Developing nations should shift towards clean growth - Unctad

| Wednesday February 10, 2010 00:00

In a report released on Monday, Unctad said that 'if approached intelligently', improvements in these sectors could yield savings that pay for themselves and even generate quick profits, as well as creating jobs.

The 2009/10 'Trade and Environment Review' (TER) stated that contrary to previous actions, the current global financial crisis was not a time for 'belt tightening', but rather a chance for poorer nations to redirect resources to economic growth that was more economically efficient, better for the environment, more socially equitable and more promising over the long term.

'Macroeconomic costs are not the greatest barrier to taking advantage of the opportunities for clean growth. Rather, it is the lack of appropriate policies, regulations, and institutional structures to support the shift towards clean growth,' said the TER.

The key policy challenge was to leverage energy efficiency and renewable energy through better incentives for private investment and to initiate cumulative technological changes in 'clean' growth, thereby supporting economic diversification and creating dynamic job and income opportunities.

The TER highlighted the importance of more proactive government roles and the more pronounced use of industrial policies, reversing the trend of government passivity advocated under neoliberal growth policies. 'Such a shift to active industrial policies may require greater 'policy space' than is available under current rules of the multilateral trading system,' the report said.

The TER added that because so little had been done in poorer nations, huge gains could be realised in improving energy efficiency, enhancing sustainable agricultural methods and stimulating the use of rural, 'off-grid' renewable energy.

The report noted that improvements in energy efficiency, could, in some cases, be achieved at negative net cost. An example given was that efficient building technologies could be applied using local materials, thus reducing heating and related costs.

Green buildings were said to be not much more expensive than normal construction in many developing countries, since they pay off in the form of reduced energy bills. Materials for insulation and ventilation were often available locally. The construction of energy-efficient buildings, the retrofitting of existing buildings and the manufacture of energy-efficient building components were expected to grow worldwide by 6% yearly.(Engineeringnews)