Institutional Innovations for Transition

in Africa

Patrick Mwesigye

UNEP ROA, Nairobi

If we don’t change our direction, we’re likely to end up where we’re headed — Chinese proverb

A Green Economy is one that results in increased human well-being & social equity, while significantly reducing environmental risks & ecological scarcities.

What is a Green Economy?

Why a Green Economy?

• It was born out of multiple crises and accelerating resource scarcity.

• A Green Economy is the economic vehicle for sustainable development.

• A Green Economy has strategies to end the persistence of poverty.

• It is a new economic paradigm that can drive growth of income and jobs, without creating environmental risk.

Towards a Green Economy

• Environment and economic growth

• Social development

• Benefits developed and developing countries

Green Economy in Africa• African leaders already embraced the green economy

concept as exemplified in several declarations and resolutions, namely:

• 3rd African Ministerial Conference on Financing for Development (May, 2009);

• 13th Session of the African Ministerial Conference on the Environment (AMCEN) of June 2010;

• 1st Pan African Biodiversity Conference (September 2010);

• 7th African Development Forum (October 2010), • 18th Ordinary Session of the Executive Council of the

African Union (January 2011).

Enabling Conditions

Innovative and imaginative public policies create incentives for markets and direct private sector investment. Prioritize green

investments

Regulatory frameworks

Capacity-building, Training

Taxation,Smart market mechanisms

International Governance

‘If you want to be a 21st century company (or economy), if you want to survive and thrive during this Great Stagnation, you've got to have the courage, foresight, and determination to step up to a higher rung on the ladder of innovation. It's time to master what is sometimes called "I-squared": the art and practice of institutional innovation’.

Why I2?

• Institutional innovations aimed at improving the service delivery mechanism and bringing about efficiency, equity and sustainability

• Improvements in products, processes, technologies and policy regime changes.

• Regulators and policy makers catalysts in driving innovations.

• Innovations are necessary to bridge the gap between rich and the poor with acute inequalities and inefficiencies and evolve strategies for those at the Bottom of the Pyramid

Challenge of I2

• Institutional innovation (magnificently discussed in John Hagel and JSB's Power of Pull) is an arduous, difficult, and frustrating challenge for most — because, all too often, institutions are a little bit like art: the more you try and define them, the more elusive they get. The reason is that they're culturally bound, socially specific, and, above all, messily human, so reducing them to an entry in Wikipedia is bound to result in disaster. So many can't get to grips with institutional innovation because, well, they often can't figure out the blazes the fuss is all about to begin with.

Institutional Innovations

• combining legal, economic, technological and administrative measures that guarantee the development of the green economy in a new era

Requirements for Institutional Innovation

• all members of society to contribute to creating an encouraging social environment;

• increasing public awareness of low-carbon production and consumption;

• building legal and policy systems to provide support to green economic development;

• formulating feasible macro strategies and preferential policies for emerging industries and industrial restructuring;

• enhancing indigenous innovation capacity and increasing investment to develop advanced, energy-saving, environmental protection technology;

• building a green market and boosting green procurement and trade;• achieving particular progress in the main sectors and regions, and

promoting experiences from developing a low-carbon economy.

(Wang Zhongyu, 2010)

Facets of Eco-Innovation

Transition Management

Key Drivers and Stakeholders in Innovation

UNDP

UNEP

ILODemonstrating that Greening is a new engine for growth,

sizing sectoral opportunities, addressing hurdles & enabling conditions

Demonstrating the value of ecosystems & biodiversity,

capturing these values, and reversing the vicious cycle

of environmental losses and persistent poverty

Sizing and incentivizing growth in green & decent jobs

Green Economy Report

TEEB Green Jobs ITC

G8+5

Multilateral InstitutionsCountries

Regional Forums

Business & Civil SocietyGroups

Universities

A Wide Global Network

CBD

UNIDO

Regional Commissio

ns

17

Institutions in the African Process

• Regional: AUC (AMCEN, AMCOW, FEMA, NEPAD), AfDB

• RECs• National – focal points

– Ministries (Finance, Planning, Environment, Water, Energy, Agriculture …)

– Technical Institutions (Environmental Agencies, National Planning Commissions/Authorities, Research Institutions and academia, …)

– Local Govts• NGOs/CBOs• International organisations (IISD, WBCSD…)• UN Agencies (UNEP, UNDP, UNECA, UNCSD…)

Programmatic approach to Institutional Innovation

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Identifying the strategic entry points

Mainstreaming into Policy

Process

BuildingImplementati

on support

Com

pon

en

t

1. Understanding existing institutional set up

2. Identifying limitations and useful entry points

3. Consensus on elements of strategic measures

1. Existing opportunities for Innovation utilized

2. Key policy instruments for innovation developed

3. Capacity on transition management enhanced

1. Cross-sectoral support for implementation created

2. Capacities of technical support providers enhanced

3. Green Economy mainstreamed in national policies

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tpu

ts

Identifying strategic entry points

Mainstreaming into Policy Process

Building Implementation support

Recommendations for Institutional Innovation

• Create enablers rather than governors in the institutions• Shift from products to services (Green Energy Fund,

African Carbon Asset Development Facility, ….)• Enhance partnerships (AUC/ECA/AfDB)• Enabling regulatory design and more focused

environmental governance at regional, sub-regional and national levels

• Modification of practices, re-design of practices, alternatives to existing practices or the creation of new practices.

• Radical changes in methods of implementation that result in higher environmental benefits.

• Involvement of private sector in innovation and implementation

• GEI : www.unep.org/greeneconomy • Environmental Governance :

http://www.unep.org/environmentalgovernance/Introduction/tabid/341/language/en-US/Default.aspx

• Green Jobs Report, September 2008 http://www.unep.org/labour_environment/PDFs/Greenjobs/UNEP-Green-Jobs-Report.pdf

• Global Green New Deal Report, December 2008 http://www.unep.org/greeneconomy/docs/GGND_Final%20Report.pdf

• UNEP Policy Brief on the GGND, March 2009 http://www.unep.org/pdf/A_Global_Green_New_Deal_Policy_Brief.pdf

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