbymakinggrowthgreenandinclusiveQuicktechnicaldescriptionsofthesetools(orpolicyinstrumentsmethodologiesandapproaches)areofferedalongwithsuggestedsourcesforfurtherdetails

x A brief discussion of knowledge sharing and capacity building challenges and solutions including theGreenGrowthKnowledgePlatform(GGKP)developedbyanumberofinternationalorganizations(IOs)toidentifyknowledgegapsremediatetheseandcreatecommunitiesofpractice

This toolkitdoesnotpretend tobe exhaustive and shouldbeunderstood as a initial iterationon abroad andemergingpolicyarena Itcould thereforebecomea livingdocument thatcouldbeperiodicallyupdatedasnewtoolsandinstrumentstosupportinclusivegreengrowtharedevelopedFurthercontinuedconsultationonthesetoolsamongstthevariousinstitutions(IOsthinktanksbilateraldonors)thatsupportinclusivegreengrowthcouldhelpleadtocommonapproachesandpracticesandpromoteabetterunderstandingofhowdifferentapproachesandtoolscomplementeachother

Given the relevance of these tools for inclusive green growth a process in which IOs and relevant partnerinstitutionswork together towards theharmonization and complementarityof tools andpractices relevant forfostering inclusive green growth is desirable In particular theG20rsquos highlighting or endorsement (whicheverappropriate)ofoneor severalof these initiatives and knowledge sharing activities (notably theGreenGrowthKnowledgePlatformdescribed inSection4)would facilitatetheworkandyield increasedbenefits forcountriesOneoptiontomakethisalivingtoolkitwouldbetodevelopitinaldquowikirdquotypeapproachasaprogramunderthebroaderKnowledgePlatform

4

1 Introduction

In2012theMexicanPresidencyoftheG20introducedinclusivegreengrowthasacrossͲcuttingpriorityontheG20developmentagendaThesecondmeetingoftheG20DevelopmentWorkingGroup(DWG)hostedbytheGovernmentoftheRepublicofKoreatookplaceinSeoulthe19thand20thofMarch2012As agreed during the first DWG meeting this second meeting focused on the priorities for theirpresidencyinthefirsthalfof2012infrastructurefoodsecurityandinclusivegreengrowth(IGG)AtitsSeoulmeetingtheDWGalsoagreedthatIGGcoͲfacilitatorsandrelevantIOs(theAfDBOECDUNandWorldBank)shouldworktogether in2012todevelopanonͲprescriptiveGoodPracticesGuideToolkitonenablingnationalpolicyframeworksforinclusivegreengrowthtosupportcountrieswhovoluntarilywishtodesignandimplementaffordableandinclusivegreengrowthpolicieswiththeaimofachievingsustainabledevelopmentandpovertyalleviation

WithintheG20processtheDWGhasfullyrecognizedthat inclusivegreengrowth isakeyelementoflongtermsustainabledevelopmentInadditiontheDWGhasemphasizedthatembarkingoninclusivegreengrowthmustnotbecomeaprescriptiveconditionalityfordevelopingcountriesandG20countriesaliketoaccessinternationalassistanceandresourcesInsteadtheinternationalcommunitymustcometogether to support developing countries seeking to put in place countryͲdriven and nationallyͲappropriate tools that fostereconomicgrowthwhich isbothenvironmentally sustainableandsociallyinclusiveInclusivegreengrowthwillnothappenonitsowndeliberatepolicyandinvestmentdecisionsneed to be taken at all levels local to global to ensure that economic growth is in fact green andinclusive

ThepolicypackageneededtoimplementinclusivegreengrowthinstrumentswilldifferacrosscountriesdependingupontheirnationalcircumstancesandlevelofdevelopmentForexamplepoorercountriesaremorelikelytofindsustainableagriculture(Box1)thanimprovedindustrialpracticesattheheartofinclusivegreengrowthTheeconomiesofdevelopingcountriesespeciallylowincomecountries(LICs)frequently exhibit characteristics that can complicate the implementation of inclusive green growthpoliciesTheseofteninclude

x Highdependenceonnaturalresourcesforbothlivelihoodsandeconomicgrowthx Highdegreeofvulnerabilitytoclimatechangex Lackofbasicinfrastructureandservicesx Largeinformaleconomiesx Highlevelsofpovertyandinequalityx Highpopulationgrowthrates

x Rapidurbanizationprocessesandgrowthofurbanareas

x Limitedcapacityforpolicydevelopmentfinancingandimplementationx Limitedpublicandprivatecapacityfortechnologicalinnovationandinvestmentx Severeeconomicsocialandecologicalthreatsfromenergyfoodandwatersecurity

5

Prematuredeathsduetopollutionpoorwaterqualityanddiseasesassociatedwithachangingclimate

x Underdevelopedfinancialmarketsandlimitedaccesstosavingscreditandinsuranceproducts

Box1InclusiveGreenGrowthandagricultureandfisheries

SustainablegrowthinagricultureisakeycomponentofinclusivegreengrowthAgricultureͲcropslivestockforestryandfisheriesͲisthestewardofmostoftheworldrsquosnaturalresourcesThecropandlivestocksectorsuse70percentoffreshwaterresourcesandtogetherwithforestryoccupy60percentoftheearthslandsurfaceOceanscover70percentoftheplanetrsquossurfaceandsustainfisheriesandaquaculturewhichaccountsforagrowingshareoflandandfreshwateruseAgricultureproducesfoodandrawmaterialsforthebioͲeconomyͲincludingtextilesbuildingmaterialsbiochemicalsandrenewableenergyAgricultureisanimportanteconomicactivityespeciallyindevelopingcountrieswhereitisthesourceoflivelihoodforthelargemajorityoftheextremelypoordriveseconomicdevelopmentandcreatesgreenjobopportunitiesAgricultureiscloselylinkedwiththequestforensuringasustainabledevelopmentpaththatcanensurefoodsecurityandpropernutritionfor9billionpeoplein2050

Ultimatelythebillionsofmenandwomenwhofarmkeeplivestockfishmanageforestsandrunagribusinesseswill determine whether inclusive green growth becomes a reality From poor smallholders tomultinationalcorporations they are stewards of natural resources and they take risks andmake investments every day inmanagingtheirenterprisesProperlyappliedthetoolsinthistoolkitcanhelpguidetheirdecisionstoreflecttruescarcity values of resources take account of positive and negative social and environmental impacts and putagricultureontoamoresustainablepath

Themotivationforinclusivegreengrowthpoliciesvariestheneedtobetterharnessnaturalresourcesformeetingbasicneedspovertyalleviationandprovidingsustainablelivelihoodsandjobcreationthedesiretomobilizeresourcesandreduceburdensonpublicfinanceswhile improvingtheenvironmentreducevulnerabilitytoenvironmentalshocksandnaturalresourcebottlenecksorthegoaloffosteringnewgrowthandemploymentopportunities

Implementing inclusive green growth is a significant challenge The scale of changes implies thatcountrieswillhavetotakeldquotransformationalrdquoactionsthatredirect investmentflowswithinandacrosssectorsIsolatedprojectinterventionsalonewillnotsufficeHowevernoteverythinghastobedoneatonce An important contribution that a strategic framework can make is to help identify whichinterventionsareurgentandwhichcanwaitwhichcanhelpaddresssomeoftheimmediateandcriticalchallengesofdevelopingcountriesandwhichimplytradeͲoffs

And there are important complementarities between inclusive green growth and poverty reductionTheseincludemoreefficientandexpandedcoverageofwaterandenergyservicesreducedthehealthimpacts associatedwith environmental degradation reduced costs and increased productivity fromtechnologiesthatalsoeaseenvironmentalpressureGiventhecentralityofnaturalassetsinlowincome

6

countries inclusivegreengrowthpoliciescanreducevulnerabilitytoenvironmentalrisksand increasethelivelihoodsecurityofthepoor2

The international communityrsquos focusmust be to help developing countries catalyze investment forgreenertechnologypracticesandenterprisesthatwillmakegreengrowthpossibleandwillcontributetoanequitabledevelopmentparadigmFortunatelyanumberofinitiativesbyIOsareunderwaytohelpsupportcountriesintheseefforts(Box2)

Box2Selectedinitiativesbyinternationalorganizationstosupportinclusivegreengrowth

TheAfricanDevelopmentBank(AfDB)istakinginclusivegreengrowthtotheheartofitsLongTermStrategyanddesigning itsoperationstoaccountfortheAfricanspecificitiesnotably(i)addressingthe infrastructuregapasafundamentalenablerforeconomicgrowth(ii)managingmoreefficientlyAfricarsquosnaturalresourcesasitsstockofwealth andmain source of income (iii) and boosting economic and social resilience to exogenous shocks InadditiontoitssuiteofgreenfinancinginstrumentssuchasClimDevͲAfricaCongoBasinForestFund(CBFF)AfricanWaterFacility (AWF)andSustainableEnergyFund forAfrica (SEFA)AfDB isdevelopinganAfricaGreenGrowthFacilityforupstreamworkandcapacitydevelopmentoninclusivegreengrowthTheOECDisactivelyengagedwithdevelopingcountriesinmanyareascloselyrelatedtoinclusivegreengrowthIthas synthesized good practices on topics such as Environmental Fiscal Reform Strategic EnvironmentalAssessment Climate Change Adaptation and Capacity Development for Environmental Management andGovernance to supportefforts towards inclusivegreengrowthOECD tracksdevelopment coͲoperation supportwith environmental objectives and is currently alsoworkingwith itsmembers tomainstream green growth inareas of development coͲoperation as diverse as private sector development infrastructure investment andtradeͲrelatedassistanceSeewwwoecdorggreengrowthTheUN system isamajorproviderof support the system itself represents thedifferentelementsof inclusivegreen growthmdashfor example with IFAD focusing specifically on eradicating rural poverty FAO promotingsustainable agricultural practices WFP fighting hunger worldwide ILO promoting green job creation UNEPprotectingtheenvironmentandprovidingadvisoryservicesongreeneconomyUNDPworkingtoreducepovertyandinequalityandstrengthengovernanceandenvironmentalsustainabilityUNICEFandUNFPApromotingyouthempowerment UNIDO supporting sustainable industrial development the UN Secretariat looking at broadereconomicdevelopmentandinvestmentaspects(UNͲDESAUNCTADetc)andWHOaddressinghealthissuesTheWorldBank isworking tomainstream inclusivegreengrowth in itsoperationsandknowledgeactivities Itsreport on ldquoInclusive Green Growth The Pathway to Sustainable Developmentrdquo(wwwworldbankorginclusivegreengrowth) sets the framework for this maintreaming TheWorld Bank haslaunchedaseriesofcomplementaryactivitieswithpartnersSuch initiatives includeWAVES(WealthAccountingandtheValuationofEcosystemServices)LEDs(LowEmissionDevelopment)ClimateFinanceOptionsKnowledgePlatformtonameafewInaddition theGlobalGreenGrowth Institute (GGGI) theOECDUNEPand theWorldBank jointly launched inearly2012 theGGKPaglobalnetworkofresearchersanddevelopmentexpertsseeking to identifyandaddressmajorknowledgegapsingreengrowththeoryandpractice

2SeeforexampletheOECDrsquos2011ldquoTowardsGreenGrowthASummaryforPolicymakersrdquotheWorldBankrsquos2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentUNEPrsquos2011TowardsaGreenEconomyFAOSave Pathways to SustainableDevelopment andGrow 2011PovertyAlleviationUNDPrsquos 2012 ldquoTripleWins forSustainableDevelopmentCasestudiesofSustainableDevelopmentinpracticerdquo

7

This document does not provide a oneͲsizeͲfitsͲall solution to implement inclusive green growthstrategies because the appropriate measures and policies are highly dependent on the contextespeciallyonthemostpressingenvironmentalsocialandeconomicissuesCountrieswillhavedifferentprioritiesdependingonamongothertheirincomelevelsthesectoralcompositionsoftheireconomiesandtherelativeimportanceofsectorsdirectlybasedonnaturalresourcesorwithdependenceonfossilfuels and their specific risk and vulnerabilityprofile from anenvironmental standpoint Thepoliticaleconomy of policymaking around green growthmay also significantly shape the agenda in differentcountriesHencethisdocumentmerelyprovidesaseriesoftoolsthatcanhelpdesignastrategythatisappropriateinagivencontext

ThistoolkitshouldnotbeseenasadefinitiveanswertothechallengesraisedbyinclusivegreengrowthItisratherthefirststepofacollaborativeefforttomobilizethetoolsatthecountriesrsquodisposalintheirdomesticeffortstogreentheireconomies

ThetoolkitisorganizedasfollowsFirstthenecessityofapplyingthedifferenttoolsinthecontextofabroadinclusivegreengrowthstrategy isstressedandaharmonizedframeworkcombiningapproachesandtoolsidentifiedbyallfourIOsissetforthSecondthedocumentoffersanoverviewofkeytoolsthatcanbemobilizedtoimplementaninclusivegreengrowthstrategyQuicktechnicaldescriptionsofthesetools are offered along with suggested sources for further details Finally capacity building andknowledgesharinginitiativesarepresentedwiththeGGKPhighlightedasapowerfulcollaborativetooltoadvancepoliciesforinclusivegreeneconomies

2 Craftinganinclusivegreengrowthstrategy

AsemphasizedinthejointdraftreportfromOECDUNandtheWBtotheG20EnergyandCommodityMarkets Group in the Finance track on ldquoIncorporating green growth and sustainable developmentpolicies into structural reform agendasrdquo tools used to advance inclusive green growth need to bedeployedwithin a coherent overarching strategy An overall vision and strategy for inclusive greengrowthisindispensableforframingpolicyreformsasnationalstrategieswithpositivelongͲtermgoals

The approach should be to integrate green growth into policy processes and national developmentplans rather than create standͲalone policy documents or agencies Doing so increases theacceptability of immediate costs by the population including the private sector It also improvesconsistency among policies and fosters policy certaintymdashwhich creates a friendlier climate forinvestmentsmaking itmore likely that private resourceswill be invested in longͲterm projectsButbuildinganationalstrategycreatessomechallengesof itsown includingtheneedforcoherentcrossͲgovernment collaboration multiͲstakeholder engagement interagency coordination private sectorengagementandthedefinitionofrelevantlongͲtermgoalsandindicators

AheadofanymajorpolicyprocessandmoresowithregardtopoliciesforanallͲencompassinginclusivegreen growth (IGG) approach there has to be amethodology for arriving at specific instrumentsstartingwithasharedvisionstocktakingof issues lessonsandopportunitiessettingofconcreteand

8

realisticcountrygoals identificationandanalysisof technicaloptionsall leading toareformsagendaandorinvestmentplanwithclearactionstimelinesandresourceimplicationsVariousstrategieshavebeendevelopedbydifferentdevelopmentactorsbutallhavecommonelementsandcanthereforebecombinedintoacommonframeworkFigure1summarizesthisframeworkidentifyingthemainbuildingblockswithinwhichdifferenttoolscanbedeployedThesectionthatfollowsdevelopsthisframeworkfurtherprovidingillustrationsofhowdifferenttoolscanbedeployedforthedifferentsteps

9

Figure1Summaryofstepstodevelopaninclusivegreengrowthstrategyanchoredintonationaldevelopmentframework

Thetypeofactionseachofthesestepsmayentailisdiscussedbelow

Vision

bullSettingamediumtolongͲterminclusivegreengrowthvisionforthecountrythatisanchoredintothecountryrsquosnationaldevelopmentstrategy

Diagnostic

bullTakingstockofthemaineconomicandsocialchallengesandopportunitiesthenexamineenvironmentalchallengesandopportunities

GoalSetting

bullDefiningobjectivesandexpectedoutcomesforshortandmediumͲtermthatarelinkedtolongtermvision

Optionsmeasures

bullFocusing onsynergies (arethereIGGpoliciesthatbringimmediateandlocalbenefits)andurgency(whatisneedednowtoavoidlockͲinandirreversibilities)identifyingpolicytechnologyoptionsthatcouldhelpovercomethebarriersidentifiedandseizetheopportunities

FeasibilityAnalysis

bullUndertakingfeasibilityandMCAanalysesoftheproposedpolicytechnologyoptionsinordertorecognizethebestoptionspracticesforthespecificnationalcontext

Implementation

bullDesigningpolicyreformprocessthatreflectsthesebestoptionsandmobilizeadequateupͲfrontfinancingforimplementation

Monitoringamp

Evaluation

bull MampEofpoliciesisneededtocreateafeedbackloopintothedesignofpolicies

10

Asmentioned above any IGG strategymust be anchored into a national development vision that isbroadlyownedwithingovernmentandby itsconstituency includingmarginalizedgroupandthosewhomaybeparticularlyvulnerableduringthetransitiontowardsagreeneconomy Inordertoachievethistheprocessof elaborating the strategy itselfneeds strong andpolitical commitment andbuyͲin at alllevels a network of champions across the government complex to drive the change process at thetechnical level thorough consultationswithdifferent stakeholders andwide sharingof information toensureatransparentdecisionprocess

SCOPESOMECOREELEMENTS STEPSTOOLS

PoliticalcommitmentstronghighͲlevelpoliticalcommitmentandleadershipisneeded at the various stagesof thepolicy cycle toensure theprocess isnotcapturedbyvestedinterestsortakenoverbyotheritemsinthepoliticalpolicyagendaInvolvementofPresidentPrimeͲminsterwithfulltechnicalbackͲupofleadingMinistriesagenciesiscrucial

InstitutionalsetͲupandchampionsachangeinprocessinvolvingcrossͲsectoralcollaborationrequiresacriticalmasspeoplewiththeabilitytounderstandthevision communicate with various stakeholders and technical expertise todesignappraiseapplyandadjustthepolicysolutionsMorethan justsettingͲupteamscommitteesacrossvarioustechnicalareas it is importantthatthesepeoplealsoactasaldquonetworkofchampionsrdquoforIGG

Broad consultations Some steps like the definition of the Vision and theObjectivesExpectedoutcomesrequiresomebroadconsultationswithnationalstakeholders (including civil society private sector development partnersmunicipalitiesadvocacynetworksetc)

Information dissemination and transparency All information generated inpolicyͲmakingprocessshouldbewidelyavailableandtheprocessmustbedonetransparentlyallowingallstakeholdersavoiceandensuringthatdisagreementsarenotedinpublicfora

Ministerial Steering Committee bestchairedbyMinistryof financeeconomyorplanningorViceͲpresidentrsquosoffice

Technical Committees and subͲtechnicalcommittees

Consultation instruments (townhallmeetings focused group discussionsopinionsurveysgovernmentwebPortalNationalamplocalpressradio)

Step1bull VISIONampOBJECTIVES

11

Step two entails a systematic compilation of relevant information to better understandchallengesopportunities in framing IGG objectives In particular it is this stage to identifieseconomicsocialandenvironmentalnaturalcapitalchallengesandopportunities for thecountryclimate risk management issues take stock of existing policy instruments as well as the likelyconstraintstoimplementinginclusivegreengrowth

SCOPESOMECOREELEMENTS STEPSTOOLs

Collect relevant information to understand challengesopportunities and frameobjectives

Identify key economic and social challenges and opportunities using existingdiagnosticsandreviewing

x EconomicSectorsinvalueͲaddedjobcreationenvironmentalimpactsx Povertyinequalityexclusionandvulnerabilityindicatorsx Demographicamplabourmarketstatisticsx UrbanizationTrendsx Urbanruralaccesstobasicservices(educationhealthwaterenergy)x Energyaccessbypopulationgroupsurbanruralareastechnology

Identifykeyopportunitiesandchallengesinnaturalcapitalofcountryregion

x Ecosystemtypeshistoricalcurrentandprojectdistributionsmapsx Spatialmapshighlightingbiologicalrichnessx Mapswithhighaboveorbelowgroundcarbonstocksx AgricultureandbioͲenergylandͲusemapping(FAOmethodology)x Nationalrenewableresourceassessments(windsolarhydrogeothermal)x Spatialoverlaysofareaswithmultiplehighvalueecosystemservices

Andinclimatechangeandclimateriskmanagement

x Disasterstatistics(lossoflivetotalandrelativeeconomiclosses)x Hazard maps (spatial exposure to hydroͲmeteorological and geological

hazards)x Regionaltrendsinkeyclimaticparametersx VulnerabilityandAdaptationAssessments

CountryͲspecificstatisticalbureausortheirequivalents

CountryͲspecific public surveysand inͲcountry thinkͲtanksuniversitiesresearchcenters

National and MDB Data Portal(provides multiple customizedtools to gather and analyzemultipleindicators)

System of EnvironmentalͲEconomic Accounts (UNSEEA)wealth accounting and valuationofecosystemservices(WAVES)

HumanDevelopmentIndex

FAO FAOSTAT FAO CLIMPAG(brings together the variousaspects and interactions betweenweather climate and agriculturein the general context of foodsecurity) FAO Global InformationandEarlyWarningSystemonFoodandAgriculture(GIEWS)

Community mapping toolsparticipatory rural appraisals andother tools to bring out localknowledge about ecosystemsproperty right regimes andpatternsofnaturalresourceuse

Step2bull DIAGNOSTICS

12

SCOPESOMECOREELEMENTS STEPSTOOLs

TakestockofexistingpolicyinstrumentsrelevanttoIGG

x Rules and regulations already in place with regard to natural resourcesenergypollutionemployment

x EnactedeconomicandfinancialinstrumentswithabearingonIGGx In termsofeconomic instrumentsunderstandingwhich revenuesarebeing

collected and bywhom how they are being used and ameasure of theirsuccessonachievingthepolicyobjectives

x In terms of financial instruments understanding subsidy schemes theireffectivenessandmanagementgovernanceinpractice

x In termsofsocialprotectionexistingsocialprotection floorsandsafetynetsystems

x ThenationalbudgetingprocessandentrypointsforIGG

Takestockoflikelyconstraintstoimplementinginclusivegreengrowth

x Politicaleconomyfragilityorbehaviouralchangeissuesx Financialconstraintsx Institutionalorcapacityconstraints

Throughout examine opportunities for synergies (are there IGG policies that bringimmediate and local benefits) and extent of urgency (what are the policies andinvestmentsthatneedtobetakennowtoavoid locking intoanunsustainablefutureandcreatingirreversibilities)

Strategic EnvironmentalAssessment social expenditurereviews (green) publicexpenditurereviews

WFPComprehensiveFoodSecurityandVulnerabilityAnalysis(CFSVA)GuidelinesFoodSecurityandVulnerabilityAnalysisHungerandClimateVulnerabilityIndex

International Rescue Committee(IRC)DisasterRiskDatabases

UNDP Climate Change CountryProfiles

IPCC Assessment Special andMethodologyReports

WorldBankClimatePortal

AfDB Country Policy andinstitutional Assessment AfDBCountryGovernanceProfiles

OECDGreenGrowthDiagnosticframeworkUNEP Green Economy ScopingStudies

AtthisstagecountrieswillsetspecificgoalsandexpectedoutcomesfortheshortandmediumͲtermthatarelinked to their long term vision In particular criteria are defined for prioritizing the various options andmeasures across identified in accordance with countriesrsquo specific development context Aassessments ofinstitutionalfinancialandcapacityconstraintsshouldalsobecarriedouttoensurethatpoliciesarematchedtoinstitutionalcapabilities

Inadditionascountriessettheirgoalstheymay look intovoluntaryguidelinesandstandardsanchored intobestpracticesapproaches Thesemay includeguidelines thatarenotspecificallydesigned topromotegreengrowthpoliciesbutthathaveaddresscore issuesofsustainabilityand inclusiveness inpoliciesand investmentsaffecting

Step3bull GOAL SETTING

13

sectorsthatwouldbemostlikelytobeatthecenterofthesepoliciesinmanylowincomecountriesInrelationtoagriculture for instance useful elements may be drawn from the UN Committee for World Food SecurityrsquosVoluntaryGuidelinesontheResponsibleGovernanceofTenureofLandFisheriesandForestsortheFAOCodeofConductforResponsibleFisheriesamongother

SCOPESOMECOREELEMENTS STEPSTOOLS

Identification of relevant sectors ndash from the diagnostic prioritizesectorssubͲsectorswheremostpotentialexistsfordeliveringIGGandidentifypolicyoptionsforfurtherassessment

Assessment of policytechnological options ndash this includes anextensive reviewof testedpolicytechnologies around theglobe foreachprioritysector inparticularthosewhichhavebeensuccessfullyintroducedincountrieswithsimilarsocioͲeconomicprofiles

Assessment of Institutional Capacity Needs Ͳ Assessments ofinstitutional financial and capacity constraints for implementingpolicies and measures that facilitate transition to Inclusive GreenGrowth It is important to ensure that policies are matched toinstitutionalcapabilitiestoensurethatresultsareachieved

SectorconsultationsandalignmentwithcountryrsquoslongͲtermdevelopmentplanFAOClimateSmartAgricultureCFS Voluntary guidelines on the responsiblegovernanceoftenureoflandfisheriesandforestsPrinciples for Responsible Agricultural Investmentthat Respects Rights Livelihoods and Resources(PRAI)ofFAOIFADUNCTADandWorldBankClimate Technology Wiki UNEP and UNDPrsquosTechnologyNeedsAssessment(TNAs)UNEPGreenEconomyScopingStudiesOECD Policy Guidance on Integrating ClimateChangeAdaptationintoDevelopmentCooperationNationallyAppropriateMitigationActions(NAMAs)SectorMasterPlanStudies

MultiͲcriteriaanalysisare likely tobeneededgiven the limitationof costͲbenefitanalysis in theabsenceofmarketprices (forenvironmentalgoods)and in thepresenceof substantialuncertainty (aboutclimate riskstechnology)Politicaleconomyanalysisaswellasdistributionalassessmentareimportant

Butascountriesseektoprioritizeacrossthemanyurgentand importantstepsthattheycantaketo taketogreentheirgrowthandpromotegreaterinclusiontwoparticulardimensionscanbehighlighted

Step4bull PRIORITYSETTINGANDFEASIBILITYANALYSIS

14

x Synergies theextent towhichgreenpoliciesprovide immediateand localbenefitsandhelpachievemore rapidormore inclusivegrowth Greenpolicies thathave immediateand localbenefitswillalsobenefitfromgreaterpoliticalandsocialacceptabilityndashacriticaldimension ifstrategiesaretoactuallybeimplemented

x Urgencytheextenttowhichapolicycanbepostponedwithoutrunningtheriskofirreversibledamagesorlockingintounsustainablepatternsofgrowth

SCOPESOMECOREELEMENTS STEPSTOOLS

MultiͲcriteria analysis is likely to be needed Political economy analysis as well asdistributionalassessmentareimportantasarethefollowing

x Baselinestudiesfortargetsectorsx Assessmentof firstorder (direct impacts)and2ndorder (coͲbenefits sideͲ

effects)ofshortlistedpolicyinstrumentsonfiscalsystemx Costof implementation includingmitigationofadverse impactsmonitoring

andenforcementx Assessmentofinstitutionalbarriershinderingpolicyimplementationx Understanding of impacts across different interested groups and powerful

factions

Final policy choice should be informed by the combination of urgency synergyefficacy and greatest feasibility given existing power and institutional dynamicsTradeͲoffs should be resolvedwith reference to priority criteria and validatedwithstakeholdersbeforeimplementation

MarginalAbatementCostCurves

MultiͲcriteriaanalysisforcomparisonofpolicyoptions

DecisionͲmakingunderuncertainty

StrategicEnvironmentalAssessments

StakeholderAnalysisampotherPoliticalEconomytools(factionalanalysispoweranalysis)

Implementationofpolicypackageshouldbeanchoredinacleartimeline(sequencingmatters)andunderpinned by realistic resource estimates (financial human and technical) Policies shouldthereforebe integrated into sectorplans andnationalbudget processes Implementation shouldprioritizeldquoquickwinsrdquoorthosepoliciesthatyieldanimmediatepositivereturn(egdirectrevenuescostsavingsjobs)andorhavelowestimplementationcosts

Step5bull IMPLEMENTATION

15

SCOPESOMECOREELEMENTS STEPSTOOLS

Keyelementsincludeacleartimeline(sequencingmatters)and realistic resource estimates (financial human andtechnical)

NationalBudgetprocesses

InvestmentPlanampResourceMobilisationStrategy

Poverty and Social Impact Assessments (PSIA)EnvironmentalImpactAssessments(EIA)

PaymentforEcosystemServices

EnvironmentalFiscalReform

SustainablePublicProcurement

SocialSafetyinstruments

World BankUNDP Climate Options Platform UNDPGuidebook on Blending Climate Finance ThroughNationalClimateFunds

WFPInnovativeriskfinancetransferandinsurance(egWFPLivelihoodsEarlyAssessmentandProtection

MonitoringandevaluationofpoliciesandinterventionsareneededtocreateafeedbackloopintothedesignofpoliciesToolsincludebothstandardmonitoringandevaluationaswellasimpactevaluationgiventheneedforformallearningaboutgreengrowthwhatinterventionsworkbestMoreovertheinclusivenatureoftheIGGagendaisbestservedbyinclusiveMampEprocessesincludingparticipatoryapproachesthatbestcaptureboththesocialandtheenvironmentalimpactofpolicyimplementation

3 ToolsforInclusiveGreenGrowth

Apracticaland flexiblepolicy toolkithasan important role toplay inhelpingdevelopingcountries toidentify and address bottlenecks and constraints to realizing inclusive green growth Such a toolkitrequires details of generic and specific policies ndash environmental economic and social It envisagessignificantlongͲterminvestmentandinnovationbothtechnologicalandinstitutionaltoavoidlockingͲin

Step6bull MampE

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 3: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

3

Highlights

Much of green growth is about good policiesmdashaddressing market failure and ldquogetting the price rightrdquo byintroducing environmental taxation pricing the use of scarce natural resources and pollution (such as carbonpricing)definingandenforcingpropertyrightsandreforminginefficientsubsidiesIntegratedpolicyapproachestogrowtharecritical forenabling theprivate sector toundertakeneeded investmentsand innovationsand forgettingbothconsumersandbusinessestointernalizethetruecostsoftheirbehavior

Thistoolkitfocusesoninclusivegreengrowthmdashgrowththatnotonlyhelpsgreeneconomiesbutalsohelpsmovetowards sustainabledevelopmentby ensuring environmental sustainability contributes toor at leastdoesnotcomeattheexpenseofsocialprogress

Whilewehavegoodreasontothinkthatimprovedenvironmentalperformancewillbenefitthepoorestandmostvulnerablegreengrowthpoliciesmustbecarefullydesignedtomaximizebenefitsandminimizecostsforthemparticularlyduring the transitionThere is thusa criticalneed forpolicydesign thatalsoensures that skillsareupgradedandthatjobsaredecentthatvulnerablegroupsarenotmarginalizedorleftbehindandthatrevenuesfromfiscalreformsarealsochanneledintobroadersocialprotectionandhealthmeasures

Anumberof the tools thatwillbemobilized to implement inclusive green growthpolicies are ldquoclassicrdquopublicmanagement toolsbut thisdocument focusesonlyon themost relevant instrumentsvisͲagraveͲvisgreengrowth indevelopingcountriesastheseinstrumentsarewidelyknownandimplementedtheworldover

WhatthistoolkitaimsforinsteadistoprovidepolicyͲmakerswith

x A framework to help develop inclusive green growth strategies that are well anchored intocountriesregionscitiesrsquobroaderdevelopmentgoalsand thatefficientlyandconsistentlycombines themanyinstrumentsthatareneededinacoherentpolicypackage

x Anoverviewof someof thekey tools thatspecificallyaddress thechallenges raisedbymakinggrowthgreenandinclusiveQuicktechnicaldescriptionsofthesetools(orpolicyinstrumentsmethodologiesandapproaches)areofferedalongwithsuggestedsourcesforfurtherdetails

x A brief discussion of knowledge sharing and capacity building challenges and solutions including theGreenGrowthKnowledgePlatform(GGKP)developedbyanumberofinternationalorganizations(IOs)toidentifyknowledgegapsremediatetheseandcreatecommunitiesofpractice

This toolkitdoesnotpretend tobe exhaustive and shouldbeunderstood as a initial iterationon abroad andemergingpolicyarena Itcould thereforebecomea livingdocument thatcouldbeperiodicallyupdatedasnewtoolsandinstrumentstosupportinclusivegreengrowtharedevelopedFurthercontinuedconsultationonthesetoolsamongstthevariousinstitutions(IOsthinktanksbilateraldonors)thatsupportinclusivegreengrowthcouldhelpleadtocommonapproachesandpracticesandpromoteabetterunderstandingofhowdifferentapproachesandtoolscomplementeachother

Given the relevance of these tools for inclusive green growth a process in which IOs and relevant partnerinstitutionswork together towards theharmonization and complementarityof tools andpractices relevant forfostering inclusive green growth is desirable In particular theG20rsquos highlighting or endorsement (whicheverappropriate)ofoneor severalof these initiatives and knowledge sharing activities (notably theGreenGrowthKnowledgePlatformdescribed inSection4)would facilitatetheworkandyield increasedbenefits forcountriesOneoptiontomakethisalivingtoolkitwouldbetodevelopitinaldquowikirdquotypeapproachasaprogramunderthebroaderKnowledgePlatform

4

1 Introduction

In2012theMexicanPresidencyoftheG20introducedinclusivegreengrowthasacrossͲcuttingpriorityontheG20developmentagendaThesecondmeetingoftheG20DevelopmentWorkingGroup(DWG)hostedbytheGovernmentoftheRepublicofKoreatookplaceinSeoulthe19thand20thofMarch2012As agreed during the first DWG meeting this second meeting focused on the priorities for theirpresidencyinthefirsthalfof2012infrastructurefoodsecurityandinclusivegreengrowth(IGG)AtitsSeoulmeetingtheDWGalsoagreedthatIGGcoͲfacilitatorsandrelevantIOs(theAfDBOECDUNandWorldBank)shouldworktogether in2012todevelopanonͲprescriptiveGoodPracticesGuideToolkitonenablingnationalpolicyframeworksforinclusivegreengrowthtosupportcountrieswhovoluntarilywishtodesignandimplementaffordableandinclusivegreengrowthpolicieswiththeaimofachievingsustainabledevelopmentandpovertyalleviation

WithintheG20processtheDWGhasfullyrecognizedthat inclusivegreengrowth isakeyelementoflongtermsustainabledevelopmentInadditiontheDWGhasemphasizedthatembarkingoninclusivegreengrowthmustnotbecomeaprescriptiveconditionalityfordevelopingcountriesandG20countriesaliketoaccessinternationalassistanceandresourcesInsteadtheinternationalcommunitymustcometogether to support developing countries seeking to put in place countryͲdriven and nationallyͲappropriate tools that fostereconomicgrowthwhich isbothenvironmentally sustainableandsociallyinclusiveInclusivegreengrowthwillnothappenonitsowndeliberatepolicyandinvestmentdecisionsneed to be taken at all levels local to global to ensure that economic growth is in fact green andinclusive

ThepolicypackageneededtoimplementinclusivegreengrowthinstrumentswilldifferacrosscountriesdependingupontheirnationalcircumstancesandlevelofdevelopmentForexamplepoorercountriesaremorelikelytofindsustainableagriculture(Box1)thanimprovedindustrialpracticesattheheartofinclusivegreengrowthTheeconomiesofdevelopingcountriesespeciallylowincomecountries(LICs)frequently exhibit characteristics that can complicate the implementation of inclusive green growthpoliciesTheseofteninclude

x Highdependenceonnaturalresourcesforbothlivelihoodsandeconomicgrowthx Highdegreeofvulnerabilitytoclimatechangex Lackofbasicinfrastructureandservicesx Largeinformaleconomiesx Highlevelsofpovertyandinequalityx Highpopulationgrowthrates

x Rapidurbanizationprocessesandgrowthofurbanareas

x Limitedcapacityforpolicydevelopmentfinancingandimplementationx Limitedpublicandprivatecapacityfortechnologicalinnovationandinvestmentx Severeeconomicsocialandecologicalthreatsfromenergyfoodandwatersecurity

5

Prematuredeathsduetopollutionpoorwaterqualityanddiseasesassociatedwithachangingclimate

x Underdevelopedfinancialmarketsandlimitedaccesstosavingscreditandinsuranceproducts

Box1InclusiveGreenGrowthandagricultureandfisheries

SustainablegrowthinagricultureisakeycomponentofinclusivegreengrowthAgricultureͲcropslivestockforestryandfisheriesͲisthestewardofmostoftheworldrsquosnaturalresourcesThecropandlivestocksectorsuse70percentoffreshwaterresourcesandtogetherwithforestryoccupy60percentoftheearthslandsurfaceOceanscover70percentoftheplanetrsquossurfaceandsustainfisheriesandaquaculturewhichaccountsforagrowingshareoflandandfreshwateruseAgricultureproducesfoodandrawmaterialsforthebioͲeconomyͲincludingtextilesbuildingmaterialsbiochemicalsandrenewableenergyAgricultureisanimportanteconomicactivityespeciallyindevelopingcountrieswhereitisthesourceoflivelihoodforthelargemajorityoftheextremelypoordriveseconomicdevelopmentandcreatesgreenjobopportunitiesAgricultureiscloselylinkedwiththequestforensuringasustainabledevelopmentpaththatcanensurefoodsecurityandpropernutritionfor9billionpeoplein2050

Ultimatelythebillionsofmenandwomenwhofarmkeeplivestockfishmanageforestsandrunagribusinesseswill determine whether inclusive green growth becomes a reality From poor smallholders tomultinationalcorporations they are stewards of natural resources and they take risks andmake investments every day inmanagingtheirenterprisesProperlyappliedthetoolsinthistoolkitcanhelpguidetheirdecisionstoreflecttruescarcity values of resources take account of positive and negative social and environmental impacts and putagricultureontoamoresustainablepath

Themotivationforinclusivegreengrowthpoliciesvariestheneedtobetterharnessnaturalresourcesformeetingbasicneedspovertyalleviationandprovidingsustainablelivelihoodsandjobcreationthedesiretomobilizeresourcesandreduceburdensonpublicfinanceswhile improvingtheenvironmentreducevulnerabilitytoenvironmentalshocksandnaturalresourcebottlenecksorthegoaloffosteringnewgrowthandemploymentopportunities

Implementing inclusive green growth is a significant challenge The scale of changes implies thatcountrieswillhavetotakeldquotransformationalrdquoactionsthatredirect investmentflowswithinandacrosssectorsIsolatedprojectinterventionsalonewillnotsufficeHowevernoteverythinghastobedoneatonce An important contribution that a strategic framework can make is to help identify whichinterventionsareurgentandwhichcanwaitwhichcanhelpaddresssomeoftheimmediateandcriticalchallengesofdevelopingcountriesandwhichimplytradeͲoffs

And there are important complementarities between inclusive green growth and poverty reductionTheseincludemoreefficientandexpandedcoverageofwaterandenergyservicesreducedthehealthimpacts associatedwith environmental degradation reduced costs and increased productivity fromtechnologiesthatalsoeaseenvironmentalpressureGiventhecentralityofnaturalassetsinlowincome

6

countries inclusivegreengrowthpoliciescanreducevulnerabilitytoenvironmentalrisksand increasethelivelihoodsecurityofthepoor2

The international communityrsquos focusmust be to help developing countries catalyze investment forgreenertechnologypracticesandenterprisesthatwillmakegreengrowthpossibleandwillcontributetoanequitabledevelopmentparadigmFortunatelyanumberofinitiativesbyIOsareunderwaytohelpsupportcountriesintheseefforts(Box2)

Box2Selectedinitiativesbyinternationalorganizationstosupportinclusivegreengrowth

TheAfricanDevelopmentBank(AfDB)istakinginclusivegreengrowthtotheheartofitsLongTermStrategyanddesigning itsoperationstoaccountfortheAfricanspecificitiesnotably(i)addressingthe infrastructuregapasafundamentalenablerforeconomicgrowth(ii)managingmoreefficientlyAfricarsquosnaturalresourcesasitsstockofwealth andmain source of income (iii) and boosting economic and social resilience to exogenous shocks InadditiontoitssuiteofgreenfinancinginstrumentssuchasClimDevͲAfricaCongoBasinForestFund(CBFF)AfricanWaterFacility (AWF)andSustainableEnergyFund forAfrica (SEFA)AfDB isdevelopinganAfricaGreenGrowthFacilityforupstreamworkandcapacitydevelopmentoninclusivegreengrowthTheOECDisactivelyengagedwithdevelopingcountriesinmanyareascloselyrelatedtoinclusivegreengrowthIthas synthesized good practices on topics such as Environmental Fiscal Reform Strategic EnvironmentalAssessment Climate Change Adaptation and Capacity Development for Environmental Management andGovernance to supportefforts towards inclusivegreengrowthOECD tracksdevelopment coͲoperation supportwith environmental objectives and is currently alsoworkingwith itsmembers tomainstream green growth inareas of development coͲoperation as diverse as private sector development infrastructure investment andtradeͲrelatedassistanceSeewwwoecdorggreengrowthTheUN system isamajorproviderof support the system itself represents thedifferentelementsof inclusivegreen growthmdashfor example with IFAD focusing specifically on eradicating rural poverty FAO promotingsustainable agricultural practices WFP fighting hunger worldwide ILO promoting green job creation UNEPprotectingtheenvironmentandprovidingadvisoryservicesongreeneconomyUNDPworkingtoreducepovertyandinequalityandstrengthengovernanceandenvironmentalsustainabilityUNICEFandUNFPApromotingyouthempowerment UNIDO supporting sustainable industrial development the UN Secretariat looking at broadereconomicdevelopmentandinvestmentaspects(UNͲDESAUNCTADetc)andWHOaddressinghealthissuesTheWorldBank isworking tomainstream inclusivegreengrowth in itsoperationsandknowledgeactivities Itsreport on ldquoInclusive Green Growth The Pathway to Sustainable Developmentrdquo(wwwworldbankorginclusivegreengrowth) sets the framework for this maintreaming TheWorld Bank haslaunchedaseriesofcomplementaryactivitieswithpartnersSuch initiatives includeWAVES(WealthAccountingandtheValuationofEcosystemServices)LEDs(LowEmissionDevelopment)ClimateFinanceOptionsKnowledgePlatformtonameafewInaddition theGlobalGreenGrowth Institute (GGGI) theOECDUNEPand theWorldBank jointly launched inearly2012 theGGKPaglobalnetworkofresearchersanddevelopmentexpertsseeking to identifyandaddressmajorknowledgegapsingreengrowththeoryandpractice

2SeeforexampletheOECDrsquos2011ldquoTowardsGreenGrowthASummaryforPolicymakersrdquotheWorldBankrsquos2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentUNEPrsquos2011TowardsaGreenEconomyFAOSave Pathways to SustainableDevelopment andGrow 2011PovertyAlleviationUNDPrsquos 2012 ldquoTripleWins forSustainableDevelopmentCasestudiesofSustainableDevelopmentinpracticerdquo

7

This document does not provide a oneͲsizeͲfitsͲall solution to implement inclusive green growthstrategies because the appropriate measures and policies are highly dependent on the contextespeciallyonthemostpressingenvironmentalsocialandeconomicissuesCountrieswillhavedifferentprioritiesdependingonamongothertheirincomelevelsthesectoralcompositionsoftheireconomiesandtherelativeimportanceofsectorsdirectlybasedonnaturalresourcesorwithdependenceonfossilfuels and their specific risk and vulnerabilityprofile from anenvironmental standpoint Thepoliticaleconomy of policymaking around green growthmay also significantly shape the agenda in differentcountriesHencethisdocumentmerelyprovidesaseriesoftoolsthatcanhelpdesignastrategythatisappropriateinagivencontext

ThistoolkitshouldnotbeseenasadefinitiveanswertothechallengesraisedbyinclusivegreengrowthItisratherthefirststepofacollaborativeefforttomobilizethetoolsatthecountriesrsquodisposalintheirdomesticeffortstogreentheireconomies

ThetoolkitisorganizedasfollowsFirstthenecessityofapplyingthedifferenttoolsinthecontextofabroadinclusivegreengrowthstrategy isstressedandaharmonizedframeworkcombiningapproachesandtoolsidentifiedbyallfourIOsissetforthSecondthedocumentoffersanoverviewofkeytoolsthatcanbemobilizedtoimplementaninclusivegreengrowthstrategyQuicktechnicaldescriptionsofthesetools are offered along with suggested sources for further details Finally capacity building andknowledgesharinginitiativesarepresentedwiththeGGKPhighlightedasapowerfulcollaborativetooltoadvancepoliciesforinclusivegreeneconomies

2 Craftinganinclusivegreengrowthstrategy

AsemphasizedinthejointdraftreportfromOECDUNandtheWBtotheG20EnergyandCommodityMarkets Group in the Finance track on ldquoIncorporating green growth and sustainable developmentpolicies into structural reform agendasrdquo tools used to advance inclusive green growth need to bedeployedwithin a coherent overarching strategy An overall vision and strategy for inclusive greengrowthisindispensableforframingpolicyreformsasnationalstrategieswithpositivelongͲtermgoals

The approach should be to integrate green growth into policy processes and national developmentplans rather than create standͲalone policy documents or agencies Doing so increases theacceptability of immediate costs by the population including the private sector It also improvesconsistency among policies and fosters policy certaintymdashwhich creates a friendlier climate forinvestmentsmaking itmore likely that private resourceswill be invested in longͲterm projectsButbuildinganationalstrategycreatessomechallengesof itsown includingtheneedforcoherentcrossͲgovernment collaboration multiͲstakeholder engagement interagency coordination private sectorengagementandthedefinitionofrelevantlongͲtermgoalsandindicators

AheadofanymajorpolicyprocessandmoresowithregardtopoliciesforanallͲencompassinginclusivegreen growth (IGG) approach there has to be amethodology for arriving at specific instrumentsstartingwithasharedvisionstocktakingof issues lessonsandopportunitiessettingofconcreteand

8

realisticcountrygoals identificationandanalysisof technicaloptionsall leading toareformsagendaandorinvestmentplanwithclearactionstimelinesandresourceimplicationsVariousstrategieshavebeendevelopedbydifferentdevelopmentactorsbutallhavecommonelementsandcanthereforebecombinedintoacommonframeworkFigure1summarizesthisframeworkidentifyingthemainbuildingblockswithinwhichdifferenttoolscanbedeployedThesectionthatfollowsdevelopsthisframeworkfurtherprovidingillustrationsofhowdifferenttoolscanbedeployedforthedifferentsteps

9

Figure1Summaryofstepstodevelopaninclusivegreengrowthstrategyanchoredintonationaldevelopmentframework

Thetypeofactionseachofthesestepsmayentailisdiscussedbelow

Vision

bullSettingamediumtolongͲterminclusivegreengrowthvisionforthecountrythatisanchoredintothecountryrsquosnationaldevelopmentstrategy

Diagnostic

bullTakingstockofthemaineconomicandsocialchallengesandopportunitiesthenexamineenvironmentalchallengesandopportunities

GoalSetting

bullDefiningobjectivesandexpectedoutcomesforshortandmediumͲtermthatarelinkedtolongtermvision

Optionsmeasures

bullFocusing onsynergies (arethereIGGpoliciesthatbringimmediateandlocalbenefits)andurgency(whatisneedednowtoavoidlockͲinandirreversibilities)identifyingpolicytechnologyoptionsthatcouldhelpovercomethebarriersidentifiedandseizetheopportunities

FeasibilityAnalysis

bullUndertakingfeasibilityandMCAanalysesoftheproposedpolicytechnologyoptionsinordertorecognizethebestoptionspracticesforthespecificnationalcontext

Implementation

bullDesigningpolicyreformprocessthatreflectsthesebestoptionsandmobilizeadequateupͲfrontfinancingforimplementation

Monitoringamp

Evaluation

bull MampEofpoliciesisneededtocreateafeedbackloopintothedesignofpolicies

10

Asmentioned above any IGG strategymust be anchored into a national development vision that isbroadlyownedwithingovernmentandby itsconstituency includingmarginalizedgroupandthosewhomaybeparticularlyvulnerableduringthetransitiontowardsagreeneconomy Inordertoachievethistheprocessof elaborating the strategy itselfneeds strong andpolitical commitment andbuyͲin at alllevels a network of champions across the government complex to drive the change process at thetechnical level thorough consultationswithdifferent stakeholders andwide sharingof information toensureatransparentdecisionprocess

SCOPESOMECOREELEMENTS STEPSTOOLS

PoliticalcommitmentstronghighͲlevelpoliticalcommitmentandleadershipisneeded at the various stagesof thepolicy cycle toensure theprocess isnotcapturedbyvestedinterestsortakenoverbyotheritemsinthepoliticalpolicyagendaInvolvementofPresidentPrimeͲminsterwithfulltechnicalbackͲupofleadingMinistriesagenciesiscrucial

InstitutionalsetͲupandchampionsachangeinprocessinvolvingcrossͲsectoralcollaborationrequiresacriticalmasspeoplewiththeabilitytounderstandthevision communicate with various stakeholders and technical expertise todesignappraiseapplyandadjustthepolicysolutionsMorethan justsettingͲupteamscommitteesacrossvarioustechnicalareas it is importantthatthesepeoplealsoactasaldquonetworkofchampionsrdquoforIGG

Broad consultations Some steps like the definition of the Vision and theObjectivesExpectedoutcomesrequiresomebroadconsultationswithnationalstakeholders (including civil society private sector development partnersmunicipalitiesadvocacynetworksetc)

Information dissemination and transparency All information generated inpolicyͲmakingprocessshouldbewidelyavailableandtheprocessmustbedonetransparentlyallowingallstakeholdersavoiceandensuringthatdisagreementsarenotedinpublicfora

Ministerial Steering Committee bestchairedbyMinistryof financeeconomyorplanningorViceͲpresidentrsquosoffice

Technical Committees and subͲtechnicalcommittees

Consultation instruments (townhallmeetings focused group discussionsopinionsurveysgovernmentwebPortalNationalamplocalpressradio)

Step1bull VISIONampOBJECTIVES

11

Step two entails a systematic compilation of relevant information to better understandchallengesopportunities in framing IGG objectives In particular it is this stage to identifieseconomicsocialandenvironmentalnaturalcapitalchallengesandopportunities for thecountryclimate risk management issues take stock of existing policy instruments as well as the likelyconstraintstoimplementinginclusivegreengrowth

SCOPESOMECOREELEMENTS STEPSTOOLs

Collect relevant information to understand challengesopportunities and frameobjectives

Identify key economic and social challenges and opportunities using existingdiagnosticsandreviewing

x EconomicSectorsinvalueͲaddedjobcreationenvironmentalimpactsx Povertyinequalityexclusionandvulnerabilityindicatorsx Demographicamplabourmarketstatisticsx UrbanizationTrendsx Urbanruralaccesstobasicservices(educationhealthwaterenergy)x Energyaccessbypopulationgroupsurbanruralareastechnology

Identifykeyopportunitiesandchallengesinnaturalcapitalofcountryregion

x Ecosystemtypeshistoricalcurrentandprojectdistributionsmapsx Spatialmapshighlightingbiologicalrichnessx Mapswithhighaboveorbelowgroundcarbonstocksx AgricultureandbioͲenergylandͲusemapping(FAOmethodology)x Nationalrenewableresourceassessments(windsolarhydrogeothermal)x Spatialoverlaysofareaswithmultiplehighvalueecosystemservices

Andinclimatechangeandclimateriskmanagement

x Disasterstatistics(lossoflivetotalandrelativeeconomiclosses)x Hazard maps (spatial exposure to hydroͲmeteorological and geological

hazards)x Regionaltrendsinkeyclimaticparametersx VulnerabilityandAdaptationAssessments

CountryͲspecificstatisticalbureausortheirequivalents

CountryͲspecific public surveysand inͲcountry thinkͲtanksuniversitiesresearchcenters

National and MDB Data Portal(provides multiple customizedtools to gather and analyzemultipleindicators)

System of EnvironmentalͲEconomic Accounts (UNSEEA)wealth accounting and valuationofecosystemservices(WAVES)

HumanDevelopmentIndex

FAO FAOSTAT FAO CLIMPAG(brings together the variousaspects and interactions betweenweather climate and agriculturein the general context of foodsecurity) FAO Global InformationandEarlyWarningSystemonFoodandAgriculture(GIEWS)

Community mapping toolsparticipatory rural appraisals andother tools to bring out localknowledge about ecosystemsproperty right regimes andpatternsofnaturalresourceuse

Step2bull DIAGNOSTICS

12

SCOPESOMECOREELEMENTS STEPSTOOLs

TakestockofexistingpolicyinstrumentsrelevanttoIGG

x Rules and regulations already in place with regard to natural resourcesenergypollutionemployment

x EnactedeconomicandfinancialinstrumentswithabearingonIGGx In termsofeconomic instrumentsunderstandingwhich revenuesarebeing

collected and bywhom how they are being used and ameasure of theirsuccessonachievingthepolicyobjectives

x In terms of financial instruments understanding subsidy schemes theireffectivenessandmanagementgovernanceinpractice

x In termsofsocialprotectionexistingsocialprotection floorsandsafetynetsystems

x ThenationalbudgetingprocessandentrypointsforIGG

Takestockoflikelyconstraintstoimplementinginclusivegreengrowth

x Politicaleconomyfragilityorbehaviouralchangeissuesx Financialconstraintsx Institutionalorcapacityconstraints

Throughout examine opportunities for synergies (are there IGG policies that bringimmediate and local benefits) and extent of urgency (what are the policies andinvestmentsthatneedtobetakennowtoavoid locking intoanunsustainablefutureandcreatingirreversibilities)

Strategic EnvironmentalAssessment social expenditurereviews (green) publicexpenditurereviews

WFPComprehensiveFoodSecurityandVulnerabilityAnalysis(CFSVA)GuidelinesFoodSecurityandVulnerabilityAnalysisHungerandClimateVulnerabilityIndex

International Rescue Committee(IRC)DisasterRiskDatabases

UNDP Climate Change CountryProfiles

IPCC Assessment Special andMethodologyReports

WorldBankClimatePortal

AfDB Country Policy andinstitutional Assessment AfDBCountryGovernanceProfiles

OECDGreenGrowthDiagnosticframeworkUNEP Green Economy ScopingStudies

AtthisstagecountrieswillsetspecificgoalsandexpectedoutcomesfortheshortandmediumͲtermthatarelinked to their long term vision In particular criteria are defined for prioritizing the various options andmeasures across identified in accordance with countriesrsquo specific development context Aassessments ofinstitutionalfinancialandcapacityconstraintsshouldalsobecarriedouttoensurethatpoliciesarematchedtoinstitutionalcapabilities

Inadditionascountriessettheirgoalstheymay look intovoluntaryguidelinesandstandardsanchored intobestpracticesapproaches Thesemay includeguidelines thatarenotspecificallydesigned topromotegreengrowthpoliciesbutthathaveaddresscore issuesofsustainabilityand inclusiveness inpoliciesand investmentsaffecting

Step3bull GOAL SETTING

13

sectorsthatwouldbemostlikelytobeatthecenterofthesepoliciesinmanylowincomecountriesInrelationtoagriculture for instance useful elements may be drawn from the UN Committee for World Food SecurityrsquosVoluntaryGuidelinesontheResponsibleGovernanceofTenureofLandFisheriesandForestsortheFAOCodeofConductforResponsibleFisheriesamongother

SCOPESOMECOREELEMENTS STEPSTOOLS

Identification of relevant sectors ndash from the diagnostic prioritizesectorssubͲsectorswheremostpotentialexistsfordeliveringIGGandidentifypolicyoptionsforfurtherassessment

Assessment of policytechnological options ndash this includes anextensive reviewof testedpolicytechnologies around theglobe foreachprioritysector inparticularthosewhichhavebeensuccessfullyintroducedincountrieswithsimilarsocioͲeconomicprofiles

Assessment of Institutional Capacity Needs Ͳ Assessments ofinstitutional financial and capacity constraints for implementingpolicies and measures that facilitate transition to Inclusive GreenGrowth It is important to ensure that policies are matched toinstitutionalcapabilitiestoensurethatresultsareachieved

SectorconsultationsandalignmentwithcountryrsquoslongͲtermdevelopmentplanFAOClimateSmartAgricultureCFS Voluntary guidelines on the responsiblegovernanceoftenureoflandfisheriesandforestsPrinciples for Responsible Agricultural Investmentthat Respects Rights Livelihoods and Resources(PRAI)ofFAOIFADUNCTADandWorldBankClimate Technology Wiki UNEP and UNDPrsquosTechnologyNeedsAssessment(TNAs)UNEPGreenEconomyScopingStudiesOECD Policy Guidance on Integrating ClimateChangeAdaptationintoDevelopmentCooperationNationallyAppropriateMitigationActions(NAMAs)SectorMasterPlanStudies

MultiͲcriteriaanalysisare likely tobeneededgiven the limitationof costͲbenefitanalysis in theabsenceofmarketprices (forenvironmentalgoods)and in thepresenceof substantialuncertainty (aboutclimate riskstechnology)Politicaleconomyanalysisaswellasdistributionalassessmentareimportant

Butascountriesseektoprioritizeacrossthemanyurgentand importantstepsthattheycantaketo taketogreentheirgrowthandpromotegreaterinclusiontwoparticulardimensionscanbehighlighted

Step4bull PRIORITYSETTINGANDFEASIBILITYANALYSIS

14

x Synergies theextent towhichgreenpoliciesprovide immediateand localbenefitsandhelpachievemore rapidormore inclusivegrowth Greenpolicies thathave immediateand localbenefitswillalsobenefitfromgreaterpoliticalandsocialacceptabilityndashacriticaldimension ifstrategiesaretoactuallybeimplemented

x Urgencytheextenttowhichapolicycanbepostponedwithoutrunningtheriskofirreversibledamagesorlockingintounsustainablepatternsofgrowth

SCOPESOMECOREELEMENTS STEPSTOOLS

MultiͲcriteria analysis is likely to be needed Political economy analysis as well asdistributionalassessmentareimportantasarethefollowing

x Baselinestudiesfortargetsectorsx Assessmentof firstorder (direct impacts)and2ndorder (coͲbenefits sideͲ

effects)ofshortlistedpolicyinstrumentsonfiscalsystemx Costof implementation includingmitigationofadverse impactsmonitoring

andenforcementx Assessmentofinstitutionalbarriershinderingpolicyimplementationx Understanding of impacts across different interested groups and powerful

factions

Final policy choice should be informed by the combination of urgency synergyefficacy and greatest feasibility given existing power and institutional dynamicsTradeͲoffs should be resolvedwith reference to priority criteria and validatedwithstakeholdersbeforeimplementation

MarginalAbatementCostCurves

MultiͲcriteriaanalysisforcomparisonofpolicyoptions

DecisionͲmakingunderuncertainty

StrategicEnvironmentalAssessments

StakeholderAnalysisampotherPoliticalEconomytools(factionalanalysispoweranalysis)

Implementationofpolicypackageshouldbeanchoredinacleartimeline(sequencingmatters)andunderpinned by realistic resource estimates (financial human and technical) Policies shouldthereforebe integrated into sectorplans andnationalbudget processes Implementation shouldprioritizeldquoquickwinsrdquoorthosepoliciesthatyieldanimmediatepositivereturn(egdirectrevenuescostsavingsjobs)andorhavelowestimplementationcosts

Step5bull IMPLEMENTATION

15

SCOPESOMECOREELEMENTS STEPSTOOLS

Keyelementsincludeacleartimeline(sequencingmatters)and realistic resource estimates (financial human andtechnical)

NationalBudgetprocesses

InvestmentPlanampResourceMobilisationStrategy

Poverty and Social Impact Assessments (PSIA)EnvironmentalImpactAssessments(EIA)

PaymentforEcosystemServices

EnvironmentalFiscalReform

SustainablePublicProcurement

SocialSafetyinstruments

World BankUNDP Climate Options Platform UNDPGuidebook on Blending Climate Finance ThroughNationalClimateFunds

WFPInnovativeriskfinancetransferandinsurance(egWFPLivelihoodsEarlyAssessmentandProtection

MonitoringandevaluationofpoliciesandinterventionsareneededtocreateafeedbackloopintothedesignofpoliciesToolsincludebothstandardmonitoringandevaluationaswellasimpactevaluationgiventheneedforformallearningaboutgreengrowthwhatinterventionsworkbestMoreovertheinclusivenatureoftheIGGagendaisbestservedbyinclusiveMampEprocessesincludingparticipatoryapproachesthatbestcaptureboththesocialandtheenvironmentalimpactofpolicyimplementation

3 ToolsforInclusiveGreenGrowth

Apracticaland flexiblepolicy toolkithasan important role toplay inhelpingdevelopingcountries toidentify and address bottlenecks and constraints to realizing inclusive green growth Such a toolkitrequires details of generic and specific policies ndash environmental economic and social It envisagessignificantlongͲterminvestmentandinnovationbothtechnologicalandinstitutionaltoavoidlockingͲin

Step6bull MampE

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 4: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

4

1 Introduction

In2012theMexicanPresidencyoftheG20introducedinclusivegreengrowthasacrossͲcuttingpriorityontheG20developmentagendaThesecondmeetingoftheG20DevelopmentWorkingGroup(DWG)hostedbytheGovernmentoftheRepublicofKoreatookplaceinSeoulthe19thand20thofMarch2012As agreed during the first DWG meeting this second meeting focused on the priorities for theirpresidencyinthefirsthalfof2012infrastructurefoodsecurityandinclusivegreengrowth(IGG)AtitsSeoulmeetingtheDWGalsoagreedthatIGGcoͲfacilitatorsandrelevantIOs(theAfDBOECDUNandWorldBank)shouldworktogether in2012todevelopanonͲprescriptiveGoodPracticesGuideToolkitonenablingnationalpolicyframeworksforinclusivegreengrowthtosupportcountrieswhovoluntarilywishtodesignandimplementaffordableandinclusivegreengrowthpolicieswiththeaimofachievingsustainabledevelopmentandpovertyalleviation

WithintheG20processtheDWGhasfullyrecognizedthat inclusivegreengrowth isakeyelementoflongtermsustainabledevelopmentInadditiontheDWGhasemphasizedthatembarkingoninclusivegreengrowthmustnotbecomeaprescriptiveconditionalityfordevelopingcountriesandG20countriesaliketoaccessinternationalassistanceandresourcesInsteadtheinternationalcommunitymustcometogether to support developing countries seeking to put in place countryͲdriven and nationallyͲappropriate tools that fostereconomicgrowthwhich isbothenvironmentally sustainableandsociallyinclusiveInclusivegreengrowthwillnothappenonitsowndeliberatepolicyandinvestmentdecisionsneed to be taken at all levels local to global to ensure that economic growth is in fact green andinclusive

ThepolicypackageneededtoimplementinclusivegreengrowthinstrumentswilldifferacrosscountriesdependingupontheirnationalcircumstancesandlevelofdevelopmentForexamplepoorercountriesaremorelikelytofindsustainableagriculture(Box1)thanimprovedindustrialpracticesattheheartofinclusivegreengrowthTheeconomiesofdevelopingcountriesespeciallylowincomecountries(LICs)frequently exhibit characteristics that can complicate the implementation of inclusive green growthpoliciesTheseofteninclude

x Highdependenceonnaturalresourcesforbothlivelihoodsandeconomicgrowthx Highdegreeofvulnerabilitytoclimatechangex Lackofbasicinfrastructureandservicesx Largeinformaleconomiesx Highlevelsofpovertyandinequalityx Highpopulationgrowthrates

x Rapidurbanizationprocessesandgrowthofurbanareas

x Limitedcapacityforpolicydevelopmentfinancingandimplementationx Limitedpublicandprivatecapacityfortechnologicalinnovationandinvestmentx Severeeconomicsocialandecologicalthreatsfromenergyfoodandwatersecurity

5

Prematuredeathsduetopollutionpoorwaterqualityanddiseasesassociatedwithachangingclimate

x Underdevelopedfinancialmarketsandlimitedaccesstosavingscreditandinsuranceproducts

Box1InclusiveGreenGrowthandagricultureandfisheries

SustainablegrowthinagricultureisakeycomponentofinclusivegreengrowthAgricultureͲcropslivestockforestryandfisheriesͲisthestewardofmostoftheworldrsquosnaturalresourcesThecropandlivestocksectorsuse70percentoffreshwaterresourcesandtogetherwithforestryoccupy60percentoftheearthslandsurfaceOceanscover70percentoftheplanetrsquossurfaceandsustainfisheriesandaquaculturewhichaccountsforagrowingshareoflandandfreshwateruseAgricultureproducesfoodandrawmaterialsforthebioͲeconomyͲincludingtextilesbuildingmaterialsbiochemicalsandrenewableenergyAgricultureisanimportanteconomicactivityespeciallyindevelopingcountrieswhereitisthesourceoflivelihoodforthelargemajorityoftheextremelypoordriveseconomicdevelopmentandcreatesgreenjobopportunitiesAgricultureiscloselylinkedwiththequestforensuringasustainabledevelopmentpaththatcanensurefoodsecurityandpropernutritionfor9billionpeoplein2050

Ultimatelythebillionsofmenandwomenwhofarmkeeplivestockfishmanageforestsandrunagribusinesseswill determine whether inclusive green growth becomes a reality From poor smallholders tomultinationalcorporations they are stewards of natural resources and they take risks andmake investments every day inmanagingtheirenterprisesProperlyappliedthetoolsinthistoolkitcanhelpguidetheirdecisionstoreflecttruescarcity values of resources take account of positive and negative social and environmental impacts and putagricultureontoamoresustainablepath

Themotivationforinclusivegreengrowthpoliciesvariestheneedtobetterharnessnaturalresourcesformeetingbasicneedspovertyalleviationandprovidingsustainablelivelihoodsandjobcreationthedesiretomobilizeresourcesandreduceburdensonpublicfinanceswhile improvingtheenvironmentreducevulnerabilitytoenvironmentalshocksandnaturalresourcebottlenecksorthegoaloffosteringnewgrowthandemploymentopportunities

Implementing inclusive green growth is a significant challenge The scale of changes implies thatcountrieswillhavetotakeldquotransformationalrdquoactionsthatredirect investmentflowswithinandacrosssectorsIsolatedprojectinterventionsalonewillnotsufficeHowevernoteverythinghastobedoneatonce An important contribution that a strategic framework can make is to help identify whichinterventionsareurgentandwhichcanwaitwhichcanhelpaddresssomeoftheimmediateandcriticalchallengesofdevelopingcountriesandwhichimplytradeͲoffs

And there are important complementarities between inclusive green growth and poverty reductionTheseincludemoreefficientandexpandedcoverageofwaterandenergyservicesreducedthehealthimpacts associatedwith environmental degradation reduced costs and increased productivity fromtechnologiesthatalsoeaseenvironmentalpressureGiventhecentralityofnaturalassetsinlowincome

6

countries inclusivegreengrowthpoliciescanreducevulnerabilitytoenvironmentalrisksand increasethelivelihoodsecurityofthepoor2

The international communityrsquos focusmust be to help developing countries catalyze investment forgreenertechnologypracticesandenterprisesthatwillmakegreengrowthpossibleandwillcontributetoanequitabledevelopmentparadigmFortunatelyanumberofinitiativesbyIOsareunderwaytohelpsupportcountriesintheseefforts(Box2)

Box2Selectedinitiativesbyinternationalorganizationstosupportinclusivegreengrowth

TheAfricanDevelopmentBank(AfDB)istakinginclusivegreengrowthtotheheartofitsLongTermStrategyanddesigning itsoperationstoaccountfortheAfricanspecificitiesnotably(i)addressingthe infrastructuregapasafundamentalenablerforeconomicgrowth(ii)managingmoreefficientlyAfricarsquosnaturalresourcesasitsstockofwealth andmain source of income (iii) and boosting economic and social resilience to exogenous shocks InadditiontoitssuiteofgreenfinancinginstrumentssuchasClimDevͲAfricaCongoBasinForestFund(CBFF)AfricanWaterFacility (AWF)andSustainableEnergyFund forAfrica (SEFA)AfDB isdevelopinganAfricaGreenGrowthFacilityforupstreamworkandcapacitydevelopmentoninclusivegreengrowthTheOECDisactivelyengagedwithdevelopingcountriesinmanyareascloselyrelatedtoinclusivegreengrowthIthas synthesized good practices on topics such as Environmental Fiscal Reform Strategic EnvironmentalAssessment Climate Change Adaptation and Capacity Development for Environmental Management andGovernance to supportefforts towards inclusivegreengrowthOECD tracksdevelopment coͲoperation supportwith environmental objectives and is currently alsoworkingwith itsmembers tomainstream green growth inareas of development coͲoperation as diverse as private sector development infrastructure investment andtradeͲrelatedassistanceSeewwwoecdorggreengrowthTheUN system isamajorproviderof support the system itself represents thedifferentelementsof inclusivegreen growthmdashfor example with IFAD focusing specifically on eradicating rural poverty FAO promotingsustainable agricultural practices WFP fighting hunger worldwide ILO promoting green job creation UNEPprotectingtheenvironmentandprovidingadvisoryservicesongreeneconomyUNDPworkingtoreducepovertyandinequalityandstrengthengovernanceandenvironmentalsustainabilityUNICEFandUNFPApromotingyouthempowerment UNIDO supporting sustainable industrial development the UN Secretariat looking at broadereconomicdevelopmentandinvestmentaspects(UNͲDESAUNCTADetc)andWHOaddressinghealthissuesTheWorldBank isworking tomainstream inclusivegreengrowth in itsoperationsandknowledgeactivities Itsreport on ldquoInclusive Green Growth The Pathway to Sustainable Developmentrdquo(wwwworldbankorginclusivegreengrowth) sets the framework for this maintreaming TheWorld Bank haslaunchedaseriesofcomplementaryactivitieswithpartnersSuch initiatives includeWAVES(WealthAccountingandtheValuationofEcosystemServices)LEDs(LowEmissionDevelopment)ClimateFinanceOptionsKnowledgePlatformtonameafewInaddition theGlobalGreenGrowth Institute (GGGI) theOECDUNEPand theWorldBank jointly launched inearly2012 theGGKPaglobalnetworkofresearchersanddevelopmentexpertsseeking to identifyandaddressmajorknowledgegapsingreengrowththeoryandpractice

2SeeforexampletheOECDrsquos2011ldquoTowardsGreenGrowthASummaryforPolicymakersrdquotheWorldBankrsquos2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentUNEPrsquos2011TowardsaGreenEconomyFAOSave Pathways to SustainableDevelopment andGrow 2011PovertyAlleviationUNDPrsquos 2012 ldquoTripleWins forSustainableDevelopmentCasestudiesofSustainableDevelopmentinpracticerdquo

7

This document does not provide a oneͲsizeͲfitsͲall solution to implement inclusive green growthstrategies because the appropriate measures and policies are highly dependent on the contextespeciallyonthemostpressingenvironmentalsocialandeconomicissuesCountrieswillhavedifferentprioritiesdependingonamongothertheirincomelevelsthesectoralcompositionsoftheireconomiesandtherelativeimportanceofsectorsdirectlybasedonnaturalresourcesorwithdependenceonfossilfuels and their specific risk and vulnerabilityprofile from anenvironmental standpoint Thepoliticaleconomy of policymaking around green growthmay also significantly shape the agenda in differentcountriesHencethisdocumentmerelyprovidesaseriesoftoolsthatcanhelpdesignastrategythatisappropriateinagivencontext

ThistoolkitshouldnotbeseenasadefinitiveanswertothechallengesraisedbyinclusivegreengrowthItisratherthefirststepofacollaborativeefforttomobilizethetoolsatthecountriesrsquodisposalintheirdomesticeffortstogreentheireconomies

ThetoolkitisorganizedasfollowsFirstthenecessityofapplyingthedifferenttoolsinthecontextofabroadinclusivegreengrowthstrategy isstressedandaharmonizedframeworkcombiningapproachesandtoolsidentifiedbyallfourIOsissetforthSecondthedocumentoffersanoverviewofkeytoolsthatcanbemobilizedtoimplementaninclusivegreengrowthstrategyQuicktechnicaldescriptionsofthesetools are offered along with suggested sources for further details Finally capacity building andknowledgesharinginitiativesarepresentedwiththeGGKPhighlightedasapowerfulcollaborativetooltoadvancepoliciesforinclusivegreeneconomies

2 Craftinganinclusivegreengrowthstrategy

AsemphasizedinthejointdraftreportfromOECDUNandtheWBtotheG20EnergyandCommodityMarkets Group in the Finance track on ldquoIncorporating green growth and sustainable developmentpolicies into structural reform agendasrdquo tools used to advance inclusive green growth need to bedeployedwithin a coherent overarching strategy An overall vision and strategy for inclusive greengrowthisindispensableforframingpolicyreformsasnationalstrategieswithpositivelongͲtermgoals

The approach should be to integrate green growth into policy processes and national developmentplans rather than create standͲalone policy documents or agencies Doing so increases theacceptability of immediate costs by the population including the private sector It also improvesconsistency among policies and fosters policy certaintymdashwhich creates a friendlier climate forinvestmentsmaking itmore likely that private resourceswill be invested in longͲterm projectsButbuildinganationalstrategycreatessomechallengesof itsown includingtheneedforcoherentcrossͲgovernment collaboration multiͲstakeholder engagement interagency coordination private sectorengagementandthedefinitionofrelevantlongͲtermgoalsandindicators

AheadofanymajorpolicyprocessandmoresowithregardtopoliciesforanallͲencompassinginclusivegreen growth (IGG) approach there has to be amethodology for arriving at specific instrumentsstartingwithasharedvisionstocktakingof issues lessonsandopportunitiessettingofconcreteand

8

realisticcountrygoals identificationandanalysisof technicaloptionsall leading toareformsagendaandorinvestmentplanwithclearactionstimelinesandresourceimplicationsVariousstrategieshavebeendevelopedbydifferentdevelopmentactorsbutallhavecommonelementsandcanthereforebecombinedintoacommonframeworkFigure1summarizesthisframeworkidentifyingthemainbuildingblockswithinwhichdifferenttoolscanbedeployedThesectionthatfollowsdevelopsthisframeworkfurtherprovidingillustrationsofhowdifferenttoolscanbedeployedforthedifferentsteps

9

Figure1Summaryofstepstodevelopaninclusivegreengrowthstrategyanchoredintonationaldevelopmentframework

Thetypeofactionseachofthesestepsmayentailisdiscussedbelow

Vision

bullSettingamediumtolongͲterminclusivegreengrowthvisionforthecountrythatisanchoredintothecountryrsquosnationaldevelopmentstrategy

Diagnostic

bullTakingstockofthemaineconomicandsocialchallengesandopportunitiesthenexamineenvironmentalchallengesandopportunities

GoalSetting

bullDefiningobjectivesandexpectedoutcomesforshortandmediumͲtermthatarelinkedtolongtermvision

Optionsmeasures

bullFocusing onsynergies (arethereIGGpoliciesthatbringimmediateandlocalbenefits)andurgency(whatisneedednowtoavoidlockͲinandirreversibilities)identifyingpolicytechnologyoptionsthatcouldhelpovercomethebarriersidentifiedandseizetheopportunities

FeasibilityAnalysis

bullUndertakingfeasibilityandMCAanalysesoftheproposedpolicytechnologyoptionsinordertorecognizethebestoptionspracticesforthespecificnationalcontext

Implementation

bullDesigningpolicyreformprocessthatreflectsthesebestoptionsandmobilizeadequateupͲfrontfinancingforimplementation

Monitoringamp

Evaluation

bull MampEofpoliciesisneededtocreateafeedbackloopintothedesignofpolicies

10

Asmentioned above any IGG strategymust be anchored into a national development vision that isbroadlyownedwithingovernmentandby itsconstituency includingmarginalizedgroupandthosewhomaybeparticularlyvulnerableduringthetransitiontowardsagreeneconomy Inordertoachievethistheprocessof elaborating the strategy itselfneeds strong andpolitical commitment andbuyͲin at alllevels a network of champions across the government complex to drive the change process at thetechnical level thorough consultationswithdifferent stakeholders andwide sharingof information toensureatransparentdecisionprocess

SCOPESOMECOREELEMENTS STEPSTOOLS

PoliticalcommitmentstronghighͲlevelpoliticalcommitmentandleadershipisneeded at the various stagesof thepolicy cycle toensure theprocess isnotcapturedbyvestedinterestsortakenoverbyotheritemsinthepoliticalpolicyagendaInvolvementofPresidentPrimeͲminsterwithfulltechnicalbackͲupofleadingMinistriesagenciesiscrucial

InstitutionalsetͲupandchampionsachangeinprocessinvolvingcrossͲsectoralcollaborationrequiresacriticalmasspeoplewiththeabilitytounderstandthevision communicate with various stakeholders and technical expertise todesignappraiseapplyandadjustthepolicysolutionsMorethan justsettingͲupteamscommitteesacrossvarioustechnicalareas it is importantthatthesepeoplealsoactasaldquonetworkofchampionsrdquoforIGG

Broad consultations Some steps like the definition of the Vision and theObjectivesExpectedoutcomesrequiresomebroadconsultationswithnationalstakeholders (including civil society private sector development partnersmunicipalitiesadvocacynetworksetc)

Information dissemination and transparency All information generated inpolicyͲmakingprocessshouldbewidelyavailableandtheprocessmustbedonetransparentlyallowingallstakeholdersavoiceandensuringthatdisagreementsarenotedinpublicfora

Ministerial Steering Committee bestchairedbyMinistryof financeeconomyorplanningorViceͲpresidentrsquosoffice

Technical Committees and subͲtechnicalcommittees

Consultation instruments (townhallmeetings focused group discussionsopinionsurveysgovernmentwebPortalNationalamplocalpressradio)

Step1bull VISIONampOBJECTIVES

11

Step two entails a systematic compilation of relevant information to better understandchallengesopportunities in framing IGG objectives In particular it is this stage to identifieseconomicsocialandenvironmentalnaturalcapitalchallengesandopportunities for thecountryclimate risk management issues take stock of existing policy instruments as well as the likelyconstraintstoimplementinginclusivegreengrowth

SCOPESOMECOREELEMENTS STEPSTOOLs

Collect relevant information to understand challengesopportunities and frameobjectives

Identify key economic and social challenges and opportunities using existingdiagnosticsandreviewing

x EconomicSectorsinvalueͲaddedjobcreationenvironmentalimpactsx Povertyinequalityexclusionandvulnerabilityindicatorsx Demographicamplabourmarketstatisticsx UrbanizationTrendsx Urbanruralaccesstobasicservices(educationhealthwaterenergy)x Energyaccessbypopulationgroupsurbanruralareastechnology

Identifykeyopportunitiesandchallengesinnaturalcapitalofcountryregion

x Ecosystemtypeshistoricalcurrentandprojectdistributionsmapsx Spatialmapshighlightingbiologicalrichnessx Mapswithhighaboveorbelowgroundcarbonstocksx AgricultureandbioͲenergylandͲusemapping(FAOmethodology)x Nationalrenewableresourceassessments(windsolarhydrogeothermal)x Spatialoverlaysofareaswithmultiplehighvalueecosystemservices

Andinclimatechangeandclimateriskmanagement

x Disasterstatistics(lossoflivetotalandrelativeeconomiclosses)x Hazard maps (spatial exposure to hydroͲmeteorological and geological

hazards)x Regionaltrendsinkeyclimaticparametersx VulnerabilityandAdaptationAssessments

CountryͲspecificstatisticalbureausortheirequivalents

CountryͲspecific public surveysand inͲcountry thinkͲtanksuniversitiesresearchcenters

National and MDB Data Portal(provides multiple customizedtools to gather and analyzemultipleindicators)

System of EnvironmentalͲEconomic Accounts (UNSEEA)wealth accounting and valuationofecosystemservices(WAVES)

HumanDevelopmentIndex

FAO FAOSTAT FAO CLIMPAG(brings together the variousaspects and interactions betweenweather climate and agriculturein the general context of foodsecurity) FAO Global InformationandEarlyWarningSystemonFoodandAgriculture(GIEWS)

Community mapping toolsparticipatory rural appraisals andother tools to bring out localknowledge about ecosystemsproperty right regimes andpatternsofnaturalresourceuse

Step2bull DIAGNOSTICS

12

SCOPESOMECOREELEMENTS STEPSTOOLs

TakestockofexistingpolicyinstrumentsrelevanttoIGG

x Rules and regulations already in place with regard to natural resourcesenergypollutionemployment

x EnactedeconomicandfinancialinstrumentswithabearingonIGGx In termsofeconomic instrumentsunderstandingwhich revenuesarebeing

collected and bywhom how they are being used and ameasure of theirsuccessonachievingthepolicyobjectives

x In terms of financial instruments understanding subsidy schemes theireffectivenessandmanagementgovernanceinpractice

x In termsofsocialprotectionexistingsocialprotection floorsandsafetynetsystems

x ThenationalbudgetingprocessandentrypointsforIGG

Takestockoflikelyconstraintstoimplementinginclusivegreengrowth

x Politicaleconomyfragilityorbehaviouralchangeissuesx Financialconstraintsx Institutionalorcapacityconstraints

Throughout examine opportunities for synergies (are there IGG policies that bringimmediate and local benefits) and extent of urgency (what are the policies andinvestmentsthatneedtobetakennowtoavoid locking intoanunsustainablefutureandcreatingirreversibilities)

Strategic EnvironmentalAssessment social expenditurereviews (green) publicexpenditurereviews

WFPComprehensiveFoodSecurityandVulnerabilityAnalysis(CFSVA)GuidelinesFoodSecurityandVulnerabilityAnalysisHungerandClimateVulnerabilityIndex

International Rescue Committee(IRC)DisasterRiskDatabases

UNDP Climate Change CountryProfiles

IPCC Assessment Special andMethodologyReports

WorldBankClimatePortal

AfDB Country Policy andinstitutional Assessment AfDBCountryGovernanceProfiles

OECDGreenGrowthDiagnosticframeworkUNEP Green Economy ScopingStudies

AtthisstagecountrieswillsetspecificgoalsandexpectedoutcomesfortheshortandmediumͲtermthatarelinked to their long term vision In particular criteria are defined for prioritizing the various options andmeasures across identified in accordance with countriesrsquo specific development context Aassessments ofinstitutionalfinancialandcapacityconstraintsshouldalsobecarriedouttoensurethatpoliciesarematchedtoinstitutionalcapabilities

Inadditionascountriessettheirgoalstheymay look intovoluntaryguidelinesandstandardsanchored intobestpracticesapproaches Thesemay includeguidelines thatarenotspecificallydesigned topromotegreengrowthpoliciesbutthathaveaddresscore issuesofsustainabilityand inclusiveness inpoliciesand investmentsaffecting

Step3bull GOAL SETTING

13

sectorsthatwouldbemostlikelytobeatthecenterofthesepoliciesinmanylowincomecountriesInrelationtoagriculture for instance useful elements may be drawn from the UN Committee for World Food SecurityrsquosVoluntaryGuidelinesontheResponsibleGovernanceofTenureofLandFisheriesandForestsortheFAOCodeofConductforResponsibleFisheriesamongother

SCOPESOMECOREELEMENTS STEPSTOOLS

Identification of relevant sectors ndash from the diagnostic prioritizesectorssubͲsectorswheremostpotentialexistsfordeliveringIGGandidentifypolicyoptionsforfurtherassessment

Assessment of policytechnological options ndash this includes anextensive reviewof testedpolicytechnologies around theglobe foreachprioritysector inparticularthosewhichhavebeensuccessfullyintroducedincountrieswithsimilarsocioͲeconomicprofiles

Assessment of Institutional Capacity Needs Ͳ Assessments ofinstitutional financial and capacity constraints for implementingpolicies and measures that facilitate transition to Inclusive GreenGrowth It is important to ensure that policies are matched toinstitutionalcapabilitiestoensurethatresultsareachieved

SectorconsultationsandalignmentwithcountryrsquoslongͲtermdevelopmentplanFAOClimateSmartAgricultureCFS Voluntary guidelines on the responsiblegovernanceoftenureoflandfisheriesandforestsPrinciples for Responsible Agricultural Investmentthat Respects Rights Livelihoods and Resources(PRAI)ofFAOIFADUNCTADandWorldBankClimate Technology Wiki UNEP and UNDPrsquosTechnologyNeedsAssessment(TNAs)UNEPGreenEconomyScopingStudiesOECD Policy Guidance on Integrating ClimateChangeAdaptationintoDevelopmentCooperationNationallyAppropriateMitigationActions(NAMAs)SectorMasterPlanStudies

MultiͲcriteriaanalysisare likely tobeneededgiven the limitationof costͲbenefitanalysis in theabsenceofmarketprices (forenvironmentalgoods)and in thepresenceof substantialuncertainty (aboutclimate riskstechnology)Politicaleconomyanalysisaswellasdistributionalassessmentareimportant

Butascountriesseektoprioritizeacrossthemanyurgentand importantstepsthattheycantaketo taketogreentheirgrowthandpromotegreaterinclusiontwoparticulardimensionscanbehighlighted

Step4bull PRIORITYSETTINGANDFEASIBILITYANALYSIS

14

x Synergies theextent towhichgreenpoliciesprovide immediateand localbenefitsandhelpachievemore rapidormore inclusivegrowth Greenpolicies thathave immediateand localbenefitswillalsobenefitfromgreaterpoliticalandsocialacceptabilityndashacriticaldimension ifstrategiesaretoactuallybeimplemented

x Urgencytheextenttowhichapolicycanbepostponedwithoutrunningtheriskofirreversibledamagesorlockingintounsustainablepatternsofgrowth

SCOPESOMECOREELEMENTS STEPSTOOLS

MultiͲcriteria analysis is likely to be needed Political economy analysis as well asdistributionalassessmentareimportantasarethefollowing

x Baselinestudiesfortargetsectorsx Assessmentof firstorder (direct impacts)and2ndorder (coͲbenefits sideͲ

effects)ofshortlistedpolicyinstrumentsonfiscalsystemx Costof implementation includingmitigationofadverse impactsmonitoring

andenforcementx Assessmentofinstitutionalbarriershinderingpolicyimplementationx Understanding of impacts across different interested groups and powerful

factions

Final policy choice should be informed by the combination of urgency synergyefficacy and greatest feasibility given existing power and institutional dynamicsTradeͲoffs should be resolvedwith reference to priority criteria and validatedwithstakeholdersbeforeimplementation

MarginalAbatementCostCurves

MultiͲcriteriaanalysisforcomparisonofpolicyoptions

DecisionͲmakingunderuncertainty

StrategicEnvironmentalAssessments

StakeholderAnalysisampotherPoliticalEconomytools(factionalanalysispoweranalysis)

Implementationofpolicypackageshouldbeanchoredinacleartimeline(sequencingmatters)andunderpinned by realistic resource estimates (financial human and technical) Policies shouldthereforebe integrated into sectorplans andnationalbudget processes Implementation shouldprioritizeldquoquickwinsrdquoorthosepoliciesthatyieldanimmediatepositivereturn(egdirectrevenuescostsavingsjobs)andorhavelowestimplementationcosts

Step5bull IMPLEMENTATION

15

SCOPESOMECOREELEMENTS STEPSTOOLS

Keyelementsincludeacleartimeline(sequencingmatters)and realistic resource estimates (financial human andtechnical)

NationalBudgetprocesses

InvestmentPlanampResourceMobilisationStrategy

Poverty and Social Impact Assessments (PSIA)EnvironmentalImpactAssessments(EIA)

PaymentforEcosystemServices

EnvironmentalFiscalReform

SustainablePublicProcurement

SocialSafetyinstruments

World BankUNDP Climate Options Platform UNDPGuidebook on Blending Climate Finance ThroughNationalClimateFunds

WFPInnovativeriskfinancetransferandinsurance(egWFPLivelihoodsEarlyAssessmentandProtection

MonitoringandevaluationofpoliciesandinterventionsareneededtocreateafeedbackloopintothedesignofpoliciesToolsincludebothstandardmonitoringandevaluationaswellasimpactevaluationgiventheneedforformallearningaboutgreengrowthwhatinterventionsworkbestMoreovertheinclusivenatureoftheIGGagendaisbestservedbyinclusiveMampEprocessesincludingparticipatoryapproachesthatbestcaptureboththesocialandtheenvironmentalimpactofpolicyimplementation

3 ToolsforInclusiveGreenGrowth

Apracticaland flexiblepolicy toolkithasan important role toplay inhelpingdevelopingcountries toidentify and address bottlenecks and constraints to realizing inclusive green growth Such a toolkitrequires details of generic and specific policies ndash environmental economic and social It envisagessignificantlongͲterminvestmentandinnovationbothtechnologicalandinstitutionaltoavoidlockingͲin

Step6bull MampE

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 5: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

5

Prematuredeathsduetopollutionpoorwaterqualityanddiseasesassociatedwithachangingclimate

x Underdevelopedfinancialmarketsandlimitedaccesstosavingscreditandinsuranceproducts

Box1InclusiveGreenGrowthandagricultureandfisheries

SustainablegrowthinagricultureisakeycomponentofinclusivegreengrowthAgricultureͲcropslivestockforestryandfisheriesͲisthestewardofmostoftheworldrsquosnaturalresourcesThecropandlivestocksectorsuse70percentoffreshwaterresourcesandtogetherwithforestryoccupy60percentoftheearthslandsurfaceOceanscover70percentoftheplanetrsquossurfaceandsustainfisheriesandaquaculturewhichaccountsforagrowingshareoflandandfreshwateruseAgricultureproducesfoodandrawmaterialsforthebioͲeconomyͲincludingtextilesbuildingmaterialsbiochemicalsandrenewableenergyAgricultureisanimportanteconomicactivityespeciallyindevelopingcountrieswhereitisthesourceoflivelihoodforthelargemajorityoftheextremelypoordriveseconomicdevelopmentandcreatesgreenjobopportunitiesAgricultureiscloselylinkedwiththequestforensuringasustainabledevelopmentpaththatcanensurefoodsecurityandpropernutritionfor9billionpeoplein2050

Ultimatelythebillionsofmenandwomenwhofarmkeeplivestockfishmanageforestsandrunagribusinesseswill determine whether inclusive green growth becomes a reality From poor smallholders tomultinationalcorporations they are stewards of natural resources and they take risks andmake investments every day inmanagingtheirenterprisesProperlyappliedthetoolsinthistoolkitcanhelpguidetheirdecisionstoreflecttruescarcity values of resources take account of positive and negative social and environmental impacts and putagricultureontoamoresustainablepath

Themotivationforinclusivegreengrowthpoliciesvariestheneedtobetterharnessnaturalresourcesformeetingbasicneedspovertyalleviationandprovidingsustainablelivelihoodsandjobcreationthedesiretomobilizeresourcesandreduceburdensonpublicfinanceswhile improvingtheenvironmentreducevulnerabilitytoenvironmentalshocksandnaturalresourcebottlenecksorthegoaloffosteringnewgrowthandemploymentopportunities

Implementing inclusive green growth is a significant challenge The scale of changes implies thatcountrieswillhavetotakeldquotransformationalrdquoactionsthatredirect investmentflowswithinandacrosssectorsIsolatedprojectinterventionsalonewillnotsufficeHowevernoteverythinghastobedoneatonce An important contribution that a strategic framework can make is to help identify whichinterventionsareurgentandwhichcanwaitwhichcanhelpaddresssomeoftheimmediateandcriticalchallengesofdevelopingcountriesandwhichimplytradeͲoffs

And there are important complementarities between inclusive green growth and poverty reductionTheseincludemoreefficientandexpandedcoverageofwaterandenergyservicesreducedthehealthimpacts associatedwith environmental degradation reduced costs and increased productivity fromtechnologiesthatalsoeaseenvironmentalpressureGiventhecentralityofnaturalassetsinlowincome

6

countries inclusivegreengrowthpoliciescanreducevulnerabilitytoenvironmentalrisksand increasethelivelihoodsecurityofthepoor2

The international communityrsquos focusmust be to help developing countries catalyze investment forgreenertechnologypracticesandenterprisesthatwillmakegreengrowthpossibleandwillcontributetoanequitabledevelopmentparadigmFortunatelyanumberofinitiativesbyIOsareunderwaytohelpsupportcountriesintheseefforts(Box2)

Box2Selectedinitiativesbyinternationalorganizationstosupportinclusivegreengrowth

TheAfricanDevelopmentBank(AfDB)istakinginclusivegreengrowthtotheheartofitsLongTermStrategyanddesigning itsoperationstoaccountfortheAfricanspecificitiesnotably(i)addressingthe infrastructuregapasafundamentalenablerforeconomicgrowth(ii)managingmoreefficientlyAfricarsquosnaturalresourcesasitsstockofwealth andmain source of income (iii) and boosting economic and social resilience to exogenous shocks InadditiontoitssuiteofgreenfinancinginstrumentssuchasClimDevͲAfricaCongoBasinForestFund(CBFF)AfricanWaterFacility (AWF)andSustainableEnergyFund forAfrica (SEFA)AfDB isdevelopinganAfricaGreenGrowthFacilityforupstreamworkandcapacitydevelopmentoninclusivegreengrowthTheOECDisactivelyengagedwithdevelopingcountriesinmanyareascloselyrelatedtoinclusivegreengrowthIthas synthesized good practices on topics such as Environmental Fiscal Reform Strategic EnvironmentalAssessment Climate Change Adaptation and Capacity Development for Environmental Management andGovernance to supportefforts towards inclusivegreengrowthOECD tracksdevelopment coͲoperation supportwith environmental objectives and is currently alsoworkingwith itsmembers tomainstream green growth inareas of development coͲoperation as diverse as private sector development infrastructure investment andtradeͲrelatedassistanceSeewwwoecdorggreengrowthTheUN system isamajorproviderof support the system itself represents thedifferentelementsof inclusivegreen growthmdashfor example with IFAD focusing specifically on eradicating rural poverty FAO promotingsustainable agricultural practices WFP fighting hunger worldwide ILO promoting green job creation UNEPprotectingtheenvironmentandprovidingadvisoryservicesongreeneconomyUNDPworkingtoreducepovertyandinequalityandstrengthengovernanceandenvironmentalsustainabilityUNICEFandUNFPApromotingyouthempowerment UNIDO supporting sustainable industrial development the UN Secretariat looking at broadereconomicdevelopmentandinvestmentaspects(UNͲDESAUNCTADetc)andWHOaddressinghealthissuesTheWorldBank isworking tomainstream inclusivegreengrowth in itsoperationsandknowledgeactivities Itsreport on ldquoInclusive Green Growth The Pathway to Sustainable Developmentrdquo(wwwworldbankorginclusivegreengrowth) sets the framework for this maintreaming TheWorld Bank haslaunchedaseriesofcomplementaryactivitieswithpartnersSuch initiatives includeWAVES(WealthAccountingandtheValuationofEcosystemServices)LEDs(LowEmissionDevelopment)ClimateFinanceOptionsKnowledgePlatformtonameafewInaddition theGlobalGreenGrowth Institute (GGGI) theOECDUNEPand theWorldBank jointly launched inearly2012 theGGKPaglobalnetworkofresearchersanddevelopmentexpertsseeking to identifyandaddressmajorknowledgegapsingreengrowththeoryandpractice

2SeeforexampletheOECDrsquos2011ldquoTowardsGreenGrowthASummaryforPolicymakersrdquotheWorldBankrsquos2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentUNEPrsquos2011TowardsaGreenEconomyFAOSave Pathways to SustainableDevelopment andGrow 2011PovertyAlleviationUNDPrsquos 2012 ldquoTripleWins forSustainableDevelopmentCasestudiesofSustainableDevelopmentinpracticerdquo

7

This document does not provide a oneͲsizeͲfitsͲall solution to implement inclusive green growthstrategies because the appropriate measures and policies are highly dependent on the contextespeciallyonthemostpressingenvironmentalsocialandeconomicissuesCountrieswillhavedifferentprioritiesdependingonamongothertheirincomelevelsthesectoralcompositionsoftheireconomiesandtherelativeimportanceofsectorsdirectlybasedonnaturalresourcesorwithdependenceonfossilfuels and their specific risk and vulnerabilityprofile from anenvironmental standpoint Thepoliticaleconomy of policymaking around green growthmay also significantly shape the agenda in differentcountriesHencethisdocumentmerelyprovidesaseriesoftoolsthatcanhelpdesignastrategythatisappropriateinagivencontext

ThistoolkitshouldnotbeseenasadefinitiveanswertothechallengesraisedbyinclusivegreengrowthItisratherthefirststepofacollaborativeefforttomobilizethetoolsatthecountriesrsquodisposalintheirdomesticeffortstogreentheireconomies

ThetoolkitisorganizedasfollowsFirstthenecessityofapplyingthedifferenttoolsinthecontextofabroadinclusivegreengrowthstrategy isstressedandaharmonizedframeworkcombiningapproachesandtoolsidentifiedbyallfourIOsissetforthSecondthedocumentoffersanoverviewofkeytoolsthatcanbemobilizedtoimplementaninclusivegreengrowthstrategyQuicktechnicaldescriptionsofthesetools are offered along with suggested sources for further details Finally capacity building andknowledgesharinginitiativesarepresentedwiththeGGKPhighlightedasapowerfulcollaborativetooltoadvancepoliciesforinclusivegreeneconomies

2 Craftinganinclusivegreengrowthstrategy

AsemphasizedinthejointdraftreportfromOECDUNandtheWBtotheG20EnergyandCommodityMarkets Group in the Finance track on ldquoIncorporating green growth and sustainable developmentpolicies into structural reform agendasrdquo tools used to advance inclusive green growth need to bedeployedwithin a coherent overarching strategy An overall vision and strategy for inclusive greengrowthisindispensableforframingpolicyreformsasnationalstrategieswithpositivelongͲtermgoals

The approach should be to integrate green growth into policy processes and national developmentplans rather than create standͲalone policy documents or agencies Doing so increases theacceptability of immediate costs by the population including the private sector It also improvesconsistency among policies and fosters policy certaintymdashwhich creates a friendlier climate forinvestmentsmaking itmore likely that private resourceswill be invested in longͲterm projectsButbuildinganationalstrategycreatessomechallengesof itsown includingtheneedforcoherentcrossͲgovernment collaboration multiͲstakeholder engagement interagency coordination private sectorengagementandthedefinitionofrelevantlongͲtermgoalsandindicators

AheadofanymajorpolicyprocessandmoresowithregardtopoliciesforanallͲencompassinginclusivegreen growth (IGG) approach there has to be amethodology for arriving at specific instrumentsstartingwithasharedvisionstocktakingof issues lessonsandopportunitiessettingofconcreteand

8

realisticcountrygoals identificationandanalysisof technicaloptionsall leading toareformsagendaandorinvestmentplanwithclearactionstimelinesandresourceimplicationsVariousstrategieshavebeendevelopedbydifferentdevelopmentactorsbutallhavecommonelementsandcanthereforebecombinedintoacommonframeworkFigure1summarizesthisframeworkidentifyingthemainbuildingblockswithinwhichdifferenttoolscanbedeployedThesectionthatfollowsdevelopsthisframeworkfurtherprovidingillustrationsofhowdifferenttoolscanbedeployedforthedifferentsteps

9

Figure1Summaryofstepstodevelopaninclusivegreengrowthstrategyanchoredintonationaldevelopmentframework

Thetypeofactionseachofthesestepsmayentailisdiscussedbelow

Vision

bullSettingamediumtolongͲterminclusivegreengrowthvisionforthecountrythatisanchoredintothecountryrsquosnationaldevelopmentstrategy

Diagnostic

bullTakingstockofthemaineconomicandsocialchallengesandopportunitiesthenexamineenvironmentalchallengesandopportunities

GoalSetting

bullDefiningobjectivesandexpectedoutcomesforshortandmediumͲtermthatarelinkedtolongtermvision

Optionsmeasures

bullFocusing onsynergies (arethereIGGpoliciesthatbringimmediateandlocalbenefits)andurgency(whatisneedednowtoavoidlockͲinandirreversibilities)identifyingpolicytechnologyoptionsthatcouldhelpovercomethebarriersidentifiedandseizetheopportunities

FeasibilityAnalysis

bullUndertakingfeasibilityandMCAanalysesoftheproposedpolicytechnologyoptionsinordertorecognizethebestoptionspracticesforthespecificnationalcontext

Implementation

bullDesigningpolicyreformprocessthatreflectsthesebestoptionsandmobilizeadequateupͲfrontfinancingforimplementation

Monitoringamp

Evaluation

bull MampEofpoliciesisneededtocreateafeedbackloopintothedesignofpolicies

10

Asmentioned above any IGG strategymust be anchored into a national development vision that isbroadlyownedwithingovernmentandby itsconstituency includingmarginalizedgroupandthosewhomaybeparticularlyvulnerableduringthetransitiontowardsagreeneconomy Inordertoachievethistheprocessof elaborating the strategy itselfneeds strong andpolitical commitment andbuyͲin at alllevels a network of champions across the government complex to drive the change process at thetechnical level thorough consultationswithdifferent stakeholders andwide sharingof information toensureatransparentdecisionprocess

SCOPESOMECOREELEMENTS STEPSTOOLS

PoliticalcommitmentstronghighͲlevelpoliticalcommitmentandleadershipisneeded at the various stagesof thepolicy cycle toensure theprocess isnotcapturedbyvestedinterestsortakenoverbyotheritemsinthepoliticalpolicyagendaInvolvementofPresidentPrimeͲminsterwithfulltechnicalbackͲupofleadingMinistriesagenciesiscrucial

InstitutionalsetͲupandchampionsachangeinprocessinvolvingcrossͲsectoralcollaborationrequiresacriticalmasspeoplewiththeabilitytounderstandthevision communicate with various stakeholders and technical expertise todesignappraiseapplyandadjustthepolicysolutionsMorethan justsettingͲupteamscommitteesacrossvarioustechnicalareas it is importantthatthesepeoplealsoactasaldquonetworkofchampionsrdquoforIGG

Broad consultations Some steps like the definition of the Vision and theObjectivesExpectedoutcomesrequiresomebroadconsultationswithnationalstakeholders (including civil society private sector development partnersmunicipalitiesadvocacynetworksetc)

Information dissemination and transparency All information generated inpolicyͲmakingprocessshouldbewidelyavailableandtheprocessmustbedonetransparentlyallowingallstakeholdersavoiceandensuringthatdisagreementsarenotedinpublicfora

Ministerial Steering Committee bestchairedbyMinistryof financeeconomyorplanningorViceͲpresidentrsquosoffice

Technical Committees and subͲtechnicalcommittees

Consultation instruments (townhallmeetings focused group discussionsopinionsurveysgovernmentwebPortalNationalamplocalpressradio)

Step1bull VISIONampOBJECTIVES

11

Step two entails a systematic compilation of relevant information to better understandchallengesopportunities in framing IGG objectives In particular it is this stage to identifieseconomicsocialandenvironmentalnaturalcapitalchallengesandopportunities for thecountryclimate risk management issues take stock of existing policy instruments as well as the likelyconstraintstoimplementinginclusivegreengrowth

SCOPESOMECOREELEMENTS STEPSTOOLs

Collect relevant information to understand challengesopportunities and frameobjectives

Identify key economic and social challenges and opportunities using existingdiagnosticsandreviewing

x EconomicSectorsinvalueͲaddedjobcreationenvironmentalimpactsx Povertyinequalityexclusionandvulnerabilityindicatorsx Demographicamplabourmarketstatisticsx UrbanizationTrendsx Urbanruralaccesstobasicservices(educationhealthwaterenergy)x Energyaccessbypopulationgroupsurbanruralareastechnology

Identifykeyopportunitiesandchallengesinnaturalcapitalofcountryregion

x Ecosystemtypeshistoricalcurrentandprojectdistributionsmapsx Spatialmapshighlightingbiologicalrichnessx Mapswithhighaboveorbelowgroundcarbonstocksx AgricultureandbioͲenergylandͲusemapping(FAOmethodology)x Nationalrenewableresourceassessments(windsolarhydrogeothermal)x Spatialoverlaysofareaswithmultiplehighvalueecosystemservices

Andinclimatechangeandclimateriskmanagement

x Disasterstatistics(lossoflivetotalandrelativeeconomiclosses)x Hazard maps (spatial exposure to hydroͲmeteorological and geological

hazards)x Regionaltrendsinkeyclimaticparametersx VulnerabilityandAdaptationAssessments

CountryͲspecificstatisticalbureausortheirequivalents

CountryͲspecific public surveysand inͲcountry thinkͲtanksuniversitiesresearchcenters

National and MDB Data Portal(provides multiple customizedtools to gather and analyzemultipleindicators)

System of EnvironmentalͲEconomic Accounts (UNSEEA)wealth accounting and valuationofecosystemservices(WAVES)

HumanDevelopmentIndex

FAO FAOSTAT FAO CLIMPAG(brings together the variousaspects and interactions betweenweather climate and agriculturein the general context of foodsecurity) FAO Global InformationandEarlyWarningSystemonFoodandAgriculture(GIEWS)

Community mapping toolsparticipatory rural appraisals andother tools to bring out localknowledge about ecosystemsproperty right regimes andpatternsofnaturalresourceuse

Step2bull DIAGNOSTICS

12

SCOPESOMECOREELEMENTS STEPSTOOLs

TakestockofexistingpolicyinstrumentsrelevanttoIGG

x Rules and regulations already in place with regard to natural resourcesenergypollutionemployment

x EnactedeconomicandfinancialinstrumentswithabearingonIGGx In termsofeconomic instrumentsunderstandingwhich revenuesarebeing

collected and bywhom how they are being used and ameasure of theirsuccessonachievingthepolicyobjectives

x In terms of financial instruments understanding subsidy schemes theireffectivenessandmanagementgovernanceinpractice

x In termsofsocialprotectionexistingsocialprotection floorsandsafetynetsystems

x ThenationalbudgetingprocessandentrypointsforIGG

Takestockoflikelyconstraintstoimplementinginclusivegreengrowth

x Politicaleconomyfragilityorbehaviouralchangeissuesx Financialconstraintsx Institutionalorcapacityconstraints

Throughout examine opportunities for synergies (are there IGG policies that bringimmediate and local benefits) and extent of urgency (what are the policies andinvestmentsthatneedtobetakennowtoavoid locking intoanunsustainablefutureandcreatingirreversibilities)

Strategic EnvironmentalAssessment social expenditurereviews (green) publicexpenditurereviews

WFPComprehensiveFoodSecurityandVulnerabilityAnalysis(CFSVA)GuidelinesFoodSecurityandVulnerabilityAnalysisHungerandClimateVulnerabilityIndex

International Rescue Committee(IRC)DisasterRiskDatabases

UNDP Climate Change CountryProfiles

IPCC Assessment Special andMethodologyReports

WorldBankClimatePortal

AfDB Country Policy andinstitutional Assessment AfDBCountryGovernanceProfiles

OECDGreenGrowthDiagnosticframeworkUNEP Green Economy ScopingStudies

AtthisstagecountrieswillsetspecificgoalsandexpectedoutcomesfortheshortandmediumͲtermthatarelinked to their long term vision In particular criteria are defined for prioritizing the various options andmeasures across identified in accordance with countriesrsquo specific development context Aassessments ofinstitutionalfinancialandcapacityconstraintsshouldalsobecarriedouttoensurethatpoliciesarematchedtoinstitutionalcapabilities

Inadditionascountriessettheirgoalstheymay look intovoluntaryguidelinesandstandardsanchored intobestpracticesapproaches Thesemay includeguidelines thatarenotspecificallydesigned topromotegreengrowthpoliciesbutthathaveaddresscore issuesofsustainabilityand inclusiveness inpoliciesand investmentsaffecting

Step3bull GOAL SETTING

13

sectorsthatwouldbemostlikelytobeatthecenterofthesepoliciesinmanylowincomecountriesInrelationtoagriculture for instance useful elements may be drawn from the UN Committee for World Food SecurityrsquosVoluntaryGuidelinesontheResponsibleGovernanceofTenureofLandFisheriesandForestsortheFAOCodeofConductforResponsibleFisheriesamongother

SCOPESOMECOREELEMENTS STEPSTOOLS

Identification of relevant sectors ndash from the diagnostic prioritizesectorssubͲsectorswheremostpotentialexistsfordeliveringIGGandidentifypolicyoptionsforfurtherassessment

Assessment of policytechnological options ndash this includes anextensive reviewof testedpolicytechnologies around theglobe foreachprioritysector inparticularthosewhichhavebeensuccessfullyintroducedincountrieswithsimilarsocioͲeconomicprofiles

Assessment of Institutional Capacity Needs Ͳ Assessments ofinstitutional financial and capacity constraints for implementingpolicies and measures that facilitate transition to Inclusive GreenGrowth It is important to ensure that policies are matched toinstitutionalcapabilitiestoensurethatresultsareachieved

SectorconsultationsandalignmentwithcountryrsquoslongͲtermdevelopmentplanFAOClimateSmartAgricultureCFS Voluntary guidelines on the responsiblegovernanceoftenureoflandfisheriesandforestsPrinciples for Responsible Agricultural Investmentthat Respects Rights Livelihoods and Resources(PRAI)ofFAOIFADUNCTADandWorldBankClimate Technology Wiki UNEP and UNDPrsquosTechnologyNeedsAssessment(TNAs)UNEPGreenEconomyScopingStudiesOECD Policy Guidance on Integrating ClimateChangeAdaptationintoDevelopmentCooperationNationallyAppropriateMitigationActions(NAMAs)SectorMasterPlanStudies

MultiͲcriteriaanalysisare likely tobeneededgiven the limitationof costͲbenefitanalysis in theabsenceofmarketprices (forenvironmentalgoods)and in thepresenceof substantialuncertainty (aboutclimate riskstechnology)Politicaleconomyanalysisaswellasdistributionalassessmentareimportant

Butascountriesseektoprioritizeacrossthemanyurgentand importantstepsthattheycantaketo taketogreentheirgrowthandpromotegreaterinclusiontwoparticulardimensionscanbehighlighted

Step4bull PRIORITYSETTINGANDFEASIBILITYANALYSIS

14

x Synergies theextent towhichgreenpoliciesprovide immediateand localbenefitsandhelpachievemore rapidormore inclusivegrowth Greenpolicies thathave immediateand localbenefitswillalsobenefitfromgreaterpoliticalandsocialacceptabilityndashacriticaldimension ifstrategiesaretoactuallybeimplemented

x Urgencytheextenttowhichapolicycanbepostponedwithoutrunningtheriskofirreversibledamagesorlockingintounsustainablepatternsofgrowth

SCOPESOMECOREELEMENTS STEPSTOOLS

MultiͲcriteria analysis is likely to be needed Political economy analysis as well asdistributionalassessmentareimportantasarethefollowing

x Baselinestudiesfortargetsectorsx Assessmentof firstorder (direct impacts)and2ndorder (coͲbenefits sideͲ

effects)ofshortlistedpolicyinstrumentsonfiscalsystemx Costof implementation includingmitigationofadverse impactsmonitoring

andenforcementx Assessmentofinstitutionalbarriershinderingpolicyimplementationx Understanding of impacts across different interested groups and powerful

factions

Final policy choice should be informed by the combination of urgency synergyefficacy and greatest feasibility given existing power and institutional dynamicsTradeͲoffs should be resolvedwith reference to priority criteria and validatedwithstakeholdersbeforeimplementation

MarginalAbatementCostCurves

MultiͲcriteriaanalysisforcomparisonofpolicyoptions

DecisionͲmakingunderuncertainty

StrategicEnvironmentalAssessments

StakeholderAnalysisampotherPoliticalEconomytools(factionalanalysispoweranalysis)

Implementationofpolicypackageshouldbeanchoredinacleartimeline(sequencingmatters)andunderpinned by realistic resource estimates (financial human and technical) Policies shouldthereforebe integrated into sectorplans andnationalbudget processes Implementation shouldprioritizeldquoquickwinsrdquoorthosepoliciesthatyieldanimmediatepositivereturn(egdirectrevenuescostsavingsjobs)andorhavelowestimplementationcosts

Step5bull IMPLEMENTATION

15

SCOPESOMECOREELEMENTS STEPSTOOLS

Keyelementsincludeacleartimeline(sequencingmatters)and realistic resource estimates (financial human andtechnical)

NationalBudgetprocesses

InvestmentPlanampResourceMobilisationStrategy

Poverty and Social Impact Assessments (PSIA)EnvironmentalImpactAssessments(EIA)

PaymentforEcosystemServices

EnvironmentalFiscalReform

SustainablePublicProcurement

SocialSafetyinstruments

World BankUNDP Climate Options Platform UNDPGuidebook on Blending Climate Finance ThroughNationalClimateFunds

WFPInnovativeriskfinancetransferandinsurance(egWFPLivelihoodsEarlyAssessmentandProtection

MonitoringandevaluationofpoliciesandinterventionsareneededtocreateafeedbackloopintothedesignofpoliciesToolsincludebothstandardmonitoringandevaluationaswellasimpactevaluationgiventheneedforformallearningaboutgreengrowthwhatinterventionsworkbestMoreovertheinclusivenatureoftheIGGagendaisbestservedbyinclusiveMampEprocessesincludingparticipatoryapproachesthatbestcaptureboththesocialandtheenvironmentalimpactofpolicyimplementation

3 ToolsforInclusiveGreenGrowth

Apracticaland flexiblepolicy toolkithasan important role toplay inhelpingdevelopingcountries toidentify and address bottlenecks and constraints to realizing inclusive green growth Such a toolkitrequires details of generic and specific policies ndash environmental economic and social It envisagessignificantlongͲterminvestmentandinnovationbothtechnologicalandinstitutionaltoavoidlockingͲin

Step6bull MampE

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 6: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

6

countries inclusivegreengrowthpoliciescanreducevulnerabilitytoenvironmentalrisksand increasethelivelihoodsecurityofthepoor2

The international communityrsquos focusmust be to help developing countries catalyze investment forgreenertechnologypracticesandenterprisesthatwillmakegreengrowthpossibleandwillcontributetoanequitabledevelopmentparadigmFortunatelyanumberofinitiativesbyIOsareunderwaytohelpsupportcountriesintheseefforts(Box2)

Box2Selectedinitiativesbyinternationalorganizationstosupportinclusivegreengrowth

TheAfricanDevelopmentBank(AfDB)istakinginclusivegreengrowthtotheheartofitsLongTermStrategyanddesigning itsoperationstoaccountfortheAfricanspecificitiesnotably(i)addressingthe infrastructuregapasafundamentalenablerforeconomicgrowth(ii)managingmoreefficientlyAfricarsquosnaturalresourcesasitsstockofwealth andmain source of income (iii) and boosting economic and social resilience to exogenous shocks InadditiontoitssuiteofgreenfinancinginstrumentssuchasClimDevͲAfricaCongoBasinForestFund(CBFF)AfricanWaterFacility (AWF)andSustainableEnergyFund forAfrica (SEFA)AfDB isdevelopinganAfricaGreenGrowthFacilityforupstreamworkandcapacitydevelopmentoninclusivegreengrowthTheOECDisactivelyengagedwithdevelopingcountriesinmanyareascloselyrelatedtoinclusivegreengrowthIthas synthesized good practices on topics such as Environmental Fiscal Reform Strategic EnvironmentalAssessment Climate Change Adaptation and Capacity Development for Environmental Management andGovernance to supportefforts towards inclusivegreengrowthOECD tracksdevelopment coͲoperation supportwith environmental objectives and is currently alsoworkingwith itsmembers tomainstream green growth inareas of development coͲoperation as diverse as private sector development infrastructure investment andtradeͲrelatedassistanceSeewwwoecdorggreengrowthTheUN system isamajorproviderof support the system itself represents thedifferentelementsof inclusivegreen growthmdashfor example with IFAD focusing specifically on eradicating rural poverty FAO promotingsustainable agricultural practices WFP fighting hunger worldwide ILO promoting green job creation UNEPprotectingtheenvironmentandprovidingadvisoryservicesongreeneconomyUNDPworkingtoreducepovertyandinequalityandstrengthengovernanceandenvironmentalsustainabilityUNICEFandUNFPApromotingyouthempowerment UNIDO supporting sustainable industrial development the UN Secretariat looking at broadereconomicdevelopmentandinvestmentaspects(UNͲDESAUNCTADetc)andWHOaddressinghealthissuesTheWorldBank isworking tomainstream inclusivegreengrowth in itsoperationsandknowledgeactivities Itsreport on ldquoInclusive Green Growth The Pathway to Sustainable Developmentrdquo(wwwworldbankorginclusivegreengrowth) sets the framework for this maintreaming TheWorld Bank haslaunchedaseriesofcomplementaryactivitieswithpartnersSuch initiatives includeWAVES(WealthAccountingandtheValuationofEcosystemServices)LEDs(LowEmissionDevelopment)ClimateFinanceOptionsKnowledgePlatformtonameafewInaddition theGlobalGreenGrowth Institute (GGGI) theOECDUNEPand theWorldBank jointly launched inearly2012 theGGKPaglobalnetworkofresearchersanddevelopmentexpertsseeking to identifyandaddressmajorknowledgegapsingreengrowththeoryandpractice

2SeeforexampletheOECDrsquos2011ldquoTowardsGreenGrowthASummaryforPolicymakersrdquotheWorldBankrsquos2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentUNEPrsquos2011TowardsaGreenEconomyFAOSave Pathways to SustainableDevelopment andGrow 2011PovertyAlleviationUNDPrsquos 2012 ldquoTripleWins forSustainableDevelopmentCasestudiesofSustainableDevelopmentinpracticerdquo

7

This document does not provide a oneͲsizeͲfitsͲall solution to implement inclusive green growthstrategies because the appropriate measures and policies are highly dependent on the contextespeciallyonthemostpressingenvironmentalsocialandeconomicissuesCountrieswillhavedifferentprioritiesdependingonamongothertheirincomelevelsthesectoralcompositionsoftheireconomiesandtherelativeimportanceofsectorsdirectlybasedonnaturalresourcesorwithdependenceonfossilfuels and their specific risk and vulnerabilityprofile from anenvironmental standpoint Thepoliticaleconomy of policymaking around green growthmay also significantly shape the agenda in differentcountriesHencethisdocumentmerelyprovidesaseriesoftoolsthatcanhelpdesignastrategythatisappropriateinagivencontext

ThistoolkitshouldnotbeseenasadefinitiveanswertothechallengesraisedbyinclusivegreengrowthItisratherthefirststepofacollaborativeefforttomobilizethetoolsatthecountriesrsquodisposalintheirdomesticeffortstogreentheireconomies

ThetoolkitisorganizedasfollowsFirstthenecessityofapplyingthedifferenttoolsinthecontextofabroadinclusivegreengrowthstrategy isstressedandaharmonizedframeworkcombiningapproachesandtoolsidentifiedbyallfourIOsissetforthSecondthedocumentoffersanoverviewofkeytoolsthatcanbemobilizedtoimplementaninclusivegreengrowthstrategyQuicktechnicaldescriptionsofthesetools are offered along with suggested sources for further details Finally capacity building andknowledgesharinginitiativesarepresentedwiththeGGKPhighlightedasapowerfulcollaborativetooltoadvancepoliciesforinclusivegreeneconomies

2 Craftinganinclusivegreengrowthstrategy

AsemphasizedinthejointdraftreportfromOECDUNandtheWBtotheG20EnergyandCommodityMarkets Group in the Finance track on ldquoIncorporating green growth and sustainable developmentpolicies into structural reform agendasrdquo tools used to advance inclusive green growth need to bedeployedwithin a coherent overarching strategy An overall vision and strategy for inclusive greengrowthisindispensableforframingpolicyreformsasnationalstrategieswithpositivelongͲtermgoals

The approach should be to integrate green growth into policy processes and national developmentplans rather than create standͲalone policy documents or agencies Doing so increases theacceptability of immediate costs by the population including the private sector It also improvesconsistency among policies and fosters policy certaintymdashwhich creates a friendlier climate forinvestmentsmaking itmore likely that private resourceswill be invested in longͲterm projectsButbuildinganationalstrategycreatessomechallengesof itsown includingtheneedforcoherentcrossͲgovernment collaboration multiͲstakeholder engagement interagency coordination private sectorengagementandthedefinitionofrelevantlongͲtermgoalsandindicators

AheadofanymajorpolicyprocessandmoresowithregardtopoliciesforanallͲencompassinginclusivegreen growth (IGG) approach there has to be amethodology for arriving at specific instrumentsstartingwithasharedvisionstocktakingof issues lessonsandopportunitiessettingofconcreteand

8

realisticcountrygoals identificationandanalysisof technicaloptionsall leading toareformsagendaandorinvestmentplanwithclearactionstimelinesandresourceimplicationsVariousstrategieshavebeendevelopedbydifferentdevelopmentactorsbutallhavecommonelementsandcanthereforebecombinedintoacommonframeworkFigure1summarizesthisframeworkidentifyingthemainbuildingblockswithinwhichdifferenttoolscanbedeployedThesectionthatfollowsdevelopsthisframeworkfurtherprovidingillustrationsofhowdifferenttoolscanbedeployedforthedifferentsteps

9

Figure1Summaryofstepstodevelopaninclusivegreengrowthstrategyanchoredintonationaldevelopmentframework

Thetypeofactionseachofthesestepsmayentailisdiscussedbelow

Vision

bullSettingamediumtolongͲterminclusivegreengrowthvisionforthecountrythatisanchoredintothecountryrsquosnationaldevelopmentstrategy

Diagnostic

bullTakingstockofthemaineconomicandsocialchallengesandopportunitiesthenexamineenvironmentalchallengesandopportunities

GoalSetting

bullDefiningobjectivesandexpectedoutcomesforshortandmediumͲtermthatarelinkedtolongtermvision

Optionsmeasures

bullFocusing onsynergies (arethereIGGpoliciesthatbringimmediateandlocalbenefits)andurgency(whatisneedednowtoavoidlockͲinandirreversibilities)identifyingpolicytechnologyoptionsthatcouldhelpovercomethebarriersidentifiedandseizetheopportunities

FeasibilityAnalysis

bullUndertakingfeasibilityandMCAanalysesoftheproposedpolicytechnologyoptionsinordertorecognizethebestoptionspracticesforthespecificnationalcontext

Implementation

bullDesigningpolicyreformprocessthatreflectsthesebestoptionsandmobilizeadequateupͲfrontfinancingforimplementation

Monitoringamp

Evaluation

bull MampEofpoliciesisneededtocreateafeedbackloopintothedesignofpolicies

10

Asmentioned above any IGG strategymust be anchored into a national development vision that isbroadlyownedwithingovernmentandby itsconstituency includingmarginalizedgroupandthosewhomaybeparticularlyvulnerableduringthetransitiontowardsagreeneconomy Inordertoachievethistheprocessof elaborating the strategy itselfneeds strong andpolitical commitment andbuyͲin at alllevels a network of champions across the government complex to drive the change process at thetechnical level thorough consultationswithdifferent stakeholders andwide sharingof information toensureatransparentdecisionprocess

SCOPESOMECOREELEMENTS STEPSTOOLS

PoliticalcommitmentstronghighͲlevelpoliticalcommitmentandleadershipisneeded at the various stagesof thepolicy cycle toensure theprocess isnotcapturedbyvestedinterestsortakenoverbyotheritemsinthepoliticalpolicyagendaInvolvementofPresidentPrimeͲminsterwithfulltechnicalbackͲupofleadingMinistriesagenciesiscrucial

InstitutionalsetͲupandchampionsachangeinprocessinvolvingcrossͲsectoralcollaborationrequiresacriticalmasspeoplewiththeabilitytounderstandthevision communicate with various stakeholders and technical expertise todesignappraiseapplyandadjustthepolicysolutionsMorethan justsettingͲupteamscommitteesacrossvarioustechnicalareas it is importantthatthesepeoplealsoactasaldquonetworkofchampionsrdquoforIGG

Broad consultations Some steps like the definition of the Vision and theObjectivesExpectedoutcomesrequiresomebroadconsultationswithnationalstakeholders (including civil society private sector development partnersmunicipalitiesadvocacynetworksetc)

Information dissemination and transparency All information generated inpolicyͲmakingprocessshouldbewidelyavailableandtheprocessmustbedonetransparentlyallowingallstakeholdersavoiceandensuringthatdisagreementsarenotedinpublicfora

Ministerial Steering Committee bestchairedbyMinistryof financeeconomyorplanningorViceͲpresidentrsquosoffice

Technical Committees and subͲtechnicalcommittees

Consultation instruments (townhallmeetings focused group discussionsopinionsurveysgovernmentwebPortalNationalamplocalpressradio)

Step1bull VISIONampOBJECTIVES

11

Step two entails a systematic compilation of relevant information to better understandchallengesopportunities in framing IGG objectives In particular it is this stage to identifieseconomicsocialandenvironmentalnaturalcapitalchallengesandopportunities for thecountryclimate risk management issues take stock of existing policy instruments as well as the likelyconstraintstoimplementinginclusivegreengrowth

SCOPESOMECOREELEMENTS STEPSTOOLs

Collect relevant information to understand challengesopportunities and frameobjectives

Identify key economic and social challenges and opportunities using existingdiagnosticsandreviewing

x EconomicSectorsinvalueͲaddedjobcreationenvironmentalimpactsx Povertyinequalityexclusionandvulnerabilityindicatorsx Demographicamplabourmarketstatisticsx UrbanizationTrendsx Urbanruralaccesstobasicservices(educationhealthwaterenergy)x Energyaccessbypopulationgroupsurbanruralareastechnology

Identifykeyopportunitiesandchallengesinnaturalcapitalofcountryregion

x Ecosystemtypeshistoricalcurrentandprojectdistributionsmapsx Spatialmapshighlightingbiologicalrichnessx Mapswithhighaboveorbelowgroundcarbonstocksx AgricultureandbioͲenergylandͲusemapping(FAOmethodology)x Nationalrenewableresourceassessments(windsolarhydrogeothermal)x Spatialoverlaysofareaswithmultiplehighvalueecosystemservices

Andinclimatechangeandclimateriskmanagement

x Disasterstatistics(lossoflivetotalandrelativeeconomiclosses)x Hazard maps (spatial exposure to hydroͲmeteorological and geological

hazards)x Regionaltrendsinkeyclimaticparametersx VulnerabilityandAdaptationAssessments

CountryͲspecificstatisticalbureausortheirequivalents

CountryͲspecific public surveysand inͲcountry thinkͲtanksuniversitiesresearchcenters

National and MDB Data Portal(provides multiple customizedtools to gather and analyzemultipleindicators)

System of EnvironmentalͲEconomic Accounts (UNSEEA)wealth accounting and valuationofecosystemservices(WAVES)

HumanDevelopmentIndex

FAO FAOSTAT FAO CLIMPAG(brings together the variousaspects and interactions betweenweather climate and agriculturein the general context of foodsecurity) FAO Global InformationandEarlyWarningSystemonFoodandAgriculture(GIEWS)

Community mapping toolsparticipatory rural appraisals andother tools to bring out localknowledge about ecosystemsproperty right regimes andpatternsofnaturalresourceuse

Step2bull DIAGNOSTICS

12

SCOPESOMECOREELEMENTS STEPSTOOLs

TakestockofexistingpolicyinstrumentsrelevanttoIGG

x Rules and regulations already in place with regard to natural resourcesenergypollutionemployment

x EnactedeconomicandfinancialinstrumentswithabearingonIGGx In termsofeconomic instrumentsunderstandingwhich revenuesarebeing

collected and bywhom how they are being used and ameasure of theirsuccessonachievingthepolicyobjectives

x In terms of financial instruments understanding subsidy schemes theireffectivenessandmanagementgovernanceinpractice

x In termsofsocialprotectionexistingsocialprotection floorsandsafetynetsystems

x ThenationalbudgetingprocessandentrypointsforIGG

Takestockoflikelyconstraintstoimplementinginclusivegreengrowth

x Politicaleconomyfragilityorbehaviouralchangeissuesx Financialconstraintsx Institutionalorcapacityconstraints

Throughout examine opportunities for synergies (are there IGG policies that bringimmediate and local benefits) and extent of urgency (what are the policies andinvestmentsthatneedtobetakennowtoavoid locking intoanunsustainablefutureandcreatingirreversibilities)

Strategic EnvironmentalAssessment social expenditurereviews (green) publicexpenditurereviews

WFPComprehensiveFoodSecurityandVulnerabilityAnalysis(CFSVA)GuidelinesFoodSecurityandVulnerabilityAnalysisHungerandClimateVulnerabilityIndex

International Rescue Committee(IRC)DisasterRiskDatabases

UNDP Climate Change CountryProfiles

IPCC Assessment Special andMethodologyReports

WorldBankClimatePortal

AfDB Country Policy andinstitutional Assessment AfDBCountryGovernanceProfiles

OECDGreenGrowthDiagnosticframeworkUNEP Green Economy ScopingStudies

AtthisstagecountrieswillsetspecificgoalsandexpectedoutcomesfortheshortandmediumͲtermthatarelinked to their long term vision In particular criteria are defined for prioritizing the various options andmeasures across identified in accordance with countriesrsquo specific development context Aassessments ofinstitutionalfinancialandcapacityconstraintsshouldalsobecarriedouttoensurethatpoliciesarematchedtoinstitutionalcapabilities

Inadditionascountriessettheirgoalstheymay look intovoluntaryguidelinesandstandardsanchored intobestpracticesapproaches Thesemay includeguidelines thatarenotspecificallydesigned topromotegreengrowthpoliciesbutthathaveaddresscore issuesofsustainabilityand inclusiveness inpoliciesand investmentsaffecting

Step3bull GOAL SETTING

13

sectorsthatwouldbemostlikelytobeatthecenterofthesepoliciesinmanylowincomecountriesInrelationtoagriculture for instance useful elements may be drawn from the UN Committee for World Food SecurityrsquosVoluntaryGuidelinesontheResponsibleGovernanceofTenureofLandFisheriesandForestsortheFAOCodeofConductforResponsibleFisheriesamongother

SCOPESOMECOREELEMENTS STEPSTOOLS

Identification of relevant sectors ndash from the diagnostic prioritizesectorssubͲsectorswheremostpotentialexistsfordeliveringIGGandidentifypolicyoptionsforfurtherassessment

Assessment of policytechnological options ndash this includes anextensive reviewof testedpolicytechnologies around theglobe foreachprioritysector inparticularthosewhichhavebeensuccessfullyintroducedincountrieswithsimilarsocioͲeconomicprofiles

Assessment of Institutional Capacity Needs Ͳ Assessments ofinstitutional financial and capacity constraints for implementingpolicies and measures that facilitate transition to Inclusive GreenGrowth It is important to ensure that policies are matched toinstitutionalcapabilitiestoensurethatresultsareachieved

SectorconsultationsandalignmentwithcountryrsquoslongͲtermdevelopmentplanFAOClimateSmartAgricultureCFS Voluntary guidelines on the responsiblegovernanceoftenureoflandfisheriesandforestsPrinciples for Responsible Agricultural Investmentthat Respects Rights Livelihoods and Resources(PRAI)ofFAOIFADUNCTADandWorldBankClimate Technology Wiki UNEP and UNDPrsquosTechnologyNeedsAssessment(TNAs)UNEPGreenEconomyScopingStudiesOECD Policy Guidance on Integrating ClimateChangeAdaptationintoDevelopmentCooperationNationallyAppropriateMitigationActions(NAMAs)SectorMasterPlanStudies

MultiͲcriteriaanalysisare likely tobeneededgiven the limitationof costͲbenefitanalysis in theabsenceofmarketprices (forenvironmentalgoods)and in thepresenceof substantialuncertainty (aboutclimate riskstechnology)Politicaleconomyanalysisaswellasdistributionalassessmentareimportant

Butascountriesseektoprioritizeacrossthemanyurgentand importantstepsthattheycantaketo taketogreentheirgrowthandpromotegreaterinclusiontwoparticulardimensionscanbehighlighted

Step4bull PRIORITYSETTINGANDFEASIBILITYANALYSIS

14

x Synergies theextent towhichgreenpoliciesprovide immediateand localbenefitsandhelpachievemore rapidormore inclusivegrowth Greenpolicies thathave immediateand localbenefitswillalsobenefitfromgreaterpoliticalandsocialacceptabilityndashacriticaldimension ifstrategiesaretoactuallybeimplemented

x Urgencytheextenttowhichapolicycanbepostponedwithoutrunningtheriskofirreversibledamagesorlockingintounsustainablepatternsofgrowth

SCOPESOMECOREELEMENTS STEPSTOOLS

MultiͲcriteria analysis is likely to be needed Political economy analysis as well asdistributionalassessmentareimportantasarethefollowing

x Baselinestudiesfortargetsectorsx Assessmentof firstorder (direct impacts)and2ndorder (coͲbenefits sideͲ

effects)ofshortlistedpolicyinstrumentsonfiscalsystemx Costof implementation includingmitigationofadverse impactsmonitoring

andenforcementx Assessmentofinstitutionalbarriershinderingpolicyimplementationx Understanding of impacts across different interested groups and powerful

factions

Final policy choice should be informed by the combination of urgency synergyefficacy and greatest feasibility given existing power and institutional dynamicsTradeͲoffs should be resolvedwith reference to priority criteria and validatedwithstakeholdersbeforeimplementation

MarginalAbatementCostCurves

MultiͲcriteriaanalysisforcomparisonofpolicyoptions

DecisionͲmakingunderuncertainty

StrategicEnvironmentalAssessments

StakeholderAnalysisampotherPoliticalEconomytools(factionalanalysispoweranalysis)

Implementationofpolicypackageshouldbeanchoredinacleartimeline(sequencingmatters)andunderpinned by realistic resource estimates (financial human and technical) Policies shouldthereforebe integrated into sectorplans andnationalbudget processes Implementation shouldprioritizeldquoquickwinsrdquoorthosepoliciesthatyieldanimmediatepositivereturn(egdirectrevenuescostsavingsjobs)andorhavelowestimplementationcosts

Step5bull IMPLEMENTATION

15

SCOPESOMECOREELEMENTS STEPSTOOLS

Keyelementsincludeacleartimeline(sequencingmatters)and realistic resource estimates (financial human andtechnical)

NationalBudgetprocesses

InvestmentPlanampResourceMobilisationStrategy

Poverty and Social Impact Assessments (PSIA)EnvironmentalImpactAssessments(EIA)

PaymentforEcosystemServices

EnvironmentalFiscalReform

SustainablePublicProcurement

SocialSafetyinstruments

World BankUNDP Climate Options Platform UNDPGuidebook on Blending Climate Finance ThroughNationalClimateFunds

WFPInnovativeriskfinancetransferandinsurance(egWFPLivelihoodsEarlyAssessmentandProtection

MonitoringandevaluationofpoliciesandinterventionsareneededtocreateafeedbackloopintothedesignofpoliciesToolsincludebothstandardmonitoringandevaluationaswellasimpactevaluationgiventheneedforformallearningaboutgreengrowthwhatinterventionsworkbestMoreovertheinclusivenatureoftheIGGagendaisbestservedbyinclusiveMampEprocessesincludingparticipatoryapproachesthatbestcaptureboththesocialandtheenvironmentalimpactofpolicyimplementation

3 ToolsforInclusiveGreenGrowth

Apracticaland flexiblepolicy toolkithasan important role toplay inhelpingdevelopingcountries toidentify and address bottlenecks and constraints to realizing inclusive green growth Such a toolkitrequires details of generic and specific policies ndash environmental economic and social It envisagessignificantlongͲterminvestmentandinnovationbothtechnologicalandinstitutionaltoavoidlockingͲin

Step6bull MampE

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 7: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

7

This document does not provide a oneͲsizeͲfitsͲall solution to implement inclusive green growthstrategies because the appropriate measures and policies are highly dependent on the contextespeciallyonthemostpressingenvironmentalsocialandeconomicissuesCountrieswillhavedifferentprioritiesdependingonamongothertheirincomelevelsthesectoralcompositionsoftheireconomiesandtherelativeimportanceofsectorsdirectlybasedonnaturalresourcesorwithdependenceonfossilfuels and their specific risk and vulnerabilityprofile from anenvironmental standpoint Thepoliticaleconomy of policymaking around green growthmay also significantly shape the agenda in differentcountriesHencethisdocumentmerelyprovidesaseriesoftoolsthatcanhelpdesignastrategythatisappropriateinagivencontext

ThistoolkitshouldnotbeseenasadefinitiveanswertothechallengesraisedbyinclusivegreengrowthItisratherthefirststepofacollaborativeefforttomobilizethetoolsatthecountriesrsquodisposalintheirdomesticeffortstogreentheireconomies

ThetoolkitisorganizedasfollowsFirstthenecessityofapplyingthedifferenttoolsinthecontextofabroadinclusivegreengrowthstrategy isstressedandaharmonizedframeworkcombiningapproachesandtoolsidentifiedbyallfourIOsissetforthSecondthedocumentoffersanoverviewofkeytoolsthatcanbemobilizedtoimplementaninclusivegreengrowthstrategyQuicktechnicaldescriptionsofthesetools are offered along with suggested sources for further details Finally capacity building andknowledgesharinginitiativesarepresentedwiththeGGKPhighlightedasapowerfulcollaborativetooltoadvancepoliciesforinclusivegreeneconomies

2 Craftinganinclusivegreengrowthstrategy

AsemphasizedinthejointdraftreportfromOECDUNandtheWBtotheG20EnergyandCommodityMarkets Group in the Finance track on ldquoIncorporating green growth and sustainable developmentpolicies into structural reform agendasrdquo tools used to advance inclusive green growth need to bedeployedwithin a coherent overarching strategy An overall vision and strategy for inclusive greengrowthisindispensableforframingpolicyreformsasnationalstrategieswithpositivelongͲtermgoals

The approach should be to integrate green growth into policy processes and national developmentplans rather than create standͲalone policy documents or agencies Doing so increases theacceptability of immediate costs by the population including the private sector It also improvesconsistency among policies and fosters policy certaintymdashwhich creates a friendlier climate forinvestmentsmaking itmore likely that private resourceswill be invested in longͲterm projectsButbuildinganationalstrategycreatessomechallengesof itsown includingtheneedforcoherentcrossͲgovernment collaboration multiͲstakeholder engagement interagency coordination private sectorengagementandthedefinitionofrelevantlongͲtermgoalsandindicators

AheadofanymajorpolicyprocessandmoresowithregardtopoliciesforanallͲencompassinginclusivegreen growth (IGG) approach there has to be amethodology for arriving at specific instrumentsstartingwithasharedvisionstocktakingof issues lessonsandopportunitiessettingofconcreteand

8

realisticcountrygoals identificationandanalysisof technicaloptionsall leading toareformsagendaandorinvestmentplanwithclearactionstimelinesandresourceimplicationsVariousstrategieshavebeendevelopedbydifferentdevelopmentactorsbutallhavecommonelementsandcanthereforebecombinedintoacommonframeworkFigure1summarizesthisframeworkidentifyingthemainbuildingblockswithinwhichdifferenttoolscanbedeployedThesectionthatfollowsdevelopsthisframeworkfurtherprovidingillustrationsofhowdifferenttoolscanbedeployedforthedifferentsteps

9

Figure1Summaryofstepstodevelopaninclusivegreengrowthstrategyanchoredintonationaldevelopmentframework

Thetypeofactionseachofthesestepsmayentailisdiscussedbelow

Vision

bullSettingamediumtolongͲterminclusivegreengrowthvisionforthecountrythatisanchoredintothecountryrsquosnationaldevelopmentstrategy

Diagnostic

bullTakingstockofthemaineconomicandsocialchallengesandopportunitiesthenexamineenvironmentalchallengesandopportunities

GoalSetting

bullDefiningobjectivesandexpectedoutcomesforshortandmediumͲtermthatarelinkedtolongtermvision

Optionsmeasures

bullFocusing onsynergies (arethereIGGpoliciesthatbringimmediateandlocalbenefits)andurgency(whatisneedednowtoavoidlockͲinandirreversibilities)identifyingpolicytechnologyoptionsthatcouldhelpovercomethebarriersidentifiedandseizetheopportunities

FeasibilityAnalysis

bullUndertakingfeasibilityandMCAanalysesoftheproposedpolicytechnologyoptionsinordertorecognizethebestoptionspracticesforthespecificnationalcontext

Implementation

bullDesigningpolicyreformprocessthatreflectsthesebestoptionsandmobilizeadequateupͲfrontfinancingforimplementation

Monitoringamp

Evaluation

bull MampEofpoliciesisneededtocreateafeedbackloopintothedesignofpolicies

10

Asmentioned above any IGG strategymust be anchored into a national development vision that isbroadlyownedwithingovernmentandby itsconstituency includingmarginalizedgroupandthosewhomaybeparticularlyvulnerableduringthetransitiontowardsagreeneconomy Inordertoachievethistheprocessof elaborating the strategy itselfneeds strong andpolitical commitment andbuyͲin at alllevels a network of champions across the government complex to drive the change process at thetechnical level thorough consultationswithdifferent stakeholders andwide sharingof information toensureatransparentdecisionprocess

SCOPESOMECOREELEMENTS STEPSTOOLS

PoliticalcommitmentstronghighͲlevelpoliticalcommitmentandleadershipisneeded at the various stagesof thepolicy cycle toensure theprocess isnotcapturedbyvestedinterestsortakenoverbyotheritemsinthepoliticalpolicyagendaInvolvementofPresidentPrimeͲminsterwithfulltechnicalbackͲupofleadingMinistriesagenciesiscrucial

InstitutionalsetͲupandchampionsachangeinprocessinvolvingcrossͲsectoralcollaborationrequiresacriticalmasspeoplewiththeabilitytounderstandthevision communicate with various stakeholders and technical expertise todesignappraiseapplyandadjustthepolicysolutionsMorethan justsettingͲupteamscommitteesacrossvarioustechnicalareas it is importantthatthesepeoplealsoactasaldquonetworkofchampionsrdquoforIGG

Broad consultations Some steps like the definition of the Vision and theObjectivesExpectedoutcomesrequiresomebroadconsultationswithnationalstakeholders (including civil society private sector development partnersmunicipalitiesadvocacynetworksetc)

Information dissemination and transparency All information generated inpolicyͲmakingprocessshouldbewidelyavailableandtheprocessmustbedonetransparentlyallowingallstakeholdersavoiceandensuringthatdisagreementsarenotedinpublicfora

Ministerial Steering Committee bestchairedbyMinistryof financeeconomyorplanningorViceͲpresidentrsquosoffice

Technical Committees and subͲtechnicalcommittees

Consultation instruments (townhallmeetings focused group discussionsopinionsurveysgovernmentwebPortalNationalamplocalpressradio)

Step1bull VISIONampOBJECTIVES

11

Step two entails a systematic compilation of relevant information to better understandchallengesopportunities in framing IGG objectives In particular it is this stage to identifieseconomicsocialandenvironmentalnaturalcapitalchallengesandopportunities for thecountryclimate risk management issues take stock of existing policy instruments as well as the likelyconstraintstoimplementinginclusivegreengrowth

SCOPESOMECOREELEMENTS STEPSTOOLs

Collect relevant information to understand challengesopportunities and frameobjectives

Identify key economic and social challenges and opportunities using existingdiagnosticsandreviewing

x EconomicSectorsinvalueͲaddedjobcreationenvironmentalimpactsx Povertyinequalityexclusionandvulnerabilityindicatorsx Demographicamplabourmarketstatisticsx UrbanizationTrendsx Urbanruralaccesstobasicservices(educationhealthwaterenergy)x Energyaccessbypopulationgroupsurbanruralareastechnology

Identifykeyopportunitiesandchallengesinnaturalcapitalofcountryregion

x Ecosystemtypeshistoricalcurrentandprojectdistributionsmapsx Spatialmapshighlightingbiologicalrichnessx Mapswithhighaboveorbelowgroundcarbonstocksx AgricultureandbioͲenergylandͲusemapping(FAOmethodology)x Nationalrenewableresourceassessments(windsolarhydrogeothermal)x Spatialoverlaysofareaswithmultiplehighvalueecosystemservices

Andinclimatechangeandclimateriskmanagement

x Disasterstatistics(lossoflivetotalandrelativeeconomiclosses)x Hazard maps (spatial exposure to hydroͲmeteorological and geological

hazards)x Regionaltrendsinkeyclimaticparametersx VulnerabilityandAdaptationAssessments

CountryͲspecificstatisticalbureausortheirequivalents

CountryͲspecific public surveysand inͲcountry thinkͲtanksuniversitiesresearchcenters

National and MDB Data Portal(provides multiple customizedtools to gather and analyzemultipleindicators)

System of EnvironmentalͲEconomic Accounts (UNSEEA)wealth accounting and valuationofecosystemservices(WAVES)

HumanDevelopmentIndex

FAO FAOSTAT FAO CLIMPAG(brings together the variousaspects and interactions betweenweather climate and agriculturein the general context of foodsecurity) FAO Global InformationandEarlyWarningSystemonFoodandAgriculture(GIEWS)

Community mapping toolsparticipatory rural appraisals andother tools to bring out localknowledge about ecosystemsproperty right regimes andpatternsofnaturalresourceuse

Step2bull DIAGNOSTICS

12

SCOPESOMECOREELEMENTS STEPSTOOLs

TakestockofexistingpolicyinstrumentsrelevanttoIGG

x Rules and regulations already in place with regard to natural resourcesenergypollutionemployment

x EnactedeconomicandfinancialinstrumentswithabearingonIGGx In termsofeconomic instrumentsunderstandingwhich revenuesarebeing

collected and bywhom how they are being used and ameasure of theirsuccessonachievingthepolicyobjectives

x In terms of financial instruments understanding subsidy schemes theireffectivenessandmanagementgovernanceinpractice

x In termsofsocialprotectionexistingsocialprotection floorsandsafetynetsystems

x ThenationalbudgetingprocessandentrypointsforIGG

Takestockoflikelyconstraintstoimplementinginclusivegreengrowth

x Politicaleconomyfragilityorbehaviouralchangeissuesx Financialconstraintsx Institutionalorcapacityconstraints

Throughout examine opportunities for synergies (are there IGG policies that bringimmediate and local benefits) and extent of urgency (what are the policies andinvestmentsthatneedtobetakennowtoavoid locking intoanunsustainablefutureandcreatingirreversibilities)

Strategic EnvironmentalAssessment social expenditurereviews (green) publicexpenditurereviews

WFPComprehensiveFoodSecurityandVulnerabilityAnalysis(CFSVA)GuidelinesFoodSecurityandVulnerabilityAnalysisHungerandClimateVulnerabilityIndex

International Rescue Committee(IRC)DisasterRiskDatabases

UNDP Climate Change CountryProfiles

IPCC Assessment Special andMethodologyReports

WorldBankClimatePortal

AfDB Country Policy andinstitutional Assessment AfDBCountryGovernanceProfiles

OECDGreenGrowthDiagnosticframeworkUNEP Green Economy ScopingStudies

AtthisstagecountrieswillsetspecificgoalsandexpectedoutcomesfortheshortandmediumͲtermthatarelinked to their long term vision In particular criteria are defined for prioritizing the various options andmeasures across identified in accordance with countriesrsquo specific development context Aassessments ofinstitutionalfinancialandcapacityconstraintsshouldalsobecarriedouttoensurethatpoliciesarematchedtoinstitutionalcapabilities

Inadditionascountriessettheirgoalstheymay look intovoluntaryguidelinesandstandardsanchored intobestpracticesapproaches Thesemay includeguidelines thatarenotspecificallydesigned topromotegreengrowthpoliciesbutthathaveaddresscore issuesofsustainabilityand inclusiveness inpoliciesand investmentsaffecting

Step3bull GOAL SETTING

13

sectorsthatwouldbemostlikelytobeatthecenterofthesepoliciesinmanylowincomecountriesInrelationtoagriculture for instance useful elements may be drawn from the UN Committee for World Food SecurityrsquosVoluntaryGuidelinesontheResponsibleGovernanceofTenureofLandFisheriesandForestsortheFAOCodeofConductforResponsibleFisheriesamongother

SCOPESOMECOREELEMENTS STEPSTOOLS

Identification of relevant sectors ndash from the diagnostic prioritizesectorssubͲsectorswheremostpotentialexistsfordeliveringIGGandidentifypolicyoptionsforfurtherassessment

Assessment of policytechnological options ndash this includes anextensive reviewof testedpolicytechnologies around theglobe foreachprioritysector inparticularthosewhichhavebeensuccessfullyintroducedincountrieswithsimilarsocioͲeconomicprofiles

Assessment of Institutional Capacity Needs Ͳ Assessments ofinstitutional financial and capacity constraints for implementingpolicies and measures that facilitate transition to Inclusive GreenGrowth It is important to ensure that policies are matched toinstitutionalcapabilitiestoensurethatresultsareachieved

SectorconsultationsandalignmentwithcountryrsquoslongͲtermdevelopmentplanFAOClimateSmartAgricultureCFS Voluntary guidelines on the responsiblegovernanceoftenureoflandfisheriesandforestsPrinciples for Responsible Agricultural Investmentthat Respects Rights Livelihoods and Resources(PRAI)ofFAOIFADUNCTADandWorldBankClimate Technology Wiki UNEP and UNDPrsquosTechnologyNeedsAssessment(TNAs)UNEPGreenEconomyScopingStudiesOECD Policy Guidance on Integrating ClimateChangeAdaptationintoDevelopmentCooperationNationallyAppropriateMitigationActions(NAMAs)SectorMasterPlanStudies

MultiͲcriteriaanalysisare likely tobeneededgiven the limitationof costͲbenefitanalysis in theabsenceofmarketprices (forenvironmentalgoods)and in thepresenceof substantialuncertainty (aboutclimate riskstechnology)Politicaleconomyanalysisaswellasdistributionalassessmentareimportant

Butascountriesseektoprioritizeacrossthemanyurgentand importantstepsthattheycantaketo taketogreentheirgrowthandpromotegreaterinclusiontwoparticulardimensionscanbehighlighted

Step4bull PRIORITYSETTINGANDFEASIBILITYANALYSIS

14

x Synergies theextent towhichgreenpoliciesprovide immediateand localbenefitsandhelpachievemore rapidormore inclusivegrowth Greenpolicies thathave immediateand localbenefitswillalsobenefitfromgreaterpoliticalandsocialacceptabilityndashacriticaldimension ifstrategiesaretoactuallybeimplemented

x Urgencytheextenttowhichapolicycanbepostponedwithoutrunningtheriskofirreversibledamagesorlockingintounsustainablepatternsofgrowth

SCOPESOMECOREELEMENTS STEPSTOOLS

MultiͲcriteria analysis is likely to be needed Political economy analysis as well asdistributionalassessmentareimportantasarethefollowing

x Baselinestudiesfortargetsectorsx Assessmentof firstorder (direct impacts)and2ndorder (coͲbenefits sideͲ

effects)ofshortlistedpolicyinstrumentsonfiscalsystemx Costof implementation includingmitigationofadverse impactsmonitoring

andenforcementx Assessmentofinstitutionalbarriershinderingpolicyimplementationx Understanding of impacts across different interested groups and powerful

factions

Final policy choice should be informed by the combination of urgency synergyefficacy and greatest feasibility given existing power and institutional dynamicsTradeͲoffs should be resolvedwith reference to priority criteria and validatedwithstakeholdersbeforeimplementation

MarginalAbatementCostCurves

MultiͲcriteriaanalysisforcomparisonofpolicyoptions

DecisionͲmakingunderuncertainty

StrategicEnvironmentalAssessments

StakeholderAnalysisampotherPoliticalEconomytools(factionalanalysispoweranalysis)

Implementationofpolicypackageshouldbeanchoredinacleartimeline(sequencingmatters)andunderpinned by realistic resource estimates (financial human and technical) Policies shouldthereforebe integrated into sectorplans andnationalbudget processes Implementation shouldprioritizeldquoquickwinsrdquoorthosepoliciesthatyieldanimmediatepositivereturn(egdirectrevenuescostsavingsjobs)andorhavelowestimplementationcosts

Step5bull IMPLEMENTATION

15

SCOPESOMECOREELEMENTS STEPSTOOLS

Keyelementsincludeacleartimeline(sequencingmatters)and realistic resource estimates (financial human andtechnical)

NationalBudgetprocesses

InvestmentPlanampResourceMobilisationStrategy

Poverty and Social Impact Assessments (PSIA)EnvironmentalImpactAssessments(EIA)

PaymentforEcosystemServices

EnvironmentalFiscalReform

SustainablePublicProcurement

SocialSafetyinstruments

World BankUNDP Climate Options Platform UNDPGuidebook on Blending Climate Finance ThroughNationalClimateFunds

WFPInnovativeriskfinancetransferandinsurance(egWFPLivelihoodsEarlyAssessmentandProtection

MonitoringandevaluationofpoliciesandinterventionsareneededtocreateafeedbackloopintothedesignofpoliciesToolsincludebothstandardmonitoringandevaluationaswellasimpactevaluationgiventheneedforformallearningaboutgreengrowthwhatinterventionsworkbestMoreovertheinclusivenatureoftheIGGagendaisbestservedbyinclusiveMampEprocessesincludingparticipatoryapproachesthatbestcaptureboththesocialandtheenvironmentalimpactofpolicyimplementation

3 ToolsforInclusiveGreenGrowth

Apracticaland flexiblepolicy toolkithasan important role toplay inhelpingdevelopingcountries toidentify and address bottlenecks and constraints to realizing inclusive green growth Such a toolkitrequires details of generic and specific policies ndash environmental economic and social It envisagessignificantlongͲterminvestmentandinnovationbothtechnologicalandinstitutionaltoavoidlockingͲin

Step6bull MampE

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 8: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

8

realisticcountrygoals identificationandanalysisof technicaloptionsall leading toareformsagendaandorinvestmentplanwithclearactionstimelinesandresourceimplicationsVariousstrategieshavebeendevelopedbydifferentdevelopmentactorsbutallhavecommonelementsandcanthereforebecombinedintoacommonframeworkFigure1summarizesthisframeworkidentifyingthemainbuildingblockswithinwhichdifferenttoolscanbedeployedThesectionthatfollowsdevelopsthisframeworkfurtherprovidingillustrationsofhowdifferenttoolscanbedeployedforthedifferentsteps

9

Figure1Summaryofstepstodevelopaninclusivegreengrowthstrategyanchoredintonationaldevelopmentframework

Thetypeofactionseachofthesestepsmayentailisdiscussedbelow

Vision

bullSettingamediumtolongͲterminclusivegreengrowthvisionforthecountrythatisanchoredintothecountryrsquosnationaldevelopmentstrategy

Diagnostic

bullTakingstockofthemaineconomicandsocialchallengesandopportunitiesthenexamineenvironmentalchallengesandopportunities

GoalSetting

bullDefiningobjectivesandexpectedoutcomesforshortandmediumͲtermthatarelinkedtolongtermvision

Optionsmeasures

bullFocusing onsynergies (arethereIGGpoliciesthatbringimmediateandlocalbenefits)andurgency(whatisneedednowtoavoidlockͲinandirreversibilities)identifyingpolicytechnologyoptionsthatcouldhelpovercomethebarriersidentifiedandseizetheopportunities

FeasibilityAnalysis

bullUndertakingfeasibilityandMCAanalysesoftheproposedpolicytechnologyoptionsinordertorecognizethebestoptionspracticesforthespecificnationalcontext

Implementation

bullDesigningpolicyreformprocessthatreflectsthesebestoptionsandmobilizeadequateupͲfrontfinancingforimplementation

Monitoringamp

Evaluation

bull MampEofpoliciesisneededtocreateafeedbackloopintothedesignofpolicies

10

Asmentioned above any IGG strategymust be anchored into a national development vision that isbroadlyownedwithingovernmentandby itsconstituency includingmarginalizedgroupandthosewhomaybeparticularlyvulnerableduringthetransitiontowardsagreeneconomy Inordertoachievethistheprocessof elaborating the strategy itselfneeds strong andpolitical commitment andbuyͲin at alllevels a network of champions across the government complex to drive the change process at thetechnical level thorough consultationswithdifferent stakeholders andwide sharingof information toensureatransparentdecisionprocess

SCOPESOMECOREELEMENTS STEPSTOOLS

PoliticalcommitmentstronghighͲlevelpoliticalcommitmentandleadershipisneeded at the various stagesof thepolicy cycle toensure theprocess isnotcapturedbyvestedinterestsortakenoverbyotheritemsinthepoliticalpolicyagendaInvolvementofPresidentPrimeͲminsterwithfulltechnicalbackͲupofleadingMinistriesagenciesiscrucial

InstitutionalsetͲupandchampionsachangeinprocessinvolvingcrossͲsectoralcollaborationrequiresacriticalmasspeoplewiththeabilitytounderstandthevision communicate with various stakeholders and technical expertise todesignappraiseapplyandadjustthepolicysolutionsMorethan justsettingͲupteamscommitteesacrossvarioustechnicalareas it is importantthatthesepeoplealsoactasaldquonetworkofchampionsrdquoforIGG

Broad consultations Some steps like the definition of the Vision and theObjectivesExpectedoutcomesrequiresomebroadconsultationswithnationalstakeholders (including civil society private sector development partnersmunicipalitiesadvocacynetworksetc)

Information dissemination and transparency All information generated inpolicyͲmakingprocessshouldbewidelyavailableandtheprocessmustbedonetransparentlyallowingallstakeholdersavoiceandensuringthatdisagreementsarenotedinpublicfora

Ministerial Steering Committee bestchairedbyMinistryof financeeconomyorplanningorViceͲpresidentrsquosoffice

Technical Committees and subͲtechnicalcommittees

Consultation instruments (townhallmeetings focused group discussionsopinionsurveysgovernmentwebPortalNationalamplocalpressradio)

Step1bull VISIONampOBJECTIVES

11

Step two entails a systematic compilation of relevant information to better understandchallengesopportunities in framing IGG objectives In particular it is this stage to identifieseconomicsocialandenvironmentalnaturalcapitalchallengesandopportunities for thecountryclimate risk management issues take stock of existing policy instruments as well as the likelyconstraintstoimplementinginclusivegreengrowth

SCOPESOMECOREELEMENTS STEPSTOOLs

Collect relevant information to understand challengesopportunities and frameobjectives

Identify key economic and social challenges and opportunities using existingdiagnosticsandreviewing

x EconomicSectorsinvalueͲaddedjobcreationenvironmentalimpactsx Povertyinequalityexclusionandvulnerabilityindicatorsx Demographicamplabourmarketstatisticsx UrbanizationTrendsx Urbanruralaccesstobasicservices(educationhealthwaterenergy)x Energyaccessbypopulationgroupsurbanruralareastechnology

Identifykeyopportunitiesandchallengesinnaturalcapitalofcountryregion

x Ecosystemtypeshistoricalcurrentandprojectdistributionsmapsx Spatialmapshighlightingbiologicalrichnessx Mapswithhighaboveorbelowgroundcarbonstocksx AgricultureandbioͲenergylandͲusemapping(FAOmethodology)x Nationalrenewableresourceassessments(windsolarhydrogeothermal)x Spatialoverlaysofareaswithmultiplehighvalueecosystemservices

Andinclimatechangeandclimateriskmanagement

x Disasterstatistics(lossoflivetotalandrelativeeconomiclosses)x Hazard maps (spatial exposure to hydroͲmeteorological and geological

hazards)x Regionaltrendsinkeyclimaticparametersx VulnerabilityandAdaptationAssessments

CountryͲspecificstatisticalbureausortheirequivalents

CountryͲspecific public surveysand inͲcountry thinkͲtanksuniversitiesresearchcenters

National and MDB Data Portal(provides multiple customizedtools to gather and analyzemultipleindicators)

System of EnvironmentalͲEconomic Accounts (UNSEEA)wealth accounting and valuationofecosystemservices(WAVES)

HumanDevelopmentIndex

FAO FAOSTAT FAO CLIMPAG(brings together the variousaspects and interactions betweenweather climate and agriculturein the general context of foodsecurity) FAO Global InformationandEarlyWarningSystemonFoodandAgriculture(GIEWS)

Community mapping toolsparticipatory rural appraisals andother tools to bring out localknowledge about ecosystemsproperty right regimes andpatternsofnaturalresourceuse

Step2bull DIAGNOSTICS

12

SCOPESOMECOREELEMENTS STEPSTOOLs

TakestockofexistingpolicyinstrumentsrelevanttoIGG

x Rules and regulations already in place with regard to natural resourcesenergypollutionemployment

x EnactedeconomicandfinancialinstrumentswithabearingonIGGx In termsofeconomic instrumentsunderstandingwhich revenuesarebeing

collected and bywhom how they are being used and ameasure of theirsuccessonachievingthepolicyobjectives

x In terms of financial instruments understanding subsidy schemes theireffectivenessandmanagementgovernanceinpractice

x In termsofsocialprotectionexistingsocialprotection floorsandsafetynetsystems

x ThenationalbudgetingprocessandentrypointsforIGG

Takestockoflikelyconstraintstoimplementinginclusivegreengrowth

x Politicaleconomyfragilityorbehaviouralchangeissuesx Financialconstraintsx Institutionalorcapacityconstraints

Throughout examine opportunities for synergies (are there IGG policies that bringimmediate and local benefits) and extent of urgency (what are the policies andinvestmentsthatneedtobetakennowtoavoid locking intoanunsustainablefutureandcreatingirreversibilities)

Strategic EnvironmentalAssessment social expenditurereviews (green) publicexpenditurereviews

WFPComprehensiveFoodSecurityandVulnerabilityAnalysis(CFSVA)GuidelinesFoodSecurityandVulnerabilityAnalysisHungerandClimateVulnerabilityIndex

International Rescue Committee(IRC)DisasterRiskDatabases

UNDP Climate Change CountryProfiles

IPCC Assessment Special andMethodologyReports

WorldBankClimatePortal

AfDB Country Policy andinstitutional Assessment AfDBCountryGovernanceProfiles

OECDGreenGrowthDiagnosticframeworkUNEP Green Economy ScopingStudies

AtthisstagecountrieswillsetspecificgoalsandexpectedoutcomesfortheshortandmediumͲtermthatarelinked to their long term vision In particular criteria are defined for prioritizing the various options andmeasures across identified in accordance with countriesrsquo specific development context Aassessments ofinstitutionalfinancialandcapacityconstraintsshouldalsobecarriedouttoensurethatpoliciesarematchedtoinstitutionalcapabilities

Inadditionascountriessettheirgoalstheymay look intovoluntaryguidelinesandstandardsanchored intobestpracticesapproaches Thesemay includeguidelines thatarenotspecificallydesigned topromotegreengrowthpoliciesbutthathaveaddresscore issuesofsustainabilityand inclusiveness inpoliciesand investmentsaffecting

Step3bull GOAL SETTING

13

sectorsthatwouldbemostlikelytobeatthecenterofthesepoliciesinmanylowincomecountriesInrelationtoagriculture for instance useful elements may be drawn from the UN Committee for World Food SecurityrsquosVoluntaryGuidelinesontheResponsibleGovernanceofTenureofLandFisheriesandForestsortheFAOCodeofConductforResponsibleFisheriesamongother

SCOPESOMECOREELEMENTS STEPSTOOLS

Identification of relevant sectors ndash from the diagnostic prioritizesectorssubͲsectorswheremostpotentialexistsfordeliveringIGGandidentifypolicyoptionsforfurtherassessment

Assessment of policytechnological options ndash this includes anextensive reviewof testedpolicytechnologies around theglobe foreachprioritysector inparticularthosewhichhavebeensuccessfullyintroducedincountrieswithsimilarsocioͲeconomicprofiles

Assessment of Institutional Capacity Needs Ͳ Assessments ofinstitutional financial and capacity constraints for implementingpolicies and measures that facilitate transition to Inclusive GreenGrowth It is important to ensure that policies are matched toinstitutionalcapabilitiestoensurethatresultsareachieved

SectorconsultationsandalignmentwithcountryrsquoslongͲtermdevelopmentplanFAOClimateSmartAgricultureCFS Voluntary guidelines on the responsiblegovernanceoftenureoflandfisheriesandforestsPrinciples for Responsible Agricultural Investmentthat Respects Rights Livelihoods and Resources(PRAI)ofFAOIFADUNCTADandWorldBankClimate Technology Wiki UNEP and UNDPrsquosTechnologyNeedsAssessment(TNAs)UNEPGreenEconomyScopingStudiesOECD Policy Guidance on Integrating ClimateChangeAdaptationintoDevelopmentCooperationNationallyAppropriateMitigationActions(NAMAs)SectorMasterPlanStudies

MultiͲcriteriaanalysisare likely tobeneededgiven the limitationof costͲbenefitanalysis in theabsenceofmarketprices (forenvironmentalgoods)and in thepresenceof substantialuncertainty (aboutclimate riskstechnology)Politicaleconomyanalysisaswellasdistributionalassessmentareimportant

Butascountriesseektoprioritizeacrossthemanyurgentand importantstepsthattheycantaketo taketogreentheirgrowthandpromotegreaterinclusiontwoparticulardimensionscanbehighlighted

Step4bull PRIORITYSETTINGANDFEASIBILITYANALYSIS

14

x Synergies theextent towhichgreenpoliciesprovide immediateand localbenefitsandhelpachievemore rapidormore inclusivegrowth Greenpolicies thathave immediateand localbenefitswillalsobenefitfromgreaterpoliticalandsocialacceptabilityndashacriticaldimension ifstrategiesaretoactuallybeimplemented

x Urgencytheextenttowhichapolicycanbepostponedwithoutrunningtheriskofirreversibledamagesorlockingintounsustainablepatternsofgrowth

SCOPESOMECOREELEMENTS STEPSTOOLS

MultiͲcriteria analysis is likely to be needed Political economy analysis as well asdistributionalassessmentareimportantasarethefollowing

x Baselinestudiesfortargetsectorsx Assessmentof firstorder (direct impacts)and2ndorder (coͲbenefits sideͲ

effects)ofshortlistedpolicyinstrumentsonfiscalsystemx Costof implementation includingmitigationofadverse impactsmonitoring

andenforcementx Assessmentofinstitutionalbarriershinderingpolicyimplementationx Understanding of impacts across different interested groups and powerful

factions

Final policy choice should be informed by the combination of urgency synergyefficacy and greatest feasibility given existing power and institutional dynamicsTradeͲoffs should be resolvedwith reference to priority criteria and validatedwithstakeholdersbeforeimplementation

MarginalAbatementCostCurves

MultiͲcriteriaanalysisforcomparisonofpolicyoptions

DecisionͲmakingunderuncertainty

StrategicEnvironmentalAssessments

StakeholderAnalysisampotherPoliticalEconomytools(factionalanalysispoweranalysis)

Implementationofpolicypackageshouldbeanchoredinacleartimeline(sequencingmatters)andunderpinned by realistic resource estimates (financial human and technical) Policies shouldthereforebe integrated into sectorplans andnationalbudget processes Implementation shouldprioritizeldquoquickwinsrdquoorthosepoliciesthatyieldanimmediatepositivereturn(egdirectrevenuescostsavingsjobs)andorhavelowestimplementationcosts

Step5bull IMPLEMENTATION

15

SCOPESOMECOREELEMENTS STEPSTOOLS

Keyelementsincludeacleartimeline(sequencingmatters)and realistic resource estimates (financial human andtechnical)

NationalBudgetprocesses

InvestmentPlanampResourceMobilisationStrategy

Poverty and Social Impact Assessments (PSIA)EnvironmentalImpactAssessments(EIA)

PaymentforEcosystemServices

EnvironmentalFiscalReform

SustainablePublicProcurement

SocialSafetyinstruments

World BankUNDP Climate Options Platform UNDPGuidebook on Blending Climate Finance ThroughNationalClimateFunds

WFPInnovativeriskfinancetransferandinsurance(egWFPLivelihoodsEarlyAssessmentandProtection

MonitoringandevaluationofpoliciesandinterventionsareneededtocreateafeedbackloopintothedesignofpoliciesToolsincludebothstandardmonitoringandevaluationaswellasimpactevaluationgiventheneedforformallearningaboutgreengrowthwhatinterventionsworkbestMoreovertheinclusivenatureoftheIGGagendaisbestservedbyinclusiveMampEprocessesincludingparticipatoryapproachesthatbestcaptureboththesocialandtheenvironmentalimpactofpolicyimplementation

3 ToolsforInclusiveGreenGrowth

Apracticaland flexiblepolicy toolkithasan important role toplay inhelpingdevelopingcountries toidentify and address bottlenecks and constraints to realizing inclusive green growth Such a toolkitrequires details of generic and specific policies ndash environmental economic and social It envisagessignificantlongͲterminvestmentandinnovationbothtechnologicalandinstitutionaltoavoidlockingͲin

Step6bull MampE

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 9: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

9

Figure1Summaryofstepstodevelopaninclusivegreengrowthstrategyanchoredintonationaldevelopmentframework

Thetypeofactionseachofthesestepsmayentailisdiscussedbelow

Vision

bullSettingamediumtolongͲterminclusivegreengrowthvisionforthecountrythatisanchoredintothecountryrsquosnationaldevelopmentstrategy

Diagnostic

bullTakingstockofthemaineconomicandsocialchallengesandopportunitiesthenexamineenvironmentalchallengesandopportunities

GoalSetting

bullDefiningobjectivesandexpectedoutcomesforshortandmediumͲtermthatarelinkedtolongtermvision

Optionsmeasures

bullFocusing onsynergies (arethereIGGpoliciesthatbringimmediateandlocalbenefits)andurgency(whatisneedednowtoavoidlockͲinandirreversibilities)identifyingpolicytechnologyoptionsthatcouldhelpovercomethebarriersidentifiedandseizetheopportunities

FeasibilityAnalysis

bullUndertakingfeasibilityandMCAanalysesoftheproposedpolicytechnologyoptionsinordertorecognizethebestoptionspracticesforthespecificnationalcontext

Implementation

bullDesigningpolicyreformprocessthatreflectsthesebestoptionsandmobilizeadequateupͲfrontfinancingforimplementation

Monitoringamp

Evaluation

bull MampEofpoliciesisneededtocreateafeedbackloopintothedesignofpolicies

10

Asmentioned above any IGG strategymust be anchored into a national development vision that isbroadlyownedwithingovernmentandby itsconstituency includingmarginalizedgroupandthosewhomaybeparticularlyvulnerableduringthetransitiontowardsagreeneconomy Inordertoachievethistheprocessof elaborating the strategy itselfneeds strong andpolitical commitment andbuyͲin at alllevels a network of champions across the government complex to drive the change process at thetechnical level thorough consultationswithdifferent stakeholders andwide sharingof information toensureatransparentdecisionprocess

SCOPESOMECOREELEMENTS STEPSTOOLS

PoliticalcommitmentstronghighͲlevelpoliticalcommitmentandleadershipisneeded at the various stagesof thepolicy cycle toensure theprocess isnotcapturedbyvestedinterestsortakenoverbyotheritemsinthepoliticalpolicyagendaInvolvementofPresidentPrimeͲminsterwithfulltechnicalbackͲupofleadingMinistriesagenciesiscrucial

InstitutionalsetͲupandchampionsachangeinprocessinvolvingcrossͲsectoralcollaborationrequiresacriticalmasspeoplewiththeabilitytounderstandthevision communicate with various stakeholders and technical expertise todesignappraiseapplyandadjustthepolicysolutionsMorethan justsettingͲupteamscommitteesacrossvarioustechnicalareas it is importantthatthesepeoplealsoactasaldquonetworkofchampionsrdquoforIGG

Broad consultations Some steps like the definition of the Vision and theObjectivesExpectedoutcomesrequiresomebroadconsultationswithnationalstakeholders (including civil society private sector development partnersmunicipalitiesadvocacynetworksetc)

Information dissemination and transparency All information generated inpolicyͲmakingprocessshouldbewidelyavailableandtheprocessmustbedonetransparentlyallowingallstakeholdersavoiceandensuringthatdisagreementsarenotedinpublicfora

Ministerial Steering Committee bestchairedbyMinistryof financeeconomyorplanningorViceͲpresidentrsquosoffice

Technical Committees and subͲtechnicalcommittees

Consultation instruments (townhallmeetings focused group discussionsopinionsurveysgovernmentwebPortalNationalamplocalpressradio)

Step1bull VISIONampOBJECTIVES

11

Step two entails a systematic compilation of relevant information to better understandchallengesopportunities in framing IGG objectives In particular it is this stage to identifieseconomicsocialandenvironmentalnaturalcapitalchallengesandopportunities for thecountryclimate risk management issues take stock of existing policy instruments as well as the likelyconstraintstoimplementinginclusivegreengrowth

SCOPESOMECOREELEMENTS STEPSTOOLs

Collect relevant information to understand challengesopportunities and frameobjectives

Identify key economic and social challenges and opportunities using existingdiagnosticsandreviewing

x EconomicSectorsinvalueͲaddedjobcreationenvironmentalimpactsx Povertyinequalityexclusionandvulnerabilityindicatorsx Demographicamplabourmarketstatisticsx UrbanizationTrendsx Urbanruralaccesstobasicservices(educationhealthwaterenergy)x Energyaccessbypopulationgroupsurbanruralareastechnology

Identifykeyopportunitiesandchallengesinnaturalcapitalofcountryregion

x Ecosystemtypeshistoricalcurrentandprojectdistributionsmapsx Spatialmapshighlightingbiologicalrichnessx Mapswithhighaboveorbelowgroundcarbonstocksx AgricultureandbioͲenergylandͲusemapping(FAOmethodology)x Nationalrenewableresourceassessments(windsolarhydrogeothermal)x Spatialoverlaysofareaswithmultiplehighvalueecosystemservices

Andinclimatechangeandclimateriskmanagement

x Disasterstatistics(lossoflivetotalandrelativeeconomiclosses)x Hazard maps (spatial exposure to hydroͲmeteorological and geological

hazards)x Regionaltrendsinkeyclimaticparametersx VulnerabilityandAdaptationAssessments

CountryͲspecificstatisticalbureausortheirequivalents

CountryͲspecific public surveysand inͲcountry thinkͲtanksuniversitiesresearchcenters

National and MDB Data Portal(provides multiple customizedtools to gather and analyzemultipleindicators)

System of EnvironmentalͲEconomic Accounts (UNSEEA)wealth accounting and valuationofecosystemservices(WAVES)

HumanDevelopmentIndex

FAO FAOSTAT FAO CLIMPAG(brings together the variousaspects and interactions betweenweather climate and agriculturein the general context of foodsecurity) FAO Global InformationandEarlyWarningSystemonFoodandAgriculture(GIEWS)

Community mapping toolsparticipatory rural appraisals andother tools to bring out localknowledge about ecosystemsproperty right regimes andpatternsofnaturalresourceuse

Step2bull DIAGNOSTICS

12

SCOPESOMECOREELEMENTS STEPSTOOLs

TakestockofexistingpolicyinstrumentsrelevanttoIGG

x Rules and regulations already in place with regard to natural resourcesenergypollutionemployment

x EnactedeconomicandfinancialinstrumentswithabearingonIGGx In termsofeconomic instrumentsunderstandingwhich revenuesarebeing

collected and bywhom how they are being used and ameasure of theirsuccessonachievingthepolicyobjectives

x In terms of financial instruments understanding subsidy schemes theireffectivenessandmanagementgovernanceinpractice

x In termsofsocialprotectionexistingsocialprotection floorsandsafetynetsystems

x ThenationalbudgetingprocessandentrypointsforIGG

Takestockoflikelyconstraintstoimplementinginclusivegreengrowth

x Politicaleconomyfragilityorbehaviouralchangeissuesx Financialconstraintsx Institutionalorcapacityconstraints

Throughout examine opportunities for synergies (are there IGG policies that bringimmediate and local benefits) and extent of urgency (what are the policies andinvestmentsthatneedtobetakennowtoavoid locking intoanunsustainablefutureandcreatingirreversibilities)

Strategic EnvironmentalAssessment social expenditurereviews (green) publicexpenditurereviews

WFPComprehensiveFoodSecurityandVulnerabilityAnalysis(CFSVA)GuidelinesFoodSecurityandVulnerabilityAnalysisHungerandClimateVulnerabilityIndex

International Rescue Committee(IRC)DisasterRiskDatabases

UNDP Climate Change CountryProfiles

IPCC Assessment Special andMethodologyReports

WorldBankClimatePortal

AfDB Country Policy andinstitutional Assessment AfDBCountryGovernanceProfiles

OECDGreenGrowthDiagnosticframeworkUNEP Green Economy ScopingStudies

AtthisstagecountrieswillsetspecificgoalsandexpectedoutcomesfortheshortandmediumͲtermthatarelinked to their long term vision In particular criteria are defined for prioritizing the various options andmeasures across identified in accordance with countriesrsquo specific development context Aassessments ofinstitutionalfinancialandcapacityconstraintsshouldalsobecarriedouttoensurethatpoliciesarematchedtoinstitutionalcapabilities

Inadditionascountriessettheirgoalstheymay look intovoluntaryguidelinesandstandardsanchored intobestpracticesapproaches Thesemay includeguidelines thatarenotspecificallydesigned topromotegreengrowthpoliciesbutthathaveaddresscore issuesofsustainabilityand inclusiveness inpoliciesand investmentsaffecting

Step3bull GOAL SETTING

13

sectorsthatwouldbemostlikelytobeatthecenterofthesepoliciesinmanylowincomecountriesInrelationtoagriculture for instance useful elements may be drawn from the UN Committee for World Food SecurityrsquosVoluntaryGuidelinesontheResponsibleGovernanceofTenureofLandFisheriesandForestsortheFAOCodeofConductforResponsibleFisheriesamongother

SCOPESOMECOREELEMENTS STEPSTOOLS

Identification of relevant sectors ndash from the diagnostic prioritizesectorssubͲsectorswheremostpotentialexistsfordeliveringIGGandidentifypolicyoptionsforfurtherassessment

Assessment of policytechnological options ndash this includes anextensive reviewof testedpolicytechnologies around theglobe foreachprioritysector inparticularthosewhichhavebeensuccessfullyintroducedincountrieswithsimilarsocioͲeconomicprofiles

Assessment of Institutional Capacity Needs Ͳ Assessments ofinstitutional financial and capacity constraints for implementingpolicies and measures that facilitate transition to Inclusive GreenGrowth It is important to ensure that policies are matched toinstitutionalcapabilitiestoensurethatresultsareachieved

SectorconsultationsandalignmentwithcountryrsquoslongͲtermdevelopmentplanFAOClimateSmartAgricultureCFS Voluntary guidelines on the responsiblegovernanceoftenureoflandfisheriesandforestsPrinciples for Responsible Agricultural Investmentthat Respects Rights Livelihoods and Resources(PRAI)ofFAOIFADUNCTADandWorldBankClimate Technology Wiki UNEP and UNDPrsquosTechnologyNeedsAssessment(TNAs)UNEPGreenEconomyScopingStudiesOECD Policy Guidance on Integrating ClimateChangeAdaptationintoDevelopmentCooperationNationallyAppropriateMitigationActions(NAMAs)SectorMasterPlanStudies

MultiͲcriteriaanalysisare likely tobeneededgiven the limitationof costͲbenefitanalysis in theabsenceofmarketprices (forenvironmentalgoods)and in thepresenceof substantialuncertainty (aboutclimate riskstechnology)Politicaleconomyanalysisaswellasdistributionalassessmentareimportant

Butascountriesseektoprioritizeacrossthemanyurgentand importantstepsthattheycantaketo taketogreentheirgrowthandpromotegreaterinclusiontwoparticulardimensionscanbehighlighted

Step4bull PRIORITYSETTINGANDFEASIBILITYANALYSIS

14

x Synergies theextent towhichgreenpoliciesprovide immediateand localbenefitsandhelpachievemore rapidormore inclusivegrowth Greenpolicies thathave immediateand localbenefitswillalsobenefitfromgreaterpoliticalandsocialacceptabilityndashacriticaldimension ifstrategiesaretoactuallybeimplemented

x Urgencytheextenttowhichapolicycanbepostponedwithoutrunningtheriskofirreversibledamagesorlockingintounsustainablepatternsofgrowth

SCOPESOMECOREELEMENTS STEPSTOOLS

MultiͲcriteria analysis is likely to be needed Political economy analysis as well asdistributionalassessmentareimportantasarethefollowing

x Baselinestudiesfortargetsectorsx Assessmentof firstorder (direct impacts)and2ndorder (coͲbenefits sideͲ

effects)ofshortlistedpolicyinstrumentsonfiscalsystemx Costof implementation includingmitigationofadverse impactsmonitoring

andenforcementx Assessmentofinstitutionalbarriershinderingpolicyimplementationx Understanding of impacts across different interested groups and powerful

factions

Final policy choice should be informed by the combination of urgency synergyefficacy and greatest feasibility given existing power and institutional dynamicsTradeͲoffs should be resolvedwith reference to priority criteria and validatedwithstakeholdersbeforeimplementation

MarginalAbatementCostCurves

MultiͲcriteriaanalysisforcomparisonofpolicyoptions

DecisionͲmakingunderuncertainty

StrategicEnvironmentalAssessments

StakeholderAnalysisampotherPoliticalEconomytools(factionalanalysispoweranalysis)

Implementationofpolicypackageshouldbeanchoredinacleartimeline(sequencingmatters)andunderpinned by realistic resource estimates (financial human and technical) Policies shouldthereforebe integrated into sectorplans andnationalbudget processes Implementation shouldprioritizeldquoquickwinsrdquoorthosepoliciesthatyieldanimmediatepositivereturn(egdirectrevenuescostsavingsjobs)andorhavelowestimplementationcosts

Step5bull IMPLEMENTATION

15

SCOPESOMECOREELEMENTS STEPSTOOLS

Keyelementsincludeacleartimeline(sequencingmatters)and realistic resource estimates (financial human andtechnical)

NationalBudgetprocesses

InvestmentPlanampResourceMobilisationStrategy

Poverty and Social Impact Assessments (PSIA)EnvironmentalImpactAssessments(EIA)

PaymentforEcosystemServices

EnvironmentalFiscalReform

SustainablePublicProcurement

SocialSafetyinstruments

World BankUNDP Climate Options Platform UNDPGuidebook on Blending Climate Finance ThroughNationalClimateFunds

WFPInnovativeriskfinancetransferandinsurance(egWFPLivelihoodsEarlyAssessmentandProtection

MonitoringandevaluationofpoliciesandinterventionsareneededtocreateafeedbackloopintothedesignofpoliciesToolsincludebothstandardmonitoringandevaluationaswellasimpactevaluationgiventheneedforformallearningaboutgreengrowthwhatinterventionsworkbestMoreovertheinclusivenatureoftheIGGagendaisbestservedbyinclusiveMampEprocessesincludingparticipatoryapproachesthatbestcaptureboththesocialandtheenvironmentalimpactofpolicyimplementation

3 ToolsforInclusiveGreenGrowth

Apracticaland flexiblepolicy toolkithasan important role toplay inhelpingdevelopingcountries toidentify and address bottlenecks and constraints to realizing inclusive green growth Such a toolkitrequires details of generic and specific policies ndash environmental economic and social It envisagessignificantlongͲterminvestmentandinnovationbothtechnologicalandinstitutionaltoavoidlockingͲin

Step6bull MampE

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 10: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

10

Asmentioned above any IGG strategymust be anchored into a national development vision that isbroadlyownedwithingovernmentandby itsconstituency includingmarginalizedgroupandthosewhomaybeparticularlyvulnerableduringthetransitiontowardsagreeneconomy Inordertoachievethistheprocessof elaborating the strategy itselfneeds strong andpolitical commitment andbuyͲin at alllevels a network of champions across the government complex to drive the change process at thetechnical level thorough consultationswithdifferent stakeholders andwide sharingof information toensureatransparentdecisionprocess

SCOPESOMECOREELEMENTS STEPSTOOLS

PoliticalcommitmentstronghighͲlevelpoliticalcommitmentandleadershipisneeded at the various stagesof thepolicy cycle toensure theprocess isnotcapturedbyvestedinterestsortakenoverbyotheritemsinthepoliticalpolicyagendaInvolvementofPresidentPrimeͲminsterwithfulltechnicalbackͲupofleadingMinistriesagenciesiscrucial

InstitutionalsetͲupandchampionsachangeinprocessinvolvingcrossͲsectoralcollaborationrequiresacriticalmasspeoplewiththeabilitytounderstandthevision communicate with various stakeholders and technical expertise todesignappraiseapplyandadjustthepolicysolutionsMorethan justsettingͲupteamscommitteesacrossvarioustechnicalareas it is importantthatthesepeoplealsoactasaldquonetworkofchampionsrdquoforIGG

Broad consultations Some steps like the definition of the Vision and theObjectivesExpectedoutcomesrequiresomebroadconsultationswithnationalstakeholders (including civil society private sector development partnersmunicipalitiesadvocacynetworksetc)

Information dissemination and transparency All information generated inpolicyͲmakingprocessshouldbewidelyavailableandtheprocessmustbedonetransparentlyallowingallstakeholdersavoiceandensuringthatdisagreementsarenotedinpublicfora

Ministerial Steering Committee bestchairedbyMinistryof financeeconomyorplanningorViceͲpresidentrsquosoffice

Technical Committees and subͲtechnicalcommittees

Consultation instruments (townhallmeetings focused group discussionsopinionsurveysgovernmentwebPortalNationalamplocalpressradio)

Step1bull VISIONampOBJECTIVES

11

Step two entails a systematic compilation of relevant information to better understandchallengesopportunities in framing IGG objectives In particular it is this stage to identifieseconomicsocialandenvironmentalnaturalcapitalchallengesandopportunities for thecountryclimate risk management issues take stock of existing policy instruments as well as the likelyconstraintstoimplementinginclusivegreengrowth

SCOPESOMECOREELEMENTS STEPSTOOLs

Collect relevant information to understand challengesopportunities and frameobjectives

Identify key economic and social challenges and opportunities using existingdiagnosticsandreviewing

x EconomicSectorsinvalueͲaddedjobcreationenvironmentalimpactsx Povertyinequalityexclusionandvulnerabilityindicatorsx Demographicamplabourmarketstatisticsx UrbanizationTrendsx Urbanruralaccesstobasicservices(educationhealthwaterenergy)x Energyaccessbypopulationgroupsurbanruralareastechnology

Identifykeyopportunitiesandchallengesinnaturalcapitalofcountryregion

x Ecosystemtypeshistoricalcurrentandprojectdistributionsmapsx Spatialmapshighlightingbiologicalrichnessx Mapswithhighaboveorbelowgroundcarbonstocksx AgricultureandbioͲenergylandͲusemapping(FAOmethodology)x Nationalrenewableresourceassessments(windsolarhydrogeothermal)x Spatialoverlaysofareaswithmultiplehighvalueecosystemservices

Andinclimatechangeandclimateriskmanagement

x Disasterstatistics(lossoflivetotalandrelativeeconomiclosses)x Hazard maps (spatial exposure to hydroͲmeteorological and geological

hazards)x Regionaltrendsinkeyclimaticparametersx VulnerabilityandAdaptationAssessments

CountryͲspecificstatisticalbureausortheirequivalents

CountryͲspecific public surveysand inͲcountry thinkͲtanksuniversitiesresearchcenters

National and MDB Data Portal(provides multiple customizedtools to gather and analyzemultipleindicators)

System of EnvironmentalͲEconomic Accounts (UNSEEA)wealth accounting and valuationofecosystemservices(WAVES)

HumanDevelopmentIndex

FAO FAOSTAT FAO CLIMPAG(brings together the variousaspects and interactions betweenweather climate and agriculturein the general context of foodsecurity) FAO Global InformationandEarlyWarningSystemonFoodandAgriculture(GIEWS)

Community mapping toolsparticipatory rural appraisals andother tools to bring out localknowledge about ecosystemsproperty right regimes andpatternsofnaturalresourceuse

Step2bull DIAGNOSTICS

12

SCOPESOMECOREELEMENTS STEPSTOOLs

TakestockofexistingpolicyinstrumentsrelevanttoIGG

x Rules and regulations already in place with regard to natural resourcesenergypollutionemployment

x EnactedeconomicandfinancialinstrumentswithabearingonIGGx In termsofeconomic instrumentsunderstandingwhich revenuesarebeing

collected and bywhom how they are being used and ameasure of theirsuccessonachievingthepolicyobjectives

x In terms of financial instruments understanding subsidy schemes theireffectivenessandmanagementgovernanceinpractice

x In termsofsocialprotectionexistingsocialprotection floorsandsafetynetsystems

x ThenationalbudgetingprocessandentrypointsforIGG

Takestockoflikelyconstraintstoimplementinginclusivegreengrowth

x Politicaleconomyfragilityorbehaviouralchangeissuesx Financialconstraintsx Institutionalorcapacityconstraints

Throughout examine opportunities for synergies (are there IGG policies that bringimmediate and local benefits) and extent of urgency (what are the policies andinvestmentsthatneedtobetakennowtoavoid locking intoanunsustainablefutureandcreatingirreversibilities)

Strategic EnvironmentalAssessment social expenditurereviews (green) publicexpenditurereviews

WFPComprehensiveFoodSecurityandVulnerabilityAnalysis(CFSVA)GuidelinesFoodSecurityandVulnerabilityAnalysisHungerandClimateVulnerabilityIndex

International Rescue Committee(IRC)DisasterRiskDatabases

UNDP Climate Change CountryProfiles

IPCC Assessment Special andMethodologyReports

WorldBankClimatePortal

AfDB Country Policy andinstitutional Assessment AfDBCountryGovernanceProfiles

OECDGreenGrowthDiagnosticframeworkUNEP Green Economy ScopingStudies

AtthisstagecountrieswillsetspecificgoalsandexpectedoutcomesfortheshortandmediumͲtermthatarelinked to their long term vision In particular criteria are defined for prioritizing the various options andmeasures across identified in accordance with countriesrsquo specific development context Aassessments ofinstitutionalfinancialandcapacityconstraintsshouldalsobecarriedouttoensurethatpoliciesarematchedtoinstitutionalcapabilities

Inadditionascountriessettheirgoalstheymay look intovoluntaryguidelinesandstandardsanchored intobestpracticesapproaches Thesemay includeguidelines thatarenotspecificallydesigned topromotegreengrowthpoliciesbutthathaveaddresscore issuesofsustainabilityand inclusiveness inpoliciesand investmentsaffecting

Step3bull GOAL SETTING

13

sectorsthatwouldbemostlikelytobeatthecenterofthesepoliciesinmanylowincomecountriesInrelationtoagriculture for instance useful elements may be drawn from the UN Committee for World Food SecurityrsquosVoluntaryGuidelinesontheResponsibleGovernanceofTenureofLandFisheriesandForestsortheFAOCodeofConductforResponsibleFisheriesamongother

SCOPESOMECOREELEMENTS STEPSTOOLS

Identification of relevant sectors ndash from the diagnostic prioritizesectorssubͲsectorswheremostpotentialexistsfordeliveringIGGandidentifypolicyoptionsforfurtherassessment

Assessment of policytechnological options ndash this includes anextensive reviewof testedpolicytechnologies around theglobe foreachprioritysector inparticularthosewhichhavebeensuccessfullyintroducedincountrieswithsimilarsocioͲeconomicprofiles

Assessment of Institutional Capacity Needs Ͳ Assessments ofinstitutional financial and capacity constraints for implementingpolicies and measures that facilitate transition to Inclusive GreenGrowth It is important to ensure that policies are matched toinstitutionalcapabilitiestoensurethatresultsareachieved

SectorconsultationsandalignmentwithcountryrsquoslongͲtermdevelopmentplanFAOClimateSmartAgricultureCFS Voluntary guidelines on the responsiblegovernanceoftenureoflandfisheriesandforestsPrinciples for Responsible Agricultural Investmentthat Respects Rights Livelihoods and Resources(PRAI)ofFAOIFADUNCTADandWorldBankClimate Technology Wiki UNEP and UNDPrsquosTechnologyNeedsAssessment(TNAs)UNEPGreenEconomyScopingStudiesOECD Policy Guidance on Integrating ClimateChangeAdaptationintoDevelopmentCooperationNationallyAppropriateMitigationActions(NAMAs)SectorMasterPlanStudies

MultiͲcriteriaanalysisare likely tobeneededgiven the limitationof costͲbenefitanalysis in theabsenceofmarketprices (forenvironmentalgoods)and in thepresenceof substantialuncertainty (aboutclimate riskstechnology)Politicaleconomyanalysisaswellasdistributionalassessmentareimportant

Butascountriesseektoprioritizeacrossthemanyurgentand importantstepsthattheycantaketo taketogreentheirgrowthandpromotegreaterinclusiontwoparticulardimensionscanbehighlighted

Step4bull PRIORITYSETTINGANDFEASIBILITYANALYSIS

14

x Synergies theextent towhichgreenpoliciesprovide immediateand localbenefitsandhelpachievemore rapidormore inclusivegrowth Greenpolicies thathave immediateand localbenefitswillalsobenefitfromgreaterpoliticalandsocialacceptabilityndashacriticaldimension ifstrategiesaretoactuallybeimplemented

x Urgencytheextenttowhichapolicycanbepostponedwithoutrunningtheriskofirreversibledamagesorlockingintounsustainablepatternsofgrowth

SCOPESOMECOREELEMENTS STEPSTOOLS

MultiͲcriteria analysis is likely to be needed Political economy analysis as well asdistributionalassessmentareimportantasarethefollowing

x Baselinestudiesfortargetsectorsx Assessmentof firstorder (direct impacts)and2ndorder (coͲbenefits sideͲ

effects)ofshortlistedpolicyinstrumentsonfiscalsystemx Costof implementation includingmitigationofadverse impactsmonitoring

andenforcementx Assessmentofinstitutionalbarriershinderingpolicyimplementationx Understanding of impacts across different interested groups and powerful

factions

Final policy choice should be informed by the combination of urgency synergyefficacy and greatest feasibility given existing power and institutional dynamicsTradeͲoffs should be resolvedwith reference to priority criteria and validatedwithstakeholdersbeforeimplementation

MarginalAbatementCostCurves

MultiͲcriteriaanalysisforcomparisonofpolicyoptions

DecisionͲmakingunderuncertainty

StrategicEnvironmentalAssessments

StakeholderAnalysisampotherPoliticalEconomytools(factionalanalysispoweranalysis)

Implementationofpolicypackageshouldbeanchoredinacleartimeline(sequencingmatters)andunderpinned by realistic resource estimates (financial human and technical) Policies shouldthereforebe integrated into sectorplans andnationalbudget processes Implementation shouldprioritizeldquoquickwinsrdquoorthosepoliciesthatyieldanimmediatepositivereturn(egdirectrevenuescostsavingsjobs)andorhavelowestimplementationcosts

Step5bull IMPLEMENTATION

15

SCOPESOMECOREELEMENTS STEPSTOOLS

Keyelementsincludeacleartimeline(sequencingmatters)and realistic resource estimates (financial human andtechnical)

NationalBudgetprocesses

InvestmentPlanampResourceMobilisationStrategy

Poverty and Social Impact Assessments (PSIA)EnvironmentalImpactAssessments(EIA)

PaymentforEcosystemServices

EnvironmentalFiscalReform

SustainablePublicProcurement

SocialSafetyinstruments

World BankUNDP Climate Options Platform UNDPGuidebook on Blending Climate Finance ThroughNationalClimateFunds

WFPInnovativeriskfinancetransferandinsurance(egWFPLivelihoodsEarlyAssessmentandProtection

MonitoringandevaluationofpoliciesandinterventionsareneededtocreateafeedbackloopintothedesignofpoliciesToolsincludebothstandardmonitoringandevaluationaswellasimpactevaluationgiventheneedforformallearningaboutgreengrowthwhatinterventionsworkbestMoreovertheinclusivenatureoftheIGGagendaisbestservedbyinclusiveMampEprocessesincludingparticipatoryapproachesthatbestcaptureboththesocialandtheenvironmentalimpactofpolicyimplementation

3 ToolsforInclusiveGreenGrowth

Apracticaland flexiblepolicy toolkithasan important role toplay inhelpingdevelopingcountries toidentify and address bottlenecks and constraints to realizing inclusive green growth Such a toolkitrequires details of generic and specific policies ndash environmental economic and social It envisagessignificantlongͲterminvestmentandinnovationbothtechnologicalandinstitutionaltoavoidlockingͲin

Step6bull MampE

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 11: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

11

Step two entails a systematic compilation of relevant information to better understandchallengesopportunities in framing IGG objectives In particular it is this stage to identifieseconomicsocialandenvironmentalnaturalcapitalchallengesandopportunities for thecountryclimate risk management issues take stock of existing policy instruments as well as the likelyconstraintstoimplementinginclusivegreengrowth

SCOPESOMECOREELEMENTS STEPSTOOLs

Collect relevant information to understand challengesopportunities and frameobjectives

Identify key economic and social challenges and opportunities using existingdiagnosticsandreviewing

x EconomicSectorsinvalueͲaddedjobcreationenvironmentalimpactsx Povertyinequalityexclusionandvulnerabilityindicatorsx Demographicamplabourmarketstatisticsx UrbanizationTrendsx Urbanruralaccesstobasicservices(educationhealthwaterenergy)x Energyaccessbypopulationgroupsurbanruralareastechnology

Identifykeyopportunitiesandchallengesinnaturalcapitalofcountryregion

x Ecosystemtypeshistoricalcurrentandprojectdistributionsmapsx Spatialmapshighlightingbiologicalrichnessx Mapswithhighaboveorbelowgroundcarbonstocksx AgricultureandbioͲenergylandͲusemapping(FAOmethodology)x Nationalrenewableresourceassessments(windsolarhydrogeothermal)x Spatialoverlaysofareaswithmultiplehighvalueecosystemservices

Andinclimatechangeandclimateriskmanagement

x Disasterstatistics(lossoflivetotalandrelativeeconomiclosses)x Hazard maps (spatial exposure to hydroͲmeteorological and geological

hazards)x Regionaltrendsinkeyclimaticparametersx VulnerabilityandAdaptationAssessments

CountryͲspecificstatisticalbureausortheirequivalents

CountryͲspecific public surveysand inͲcountry thinkͲtanksuniversitiesresearchcenters

National and MDB Data Portal(provides multiple customizedtools to gather and analyzemultipleindicators)

System of EnvironmentalͲEconomic Accounts (UNSEEA)wealth accounting and valuationofecosystemservices(WAVES)

HumanDevelopmentIndex

FAO FAOSTAT FAO CLIMPAG(brings together the variousaspects and interactions betweenweather climate and agriculturein the general context of foodsecurity) FAO Global InformationandEarlyWarningSystemonFoodandAgriculture(GIEWS)

Community mapping toolsparticipatory rural appraisals andother tools to bring out localknowledge about ecosystemsproperty right regimes andpatternsofnaturalresourceuse

Step2bull DIAGNOSTICS

12

SCOPESOMECOREELEMENTS STEPSTOOLs

TakestockofexistingpolicyinstrumentsrelevanttoIGG

x Rules and regulations already in place with regard to natural resourcesenergypollutionemployment

x EnactedeconomicandfinancialinstrumentswithabearingonIGGx In termsofeconomic instrumentsunderstandingwhich revenuesarebeing

collected and bywhom how they are being used and ameasure of theirsuccessonachievingthepolicyobjectives

x In terms of financial instruments understanding subsidy schemes theireffectivenessandmanagementgovernanceinpractice

x In termsofsocialprotectionexistingsocialprotection floorsandsafetynetsystems

x ThenationalbudgetingprocessandentrypointsforIGG

Takestockoflikelyconstraintstoimplementinginclusivegreengrowth

x Politicaleconomyfragilityorbehaviouralchangeissuesx Financialconstraintsx Institutionalorcapacityconstraints

Throughout examine opportunities for synergies (are there IGG policies that bringimmediate and local benefits) and extent of urgency (what are the policies andinvestmentsthatneedtobetakennowtoavoid locking intoanunsustainablefutureandcreatingirreversibilities)

Strategic EnvironmentalAssessment social expenditurereviews (green) publicexpenditurereviews

WFPComprehensiveFoodSecurityandVulnerabilityAnalysis(CFSVA)GuidelinesFoodSecurityandVulnerabilityAnalysisHungerandClimateVulnerabilityIndex

International Rescue Committee(IRC)DisasterRiskDatabases

UNDP Climate Change CountryProfiles

IPCC Assessment Special andMethodologyReports

WorldBankClimatePortal

AfDB Country Policy andinstitutional Assessment AfDBCountryGovernanceProfiles

OECDGreenGrowthDiagnosticframeworkUNEP Green Economy ScopingStudies

AtthisstagecountrieswillsetspecificgoalsandexpectedoutcomesfortheshortandmediumͲtermthatarelinked to their long term vision In particular criteria are defined for prioritizing the various options andmeasures across identified in accordance with countriesrsquo specific development context Aassessments ofinstitutionalfinancialandcapacityconstraintsshouldalsobecarriedouttoensurethatpoliciesarematchedtoinstitutionalcapabilities

Inadditionascountriessettheirgoalstheymay look intovoluntaryguidelinesandstandardsanchored intobestpracticesapproaches Thesemay includeguidelines thatarenotspecificallydesigned topromotegreengrowthpoliciesbutthathaveaddresscore issuesofsustainabilityand inclusiveness inpoliciesand investmentsaffecting

Step3bull GOAL SETTING

13

sectorsthatwouldbemostlikelytobeatthecenterofthesepoliciesinmanylowincomecountriesInrelationtoagriculture for instance useful elements may be drawn from the UN Committee for World Food SecurityrsquosVoluntaryGuidelinesontheResponsibleGovernanceofTenureofLandFisheriesandForestsortheFAOCodeofConductforResponsibleFisheriesamongother

SCOPESOMECOREELEMENTS STEPSTOOLS

Identification of relevant sectors ndash from the diagnostic prioritizesectorssubͲsectorswheremostpotentialexistsfordeliveringIGGandidentifypolicyoptionsforfurtherassessment

Assessment of policytechnological options ndash this includes anextensive reviewof testedpolicytechnologies around theglobe foreachprioritysector inparticularthosewhichhavebeensuccessfullyintroducedincountrieswithsimilarsocioͲeconomicprofiles

Assessment of Institutional Capacity Needs Ͳ Assessments ofinstitutional financial and capacity constraints for implementingpolicies and measures that facilitate transition to Inclusive GreenGrowth It is important to ensure that policies are matched toinstitutionalcapabilitiestoensurethatresultsareachieved

SectorconsultationsandalignmentwithcountryrsquoslongͲtermdevelopmentplanFAOClimateSmartAgricultureCFS Voluntary guidelines on the responsiblegovernanceoftenureoflandfisheriesandforestsPrinciples for Responsible Agricultural Investmentthat Respects Rights Livelihoods and Resources(PRAI)ofFAOIFADUNCTADandWorldBankClimate Technology Wiki UNEP and UNDPrsquosTechnologyNeedsAssessment(TNAs)UNEPGreenEconomyScopingStudiesOECD Policy Guidance on Integrating ClimateChangeAdaptationintoDevelopmentCooperationNationallyAppropriateMitigationActions(NAMAs)SectorMasterPlanStudies

MultiͲcriteriaanalysisare likely tobeneededgiven the limitationof costͲbenefitanalysis in theabsenceofmarketprices (forenvironmentalgoods)and in thepresenceof substantialuncertainty (aboutclimate riskstechnology)Politicaleconomyanalysisaswellasdistributionalassessmentareimportant

Butascountriesseektoprioritizeacrossthemanyurgentand importantstepsthattheycantaketo taketogreentheirgrowthandpromotegreaterinclusiontwoparticulardimensionscanbehighlighted

Step4bull PRIORITYSETTINGANDFEASIBILITYANALYSIS

14

x Synergies theextent towhichgreenpoliciesprovide immediateand localbenefitsandhelpachievemore rapidormore inclusivegrowth Greenpolicies thathave immediateand localbenefitswillalsobenefitfromgreaterpoliticalandsocialacceptabilityndashacriticaldimension ifstrategiesaretoactuallybeimplemented

x Urgencytheextenttowhichapolicycanbepostponedwithoutrunningtheriskofirreversibledamagesorlockingintounsustainablepatternsofgrowth

SCOPESOMECOREELEMENTS STEPSTOOLS

MultiͲcriteria analysis is likely to be needed Political economy analysis as well asdistributionalassessmentareimportantasarethefollowing

x Baselinestudiesfortargetsectorsx Assessmentof firstorder (direct impacts)and2ndorder (coͲbenefits sideͲ

effects)ofshortlistedpolicyinstrumentsonfiscalsystemx Costof implementation includingmitigationofadverse impactsmonitoring

andenforcementx Assessmentofinstitutionalbarriershinderingpolicyimplementationx Understanding of impacts across different interested groups and powerful

factions

Final policy choice should be informed by the combination of urgency synergyefficacy and greatest feasibility given existing power and institutional dynamicsTradeͲoffs should be resolvedwith reference to priority criteria and validatedwithstakeholdersbeforeimplementation

MarginalAbatementCostCurves

MultiͲcriteriaanalysisforcomparisonofpolicyoptions

DecisionͲmakingunderuncertainty

StrategicEnvironmentalAssessments

StakeholderAnalysisampotherPoliticalEconomytools(factionalanalysispoweranalysis)

Implementationofpolicypackageshouldbeanchoredinacleartimeline(sequencingmatters)andunderpinned by realistic resource estimates (financial human and technical) Policies shouldthereforebe integrated into sectorplans andnationalbudget processes Implementation shouldprioritizeldquoquickwinsrdquoorthosepoliciesthatyieldanimmediatepositivereturn(egdirectrevenuescostsavingsjobs)andorhavelowestimplementationcosts

Step5bull IMPLEMENTATION

15

SCOPESOMECOREELEMENTS STEPSTOOLS

Keyelementsincludeacleartimeline(sequencingmatters)and realistic resource estimates (financial human andtechnical)

NationalBudgetprocesses

InvestmentPlanampResourceMobilisationStrategy

Poverty and Social Impact Assessments (PSIA)EnvironmentalImpactAssessments(EIA)

PaymentforEcosystemServices

EnvironmentalFiscalReform

SustainablePublicProcurement

SocialSafetyinstruments

World BankUNDP Climate Options Platform UNDPGuidebook on Blending Climate Finance ThroughNationalClimateFunds

WFPInnovativeriskfinancetransferandinsurance(egWFPLivelihoodsEarlyAssessmentandProtection

MonitoringandevaluationofpoliciesandinterventionsareneededtocreateafeedbackloopintothedesignofpoliciesToolsincludebothstandardmonitoringandevaluationaswellasimpactevaluationgiventheneedforformallearningaboutgreengrowthwhatinterventionsworkbestMoreovertheinclusivenatureoftheIGGagendaisbestservedbyinclusiveMampEprocessesincludingparticipatoryapproachesthatbestcaptureboththesocialandtheenvironmentalimpactofpolicyimplementation

3 ToolsforInclusiveGreenGrowth

Apracticaland flexiblepolicy toolkithasan important role toplay inhelpingdevelopingcountries toidentify and address bottlenecks and constraints to realizing inclusive green growth Such a toolkitrequires details of generic and specific policies ndash environmental economic and social It envisagessignificantlongͲterminvestmentandinnovationbothtechnologicalandinstitutionaltoavoidlockingͲin

Step6bull MampE

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 12: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

12

SCOPESOMECOREELEMENTS STEPSTOOLs

TakestockofexistingpolicyinstrumentsrelevanttoIGG

x Rules and regulations already in place with regard to natural resourcesenergypollutionemployment

x EnactedeconomicandfinancialinstrumentswithabearingonIGGx In termsofeconomic instrumentsunderstandingwhich revenuesarebeing

collected and bywhom how they are being used and ameasure of theirsuccessonachievingthepolicyobjectives

x In terms of financial instruments understanding subsidy schemes theireffectivenessandmanagementgovernanceinpractice

x In termsofsocialprotectionexistingsocialprotection floorsandsafetynetsystems

x ThenationalbudgetingprocessandentrypointsforIGG

Takestockoflikelyconstraintstoimplementinginclusivegreengrowth

x Politicaleconomyfragilityorbehaviouralchangeissuesx Financialconstraintsx Institutionalorcapacityconstraints

Throughout examine opportunities for synergies (are there IGG policies that bringimmediate and local benefits) and extent of urgency (what are the policies andinvestmentsthatneedtobetakennowtoavoid locking intoanunsustainablefutureandcreatingirreversibilities)

Strategic EnvironmentalAssessment social expenditurereviews (green) publicexpenditurereviews

WFPComprehensiveFoodSecurityandVulnerabilityAnalysis(CFSVA)GuidelinesFoodSecurityandVulnerabilityAnalysisHungerandClimateVulnerabilityIndex

International Rescue Committee(IRC)DisasterRiskDatabases

UNDP Climate Change CountryProfiles

IPCC Assessment Special andMethodologyReports

WorldBankClimatePortal

AfDB Country Policy andinstitutional Assessment AfDBCountryGovernanceProfiles

OECDGreenGrowthDiagnosticframeworkUNEP Green Economy ScopingStudies

AtthisstagecountrieswillsetspecificgoalsandexpectedoutcomesfortheshortandmediumͲtermthatarelinked to their long term vision In particular criteria are defined for prioritizing the various options andmeasures across identified in accordance with countriesrsquo specific development context Aassessments ofinstitutionalfinancialandcapacityconstraintsshouldalsobecarriedouttoensurethatpoliciesarematchedtoinstitutionalcapabilities

Inadditionascountriessettheirgoalstheymay look intovoluntaryguidelinesandstandardsanchored intobestpracticesapproaches Thesemay includeguidelines thatarenotspecificallydesigned topromotegreengrowthpoliciesbutthathaveaddresscore issuesofsustainabilityand inclusiveness inpoliciesand investmentsaffecting

Step3bull GOAL SETTING

13

sectorsthatwouldbemostlikelytobeatthecenterofthesepoliciesinmanylowincomecountriesInrelationtoagriculture for instance useful elements may be drawn from the UN Committee for World Food SecurityrsquosVoluntaryGuidelinesontheResponsibleGovernanceofTenureofLandFisheriesandForestsortheFAOCodeofConductforResponsibleFisheriesamongother

SCOPESOMECOREELEMENTS STEPSTOOLS

Identification of relevant sectors ndash from the diagnostic prioritizesectorssubͲsectorswheremostpotentialexistsfordeliveringIGGandidentifypolicyoptionsforfurtherassessment

Assessment of policytechnological options ndash this includes anextensive reviewof testedpolicytechnologies around theglobe foreachprioritysector inparticularthosewhichhavebeensuccessfullyintroducedincountrieswithsimilarsocioͲeconomicprofiles

Assessment of Institutional Capacity Needs Ͳ Assessments ofinstitutional financial and capacity constraints for implementingpolicies and measures that facilitate transition to Inclusive GreenGrowth It is important to ensure that policies are matched toinstitutionalcapabilitiestoensurethatresultsareachieved

SectorconsultationsandalignmentwithcountryrsquoslongͲtermdevelopmentplanFAOClimateSmartAgricultureCFS Voluntary guidelines on the responsiblegovernanceoftenureoflandfisheriesandforestsPrinciples for Responsible Agricultural Investmentthat Respects Rights Livelihoods and Resources(PRAI)ofFAOIFADUNCTADandWorldBankClimate Technology Wiki UNEP and UNDPrsquosTechnologyNeedsAssessment(TNAs)UNEPGreenEconomyScopingStudiesOECD Policy Guidance on Integrating ClimateChangeAdaptationintoDevelopmentCooperationNationallyAppropriateMitigationActions(NAMAs)SectorMasterPlanStudies

MultiͲcriteriaanalysisare likely tobeneededgiven the limitationof costͲbenefitanalysis in theabsenceofmarketprices (forenvironmentalgoods)and in thepresenceof substantialuncertainty (aboutclimate riskstechnology)Politicaleconomyanalysisaswellasdistributionalassessmentareimportant

Butascountriesseektoprioritizeacrossthemanyurgentand importantstepsthattheycantaketo taketogreentheirgrowthandpromotegreaterinclusiontwoparticulardimensionscanbehighlighted

Step4bull PRIORITYSETTINGANDFEASIBILITYANALYSIS

14

x Synergies theextent towhichgreenpoliciesprovide immediateand localbenefitsandhelpachievemore rapidormore inclusivegrowth Greenpolicies thathave immediateand localbenefitswillalsobenefitfromgreaterpoliticalandsocialacceptabilityndashacriticaldimension ifstrategiesaretoactuallybeimplemented

x Urgencytheextenttowhichapolicycanbepostponedwithoutrunningtheriskofirreversibledamagesorlockingintounsustainablepatternsofgrowth

SCOPESOMECOREELEMENTS STEPSTOOLS

MultiͲcriteria analysis is likely to be needed Political economy analysis as well asdistributionalassessmentareimportantasarethefollowing

x Baselinestudiesfortargetsectorsx Assessmentof firstorder (direct impacts)and2ndorder (coͲbenefits sideͲ

effects)ofshortlistedpolicyinstrumentsonfiscalsystemx Costof implementation includingmitigationofadverse impactsmonitoring

andenforcementx Assessmentofinstitutionalbarriershinderingpolicyimplementationx Understanding of impacts across different interested groups and powerful

factions

Final policy choice should be informed by the combination of urgency synergyefficacy and greatest feasibility given existing power and institutional dynamicsTradeͲoffs should be resolvedwith reference to priority criteria and validatedwithstakeholdersbeforeimplementation

MarginalAbatementCostCurves

MultiͲcriteriaanalysisforcomparisonofpolicyoptions

DecisionͲmakingunderuncertainty

StrategicEnvironmentalAssessments

StakeholderAnalysisampotherPoliticalEconomytools(factionalanalysispoweranalysis)

Implementationofpolicypackageshouldbeanchoredinacleartimeline(sequencingmatters)andunderpinned by realistic resource estimates (financial human and technical) Policies shouldthereforebe integrated into sectorplans andnationalbudget processes Implementation shouldprioritizeldquoquickwinsrdquoorthosepoliciesthatyieldanimmediatepositivereturn(egdirectrevenuescostsavingsjobs)andorhavelowestimplementationcosts

Step5bull IMPLEMENTATION

15

SCOPESOMECOREELEMENTS STEPSTOOLS

Keyelementsincludeacleartimeline(sequencingmatters)and realistic resource estimates (financial human andtechnical)

NationalBudgetprocesses

InvestmentPlanampResourceMobilisationStrategy

Poverty and Social Impact Assessments (PSIA)EnvironmentalImpactAssessments(EIA)

PaymentforEcosystemServices

EnvironmentalFiscalReform

SustainablePublicProcurement

SocialSafetyinstruments

World BankUNDP Climate Options Platform UNDPGuidebook on Blending Climate Finance ThroughNationalClimateFunds

WFPInnovativeriskfinancetransferandinsurance(egWFPLivelihoodsEarlyAssessmentandProtection

MonitoringandevaluationofpoliciesandinterventionsareneededtocreateafeedbackloopintothedesignofpoliciesToolsincludebothstandardmonitoringandevaluationaswellasimpactevaluationgiventheneedforformallearningaboutgreengrowthwhatinterventionsworkbestMoreovertheinclusivenatureoftheIGGagendaisbestservedbyinclusiveMampEprocessesincludingparticipatoryapproachesthatbestcaptureboththesocialandtheenvironmentalimpactofpolicyimplementation

3 ToolsforInclusiveGreenGrowth

Apracticaland flexiblepolicy toolkithasan important role toplay inhelpingdevelopingcountries toidentify and address bottlenecks and constraints to realizing inclusive green growth Such a toolkitrequires details of generic and specific policies ndash environmental economic and social It envisagessignificantlongͲterminvestmentandinnovationbothtechnologicalandinstitutionaltoavoidlockingͲin

Step6bull MampE

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 13: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

13

sectorsthatwouldbemostlikelytobeatthecenterofthesepoliciesinmanylowincomecountriesInrelationtoagriculture for instance useful elements may be drawn from the UN Committee for World Food SecurityrsquosVoluntaryGuidelinesontheResponsibleGovernanceofTenureofLandFisheriesandForestsortheFAOCodeofConductforResponsibleFisheriesamongother

SCOPESOMECOREELEMENTS STEPSTOOLS

Identification of relevant sectors ndash from the diagnostic prioritizesectorssubͲsectorswheremostpotentialexistsfordeliveringIGGandidentifypolicyoptionsforfurtherassessment

Assessment of policytechnological options ndash this includes anextensive reviewof testedpolicytechnologies around theglobe foreachprioritysector inparticularthosewhichhavebeensuccessfullyintroducedincountrieswithsimilarsocioͲeconomicprofiles

Assessment of Institutional Capacity Needs Ͳ Assessments ofinstitutional financial and capacity constraints for implementingpolicies and measures that facilitate transition to Inclusive GreenGrowth It is important to ensure that policies are matched toinstitutionalcapabilitiestoensurethatresultsareachieved

SectorconsultationsandalignmentwithcountryrsquoslongͲtermdevelopmentplanFAOClimateSmartAgricultureCFS Voluntary guidelines on the responsiblegovernanceoftenureoflandfisheriesandforestsPrinciples for Responsible Agricultural Investmentthat Respects Rights Livelihoods and Resources(PRAI)ofFAOIFADUNCTADandWorldBankClimate Technology Wiki UNEP and UNDPrsquosTechnologyNeedsAssessment(TNAs)UNEPGreenEconomyScopingStudiesOECD Policy Guidance on Integrating ClimateChangeAdaptationintoDevelopmentCooperationNationallyAppropriateMitigationActions(NAMAs)SectorMasterPlanStudies

MultiͲcriteriaanalysisare likely tobeneededgiven the limitationof costͲbenefitanalysis in theabsenceofmarketprices (forenvironmentalgoods)and in thepresenceof substantialuncertainty (aboutclimate riskstechnology)Politicaleconomyanalysisaswellasdistributionalassessmentareimportant

Butascountriesseektoprioritizeacrossthemanyurgentand importantstepsthattheycantaketo taketogreentheirgrowthandpromotegreaterinclusiontwoparticulardimensionscanbehighlighted

Step4bull PRIORITYSETTINGANDFEASIBILITYANALYSIS

14

x Synergies theextent towhichgreenpoliciesprovide immediateand localbenefitsandhelpachievemore rapidormore inclusivegrowth Greenpolicies thathave immediateand localbenefitswillalsobenefitfromgreaterpoliticalandsocialacceptabilityndashacriticaldimension ifstrategiesaretoactuallybeimplemented

x Urgencytheextenttowhichapolicycanbepostponedwithoutrunningtheriskofirreversibledamagesorlockingintounsustainablepatternsofgrowth

SCOPESOMECOREELEMENTS STEPSTOOLS

MultiͲcriteria analysis is likely to be needed Political economy analysis as well asdistributionalassessmentareimportantasarethefollowing

x Baselinestudiesfortargetsectorsx Assessmentof firstorder (direct impacts)and2ndorder (coͲbenefits sideͲ

effects)ofshortlistedpolicyinstrumentsonfiscalsystemx Costof implementation includingmitigationofadverse impactsmonitoring

andenforcementx Assessmentofinstitutionalbarriershinderingpolicyimplementationx Understanding of impacts across different interested groups and powerful

factions

Final policy choice should be informed by the combination of urgency synergyefficacy and greatest feasibility given existing power and institutional dynamicsTradeͲoffs should be resolvedwith reference to priority criteria and validatedwithstakeholdersbeforeimplementation

MarginalAbatementCostCurves

MultiͲcriteriaanalysisforcomparisonofpolicyoptions

DecisionͲmakingunderuncertainty

StrategicEnvironmentalAssessments

StakeholderAnalysisampotherPoliticalEconomytools(factionalanalysispoweranalysis)

Implementationofpolicypackageshouldbeanchoredinacleartimeline(sequencingmatters)andunderpinned by realistic resource estimates (financial human and technical) Policies shouldthereforebe integrated into sectorplans andnationalbudget processes Implementation shouldprioritizeldquoquickwinsrdquoorthosepoliciesthatyieldanimmediatepositivereturn(egdirectrevenuescostsavingsjobs)andorhavelowestimplementationcosts

Step5bull IMPLEMENTATION

15

SCOPESOMECOREELEMENTS STEPSTOOLS

Keyelementsincludeacleartimeline(sequencingmatters)and realistic resource estimates (financial human andtechnical)

NationalBudgetprocesses

InvestmentPlanampResourceMobilisationStrategy

Poverty and Social Impact Assessments (PSIA)EnvironmentalImpactAssessments(EIA)

PaymentforEcosystemServices

EnvironmentalFiscalReform

SustainablePublicProcurement

SocialSafetyinstruments

World BankUNDP Climate Options Platform UNDPGuidebook on Blending Climate Finance ThroughNationalClimateFunds

WFPInnovativeriskfinancetransferandinsurance(egWFPLivelihoodsEarlyAssessmentandProtection

MonitoringandevaluationofpoliciesandinterventionsareneededtocreateafeedbackloopintothedesignofpoliciesToolsincludebothstandardmonitoringandevaluationaswellasimpactevaluationgiventheneedforformallearningaboutgreengrowthwhatinterventionsworkbestMoreovertheinclusivenatureoftheIGGagendaisbestservedbyinclusiveMampEprocessesincludingparticipatoryapproachesthatbestcaptureboththesocialandtheenvironmentalimpactofpolicyimplementation

3 ToolsforInclusiveGreenGrowth

Apracticaland flexiblepolicy toolkithasan important role toplay inhelpingdevelopingcountries toidentify and address bottlenecks and constraints to realizing inclusive green growth Such a toolkitrequires details of generic and specific policies ndash environmental economic and social It envisagessignificantlongͲterminvestmentandinnovationbothtechnologicalandinstitutionaltoavoidlockingͲin

Step6bull MampE

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 14: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

14

x Synergies theextent towhichgreenpoliciesprovide immediateand localbenefitsandhelpachievemore rapidormore inclusivegrowth Greenpolicies thathave immediateand localbenefitswillalsobenefitfromgreaterpoliticalandsocialacceptabilityndashacriticaldimension ifstrategiesaretoactuallybeimplemented

x Urgencytheextenttowhichapolicycanbepostponedwithoutrunningtheriskofirreversibledamagesorlockingintounsustainablepatternsofgrowth

SCOPESOMECOREELEMENTS STEPSTOOLS

MultiͲcriteria analysis is likely to be needed Political economy analysis as well asdistributionalassessmentareimportantasarethefollowing

x Baselinestudiesfortargetsectorsx Assessmentof firstorder (direct impacts)and2ndorder (coͲbenefits sideͲ

effects)ofshortlistedpolicyinstrumentsonfiscalsystemx Costof implementation includingmitigationofadverse impactsmonitoring

andenforcementx Assessmentofinstitutionalbarriershinderingpolicyimplementationx Understanding of impacts across different interested groups and powerful

factions

Final policy choice should be informed by the combination of urgency synergyefficacy and greatest feasibility given existing power and institutional dynamicsTradeͲoffs should be resolvedwith reference to priority criteria and validatedwithstakeholdersbeforeimplementation

MarginalAbatementCostCurves

MultiͲcriteriaanalysisforcomparisonofpolicyoptions

DecisionͲmakingunderuncertainty

StrategicEnvironmentalAssessments

StakeholderAnalysisampotherPoliticalEconomytools(factionalanalysispoweranalysis)

Implementationofpolicypackageshouldbeanchoredinacleartimeline(sequencingmatters)andunderpinned by realistic resource estimates (financial human and technical) Policies shouldthereforebe integrated into sectorplans andnationalbudget processes Implementation shouldprioritizeldquoquickwinsrdquoorthosepoliciesthatyieldanimmediatepositivereturn(egdirectrevenuescostsavingsjobs)andorhavelowestimplementationcosts

Step5bull IMPLEMENTATION

15

SCOPESOMECOREELEMENTS STEPSTOOLS

Keyelementsincludeacleartimeline(sequencingmatters)and realistic resource estimates (financial human andtechnical)

NationalBudgetprocesses

InvestmentPlanampResourceMobilisationStrategy

Poverty and Social Impact Assessments (PSIA)EnvironmentalImpactAssessments(EIA)

PaymentforEcosystemServices

EnvironmentalFiscalReform

SustainablePublicProcurement

SocialSafetyinstruments

World BankUNDP Climate Options Platform UNDPGuidebook on Blending Climate Finance ThroughNationalClimateFunds

WFPInnovativeriskfinancetransferandinsurance(egWFPLivelihoodsEarlyAssessmentandProtection

MonitoringandevaluationofpoliciesandinterventionsareneededtocreateafeedbackloopintothedesignofpoliciesToolsincludebothstandardmonitoringandevaluationaswellasimpactevaluationgiventheneedforformallearningaboutgreengrowthwhatinterventionsworkbestMoreovertheinclusivenatureoftheIGGagendaisbestservedbyinclusiveMampEprocessesincludingparticipatoryapproachesthatbestcaptureboththesocialandtheenvironmentalimpactofpolicyimplementation

3 ToolsforInclusiveGreenGrowth

Apracticaland flexiblepolicy toolkithasan important role toplay inhelpingdevelopingcountries toidentify and address bottlenecks and constraints to realizing inclusive green growth Such a toolkitrequires details of generic and specific policies ndash environmental economic and social It envisagessignificantlongͲterminvestmentandinnovationbothtechnologicalandinstitutionaltoavoidlockingͲin

Step6bull MampE

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 15: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

15

SCOPESOMECOREELEMENTS STEPSTOOLS

Keyelementsincludeacleartimeline(sequencingmatters)and realistic resource estimates (financial human andtechnical)

NationalBudgetprocesses

InvestmentPlanampResourceMobilisationStrategy

Poverty and Social Impact Assessments (PSIA)EnvironmentalImpactAssessments(EIA)

PaymentforEcosystemServices

EnvironmentalFiscalReform

SustainablePublicProcurement

SocialSafetyinstruments

World BankUNDP Climate Options Platform UNDPGuidebook on Blending Climate Finance ThroughNationalClimateFunds

WFPInnovativeriskfinancetransferandinsurance(egWFPLivelihoodsEarlyAssessmentandProtection

MonitoringandevaluationofpoliciesandinterventionsareneededtocreateafeedbackloopintothedesignofpoliciesToolsincludebothstandardmonitoringandevaluationaswellasimpactevaluationgiventheneedforformallearningaboutgreengrowthwhatinterventionsworkbestMoreovertheinclusivenatureoftheIGGagendaisbestservedbyinclusiveMampEprocessesincludingparticipatoryapproachesthatbestcaptureboththesocialandtheenvironmentalimpactofpolicyimplementation

3 ToolsforInclusiveGreenGrowth

Apracticaland flexiblepolicy toolkithasan important role toplay inhelpingdevelopingcountries toidentify and address bottlenecks and constraints to realizing inclusive green growth Such a toolkitrequires details of generic and specific policies ndash environmental economic and social It envisagessignificantlongͲterminvestmentandinnovationbothtechnologicalandinstitutionaltoavoidlockingͲin

Step6bull MampE

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 16: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

16

inefficient and costly technology and infrastructure For such investments and policies to workappropriatepolicy frameworks and governance arrangementsmustbe inplace and to facilitate thiscapacitybuildingandknowledgesharingisrequired

The IOsdrafting this reporthave identifiedordevelopedanumberof tools to foster inclusivegreengrowthwhicharedetailedintheindividualannexestothisreportTable2belowprovidesatypologyofsuch tools and the function they serve A brief description of each tool follows which is furtherdevelopedintheAnnex

Thesetof tools listedherebynomeansprovideadefinitive list Tobeuseful the toolkitshouldbeviewed as a living document that requires regular updating In particular tools related to energyplanningwatermanagementandclimatechange resiliencearebeingconsidered for inclusion in thenextversionofthetoolkit

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 17: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

17

Table1Typologyoftoolsandmainfunctions

INCENTIVIZE DESIGN FINANCE MONITOR

Toolsforpricingpollutionand

naturalresourceuse

Toolstocomplement

pricingpolicies

Toolstofoster

inclusiveness

Toolstomanage

uncertainty

Financingand

investmenttools

Monitoringtools

EnvironmentalFiscalReformandCharges

9 9

PublicEnvironmentalExpenditureReview

9 9 9

SustainablePublicProcurement

9 9 9

StrategicEnvironmentalAssessment

9 9

SocialProtectionInstruments 9 9 9

PaymentforEnvironmentalServices

9 9 9

CertificationforSustainableProduction 9 9 9

Toolstoframeenvironmentalpoliciescommunicationand

nudging

9 9

GreenInnovationandindustrialpolicies

9 9

DecisionMakingunderuncertainty 9

ProjectlevelImpactassessment

9 9

AnalysisofLaborMarketsandIncome

Effects 9 9

Sustainablelandmanagementndash

FrameworkampGuidelinesonLandPolicy

9 9 9

IntegratedWaterResourcesManagement

9 9 9

Greenaccounting 9

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 18: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

18

EnvironmentalFiscalReformandCharges

EFR refers to a range of taxation and pricingmeasureswhich can potentially raise fiscal revenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallinto the followingbroad groups (1)natural resourcepricingmeasures such as taxes for forests andfisheriesexploitation (2) reformsofproductsubsidiesand taxes (3)cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplementedandcomplementationbyflankingmeasurestoprotectthepoor(4)pollutionchargeswhichareparticularlyrelevant for countries where industrial pollution is a serious problem and at the same time theadministrativecapacitytoimplementsuchchargesisrelativelyhigh

PublicEnvironmentalExpenditureReview

PEERsexaminegovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnational levelsofgovernmentandassess theefficiencyandeffectivenessof thoseallocations in thecontext of environmental priorities PEERs frequently result in highlighting the mismatch betweenenvironmentalpolicyandplansandlowlevelsofspendinginthoseareasofgovernmentthatarelinkedto environmental sustainability and natural capital Inmany cases they have helped to redistributespendingtowards institutionsresponsibleforenvironmentalprioritiestowards longerͲtermgoalsandhave helped to considerably increase environmental budgets PEERs are also useful for identifyingquantifying andmaximizing the public revenue potential of underpriced natural resources such asforestryfisheriesandminerals

SustainablePublicProcurement

SPP is most commonly defined as ldquoa process whereby organizations meet their needs for goodsservicesworksandutilities inaway thatachievesvalue formoneyonawhole lifebasis in termsofgeneratingbenefitsnotonlytotheorganizationbutalsotosocietyandtheeconomywhilstminimizingdamagetotheenvironmentrdquo(DefinitionoftheUKTaskForceonSPPadoptedbytheMarrakechtaskForceonSPP)

StrategicEnvironmentalAssessment

SEAs refer toa rangeofanalyticalandparticipatoryapproaches thataim to integrateenvironmentalconsiderations intopoliciesandevaluate the inter linkageswitheconomicsocialandclimatechangeconsiderationsTheyareavarietyoftoolsratherthanasinglefixedandprescriptiveapproachAppliedat theearlieststagesofdecisionmakingboth tohelp formulatepoliciesand toassess theirpotentialdevelopment effectiveness and sustainability they focus on identifying tradeͲoffs betweenenvironmentsocialandeconomicobjectivesThis isvaluable inassessingwhetherapparentlyldquogreenrdquopoliciesormajorprogramssuchassubsidyreformarelikelytohaveunintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowth

Socialprotectioninstruments

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressively

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 19: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

19

realizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises

PaymentforEnvironmentalServices

PESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastone lsquosellerrsquoandone lsquobuyerrsquoover a well defined environmental service ndash or a land use presumed to produce that servicerdquo Byprovidingcompensationtothestewardsofanenvironmentalservice itcanstrengthentheecosystemserviceprovisionsatdifferentscalesinternationalnationalregionalandlocal

CertificationforSustainableProduction

Certification identifies goods and services that have potential to reduce adverse environmental andsocial impactsDifferentiating between green products can increase themarket value and share forfarmers and producers It also contributes to economic growth while improving environmentalpractices and helps ensure longͲterm resource sustainability Acting as information systems forconsumers certification schemes include (1) multiͲstakeholder agreement on what constitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabel

ToolstoframeenvironmentalpoliciesCommunicationandNudging

CommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingand sustaining environmentally sustainable behaviors among individuals including the following (i)SocialmarketingapproacheswhichdrawoncommercialmarketingtechniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s (ii) CommunityͲbased approaches (a subset of socialmarketing) focused on changing socialnorms (iii) Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo to encourage people tomaking the best decisions (for health environment or otherconsiderations)

GreenInnovationandindustrialpolicies

Green innovation policies arepolicies seeking to trigger green innovationby encouraging innovationacross the board (horizontal policies) or supporting a specific technology (vertical policies) Greenindustrialpolicies arepolicies aiming to green theproductive structureof the economyby targetingspecific industriesor firmsThey include industryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaksfeedͲintariffsand importprotectionTheydonot includepoliciestargetingdemand(suchasconsumermandates)whichcanbemetbyimportswithoutchanginglocalproduction

DecisionͲmakingunderuncertainty

Thereare4mainmethodologiestotackleuncertaintyingreengrowthstrategiesCostͲBenefitAnalysis(CBA) under uncertainty CBA with a Real Options approach Robust DecisionMaking and ClimateInformed Decision Analysis All have different strengths and the development of a decision tool tochooseamongstthemisnotasimplematter

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 20: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

20

ProjectLevelImpactAssessment

UpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralspinͲoffapproachestoprojectͲlevel impactassessmentsuchasSocialImpactAssessment(SIA)whichmayalsoprovideentrypointsandtoolsforintegratinginclusivegreengrowthapproachesintoprojectͲleveldesignanddecisionmaking

AnalysisofLaborMarketandIncomeEffects

ThisanalysistoolbytheILOcanidentifythechangesopportunitiesandchallengesinthelabormarketwith a high degree of resolution in particular for youngwomen andmen The tool allows for theidentificationof thepotential jobcreationand job lossonasectorͲbyͲsectorbasisaswellasshifts inincome by type of household Beyond the assessment of impacts the tool provides labormarketinformation highlighting opportunities to create decent work for youth for example and providespointersforpolicyformulationsuchasneedsforformalizationofemployment incertainsectorsorforsupport to green microͲ and small enterprises notably for young entrepreneurs or infrastructureinvestment Similarly the data generated with the tool provide the basis for assessments of theexpectedtransformation inskillsrequirementsandthe implicationsforeducationvocationalguidanceandtrainingpolicies

SustainablelandmanagementndashFrameworkampGuidelinesonLandPolicyinAfrica

In2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentersofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009

IntegratedWaterResourceManagement(IWRM)

IntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecologicalsocialandeconomicsystems Through IWRMwater istreatedasaneconomicsocialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 21: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

21

Greenaccounting

Greenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

4 KnowledgeSharingandcapacitydevelopment

No country has yet developed by following a strict ldquoinclusive green growth pathrdquo HowevermanydifferentinitiativesexistthatprovideinsightsintoparticularaspectsofinclusivegreengrowthpoliciesGiventhisandthefactthatthisknowledgeisspreadacrossdifferentcountriesandactorsitiscriticaltodevelop knowledge sharing instruments Auseful role canbeplayed in this contextby knowledgeplatformssuchastheGreenGrowthKnowledgePlatform(Box3)

Box3GreenGrowthKnowledgePlatform(wwwggkporg)

TheGGKPwasestablishedasa joint initiativeoftheGGGIOECDUNEPandWorldBankTheGGKP isaimedatexpandingeffortstoaddressmajorknowledgegapsingreengrowththeoryandpracticeandathelpingcountriestoidentifydesignandimplementpoliciestomovetowardsinclusivegreengrowth

TothisendtheGGKPaimstodevelopaglobalnetworkofresearcherspractitionersanddevelopmentexpertsandpolicymakers to promote widespread sharing of information on policies adopted by different countries andfacilitatefundingofworldͲclassresearchwithaviewto improvingthepolicytoolsnecessarytofostereconomicgrowthandimplementsustainabledevelopment

TheGGKPwasofficially launchedatan inauguralconference(held inMexicoCity inJanuary2012where leadingscholarsandexperiencedpractitionersfromacrosstheglobemettotakestockofthecurrentunderstandingoftheeconomics of green growth identify knowledge gaps and establish priorities for knowledgeͲbuildingwork andimplementationThe following threeResearchProgramsarebeingdeveloped in the lightof thekeyknowledgegapsidentifiedfromtheseinitialconsultations

x Researchprogramontechnologyandinnovation

x Researchprogramontradeandcompetitiveness

x Researchprogramonwelfaremeasurementandperformanceindicators

Thesework streamswill leverage the vast array of green growthwork being done by the Platformrsquos partnersincluding GGKPrsquos first Affiliated Program the European Climate Foundationrsquos initiative on ldquoGreenGrowth BestPracticesinitiativerdquoTheseresearchprogramsandtheassociatedknowledgeͲsharingactivitiestobefacilitatedbytheGGKPwill operatewith an understanding that the green growth and green economy policymixwill varyaccording to countryͲspecific circumstances therebynecessitating amenuofpolicyoptions and toolkitsThese

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 22: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

22

newprogramswillcomplementongoinginitiatives

OverthecomingmonthstheGGKPwillberollingoutitsinteractiveonlineplatformtofacilitatethedevelopmentofadynamiccommunityofexpertsandpractitionerswhoexchangetheirexperiencesinsightsandquestionsByhelpingforgecrossͲnationalandcrossͲdisciplinarylinkagesGGKPenablesmorepracticablegreengrowthresearchandprovidesavirtualtoolforcapacitybuilding

GGKPorg will continue to develop in FY13 with expanded capabilities for peerͲtoͲpeer interactions amongmembersoftheGGKPrsquoscommunitiesofpracticeThesecapabilitieswilllikelyincludefullyimplementedversionsofthetoolspilotedinFY12(stakeholderdatabasesubmissionofmaterialstoeͲlibraryldquosubmitforreviewrdquo)aswellasopendiscussionspacesforuserstodebatemajorquestionsaboutgreengrowth

Figure2GreenGrowthKnowledgePlatformactivities

Butknowledge sharingmaynotbe sufficient Limited capacity inmanydeveloping countriesmdashadaptanddeploygreentechnologiestoundertakeenvironmentalriskassessmentandtocoordinateacrosssectors and institute environmental fiscal reformmdashis a keyobstacle in the pursuitof inclusive greengrowth Institutional capacity constraintsmay have to dowith how differentministries and policyͲmaking and administrative bodies operate individually and together and whether this is or is notconducive to the necessary interͲagency and interͲsectoral consultations joint agenda setting jointpolicyimplementationandmonitoringeffortsandsoforth

ThecrossͲcuttingnatureofinclusivegreengrowthdemandsapproachesthatshapepolicydevelopmentand investment decisions andmake all stakeholders aware of the important contribution that thesustainable use of natural resources makes to achieving growth and development objectives Thisincludesstakeholderswithindifferentministriesandunitsatcentralgovernmentlevel(eginministriesofagriculturefinanceenergyurbanplanningeducationandsoforth)aswellasatlocalgovernmentlevelinacademicandresearchinstitutionswithincivilsocietyandintheprivatesector

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 23: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

23

Developing capacity has to do in partwith developing skills and knowledge among individuals andorganizationsatvarious levels insideandoutsidegovernment insofaras theseareneededeither todesign or to implement inclusive green growth policies and programs A critical part of capacitydevelopment also has to do with putting in place an enabling environment that supports thedevelopment of these skills and capacity (eg by reforming educational and research programs andcurricula as needed) as well as the kind of interͲsectoral and interͲagency communication andcollaborationworkthatisnecessaryforgreengrowthpolicymakingtooccurInalltheseareascountrieswithexperienceindesigningandimplementinginclusivegreengrowthstrategiesshouldworkinamorecollaborativemanner at the global and regional level to establish a knowledge and lesson sharingprocessThisisseparatefrombutpotentiallycomplementarytoeffortstodevelopskillsforoperatinginagreenereconomy

Externalactors can in some casesplayan important supportive role in capacitybuilding for inclusivegreengrowthpolicymakingatthecountrylevelInthisregardafiveͲstepframeworkhasbeenproposedforexternalactorstohelpguidecapacitydevelopmenteffortsforinclusivegreengrowthatthelevelsofnationaldevelopmentplanningbudgetaryprocessesandinkeyeconomicsectors(OECD2012)3

x Assessthepoliticalandinstitutionalcontextbyconductingananalysisofthenationalcontextunderstandingincentivestructuresandgainingfamiliaritywithcountrylevelanalysisofnaturalresourceconstraintsandopportunities

x Identifykeyactorsandtheircapacitydevelopmentneedssuchasgovernmentofficialsprivatesector representatives and members of civil society groups recognizing the political andeconomicdimensionsthatinfluencestakeholders

x Identifyopportunitiestoshapeorganizationalincentivesincludingfindingentrypointssettingprioritiesandoutliningtheappropriatetimescaletargetsandresourcesneeded

x Identifyawarenessknowledgeneedsandexistinganalyticaltoolsraiseawarenessoftherolethe environment plays in achieving economic development becoming familiarwith existingknowledgeproducts and adopting andusing technical tools tomake the economic case forenvironmentalprogramsandmeasures

x Identify options for policy response ranging from revised priorities and implementationstrategiestospecificenvironmentalmanagementmeasuresandinvestments

ThesestepsarenotnecessarilysequentialanddependingonthecontextmaynotallbeneededIt isimportant tobuildsuch initiativesaroundarealistic timescale linkedtothepolicyͲmakingorplanningcycleRegular reviewsarenecessary tomonitorprogressMonitoringandevaluationalsoserveasanimportantbasisforlearningfromexperienceimprovingcapacitydevelopmentoutcomesplanningandallocatingresourcestomeetprioritiesanddemonstratingresultsKnowledgesharingattheregionaland

3OECD2012GreeningDevelopmentEnhancingCapacityforEnvironmentalManagementandGovernanceAnumberofinstitutionsareengagedincapacitydevelopmentongreengrowthSeeforexamplehttpwwwunescaporgesdenvironmentgreengrowth

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 24: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

24

global levelswouldbecritical in institutionsbuildingandfacilitatingthe implementationofIGG Moregenerallylessonslearntaboutcapacitydevelopmentshouldbeapplied4)

In conclusiongreengrowthpolicieswillvaryacross countriesdependingon local realities resourcesandchallengesButinallcasescaremustbetakenthatthesepoliciesfurthergoalsofinclusivenessandpoverty reduction so they can contribute toachieving sustainabledevelopmentThis toolkit isbynomeans a prescriptive one Rather it lays out broad steps that are needed to develop policies andstrategies tailored to local circumstances and highlights some of themain policy tools that can behelpful intheprocess Finallysuccesswillrequirethatpoliciesbebasedonsoundknowledgeandbematched to local capacities Knowledge and capacity building initiatives are therefore needed toproduce resultson the groundproviding abasis for greening economies throughpolicies thatdrivegreenandinclusivegrowth

4Seeforexamplewwwworldbankorgcapacitywwwundporgcapacityandhttpwwwoecdorgdataoecd43636326495pdf

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 25: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

25

Annex

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 26: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

26

EnvironmentalFiscalReform(EFR)andCharges

BriefDescription EFR refers toa rangeof taxationandpricingmeasureswhich canpotentially raisefiscalrevenuesincreaseefficiencyandimprovesocialequitywhilefurtheringenvironmentalgoalsEFRinstrumentsfallintothefollowingbroadgroups(1)naturalresourcepricingmeasuressuchastaxesforforests and fisheries exploitation (2) reforms of product subsidies and taxes (3) cost recoverymeasuressuchasuserchargesforenergyandwaterwhicharebroadlyapplicablebutmustbecarefullyimplemented and complementationby flankingmeasures toprotect thepoor (4) pollution chargeswhichareparticularlyrelevantforcountrieswhereindustrialpollutionisaseriousproblemandatthesametimetheadministrativecapacitytoimplementsuchchargesisrelativelyhigh

Examples of Application Some forestͲrich countries ndash such as Cambodia and Cameroon ndash haveundertaken reforms to increase the fiscal revenues from the forestry sectorCameroon introducedaforesttaxationregimetopromotesustainableforestmanagement increasing localprocessingsharingforest rentsmore equitably and improving governance and transparency in the sector As well aschanging the fiscal structure for example shifting the taxbasis from theproduct to the areaof theconcessionthenewregimeintroducedauctioningofharvestingrightsregulationslimitingtheareathatcould be harvested to 130 of the concession area and a ban on log exports Inmany countriessubsidiesonenergyconsumptionrepresentasignificantdrainonpublicfinancesHoweveranalysisbytheIEAshowsthatonly8oftheUSD409billioninfossilfuelsubsidiesin2010wenttothepoorest20of thepopulationA reviewof country studieson fossil fuel subsidies in20 countries inAfricaAsiaMiddleEastandLatinAmericaconductedbytheIMFbetween2005and2009foundthatonaveragethetopincomequintilereceivedsixtimesmoreinsubsidythanthebottomincomequintileUserchargesorfeesmeanwhile are another instrument forEFR In the absenceof such charges the costsof serviceprovisionmustbe coveredbygovernmentbudgetswhicharealreadyunder stressFrequentbudgetshortfallsleadtopoorserviceandthefrequentexclusionofthepoorasrecipientsofsuchservicessuchaspotablewaterandmodernenergy

AssessmentIfproperlydesignedEFRcouldbringaboutfollowingbenefits

x Economic growth In areas such as natural resource extraction EFR has the potential togenerate significantadditional revenuesandpromotegrowth in the longer termas it can (1)encouragegreaterefficiency inproductionor inprovisionof servicesderived from the inputswhichwere formerlysubsidisedand forceamore rapid rateof technologicalchangeor (2) itcan free up funds for governments to spend on actions that can promote growth such asinfrastructureandhumancapitaldevelopmentHoweveritislikelythattherewillbeshorttermeconomic costs incurred such as increasing production costs because of higher energy andwaterprices

x Environmental EFR can lead to bettermanagement of natural resources and environmentalincentivesforconservationbyshiftingrelativefactorpricestoincreaseresourceefficiencyandbytaxingldquobadsrdquosuchaspollutionasopposedtogoodsandserviceslikelabor

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 27: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

27

x SocialTransparentandeffectivefiscalpoliciesthatalsosafeguardtheenvironmentandnaturalsystemsarecriticalfoundationsforhumanhealthandlivelihoodsTherearestrongargumentsthat phasing out antiquated energy subsidies that could free up funds for more targetedassistancetopoorhouseholds

GoodpracticeGuidanceSomegeneralprinciplesofeffectiveEFRinclude

x Performearlyresearchandestablishstronginstitutionaloversightandstakeholderconsultation

x Customiseprocessaccordingtocapacity(designimplementationmonitoringandevaluation)

x Setclearobjectivesprioritiesandtimetableincludingcomplementarypoliciessuchastargetedcashtransferstopreventreducedincomeofthepoorandotherundesiredeffects

x Developacommunicationstrategyandmechanismstoensuretransparencyofthereform

x Setupcontrolsandenforcementagainstcorruption

x Customiseaccordingtosectoregforestryorfisheriessectors

x Identifythelevelofindustrialpollutionandthebestwaytocontrolitegpollutioncharges

x Developtheadministrativecapacitytoimplementsuchcharges

SourcesofInformation

GlobalSubsidiesInitiativeIISDhttpwwwiisdorggsi

OECD2005EnvironmentalFiscalReformforPovertyAlleviationADACReferenceDocument

TopaGAKarsentyetal2009TheRainforestsofCameroonͲExperienceandevidencefromadecadeofreformWorldBankWashingtonDC

OECD and IEA Fossil Fuel Subsidies and Other Supportshttpwwwoecdorgsite03407en_21571361_48776931_1_1_1_1_100html

Arze del Granado J CoadyD and RGillingham 2010 TheUnequal Benefits of Fuel Subsidies AReview of Evidence for Developing Countries IMF Working Paper WP10202 InternationalMonetaryFundWashingtonDC

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 28: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

28

PublicEnvironmentalExpenditureReviews(PEERs)BriefDescriptionPEERsexaminesgovernmentresourceallocationswithinandamongsectorsandoratnationalandsubͲnationallevelsofgovernmentandassessestheefficiencyandeffectivenessofthoseallocations in the context of environmental priorities PEERs frequently result in highlighting themismatch between environmental policy and plans and low levels of spending in those areas ofgovernmentthatarelinkedtoenvironmentalsustainabilityandnaturalcapitalInmanycasestheyhavehelped to redistributespending towards institutions responsible forenvironmentalpriorities towardslongerͲterm goals and have helped to considerably increase environmental budgets PEERs are alsouseful for identifyingquantifyingandmaximising thepublic revenuepotentialofunderpricednaturalresourcessuchasforestryfisheriesandmineralsExamplesofApplicationPEERshavebeenundertakeninmanycontextsfordifferentpurposesandwithavarietyofoutcomesAmongtheseareview inMadagascarbothhighlighteda financinggap fortheprotected area system ndash it depended on aid for half of its funding ndash and demonstrated how theprotected area system couldbecome anet sourceof government revenue throughecotourism feesAnother PEER inMozambique ndash showed that environmental expenditurewasonly 09ofGDP andhighlighted not only the lack of prioritisation in environmental policy but also the very weak linksbetween environmental policy and actual expenditures A Tanzanian PEER demonstrated theconsiderable potential for environmental resources to contribute to revenue due to current underͲpricingandverylowrevenuecollectioninforestryfisheriesandwildlifendashonly5Ͳ10ofpotentialforestrevenuewasbeingcollectedItalsoshowedthatverylittleoftherevenuecollectedwasrevertingtothelocallevelAsaresultofthePEERtheenvironmentbudgethasnowgrownconsiderablyandthroughtheStrategic Budget Allocation System is linked to the national development and poverty reductionstrategyAssessmentParticularlyEFRcanbebeneficialinproducingthefollowingimplications

x Economic PEERs plays a critical role in enhancing efficient allocation of resources forenvironment and natural resource management In general terms this can increase valueretentionwithinthedomesticeconomyandfinance investments inreplacingmaintainingandbuilding natural capital as a sustainable resource PEERs through promoting efficiency anddisasterproofingininfrastructureandsustainableintensificationandclimatechangeproofinginagriculturecanhelpensurethatpublic investmentstrengthenstheresilienceoftheeconomypromotinggrowthbyreducingriskandlimitingtheimpactofshocksndashavoidingrecurrentcoststhatcanexceed2Ͳ5ofGDPonanannualbasis

x EnvironmentalPEERsresultinhigherandmoresustainablepublicinvestmentsinnaturalcapitalthroughidentifyingcriticalfundinggapsandthepotentialtoincreaserevenuesTheyalsohelpdemonstrate the economic value of the environment to the economy and link positiveenvironmentaloutcomestogrowthandpovertyreductionandcanresultinincreasedresourcescapacityandpoliticalsupportforsustainableenvironmentalmanagement

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 29: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

29

x SocialGiven that the livelihoodsofpoorpeopleare largelydependentonnatural resourcesPEERs canbeused tobettermanagenatural resources toproduce socialbenefits Increasedrevenuefromnaturalresourceusecanbeusedtoprovidebasicservicesandtofinanceactivitieswhichcan reducepoverty ie inareas thatareof importanceboth to the livelihoodsofpoorpeopleandtotheenvironmentsuchasthedevelopmentandpromulgationofhighyield lowinput and climate resilient crop varieties PEERs can result in greater transparency andaccountability leading tomore inclusivemanagementofnatural resourcesand relatedpublicexpendituresandhelpingsecuretheaccessanduserightsofpoorhouseholdsandtheequitabledistributionofrevenues

GoodpracticeGuidancePEERwillbemostvaluablewhen

x Focusonarelativelysmallandprioritisedsetofkeyissuesandparticularlyinthosesectorsthatenhanceorcreaterevenuegeneratingcapacityofacountryrsquosresourceendowment

x CustomisethePEERtotheindividualcountrycontext

x Involveandseekfullparticipationfromallrelevantministries

x PrioritisethePEERwithinthecontextofnationaldevelopmentandpovertyreductiongoals

x FacilitatecoͲoperationacrossdifferentsectorsSourcesofInformationAongolaetal2007EnvironmentattheheartofTanzaniarsquosdevelopmentIIEDLondonCabral L and F Dulciacutedio 2008 Environmental Institutions Public Expenditure and The Role For

DevelopmentPartnersMozambiqueCaseStudyODILondonMarkandyaAHamiltonKandESanchezͲTriana2006Getting theMost for theMoneyndashHowPublic

EnvironmentalExpenditureReviewsCanHelpWorldBankEnvironmentStrategyNotesNo16WorldBankWashingtonDC

Petkova N (2009) ldquoIntegrating Public Environmental Expenditure within MultiͲyear BudgetaryFrameworksrdquoOECDEnvironmentalWorkingPaperNo7OECDParis

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 30: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

30

SustainablePublicProcurement(SPP)BriefDescriptionSPPismostcommonlydefinedasldquoaprocesswherebyorganizationsmeettheirneedsforgoodsservicesworksandutilities inawaythatachievesvalueformoneyonawhole lifebasis intermsofgeneratingbenefitsnotonly totheorganizationbutalsotosocietyandtheeconomywhilstminimizing damage to the environmentrdquo (Definition of the UK Task Force on SPP adopted by theMarrakechtaskForceonSPP)ExamplesofApplicationMostdevelopedcountrieshaveembarkedonSPPimplementationWhiletheinitialfocushasbeenonenvironmentalcriteriaagrowingnumberareusingorconsideringtheinclusionofsocialcriteriaTherearealsomanySPPinitiativesatthelocalgovernmentlevelActivitiesconnectedwithSPPcanalsobefoundinanumberofUpperMiddleIncomecountriesUNEPiscurrentlyassistingsevensuchcountries (ChileCostaRicaColumbiaUruguayTunisiaMauritiusandLebanon)indevelopingSPPpoliciesandactionplansusingamethodologydevelopedbytheMarrakechTaskForceonSPPThe International Institute forSustainableDevelopment (ISSD)hasalso supportedseveral countries in designing and implementing SPP policies among others Vietnam India SouthAfricaandGhanaIn January 2012 the Philippines announced an SPP project to promote the use of environmentallyͲfriendlyproductsandservicesOriginallylaunchedin2004implementationwasdelayedduetoalackoftechnicalknowledgeandskillsandthelackofsupplyparticularlyfromSMEswhowereunabletokeepupwiththedemandforenvironmentallypreferableproductsandservicesOtherrelevantexamplesmayincludequotassetforgovernmentͲledprocurementfromsmallholdersinthebiofuelvaluechaininBrazilorinfoodprocurementforpublicfeedingprogramsschoolshospitalsand other public institutions in the same country The Government of Rwanda has initiated theldquoCommonPurchaseforProgress(P4P)rdquoinitiativewhichaimstopurchase40ofthenationalstrategicfoodreserversquosrequirementinasmallholderfriendlywayAssessmentPublic spendingwhich representsbetween 15 and 30ofGDP in any country can contribute todriving markets towards innovation and sustainability thereby enabling inclusive green growthThrough procurement of sustainable goods and services and through investments in sustainableinfrastructure governments can lead by example and deliver on key policy objectives TheremayhoweverbetransitionalbudgetaryimplicationsparticularlyifSPPisnotdesignedandimplementedaspartofabroaderinclusivegreengrowthstrategythatalsoseekstointernalizeenvironmentalandsocialcosts in traditionallyproducedgoodsandservices In themedium to longrunbudgetary implicationscouldalsobeupweighedbyincreasedtaxrevenuestemmingfromincreasedemploymentandgrowingSMEs

x EconomicGrowth implications Cost saving opportunities stemming from increased resourceefficiencypotentialgrowth inSMEsdeliveringgoodsandservices to thepublicsector Itcanalsodrivemarketstowardsinnovativeandsustainablesolutions

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 31: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

31

x Environmental implications Reduction of greenhouse gas emissions and air pollutantsimprovedenergyandwaterefficiencyreducedwasteandsupportforreuseandrecyclinguseof renewable resources reduced hazardous waste and reduced toxic and hazardoussubstances

x Social implications Potential new decent jobs in sustainable agriculture and environmentalservices sustainably produced industrial goods mass transportation energy efficiency inbuildingsindustryenergyprovisionfromrenewablesourceswastemanagementmaintenanceofwater infrastructure Potential job loss in traditional sectors Improved gender and ethnicequitypovertyeradicationimprovedhealth

AnyGuidanceGoodPracticesTheevidenceofthe impactofSPPeitherasamechanism forgreengrowthor fordrivingsustainableconsumption in developing countries is still limited because the initiatives are still emerging andevolvingResearchsuggests that thechallengesandobstaclesconfrontedbydevelopingcountriesaresimilartothoseexperiencedinadvancedeconomiesThekeycriteriaessentialtoenhanceSPPeffectivenessinclude

x EstablishabroaderpublicprocurementframeworkwhichputsanemphasisonldquothebestvalueformoneyrdquoratherthantheldquobestvalueacrosstheproductlifeͲcyclerdquo

x Understandclearlyandanalyseissues

x DevelopandbuildcapacityofadequatesupplierstomeetenvironmentalandsocialstandardsSourcesofInformationhttpwwwunorgesadsdcsdcsd_pdfscsdͲ18rimsLAC_background_engpdfhttpwwwippaorgIPPC4Proceedings07GreenProcurementPaper7Ͳ7pdfhttpwwwunepfrscpprocurementhttpwwwiisdorgpdf2007state_procurementpdfhttpwwwwfporgpurchaseͲprogress

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 32: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

32

StrategicEnvironmentalAssessments(SEAs)BriefDescriptionSEAsrefertoarangeofanalyticalandparticipatoryapproachesthataimtointegrateenvironmental considerations intopoliciesandevaluate the inter linkageswitheconomic socialandclimatechangeconsiderationsTheyareavarietyof toolsrather thanasingle fixedandprescriptiveapproachAppliedattheearlieststagesofdecisionmakingbothtohelpformulatepoliciesandtoassesstheir potential development effectiveness and sustainability they focus on identifying tradeͲoffsbetweenenvironmentsocialandeconomicobjectivesThisisvaluableinassessingwhetherapparentlyldquogreenrdquo policies or major programmes such as subsidy reform are likely to have unintendedconsequencesSEAsrsquofocusonthepolicyandinstitutionallevelisusefulingovernanceforgreengrowthExamplesofApplication InVietnamtheuseofSEAconcerningtheQuangNamProvincehydropowerplanin2006Ͳ15provedeffectiveingettingthelocalauthoritiestoconsideracumulativeassessmentofa80socialeconomicandenvironmentalissuesrelatedtosustainabledevelopmentFinallyfourcriticalstrategic concerns were drawn integrity of ecosystems water supply impacts on ethnic minoritygroupsandeconomicdevelopmentOveralltheSEAconcludedthatthepaceandscaleoftheproposedhydropower development was at an unsustainable level Furthermore the SEAmade a number ofstrategicͲlevel recommendations relating to the integrated management of the basin The exͲpostassessment of SEA on a completed plan still demonstrated its effectiveness in highlighting strategicconcernsandidentifyingopportunitiesforenhancingsustainability(OECD2012)InMauritius the sugar production industrymakes an important contribution to the economy andinternationaltradebutcanbeharmfultotheenvironmentInordertoensureenvironmentalintegritySEAwasconductedontheMultiͲAnnualAdaptationStrategyofthesugarcanesectorAlthoughtheSEAconcludedthatthestrategywillmakeapositivecontributiontotheenvironmentsomeriskswerealsoidentified such as the increased transport demand for harvested sugar cane and pollution ofwatercourses The SEA recommended measures to optimise environmental performance of sugar canefarmingandsuggestedindicatorsformonitoringtheproposedenvironmentalmanagementsystemOneof the success factors includes recognising the economic benefit of SEAs to secure support fromindustries(OECD2012)In Guinea Liberia and Sierra Leone where mining activities are central for growth a regionalassessment Ͳ theWest AfricaMinerals Sector Strategic Assessment (WAMSSA) ndash created significantimpetus for regional harmonization of mining policy in the Mano River union Through amultistakeholderpolicydialoguetheassessmentpromotestheadoptionofastrategicclusterfocusedpermanent multistakeholder framework for addressing mineral sector policy and developmentdecisions strengtheningof environmental governance regionalmanagementof theUpperGuineanForest increasing localͲlevel benefits inmining areas and improve social accountability andmineralsectorgovernance(WorldBanketal2011)

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 33: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

33

Assessment The application of SEAs in developing countries could bring a range of benefits byimprovingdecisionmakingandsafeguardingenvironmentalassetsandopportunitiesforthepoorSEAscanbebeneficialinproducingthefollowingimplications

x Social Safeguardingenvironmentandnatural systemsare the critical foundations forhumanhealthandlivelihoodsSEAssupportgoodgovernancebyencouragingstakeholderparticipationandincreasingtransparencyandaccountabilityindecisionmaking

x EconomicgrowthSEAscanpreventcostlymistakesby identifyingunsustainabledevelopmentoptionsatanearly stage includingunbudgeted timeand resources inhandlingdisputeswithlocalcommunitiesormitigationofavoidableharmthroughpollution

x Environmental SEAs can identify and avoidunexpected environmental impactsby evaluatingthe costs and benefits of alternatives and outlining the tradeͲoffs SEAs can also provide animportant arena for regional coͲoperation for shared resources and transͲfrontierconsiderations

GoodpracticeGuidanceTobeinfluentialandhelpimprovegreengrowthpolicymakingplanninganddecisionmakinganSEAshouldfollowthefollowingkeycriteria(OECD2006)

x Establishcleargoalsthatareintegratedinexistingpolicyandplanningstructures

x Beflexibletransparentandadaptabletocontext

x Analysepotentialeffectsrisksandalternativesagainstaframeworkofsustainabilitycriteria

x ProvideexplicitjustificationforpreferredoptionsandacceptanceofsignificanttradeͲoffs

x Includeaneffectivepreferableindependentqualityassurancesystem

x Includeformalreviewsaftercompletionandmonitorprojectsprogrammesandplansoutputs

x InvolvekeystakeholdersencouragepublicinvolvementandbuildcapacityfortheSEASourcesofInformationOECD2006Applying StrategicEnvironmentalAssessmentGoodPracticeGuidance forDevelopment

CoͲoperation ParisOECD 2012 Strategic EnvironmentalAssessment inDevelopment PracticeAReview of Recent Experience Parishttpwwwoecdorgdocument3803746en_2649_34421_47464486_1_1_1_100html

OECDDevelopmentAssistanceCommitteersquosNetworkonEnvironmentandDevelopmentCoͲoperation(DACENVIRONMET)anditsTaskTeamonSEAhttpseataskteamnetindexphp

WorldBankUniversityofGothernburg SwedishUniversityofAgricultural Sciences andNetherlandsCommissionforEnvironmentalAssessment2011StrategicEnvironemntalAssessment inpolicyandSector Reform Conceptual Model and Operational Guidance World Bank Environment andDevelopment Series Washington DC World BankhttpsiteresourcesworldbankorgENVIRONMENTResources244380Ͳ1236266590146Policy_SEA_WBpdf

World Bank Strategic Environmental Assessment Toolkit Available onlinehttpgoworldbankorgXIVZ1WF880

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 34: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

34

SocialProtectionInstruments

BriefDescription Socialprotection instrumentsareaway tomakegreengrowthmore inclusiveandsociallyacceptableincludingbyeasingtheburdenofthetransitiononthedisadvantaged

Socialprotection instrumentsensuretheprovisionofessentialservicesandtransfersfor individuals inneedofprotectioninanefforttopreventthemfromfallingintoabjectpovertyortoassistthemoutofpoverty SocialProtection Floorsdefinedaccording to specific country contextaim toprogressivelyrealizeuniversalandcomprehensivecoveragewithasharedlongerͲtermvisioninmanycasesbuildingon existing more fragmented social protection schemes such as safety nets that are temporaryresidual and limited to certain recipients andor geographical areas and often reflect immediatepriorities(suchastheneedtorespondtofoodandfinancialcrises)

Countries at the same level of economic development spend very different shares of their nationalincomes on social protection (ILO and UNDP 2011) Thus inmany cases some fiscal space can becreated for social protection even at low levels of GDP In the context of IGGmeasures such asenvironmentalfiscalreformorsubsidyreformcanhelpcreatethenecessaryfiscalspaceMonitoringofsocialprotectionexpenditure is importanttoensurethefinancialviabilityAPublicSocialExpenditureReview can help generate anoverall statementon current socialprotection expenditure inorder todevelopasocialbudget

Examples Anumberofdevelopingcountrieshavesocialprotection floors inplaceoraredevelopingsuchfloorsExamplesareBoliviarsquosuniversaloldͲagepension(RentaDignidad)Brazilrsquosconditionalcashtransfer(BolsaFamiacutelia)BrazilrsquosRuralSocialInsuranceProgrammeColombiarsquosGeneralSystemofSocialSecurity inHealth IndiarsquosMahatmaGandhiNationalRuralEmploymentGuaranteeSchemeRwandarsquospublicworkanddirect services (theVision2020UmurengeProgramme)SouthAfricarsquosChildSupportGrantandThailandrsquosUniversalCoverageSchemeInadditioncountriessuchasBurkinaFasoCambodia(NationalSocialProtectionStrategy for thePoorandVulnerable)Mozambique (NationalStrategy forBasicSocialSecurity)andRwandaare intheprocessofbuildingsocialprotection floorsbasedonthesynergybetweentraditionalmechanismsofsocialsecuritymicroͲinsuranceandsocialtransfers(ILOandUNDP 2011) Among safety net examples that are relevant for IGG is the MERET (ManagingEnvironmentalResourcestoEnableTransition)project inEthiopiawhichexplicitlyrecognizesthat landdegradationisnotonlyanecologicalissuebutalsoasocialandeconomicone(NedessaandWickrema2010)

Assessment For social protection instruments to assist and protect it is important that they areadequatelydesignedand inplacebefore actiontotransformtheeconomy istakenThedesignshouldensure that benefits respond to the needs of those targeted and are adequate in scale to protectbeneficiaries without discouraging them from engaging in productive activities Expensive or timeconsumingburdensuponbeneficiariesshouldbeavoidedThemanagementshouldbetransparentandaccountable and include well defined targetingmechanisms provisions formonitoring and impactevaluationandldquograduationrdquostrategiesProgramsshouldalsobelinkedtowidernationalstrategiesand

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 35: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

35

policies It ismoreefficient toexpandexistingprogramswhichhavebeen testedandare functioningduringtransitionthantoimplementnewprograms(ILOandUNDP2011b)

x Economicgrowth implications Whilesocialprotection is increasinglyseenas importantnotonly to guarantee social rights but also to foster economic performance the economicimplications are both direct and indirect These might stem for instance from increasedaggregate demand a healthier and potentially better educated population increasedproductivityimprovementsinphysicalinfrastructureandgreaterreadinessamongthegeneralpublictoacceptreformsInspecificsectorswheretransitiontogreengrowthmayrequireshiftsintheproductiveactivitiesofindividualhouseholdsasinthecaseofagriculturethelinkisalsoinmitigating risks and costs thatmay be involved in these shifts Overall social protectionschemes improve the human capital and productivity of beneficiaries who with highereducationandhealtharemorelikelytobeabletosuccessfullytransitiontowardsgreengrowthRegardingimprovementsinphysicalinfrastructureacostbenefitanalysisoftheMERETProjectfoundthattheeconomicandfinancialratesofreturnaveragedmorethan12percentforthemainactivitiesMERETprovidesfoodassistanceforuptothreemonthseachyeartoenablefoodinsecurehouseholds indroughtͲstrickenareastoparticipate in labour intensivesoilandwaterconservationactivities(NedessaandWickrema2010)

x Environmental implicationsSocial assistance and safety nets can directly help in greeninglivelihoodsbyencouragingpeopletotakerisksandinvestingreenertechnologiesAlsocertainprogrammes such as employment guarantee schemes can improve the environment andprovideassetsformoresustainablegrowthTheIndianMahatmaGandhiSchemeisanexampleof the later Permissibleworks under the scheme are productive green jobs such aswaterconservation and water harvesting and drought proofing (including afforestation and treeplantation)Accordingtoapilotstudythishasalready ledtoan increase ingroundwater levelandsoilfertility(ILOandUNDP2011)

x Social implications Duringagreeneconomictransitionmany jobsare lost incertainsectorswhileotherscanchange innature (eg in theagriculturesector)andyetothersarecreatedSocial protection instruments can help prevent adverse outcomes for those that lose theirlivelihoodsduring the transition andempower thosewhose jobshavebeendestroyed to reͲenterthelabourmarketthroughskillsdevelopmenttrainingandlabourmarketservicesAlsoanumberofprogrammeshavedemonstratedthatthe impactofthesocialprotectionflooronpoverty can be dramatic The RentaDignidad has reduced extreme poverty by 58 per cent(2007Ͳ2009) TheMahatma Ghandi Scheme has provided employment and income to 525millionhouseholds(2009Ͳ2010)TheBrazilianBolsaFamiliareducedthepovertygapby12percent(2001Ͳ2005)(ILOͲUNDP2011)

AnyGuidanceGoodPractices1)AlthoughnotdevelopedinthecontextofIGGthe18casesfrom15countriessharedinajointUNDPͲILOreportfrom2011canserveasgoodpracticesThecasesanalyzedmostlybyofficialsoftheconcernedcountriesgo intodetaileddescriptionsofapproacheschallengesand achievements2)Under theUN SocialProtection Floor Initiative anumberofUN agencies IFIsbilateral development cooperation agencies and NGOs are working with developing countries to

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 36: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

36

carefullyanalyzeand take stockofexisting structuresand strengthsandweaknessesof schemesandprogrammesinplaceimprovecoordinationofdifferentactivitiesexploresynergiesincreaseefficiencyanddevelop a socialbudget The reportof the Social Protection FloorAdvisoryGroup (2011) lists anumberofprinciples thatany socialprotection system should take intoaccount3)The InternationalPovertyCenterfor InclusiveGrowthhasalsodevelopedanumberofcasestudiesonsocialprotectionfor inclusive growth 4) More country examples on the interaction between social protectioninterventionsandclimateadaptationareavailableinKuriakose(2012)

SourcesofInformation

UNDPandILO(2011)ldquoSharingInnovativeExperiencesSuccessfulSocialProtectionFloorExperiencesrdquohttpwwwiloorggimigessRessShowRessourcedoressourceId=20840

UNDP and ILO (2011b) ldquoInclusive and resilient development the role of social protectionrdquoA paperpreparedbyILOandUNDPfortheG20DevelopmentWorkingGroup2010Ͳ2011June2011

United Nations Childrens Fund ldquoSocial Protection Floor Costing Toolrdquo UNICEFhttpwwwuniceforgsocialpolicyfilesTool_Manualpdf

Social Protection Floor Advisory Group (2011) ldquoSocial Protection Floor for a Fair and InclusiveGlobalizationrdquoILO

httpwwwiloorgwcmsp5groupspublicͲͲͲdgreportsͲͲͲdcommͲͲͲpubldocumentspublicationwcms_165750pdf

CoalitionmembersanddevelopmentpartnersoftheSocialProtectionFloorInitiative(2010)Factsheetndash the UN Social Protection Floor InitiativehttpwwwiloorggimigessRessShowRessourcedoressourceId=14603

IPCͲIG (2010) ldquoCan Social Protection Help Inclusive Growthrdquo httpwwwipcͲundporgpubIPCPovertyInFocus22pdf

NedessaBandWickremaS (2010)DisasterRiskReductionExperience from theMERETProject inEthiopia inOmamoSWetal lsquoRevolutionFromFoodAidtoFoodAssistance Innovations inOvercomingHungerrsquoWFPRome

httpdocustorewfporgstellentgroupspublicdocumentsnewsroomwfp225646pdf

WorldBank(2012)SocialProtectionandClimateResilienceReportfroman internationalworkshop inAddisAbabaEthiopiaonMarch14Ͳ172011

WorldBank(2012)WorldBank2012ndash2022SocialProtectionandLaborStrategy

KuriakoseAnneTetal(2012)ClimateͲResponsiveSocialProtectionrdquoBackgroundPaperfortheWorldBank2012ndash2022SocialProtectionandLaborStrategy

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 37: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

37

PaymentsforEcosystemServices(PES)BriefDescriptionPESaredefinedasldquoavoluntaryconditionalagreementbetweenat leastonelsquosellerrsquoandone lsquobuyerrsquooverawelldefinedenvironmentalservicendashora landusepresumed toproduce thatservicerdquo (Wunder2005)Byproviding compensationeither financedby thegovernmentor theendͲuserstothestewardsofanenvironmentalservicePEScanstrengthenecosystemserviceprovisionsatinternational national regional and local levels However programmes can have diverse resultsdepending on the sellers and buyers and the services that are being provided and the way theprogrammeisimplementedExamplesofApplication InCostaRicaforestownersarepaidforseveral landͲmanagementpracticesand all except agroͲforestry5are paid per hectare over five years In 2001 the Costa RicanNationalForestryFinancingFund(FONAFIFO)createdtheEnvironmentalServicesCertificatewhichisafinancialinstrumentthroughwhichFONAFIFOcouldreceivefundsfromcompaniesandinstitutionsinterestedincompensating forest owners for preserving forests Between 1997 and 2008 FONAFIFO distributedUSD206milliontoprotect460000hectaresofforestandalmost6600contractsweresignedacrossthecountryThisPESprogramandothersformedpartofthesuccessfulgovernment initiativeto increasetheforestcoverinCostaRicaandtopromoteanecotourismindustryInTanzaniarsquosMafiaIslandatwoͲpartPESschemewassetuptoencouragethemainlypoorlocalpopulationtoconserveseaturtlesTheinitialpaymentprovides immediate recompense fornotharvestingnests (andalsomakes theoverallpaymentschemelessriskyforpoorresidentsthanifallpaymentweresolelydependentuponsuccessfulhatchings)ThepostͲhatchingvariablepaymentthenprovidesan incentivenottopoacheggsoncethenesthasbeenreportedTheschemereducedpoachingratesofturtlenestsdramaticallyfrom100attheyearofitsintroductionin2001tolessthan1in2004Moreoverfrom2001to2004thenumberofhatchingsincreasedinbothabsoluteterms(from1200toover10000)andrelativeterms(from55to71oftheeggsremainingathatchingtime)AssessmentMostofthemonitoringeffortofPEShasbeenplacedonassessingchangesinlanduseandmanagement practice and whether landowners are meeting the terms of their contracts Theimplicationsofthese landusechangesforecosystemservicesare lessfrequentlystudiedThisappliesparticularly to payment forwatershed services schemes forwhich the data gathering andmodelingrequired toestablisha linkbetweenpayments landusemanagement changesand impactonwaterquality and flow is extensive and costly For all typesof ecosystem service there is the challengeofestablishingacounterfactualorreferencescenarioofwhatwouldhavehappenedintheabsenceofthescheme to take account of other factors thatmight influence land use In any event PES can bebeneficialinproducingthefollowingimpacts

5OneexampleofagroͲforestryispasturewithinactivelymanagedtreeorshrubcrops

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 38: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

38

x Social PES promotes active citizenship and seeks to improve living standards Small localschemeshavegenerallyachievedagood levelofparticipationhowever someearly schemeshavebeencriticizedfor lackof inclusiveness OtherstudieshavealsofoundthattheschemesthatpromotesocialinclusionarelesseffectiveinachievingenvironmentalgoalsHenceabetterunderstanding on how the ldquoenvironmentrdquo and ldquosocial inclusionrdquo goals can be promoted inparallel is required Experience shows that poor rural communities only benefit from PESschemeswheretheyincludecapacitybuildingmeasurestoswitchtonewresourcemanagementpracticesandwhereadequatesafeguardsare introducedtosecuretheresourceentitlements(including traditional tenure and access rights) of poor rural people Where land is heldcollectively equitable outcomes from PES schemes are more likely to be achieved wheneconomicpowerpriortothecreationofthemarketschemeisfairlyevenlydistributedwithinacommunityLivelihoodoutcomesofPESschemesalsoneedtobelookedatfromthestandpointofimpactsonserviceusersImpactsonnonͲparticipantscanbepositiveornegativedependingonhow changes in landusemarketsand social relations resulting from thePES schemearemanifest locally If a payment scheme displaces other activities with higher employmentbenefits rural laborers could be disadvantaged If it increases employment options thesegroupswouldlikelyderivebenefitsfromthescheme

x EconomicgrowthPEScould increase incomegrowththroughdeliberatetargetingofpoorandmarginalizedgroupshowevertowhatextentithelpstodeliverpovertyreductiongoalsisstillnotclearMoreevidenceneedstobegatheredtoexaminelinkagesbetweenthepaymentsandpoverty reduction impactsPoor farmersvoluntarilyparticipating inPES initiativeswillusuallybecome better off so long as thementioned safeguards and capacity buildingmeasures areintegratedintotheschemesThereisalsogrowingevidencethatnonͲfinancialrewardscanalsobeapowerful incentiveforruralcommunitiesto joinPESPESschemes involvingreforestationoftenrequirefrontͲloadingofpaymentstohelpfarmersmeettheinvestmentcostsTheextenttowhichpaymentsarefrontͲloadedwillshapethetendencytoparticipate

x EnvironmentalPES canprovide incentives forecosystemconservationand sustainableuseofnaturalresourceshoweverthesignificanceofthepositiveenvironmental impactsneedtobeexamined on a case by case basis hence a comprehensivemonitoring process is required ifoutcomesaretobedetermined

GuidanceGoodPracticesTheenvironmentbenefitsandcostͲeffectivenessofPESdependcruciallyonprogramdesignandimplementationbasedonthefollowingkeycriteria

x Defineclearlyobjectivesandproperty rights (and respectexisting tenureandaccess regimeswith specific safeguards for vulnerable groups) and consider bundling multiple ecosystemservices

x ExploremeansforlandͲlimitedhouseholdstogainaccesstounderͲutilizedorunderͲperformingpublicorprivate land (egnational forestreservesabsentee landholdings)withemphasisonmutualbenefitarrangements

x Removeperverseincentives

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 39: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

39

x Adapttocircumstancesandtaketimetobuildtrustandovercomeobstaclesx Raise potential participantsrsquo awareness and ability to invest and undertake the necessary

changesinnaturalresourcemanagementandusepracticesthroughcapacitybuildingx IdentifybuyersandsellersandensuresufficientandlongͲtermsourcesoffinancingx Designasimpleschemewith lowtransactioncostandclear incentivesespeciallyforthepoor

keepinginmindthatincentivesdonotnecessarilyneedtobefinancialx Developarobustmonitoringandreportingframeworkpreferablyinaparticipatorymannerx Deliverperformancebasedpaymentsandensureadequateenforcementx TheroleofGovernmentashonestbroker iskeysincebuyerstendtobe inasuperiorposition

thuslimitingeconomicgainsforsellersfromPESschemesx PESshouldcomplementabroadersetofGovernmentpolicies(egenvironmentalgovernance

landtenurereformsfiscalreformetc)SourcesofinformationOECD 2010 Paying for Biodiversity Enhancing the CostͲEffectiveness of Payments for Ecosystem

Services(PES)ParisUNEP 2011 Green Economy ndash Forests available at

httpwwwuneporggreeneconomyPortals88documentsger50_ForestspdfTEEB2011TEEB forNationaland InternationalPolicyMakersChapter5RenewingBenefits through

Payments and Markets available at httpwwwcbdintdoccaseͲstudiesinccsͲincͲteebChapter205Ͳenpdf Rewardsforuseofandshared investment inproͲpoorenvironmentalservicesathttpsrupesworldagroforestryorgandProͲpoorrewardsforenvironmentalservicesinAfricahttppresaworldagroforestryorg

UNDP(2011)PaymentsforenvironmentalservicesinSubͲSaharanAfricaTakingstockandgeneratingevidenceforincreasedinvestmentanddevelopmentofPES

GermanLARuhwezaetal(2009)SocialandEnvironmentalFootprintsofCarbonPaymentsACaseStudy from Uganda In Livelihoods in the REDD Payments for Environmental Services ForestConservation and Climate Change Editors Tacconi L SMahanty and H Suich Edward ElgarCheltenham

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 40: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

40

CertificationforSustainableProductionBrief Description Certification identifies goods and services that have potential to reduce adverseenvironmental and social impacts Differentiating between green products can increase themarketvalue and share for farmers and producers It also contributes to economic growthwhile improvingenvironmental practices and helps ensure longͲterm resource sustainability Acting as informationsystems for consumers certification schemes include (1) multistakeholder agreement on whatconstitutesbestacceptablepracticeinasetofstandards(2)auditingprocesstoassesscompliance(3)sustainablesourcetrackingprocess(4)productlabelExamplesofApplicationAdoptedin2007theEastAfricanOrganicProductsStandard(EAOPS)wasthesingleofficialstandard fororganicagricultureproductionBack in2005KenyaTanzaniaandUgandahaddevelopeddifferentorganic standardsAt least fivepublicand severalprivateand internationalstandards fororganicagriculturewerebeingused in the regionThisproliferationofstandardsposedsignificantproblems for localorganic farmerandcalled forharmonisationThe implementationoftheEAOPS is carried out by various private certification companies and export outlets despite someresistancebyoneof thenational standardsbodies to theprivate sectorͲled initiatives Someprivatesector stakeholders also feared that the governments would have toomuch control However allstakeholders ultimately agreed through extensive consultation that government involvement wasnecessaryforcredibilityIn2008thePacificOrganicStandardwasadoptedby10PacificIslandcountriesand territoriesAustraliaandNewZealandareplicationofEAOPSaim to increaseorganicproductionandcounterstandardsproliferationsAssessmentCertificationschemesstillneeddevelopmentandstrengtheningandmoregenerallyneedto be accompanied by capacity building measures to ensure that farmers are able to produce incompliance with standards As in many contexts smallholder farmers and indigenous communitiesalready utilize traditional production methodologies based on minimal use of external inputs andmaximum relianceon selfͲsustainingagroecologicalprocesses it is important todevelop certificationapproachesthatareflexibleandcontextͲresponsiveenoughtobuildonthesepracticesandtoavoidthetemptationtosetextremelyhighcertificationcriteria

x EconomicgrowthimplicationsItcouldhelpfarmersforestersandfishermentosecureahigherpremiumandgainaccesstoanichemarketTheevidenceontheimpactsofvariouscertificationschemesontheproducersrsquo incomes indevelopingcountries isdiversebuttheyhavegenerallybeenmodestNelsonandPound(2009)demonstratedstrongevidencethatFairTradeprovidesa favorable economic opportunity for smallholder farming families who are able to formproducer organizations Evidence indicated that Fair Trade producers benefited from higherreturns andmore stable incomeswhich allowed amore longͲterm view than conventionalproducers in investing in their landdomestic facilitiesandchildrenrsquoseducationOn theotherhand a case study in Mexico suggested that certification for organic agriculture failed togenerateadditional incomes for smallͲscaleproducersdue to their limitedcapacity indealing

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 41: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

41

with increasedbureaucraticrequirements(Tovaretal2005)AcombinationoforganicwithaFairTradeschemecouldeffectivelyhelpsmallͲscalefarmersmakethetransition

x SocialimplicationsWithanincreasedlevelofincomethereisanopportunitytoimprovelivingstandardsenhancetheresilienceoflivelihoodsandcreateextraresourcesforeducationhealthand other social necessities Other benefits include building selfͲesteem access to trainingprogrammes increased confidence in negotiations and greater gender benefits All suchbenefits however greatly vary and depend on the specific nature of each standard andcertificationprocessandwhat itentailswith respect to locallyprevailing farmingpractices Itshouldalsobeconsideredthatthevastmajorityofsociallydisadvantagedagriculturalproducersinthedevelopingworlddonotprimarilyrelyonthekindofcropsthatareusuallythetargetofcertificationprocesses

x EnvironmentalimplicationsEvidenceisratherlimitedVanKuijketal(2009)examinedthegoodforest management practices required by certification schemes and concluded they arebeneficialforbiodiversitybyreducing impactsfrom loggingcreatingriparianbufferzonesandgreentreeretentioninclearcutsandconservingprotectedareas

Any GuidanceGood Practices Although there are no worldwide agreed criteria in designing costͲeffectivecertificationschemesforsustainableproductssomelessonslearnedinclude

x Certificationwouldwork ifapricepremium isattachedtocertifiedproductsTheevidenceonwhether such premiums exist and if so how high they are is verymixed Aside from theproliferationof certification criteriaone largeobstacle is the costof certificationwhich caneasily absorb all the price premium Keeping certification costs low is therefore critical andneedstobestressed

x Raiseawarenessfororganicgoods

x RaiseawarenessforgoodproducedthroughagroͲecologicalpracticesthatareenvironmentallysustainable and wellͲsuited to local contexts avoiding rigid imposition of a single set ofinternationalstandards

x Beclearinthespecificationsforcertification

x BetransparentandnonͲdiscriminatoryregardingallparticipants

x Designschemesthatallowforinputsandfeedbackfromallconcernedstakeholders

x Reducetransitionalcoststoparticipationthroughadditionalpublicfundingwhereverpossible

x Ensure that capacity building measures are built into certification schemes with dueconsiderationforthescopeofmarketopportunitiesforfarmersrelatedtocertifiedgoods

x CreatestraightforwarduncomplicatedschemessolesscapablestakeholderscanparticipateSourcesof informationNelsonVandPoundB2009TheLastTenYearsAComprehensiveReviewofLiteratureonthe ImpactofFairtradeAFairtradeFoundationReportUNEPAid forTradeCaseStoryavailable at httpwwwoecdorgdataoecd116247719232pdf Tovar LG LMartinMAGomez

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 42: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

42

Cruz and TMutersbaugh 2005 Certified Organic Agriculture in Mexico Market Connections andCertificationPractices in largeandSmallProducersJournalofRuralStudiesVol21VanKuijkMFEPutz and RJ Zagt 2009 Effects of Forest Certification on Biodiversity available atwwwtropenbosorgimagesTropenbospublications_TBIforestcertificationforest_certification_and_biodiversitypdf

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 43: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

43

ToolstoframeenvironmentalpoliciesCommunicationandNudging

BriefDescriptionCommunicationandnudgingrepresentabroadrangeofevidenceͲbasedstrategiesaimedatstimulatingandsustainingenvironmentallysustainablebehaviorsamongindividualsincludingthefollowing

x Socialmarketingapproacheswhichdrawoncommercialmarketing techniquesandhavebeenappliedatlargescaleinavarietyoffieldssuchasseatbeltuseHIVAIDSpreventionandfamilyplanningsincethe1960s

x CommunityͲbasedapproaches(asubsetofsocialmarketing)focusedonchangingsocialnorms

x Nudging which represents lowͲcost simple interventions aimed at tweaking ldquochoicearchitecturesrdquo toencouragepeople tomaking thebestdecisions (forhealthenvironmentorotherconsiderations)

ExamplesofapplicationAsocialmarketingapproachwasusedbyPugetSoundEnergy(PSE)inthestateofWashington(USA)topromote the adoption of compact fluorescent light (CFL) bulbs in 2009 Using a branded campaignapproachcalledldquoRocktheBulbrdquobasedonresearchinsightsamongthetargetedaudiencestheprogramemployedavarietyofofchannelsincludingcommunityoutreachwebͲbasedandmassmediaLifetimeenergyandenvironmentalsavingsareestimated tohave totaledover118million inkWhsavingsand130millionlbsingreenhousegasemissionsavoided

IntermsofnudgingwhichisanascentapproacharecenttrialatanofficebuildinginAmsterdamusedbright red strips along the floor to encourage visitors to use the stairs (instead of powerͲhungryelevators)thefrequencyofpeopleenteringthebuildingwhooptedtotakethestairsincreasedby70duringthe24Ͳhoursampleperiodthatfollowed

ManyexamplesofcommunityͲbasedapproachescanbefoundinthe122countrieswhereUNDPrsquosSmallGrantsProgrammehasawardedmorethan12000grantstosupportprojectsofNGOsandcommunityͲbased organizations to demonstrate that community action canmaintain the fine balance betweenhuman needs and environmental imperatives For example in Honduras 1200 indigenous womenorganized inMIMATtookonthecleanͲupofthe largest lagoon in theareaand thestreetsofthesixmunicipalitiesthatmakeupeasternMosquitiaTheybuiltanincineratorandalsoclassifypackandshipgarbagetoaprivatecompanythatpurchasesthematerialSince2006theMIMATprojecthascollectedanaverageof70cubicmetresofgarbagepermonthAsaresultpeoplenolongerthrowtheirgarbagein the lagoonwhich is the sourceof staple food Ͳ fishAlsodiseases likemalariaanddiarrheahavedecreasedandpollutingsmokefromresidentsburninggarbageintheirhomeshasbeenreduced

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 44: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

44

AssessmentTheapplicationofcommunicationandnudgingapproachesofferthepotentialbenefits

EconomicgrowthAddingabehaviorchangecomponenttoinfrastructureorothertypesofinvestmentscanhaveapotentialtransformationaleffectForexampleapublictransportsystemmaynotbeutilizedunless it isnotproperlyldquomarketedrdquo topotentialusersand supportedbyanevidenceͲbasedbehaviorchange communication programBehavioral changemay also stimulatenewmarkets and sourcesofincomeSocial implicationsSocialmarketing includingcommunityͲbasedapproachescansupportthecreationof new social norms that can in turn help foster and sustain behavior change at the individual andcommunitylevelEnvironmental By supporting the adoption and maintenance of green or sustainable behaviorscommunicationandnudging can contributedirectly toenvironmentalbenefits suchasa reduction ingreenhousegasemissionsandpollutionAnyGuidanceGoodPracticesTobeeffectivecommunicationapproachesshould

x Recognize that creating awarenessor knowledgeofaproblemor issue isnot sufficient togenerate behavior change and hence must address a wider range of behavioraldeterminantssuchasbeliefssocialnormsoraccesstoenablingproductsandservices

x BeevidenceͲbasedinthattheybuildoninsightsfromconsumerormarketresearchdata

x Targetclearlyidentifiedaudiencesx Establishclearcommunicationobjectivesbasedonthebodyofevidence

x Usemultiplechannelsthatwillconveyandrepeataconsistentsetofmessages

x Integratemonitoringandevaluationtoinformprogramadjustmentsorcontinuation

x BedevelopedwithstakeholderbuyͲintoensurereplicationanduptake

Nudging approaches in particular should not restrict individualsrsquo freedom of choice and must bemonitoredtoensurethattheyremaineffective

Selectedsources

httpwwwcdcgovhealthcommunicationToolsTemplatesindexhtml Ͳ CDC Health CommunicationandSocialMarketingPractice

wwwtoolsofchangecom ndash CommunityͲbased social marketing for promoting health safety andenvironmentalcitizenship

httpwwwembarqorgenfromͲhereͲthereͲaͲcreativeͲguideͲmakingͲpublicͲtransportͲwayͲgoͲ

Acreativeguidetomakepublictransportthewaytogo

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 45: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

45

httpNudgesorgndashblogonnudging

httpInudgeYoucomndashDanishNudgingNetworkwebsite

TheHandbookonCommunityͲLedTotalSanitationKamalKarandRobertChambers2009

httpwsporgsanmarketingtoolkitͲWSPsanitationmarketingtoolkit

SocialMarketingInfluencingBehaviorsforGoodLeeandKotlerSage2011

NudgendashImprovingDecisionsAboutHealthWealthandHappinessThalerandSunsteinPenguin2008

UNDPrsquosSmallGrantProgrammewebsite

httpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageamps=AboutSGP

The Honduran exampleHttpsgpundporgindexcfmmodule=ActiveWebamppage=WebPageampDocumentID=1017

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 46: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

46

Greeninnovationandindustrialpolicies

Briefdescription

Greeninnovationpoliciesarepoliciesseekingtotriggerthedevelopmentandcommercializationofnewsolutionstoenvironmentproblemsbyencouraging innovationacrosstechnologies(horizontalpolicies)orbysupportingaspecifictechnology(verticalpolicies)Greenindustrialpoliciesarepoliciesaimingtogreen theproductive structureof theeconomyby targeting specific industriesor firmsThey includeindustryͲspecificresearchanddevelopmentsubsidiescapitalsubsidiesandtaxͲbreaks feedͲin tariffsand importprotectionTheydonot includepolicies targetingdemand (suchas consumermandates)whichcanbemetbyimportswithoutchanginglocalproduction Exampleofapplication

Brazilhas supported thedevelopmentof abiofuel industrial sector fordecadesChina is subsidizingresearchanddevelopment(RampD)andindustrialproductionofphotovoltaic(PV)panelsmostofwhichitexportsMorocco is investingpublic resources inproducingelectricity fromconcentratedsolarpowerandplanstosellrenewableenergytoEuropeInallthreecasesthepolicyobjectiveisbothtoproduceenvironmentalbenefitsandtocreategrowthand jobsThesecountriesarenotalone inpursuingsuchapproachesIndeedmostcountriestapthesetypesofenvironmentalpoliciesmdashwhichreallyamounttogreen innovation policies and green industrial policies Some commonly used policies include RampDsubsidies for droughtͲresistant crops national strategies for electric cars and efforts to create newgreenindustriessuchasChinarsquospromotionofsolarPVproduction

Assessment

x EconomicGrowthimplicationsGreeninnovationandindustrialpoliciescanhelpspureconomicgrowthandmorejobstotheextentthattheircontributiontotheexpansionofexistingmarketsandthecreationofnewmarketsoutweighsassociatedcostsHoweverthere is littleempiricalevidence toͲdate that the induced innovation is sufficient to overcome the added costs ofenvironmentalregulations

x Social implications Very few baseͲofͲpyramid green innovations tomeet the needs of poorconsumershavebeen sufficiently scaledͲup toͲdateWhether theremaybeaneed formorefocusedpolicyefforts in thisarea requiresabetterunderstandingof theconstraintsbothonthe supply and demand side impeding scaledͲup commercialization and the benefitͲcost ofappropriatepoliciesandtheirimplementationtoimprovemarketoutcomes

x EnvironmentalimplicationsGreeninnovationandindustrialpoliciescanhelpamongothersto

(1)reducepollutionandachievegreaterresourceefficiencyinbuildings(thermalinsulationandnewmaterialsheatingenergyͲefficientlighting)productionprocesses(newusesofwasteandother byͲproducts from firms) agriculture (from improved and resilient crop and livestockbreeds water management and farming systems to mechanical irrigation and farming

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 47: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

47

techniques) and infrastructure and urban design (such as land use zoning) and (2)mitigateclimate change through a cleaner energy supply (wind solar geothermal marine energybiomass hydropower wasteͲtoͲenergy hydrogen fuels) lowͲcarbon end use (electric andhybridvehiclesclimateͲfriendlycement)andcarboncaptureandstorage

Anyguidancegoodpractice

x More advanced countries should invest in frontier innovation through research anddevelopmentaswellasincatchͲupinnovationtobenefitfromexistingglobalknowledgelowerͲincome countries (with more limited technological capacity) should focus on adapting anddisseminatingtechnologiesalreadydevelopedanddemonstrated

x Thedesirabilityofinnovationandindustrialpoliciesmdashgreenornotmdashcannotbeassessedwithoutanalyzingacountryrsquoseconomicsituationthebenefitsitcanexpectfromthesepoliciesanditsability toavoidcapturebyvested interestsExperiencesaround theworldwith thesepoliciesshowthatthefollowingfivelessonsarekey

x Therelevantpolicyinterventiondependsonwhatmarketfailureneedsaddressing

x Horizontal (or outputͲbased) policies should be favored over vertical policies(ldquopickingwinnersrdquooratleastthewinningtechnology)whenpossible

x The desirability of innovation and industrial policies depends on the balancebetweenmarketfailureandgovernmentfailure

x Successfullyusinginnovationandindustrialpoliciesrequiresthecapacitytoremovesupport when it is no longer justified especially if one technology proves lesspromisingthanexpected

x Thebenefitsfrominnovationandindustrialpoliciesvarydependingonthescaleofassessment

Selectedsources

x DutzMAandSSharma2012ldquoGreenGrowthTechnologyandInnovationrdquoPolicyResearchWorkingPaper5932WorldBankWashingtonDC

x HarrisonAandARodriacuteguezͲClare2009ldquoTradeForeignInvestmentandIndustrialPolicyforDevelopingCountriesrdquoInHandbookforDevelopmentEconomicsedDRodrikandMRosenzweigvol54039ndash214AmsterdamNorthHolland

x KarpLandMStevenson2012ldquoGreenIndustrialPolicyTradeandTheoryrdquoPaperpresentedattheGreenGrowthKnowledgePlatforminauguralconferenceMexicoCityJanuary12ndash13

x WorldBank2012InclusiveGreenGrowthThePathwaytoSustainableDevelopmentWashingtonDCWorldBank

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 48: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

48

Decisionmakingunderuncertainty

BriefdescriptionThere are 4mainmethodologies to tackle uncertainty in green growth strategies CostͲBenefitAnalysis (CBA)underuncertaintyCBAwithaRealOptionsapproachRobustDecisionMakingandClimate InformedDecisionAnalysisAllhavedifferentstrengthsandthedevelopmentofadecisiontooltochooseamongstthemisnotasimplematterHerewechoosetofocusononemethodologyRobust Decision Making (for a comparison of the 4 different tools see Brown and othersforthcoming)The robust decisionͲmaking (RDM) approach helps design strategies able to cope with deepuncertainty(Lempertandothers2003)ItstartswithanalyzingacandidatestrategytodetermineitsvulnerabilitytosurpriseanduncertaintyItthentriestoreducethisvulnerabilitytherebyincreasingtheoverall resilienceof the strategy Inpractice this isdone through a stakeholder consultationprocess that identifies the available strategiesor ldquopolicy leversrdquo thendetermines the criteria forappraisingthesestrategiesandtherangeofuncertaintiestoconsiderNextdecisionmakersproceedthroughaniterativeprocessidentifyingthevulnerabilitiesthatdifferentscenariosexposeandhowthese can be addressed until the vulnerabilities are reduced to an appropriate level This robustdecision making approach can be managed through a consultative process or supported bysophisticatedmodeling

ExampleofapplicationRDMhasbeenappliedforwaterplanninginSouthernCaliforniaUndertheRDManalysisthebestmanagement plan was adaptive and included nearͲterm implementation of more water useefficiency techniquesWhenwatermanagerswerepresentedwith theseresultssurveys indicatedan increase in their confidence that they couldadequatelyplan for theeffectsof climate changedespitetheuncertainty in forecastsThemethodologywillsoonbeapplied inHoChiMinhCity toenhancefloodprotection

AssessmentBenefits

x Fullvulnerabilityanalysisofproposedprojects

x TransparentreproducibleandexhaustivescenariodiscoveryreducesoverͲconfidencebias

x Stakeholderprocesstodefinemeasuresofsuccessandpotentialfuturesbuildsconsensusonprojectactionevenunderdiverseassumptionsandpriorities

x Adaptivedecisionprocessexplicitlyaddressesthelimitsofourabilitytoanticipatethefutureforanyproject

x Projectalternativesandplansevolvefromexistingprojectoptions

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 49: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

49

Constraints

x Timeandcostintensive

x Quality of the stakeholder process influences the relevance and efficacy of analysisespeciallyregardingtherangeofpoliciesavailableuncertaintiesconsideredandchoiceofworstͲcasescenario

x Requiresextensivequantitativemodelingofprojectarea

Anyguidancegoodpractice

This approach isparticularly relevantwhenmultiplepolicy goals andworld views coexistbecause itallows for a flexible definition of success and failure A costͲbenefit analysis requires a consensualobjective function that isable to rankallpotentialoutcomes Incontrast the robustdecisionmakingapproachmakesitpossibletocombinedifferentperformancecriteriaItisthususefulforthedesignofgreengrowthpolicieswhicharebasedlargelyontheidentificationofsynergiesacrosspolicygoalsSelectedsources

x Brown C S Gill S Hallegatte R Lempert and A Shah 2012 (forthcoming) ldquoInvestmentDecision Making Under Deep Uncertaintyrdquo Mimeo (Available athttpgoworldbankorgGVSDC9EPB0 as of July 1 2012)

x LempertRJSWPopperandSCBankes2003ShapingtheNextOneHundredYearsNewMethodsforQuantitativeLongͲTermPolicyAnalysisSantaMonicaCARANDCorporation

x World Bank 2012 Inclusive Green Growth The Pathway to Sustainable DevelopmentWashingtonDCWorldBank

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 50: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

50

ProjectͲLevelImpactAssessment

BriefDescriptionUpstreamplanningandpolicyͲmakingfor inclusivegreengrowthmustalsotranslate intodownstreamdecisionmakingandimplementationprocessestoensurethatprojectͲlevelinvestmentsaredesignedinamanner thatenhanceenvironmentaland socialbenefitsandmanagepotential risks Forexampleenvironmental impactassessment(EIA)hasbeenaproventooloverthepast40yearsandhasagoodtrackrecordinevaluatingtheenvironmentalrisksandopportunitiesofprojectproposalsandimprovingthequalityofoutcomesBecauseEIA isnowawellͲestablishedpracticeand is increasingly included innational legislation it canprovide a keyentrypoint for addressing social impacts aswell through anintegrated approachWhile it is indeed best practice to include social issues in any environmentalassessmentthedegreetowhichthisisdoneisvariableTherearealsoseveralapproachestoprojectͲlevelimpactassessmentsuchasSocialImpactAssessment(SIA)andHealthImpactAssessments(HIA)whichmayalsoprovideentrypointsand tools for integrating inclusivegreengrowthapproaches intoprojectͲleveldesignanddecisionmaking

ExamplesofApplicationEIA SIA and HIA are applied at the project level as part of the design phase Impact assessmentapproachescanbeappliedtoprojectsrangingfrom largeͲscale infrastructuredevelopmentprojectstocommunityͲbasednaturalresourcemanagementprojects

Assessment Similar to Strategic Environmental Assessment the application of projectͲlevelenvironmental social and health impact assessments in developing countries could bring a range ofbenefitsandsafeguardtheenvironmentalassetsandopportunitiesuponwhichallpeopleparticularlythepoordependonItcanalsoimproveprojectͲleveldesignandimplementationwhichiswheredirectimpactsareoften realized However itmustbenoted thatprojectͲlevelassessment invariably takesplace inapredeterminedpolicyenvironmentand seldom influenceupstreamplanningprocessesForexampleanEIAofanewenergygenerationplantwillbeunlikelytoconsiderotherenergygeneratingpossibilities Therefore projectͲlevel assessment should complement upstream assessment such asStrategicEnvironmentalAssessment

x Economicgrowth implicationsProjectͲlevel impactassessmentprovidesaprocesstoconsiderpotentialsocioͲeconomicimpactsofaproposedprojectinordertodesigntheprojectinsuchaway that enhances the economic benefits of the project while at the same time avoidingnegative environmental and social tradeͲoffs HIA enable health objectives to be considered along with socio-economic and environmental objectives an important step towards sustainable development

x Environmental implicationsEIA isawellͲestablishedprocess thataims to identifyand assesspotentialenvironmentalimpactsofaproposedprojecttoensurethatprojectsaredesignedandimplementedinamannerthatisenvironmentallysustainable

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 51: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

51

Social implications ProjectͲlevel impactassessmentshould includeastrongstakeholderengagementcomponent ispartofthescopingandassessmentprocesstoensurethattheconcernsofstakeholdersareconsidered inprojectͲdesign The fieldofSIAprovidesbestpracticeguidanceandapproaches toassesssocialimplicationsofaproposedproject

AnyGuidanceGoodPracticesAn environmental and social impact assessment process should identify predict evaluate andmitigatethebiophysicalsocialandotherrelevanteffectsofdevelopmentproposalspriortomajordecisions being taken and commitments made and maximize opportunities for environmentalenhancement includingexploringopportunitiesforpromotionofglobalenvironmentalbenefits ItshouldbeaparticipativeinterͲdisciplinaryandintegratedprocessThefollowingresourcesprovidespecificguidanceandgoodpracticeprinciples

SourcesofInformationEnvironmentalImpactAssessmentOpenEducationalResourcehttpeiaunueduindexhtml

WorldBankEnvironmentalAssessmentSourcebookhttpgoworldbankorgD10M0X2V10

PrinciplesofEnvironmentalImpactAssessmentBestPracticehttpwwwiaiaorgpublicdocumentsspecialͲpublicationsPrinciples20of20IA_webpdf

InternationalPrinciplesforSocialImpactAssessmenthttpwwwiaiaorgpublicdocumentssectionssiaIAIAͲSIAͲInternationalͲPrinciplespdf

Healthimpactassessmentshttpwwwwhointhiaen

IAIA1999PrinciplesofEnvironmentalImpactAssessmentBestPractice

OECD2006ApplyingStrategicEnvironmentalAssessmentGoodPracticeGuidanceforDevelopmentCoͲoperationParis

UNEP2003StudiesofEIAPracticeinDevelopingCountrieshttpwwwunepchetbpublicationsCompendiumphp

VanclayFrank2003InternationalPrinciplesforSocialImpactAssessmentImpactAssessmentandProjectAppraisalvolume21number1March2003pages5ndash11BeechTreePublishing10WatfordCloseGuildfordSurreyGU12EPUK

Briggs Dj 2008 ldquoA framework for integrated environmental health impact assessment of systemic risksrdquo Environmental Health 2008 761

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 52: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

52

AnalysisofLaborMarketandIncomeEffects

Brief Description The knowledge of how the transition to a sustainable lowͲcarbon economywillaffectemploymentespeciallyunderlyingjobmovementsaswellasincomegenerationanddistributionisvitaltoinformingpolicyPreliminaryanalysesthatoutlinethepotentialimplicationsofdifferentpolicychoicesarethereforeacrucialfirststepGreen jobshavebeenmappedandtraced inagrowingnumberofcountriesForexamplebasedonabroaderdefinition (green jobsasdecent jobswhich reduceenvironmental impacts)29milliongreenjobswere recorded inBrazil in2010accounting for66percentofall formalemploymentGreen jobgrowthhascontinuedtobestronggrowing61percentperyearagainst58percentfortotalformalemployment In a recent assessment to underpin itrsquos new development strategy South Africa hasevaluatedthepotentialtocreatenetdirectgreenjobsat460000by2025

ILOrsquos analysistoolcan identifythechangesopportunitiesandchallenges inthe labourmarketwithahighdegreeofresolutioninparticularforyoungwomenandmen6ThetoolallowsfortheidentificationofthepotentialjobcreationandjoblossonasectorͲbyͲsectorbasisaswellasshiftsinincomebytypeof household Beyond the assessment of impacts the tool provides labour market informationhighlightingopportunitiestocreatedecentworkforyouthforexampleandprovidespointersforpolicyformulationsuchasneeds for formalizationofemployment incertainsectorsor forsupport togreenmicroͲandsmallenterprisesnotably foryoungentrepreneursor infrastructure investmentSimilarlythedatageneratedwiththetoolprovidethebasisforassessmentsoftheexpectedtransformation inskillsrequirementsandtheimplicationsforeducationvocationalguidanceandtrainingpolicies

Examples In support of government efforts to protect and sustainably manage of forests a verydetailed assessment has been prepared for the Brazilian forest sector disaggregating 12 forestryactivities anddistinguishingbetween theAmazon (natural forests) andotherpartsof the country ItshowsthatforestͲbasedemploymentisfarlargerthannormallyreportedthatsomeactivitieshavehighemploymentelasticityandmultipliereffectsbutalsothat incomesare low insomeoftheseactivitiesrequiringcomplementarymeasuresforpovertyreductionOtherassessmentshavebeenconducted inMauritiusWorkisunderwayamongothersinIndia(Gujaratstate)NepalSouthAfricaandSriLanka

AssessmentThetoolrequiresatleastaninputoutputtableandideallyaSocialAccountingMatrixasabasis This information is derived from the national accounts and supplementary surveys Data areavailable inmost developing countries from statistical officesministries of planning or finance andcentralbanksBeforefinalizingitthetoolhasbeentestedinBangladeshtoensureitsapplicabilityalsoinLowIncomeCountriesThetoolshouldbeusedbyqualifiedeconomistsandlabourmarketanalystsProfessionalswhocanundertaketheanalysisorcanbetrainedwithlittleinputexistinmostdevelopingcountriesOneofthe limitationsofthetool in itssimpleform is itsstaticnatureThis limitsthetimehorizonofanalysis to thenear tomedium term (around5years)Adynamicversion isalsoavailable6AguidefortheapplicationofthetoolisavailablefromtheILOwebsiteILO(2011)AssessingGreenJobsPotentialinDevelopingCountriesAPractionerrsquosguide

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 53: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

53

(DySAM)andusedbutrequiresmoredataandpreparationTheILOoffersrelevantsupportandcapacitybuilding forboth versions It is currently supportingnationalpartners toapplyDySAMs in IndonesiaMalaysiaandSouthAfrica

Measures combining skills development job assistance and economic diversification are needed toassistworkersatriskoflosingtheirjobsegminingregions(ILOͲUNEP2012)

x Economic growth implicationsGrossandnet impactsofgreening theeconomy in termsofemployment gains or losses and of income distribution are affected by theway changes inrelative prices for goods services capital and labor are transmitted through the wholeeconomy including inputͲoutput linkages invalueͲchains the sharesofwages invalueͲaddedand expenditure patterns of households The impacts are strongly conditioned by the policyinstrumentsadoptedandtheir interactionwiththestructureandcompositionoftheeconomyin terms of sectors and sizes of enterprises Substantial net gains in employment andimprovements in incomedistributionarepossibleprovided the rightpoliciesareappliedThelabourmarketanalysistoolhelpstodesignpolicysothesedevelopmentbenefitsaccrueItalsohelpstoensurethathumanresourcesareavailableacrosssectors inatimelymannertoavoidskillsshortagesandreducethecostoflabourmarketadjustmentThetoolalsohelpstoidentifyworkerswhowillberelocatedbecauseofthetransitiontogreenergrowthandallowsputtinginplace policies like unemployment benefits labour market intermediation and economicdiversificationtomakethetransitiontoagreenergrowthsmoothandjust

x Environmental implications The tool enables policy makers to assess social impacts ofenvironmental policies and to compare the impacts of different policy instruments for theachievementofagivenobjectiveThismakesitpossibletoidentifyopportunitiesforsynergiesbut also potential tradeͲoffs The information obtained provides a basis for an informeddialoguewithstakeholdersThis isoftencritical inordertobuildconsensusandstablesupportforenvironmentalpoliciesforexamplebymakingemploymentbenefitsvisibleorbyanticipatingandmitigatingsocialcostwhenreformingenergysubsidies

x Social implications Social inclusion is a goal and policy priority in a growing number ofdevelopingcountriesAccesstogainfulandproductiveemployment isthemostimportantwaythisgoalcanberealizedThetransitiontogreenereconomieshasthepotentialtoliftmillionsofworkersindevelopingcountriesparticularlywomenoutofpovertyandtoincludethemintheformaleconomyAgreenereconomy cannotonly createmoreandbetter jobs it couldalsomake amajor contribution to poverty reduction by improving incomes The tool allows toidentifyspecificopportunitiesassess thenatureand thescaleofbenefitsand to tailorpolicyinstrumentsandprogrammesaccordingly

Any Guidance Good Practices The ILO Strategy for the Green Jobs Programme includes acomprehensiveknowledgebasetestedtoolsandpracticalapproachesTheprogrammebringstogethera team from various ILO units and offices across the world seeking the full involvement of theconstituents and building strategic partnerships The Programme operates at various levels (i) it

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 54: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

54

promotes internationalpolicycoherencethroughresearchandadvocacy(egbetweenclimatechangeandemploymentlabourpoliciesintheinternationalnegotiations)(ii)supportsconstituentsatnationallevel through policy and technical advisory services and (iii) provides capacity development ofconstituents and partners through training and knowledge sharing at international regional andnationallevel

SourcesofInformationILOndashUNEP(2012)forthcomingWorkingtowardssustainabledevelopment

ILO(2012)PromotingsafetyandhealthinagreeneconomyThereporthighlightsoccupationalsafetyandhealthasan integralpartof thepromotionofgreen jobsandagreenereconomy toachieveaneconomicandsocialdevelopmentthatisalsoenvironmentallysustainable

ILO (2011)AssessingGreen JobsPotential inDevelopingCountriesAPractionerrsquosguide Thisguideprovidespractical solutions tohelp fill informationgaps in the knowledgeofhow the transition toasustainablelowͲcarboneconomywillaffectemploymentespeciallyunderlyingjobmovements

ILO (2011)PromotingDecentWork inaGreenEconomy ILOBackgroundnote toTowardsaGreenEconomyPathwaystoSustainableDevelopmentandPovertyEradicationUNEP2011

ILO(2011) Anticipating skill needs for the low carbon economy Difficult but not impossible ThisresearchbriefisadigestoftheComparativeAnalysisofMethodsofIdentificationofSkillNeedsontheLabourMarketinTransition to theLowCarbonEconomy (ILOGeneva2011c)which resulted fromajointECILOprojectKnowledgesharinginearlyidentificationofskillneeds

ILO(2011)SkillsforGreenJobsAglobalviewThereportexaminestheexperienceof21developedanddevelopingcountriesrepresenting60percentoftheworldpopulationinshiftingtoagreenereconomy

ILO(2010)ThesocialandDecentWorkdimensionsofanewAgreementonClimateChangeHighlightstheclose interͲlinkagesbetweenclimatechangeandtheworldofworkanddiscussesentrypointsforpromotingpolicycoherencebetweenclimateandsocialandlabourpolicies

ILOndashUNEPͲIOEͲITUC (2008)Green JobsTowardsDecentWork inaSustainable LowͲCarbonWorldThefirstcomprehensivestudyontheemergenceofaldquogreeneconomyrdquoanditsimpactontheworldofwork

OECD(2012)TheJobsPotentialofaShifttowardsaLowͲcarbonEconomy

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 55: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

55

FrameworkampGuidelinesonLandPolicyinAfrica

BriefdescriptionIn2006 theAfricanUnionCommission theEconomicCommission forAfricaand theAfDB initiatedaprocess for thedevelopmentofa frameworkandguidelines (FampG) for landpolicyand land reform inAfricawithaviewtostrengthening landrightsenhancingproductivityandsecuring livelihoodsforthemajorityofthecontinentrsquospopulationThatinitiativewascarriedoutbywayofextensiveconsultationsinvolving theparticipationofRegionalEconomicCommissions inall the five regionsof thecontinentcivilsocietyorganizationscentresofexcellenceinAfricaandelsewherepractitionersandresearchersinlandpolicydevelopmentandimplementationgovernmentagenciesandAfricarsquosdevelopmentpartnersThefinaloutcomeoftheinitiativewasthenpresentedbeforetheformaldecisionͲmakingprocessesoftheAUforapprovalandadoptionbytheAssemblyofHeadsofStateandGovernmentinJuly2009TheFrameworkandGuidelines(FampG)arepresentedinseveninterrelatedchapters

x ChapterOneprovidesthejustificationforandprocessfollowedindevelopingtheFampG

x Chapter Twodescribes the contextwhichhasdefined the nature and characteristicsof the landquestioninAfricainordertoexplainthereasonwhythelandsectorhasnotplayeditsprimaryroleinthedevelopmentprocessThatroleisexaminedinChapterThree

x ChapterFoursetsoutthekeyoperationalprocesseswhichAfricancountrieswillneedtofollow inorder todevelop comprehensivepolicies thatwouldenable the land sector to fullyperform thatrole

x Chapter Five analyses the difficulties likely to bemet and conditions necessary for the effectiveimplementationofsuchpolicies

x Chapter Six discusses themeasures which African countriesmay wish to put in place to trackprogressinthedevelopmentandimplementationofthosepolicies

x ThefinalchapterisaconcludingstatementonhowmembercountriesoftheAUmightwanttousetheFampG

ExampleofapplicationRwandahasvolunteeredtobecomeapilotcountryforthe implementationoftheDeclarationon landthrough the use of the FampGNational land policy processeswere strongly influenced by the FampG inBurkinaFasoBurundiMaliKenyaandUgandaAssessment

x EconomicGrowth implications Inmost African countries agriculture is themain source oflivelihoodforthemajorityofthepopulationandamajorcontributortoeconomicgrowthTheability to secureaccess to land resources throughavarietyof tenure systems thatguaranteereturns for short or long term investments is important for the improvement of agriculturalproductivity ingeneraland foodsecurity inparticularClearpropertyrights inagriculturealsohave the potential of increasing revenues through taxation and enhancement of agriculturalexports

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 56: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

56

x SocialimplicationsTothevastmajorityofsocietiesinAfricalandisregardednotsimplyasaneconomicorenvironmentalassetbutasasocialculturalandontologicalresourceLandremainsan important factor in theconstructionofsocial identity theorganizationofreligious lifeandtheproductionandreproductionofcultureThelinkacrossgenerationsisultimatelydefinedbythecomplementoflandresourceswhichfamilieslineagesandcommunitiesshareandcontrolThesearedimensionswhich landpolicydevelopmentmustaddress ifprescriptionsforchangearetobeinternalizedAlsotobeaddressedaregenderinequalitiesinsecureaccesstolandandin landtenurewhichoftenplacewomenatadisadvantagedespitethemajorroleofwomenfarmersparticularlyinsmallholderagricultureacrossthecontinent

x EnvironmentalimplicationsAfricahasarichheritageofnaturalandecologicalresourceswhichremaincentraltodevelopmentStrongsystemsof landgovernancerooted intheprinciplesofsustainabilitywillbecriticalinanefforttoensuretheirprotectionandrenewability

AnyguidancegoodpracticeLandpolicydevelopmentisclearlyacomplexinteractiveandoftenlongdrawnoutexerciseReducedtoits fundamentalshowever theprocessmaybeconceptualizedasconsistingof thestepssummarizedbelow

1 Stakeholderconsultationandidentificationofsalientproblemsinthelandsector2 Preparationofworkingdraftsforfurtherdiscussionwithstakeholders3 Appraisalofinstitutionalandfinancialbudgetaryoptions4 Refinementprocessingandapprovalofthenationallandpolicy5 Design of implementation programmes and rationalization of institutional responsibilities for

implementation6 EnactmentofnewandrevisionorrepealofexistinglandandlandͲrelatedlegislation7 Furtherdisseminationof information to the public training and capacitybuilding to support

implementation

SelectedsourcesAfrica Union African Development Bank Economic Commission for Africa 2009 Framework andGuidelinesonLandPolicy inAfricaaFrameworktoStrengthenLandRightsEnhanceProductivityandSecureLivelihoodsAddisAbaba41phttpwwwunecaorgfssddlpiPublicationsFampG20on20Land20Policy_ENGpdfVoluntary Guidelines on the Governance of Tenure FAO 2012httpwwwfaoorgnrtenurevoluntaryͲguidelinesen

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 57: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

57

IntegratedWaterResourcesManagement(IWRM)

BriefdescriptionIntegratedWater ResourcesManagement (IWRM) is a comprehensive approach to water resourcemanagement that viewswater as a single resourcewith competinguses and inter linkageswith theecological socialandeconomic systemsThrough IWRMwater is treatedasaneconomic socialandenvironmental good and IWRM helps ensure that policies and options that guidewater resourcesmanagementareanalyzedwithinanintegratedframework

ExampleofapplicationWatersupplyandsanitationwaterͲrelateddisasterriskandwaterforagricultureindustryenergyandtransportallmustbemanagedthroughwelldesigned integratedwaterresourcesmanagementplansApplication of IWRM principles could include i) development of national and transͲboundarywaterresourcesmanagementplans ii)developmentofwater resources informationmanagement systemsandiii)establishmentofriverbasinorganizations

Forexample theLakeChadBasinCommissiondevelopedabasinwatercharterwhich isa joint legalplatform foreffectiveprotection coͲmanagementand coherentwater resourcesdevelopmentof thebasinIntheKibuonandTendeRiverCatchmentofKenyasustainableagriculturalandlandusepracticeswere promoted that lead to a reduction of nutrient and sediment transport into the watercoursesWater harvesting techniqueswere introduced in Bugesera Rwanda formultiplewater usesuch as agriculture livestock and human consumption which has improved livelihood of ruralpopulationMoreexamplescouldbefoundinGWPIWRMToolBox

AssessmentGoodgovernanceandintegratedapproachesforwaterresourcesmanagementareessentialforbuildingsustainable development pathways and resilient societies So is capacity building of institutions andorganizations taskedwithwatermanagement from the local levelupward The solution also lies inimprovingtheinformationandknowledgebaseinmostcountriestoimprovethereliabilityandqualityof data and in engaging stakeholdersOther tools from the InclusiveGreenGrowth toolkit such asEnvironmentalFiscalreformPaymentforEnvironmentalServicesandSocialProtectionInstrumentscanbeappliedaspartofIWRMapproachesEnsuringsustainablefinancingforwatersupplyandsanitationand forwater resourcesmanagementmore generally is also critical to effective implementation ofIWRM

ThemainchallengeistooperationalizetheseintegrativeprinciplesHencealdquopragmaticbutprincipledrdquoapproachthatrespectsprinciplesofefficiencyequityandsustainability isrequiredSuchanapproachrecognizesthatwaterresourcesmanagementishighlypoliticalandthatreformrequiresthearticulationofprioritizedsequencedpracticalandpatientinterventions

Most impactsofclimatechangeappearinwaterͲrelatedphenomenasuchasdroughtsfloodsandsealevel rise These impacts exacerbate water related challenges the world is already facing As anexampleAfricahasover60sharedriverbasinsand38sharedaquifersbetween2ormorecountriesand

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 58: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

58

thirteenmajorriverbasinscoveringmostofAfricaaresharedby5ormorecountriesAbouthalfofthecontinentfacessomesortofwaterstressorscarcityandlessthan5oftherenewablewaterresourcesareutilizedforeconomicandsocialdevelopmentneedsIWRMapproachiscriticalforthedevelopmentofthecontinent

EconomicgrowthimplicationsWaterenergyandfoodsecuritywillheavilyinfluenceeconomicgrowthanddevelopmentandwaterisatthecenterofthisnexusUnsustainablemanagementofscarcewaterresourcesandunsustainablewaterͲusepracticescanseriouslyhampereconomicgrowthandcloseoffdevelopmentopportunities

Environmental implicationsSuccessful IWRMapproachescanhelp improvewaterefficiencypreservebiodiversityandenvironmentalcapacityandreducepollutionofwaterresources

Social implications IWRMcanhelp improve livelihoods improvenutritionreducewomenrsquosworkloadandenablethemtoparticipateonbettertermsineconomicgrowthItisalsoanapproachthatenablestomaximizebenefitatbasinlevelthroughcoordinationbetweencompetingwateruses

Anyguidanceorgoodpractice

TheGlobalWaterPartnership(GWP)anetworkofCountryandRegionalWaterPartnershipswith2000partnersworldͲwidemdashwaterexpertsdevelopmentagenciespublic institutionsgovernmentagenciesprivate companies professional organizations academic institutions and othersmdashhas developed aToolBox in the formof a free andopendatabasewith a libraryofbackgroundpaperspolicybriefstechnicalbriefsandperspectivepapersaswellashugesectionsofcasestudiesandreferences ineachtoolTheseareallavailableforusebyanyonewhoisinterestedinimplementingbetterapproachesforthemanagementofwateror learningmoreabout improvingwatermanagementata localnationalregionalorgloballevel

Selectedsources

x GlobalWaterPartnershipIWRMToolBoxhttpwwwgwptoolboxorg

x AfricanDevelopmentBankPolicyforIntegratedWaterResourcesManagement2000

x UNESCOIWRMatRiverBasinLevelGuidelines2009

x IMAWESAͲImprovedManagementofAgriculturalWaterinEasternandSouthernAfricahttpimawesainfo

x UNlsquoWaterforLife2005Ͳ2015rsquohttpwwwunorgwaterforlifedecadeiwrmshtml

x UNDPIWRMhttpwwwundporgcontentundpenhomeourworkenvironmentandenergyfocus_areaswater_and_ocean_governanceintegratedͲwaterͲresourcesͲmanagementhtmlpage=2

x OECDHorizontalWaterProgrammewwwoecdorgwater

x BatesBCKundzewiczZWWuSandPalutikofJP(eds)2008ClimateChangeandWaterTechnicalPaperoftheIntergovernmentalPanelonClimateChange(IPCC)GenevaIPCC

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 59: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

59

x ComprehensiveAssessmentofWaterManagementinAgriculture2007WaterforFoodWaterforLifeAComprehensiveAssessmentofWaterManagementinAgricultureLondonColomboEarthscanInternationalWaterManagementInstitute(IWMI)

x TheWorldBank2004WaterResourcesSectorStrategyStrategicDirectionsforWorldBankEngagementWashingtonDCTheWorldBank

x ͲͲ2010SustainingWaterforAllinaChangingClimateWorldBankGroupImplementationProgressReportoftheWaterResourcesSectorStrategyWashingtonDCTheWorldBank

x WHOUNICEF2012JointMonitoringProgrammeforWaterSupplyandSanitationNewYorkNY

x WWAP(WorldWaterAssessmentProgramme)2012TheUnitedNationsWorldWaterDevelopmentReport4ManagingWaterunderUncertaintyandRiskParisUNESCO

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 60: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

60

GreenAccounting

BriefDescriptionGreenaccountingextendsnationalaccounts to include thevalueof thedamageanddepletionof thenaturalassetsthatunderpinproductionandhumanwellͲbeingInparticularnetsavingadjustedforthedepreciation of produced assets and the depletion and degradation of the environment indicateswhether wellͲbeing can be sustained into the future Negative net saving indicates that it cannotbecausetheassetsthatsupportwellͲbeingarebeingdepletedWithgreenaccountingthescorekeepingindicators(suchaswealthaccounts)canbeusedalongsideGDPtobetterassesshowwellacountry isdoing for the long term Italsoprovidesdetailedaccounts formanagementofnatural capitalwhichmany countries have adopted over the past 20 yearsmdashespecially for water energy and pollutionHoweverfewcountrieshaveadoptedtherevisedmacroeconomicindicators

ExamplesCountries likeAustralia Botswana and Spain are implementing accounts formaterial resources andpiloting ecosystem accounts This piloting ofmethods will help the development of internationallyagreedmethodologyforecosystemaccountingThisissupportedbyparalleleffortstoidentifydatagapsand capacity constraints and a strategy to overcome these limitations A World BankndashfacilitatedpartnershipmdashWealthAccountingandValuationofEcosystemServices(WAVES)mdashishelping implementnatural capital accounting based on the SEEA Through WAVES Botswana Colombia Costa RicaMadagascarandthePhilippineshaveembarkedonworkplansthathavebeenendorsedatthehighestleveloftheirgovernments

AssessmentNaturalcapitalaccountingcanprovidedetailedstatistics forbettermanagementof theeconomyForexample landandwateraccountscanhelpcountries interested in increasinghydroͲpowercapacitytoassessthevalueofcompetinglandusesandtheoptimalwaytomeetthisgoalEcosystemaccountscanhelp biodiversityͲrich countries design a management strategy that balances tradeoffs amongecotourism agriculture subsistence livelihoods and ecosystem services like flood protection andgroundwaterrechargeEcosystemsaccountingnotonlyprovidesa tool tomaximizeeconomicgrowthbut is also a means to measure who benefits and bears the cost of ecosystem changes helpinggovernments gaugewhether their growth is inclusiveNatural capital accounting straddles all threepillarsofsustainabledevelopmentandcanmovetheworldbeyondaGDPmetrictofocusonallassetsthatacountryneedsforlongͲtermgrowthandwellͲbeing

AnyGuidanceGoodPracticesTheSystemforEnvironmental and Economic Accounts (SEEA)providesaninternationallyagreedmethodonpar with the current System of National Accounts to account for material natural resources likemineralstimberandfisheriesTheadoptionoftheldquoCentralFrameworkrdquooftheSEEAhaseliminatedamajorbarrier to theadoptionofnaturalcapitalaccountingThechallengenow is tobuildcapacity incountriestoimplementtheSEEAandtodemonstrateitsbenefitstopolicymakersManycountrieswanttotakenaturalcapitalaccountsbeyondthematerialresourcesliketimbertoincludeecosystemservices

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves

Page 61: African Development Bank - Building today, a better Africa ...€¦ · 2. Crafting an inclusive green growth strategy ... particularly during the transition. There is thus a critical

61

suchaswater filtration floodprotectionandpollinationservicesTheseldquoregulatingservicesrdquoarenotyet includedbecauseof a lackof internationally agreedmethodology to calculate themmaking it abarriertoimplementation

Sourcesofinformation

HealGandKristroumlmB2005Chapter22NationalIncomeandtheEnvironmentMaumllerKͲGampVincentJR(ed)ElsevierVolume3Part2pp1147Ͳ1217

WorldBank2011TheChangingWealthofNationsMeasuringSustainableDevelopmentintheNewMillenniumWashingtonDCWorldBankSystemofEnvironmentalͲEconomicAccounting(SEEA)UNStatisticalCommissionhttpunstatsunorgunsdenvaccountingseeaaspwwwworldbankorgprogramswaves