Investing in greener economy could spur growth: U.N.
NAIROBI (Reuters) - Channeling 2 percent, or $1.3 trillion, of global gross domestic product into greening sectors such as construction, energy and fishing could start a move toward a low-carbon world, a report launched on Monday said.
The investment would expand the global economy at the same rate, if not higher, as under present economic policies, said the report by the U.N. Environment Program (UNEP).
“Investing 2 per cent of global GDP into 10 key sectors can kick-start a transition toward a low-carbon world,” the Nairobi-based agency said in a statement.
“The sum, currently amounting to an average of around $1.3 trillion a year and backed by forward-looking national and international policies, would grow the global economy at around the same rate if not higher than those forecast, under current economic models.”
UNEP’s Executive Director Achim Steiner said in the statement: “With 2.5 billion people living on less than two dollars a day and with more than two billion people being added to the global population by 2050, it is clear that we must continue to develop and grow our economies.
“But this development cannot come at the expense of the very life support systems on land, in the oceans or in our atmosphere.”
Agriculture, buildings, energy supply, fisheries, forestry, industry, tourism, transport, waste management and water are sectors that could do with more greening, the report said.
Buildings are the single largest emitter of greenhouse gases because of inefficient heating in offices and homes, according to the study entitled “Toward a Green Economy.”
THREEFOLD INCREASE IN RECYCLING
The sector’s footprint could nearly double by 2030, or 30 percent of total energy-related carbon dioxide.
The report suggests investing $108 million in the waste sector annually could increase recycling threefold by 2050 and reduce landfill contents by more than 85 percent.
In Brazil, recycling already makes $2 billion a year while avoiding 10 million tonnes of greenhouse gas emissions, UNEP said.
Greener policies would still grow economies while reducing the ecological footprint by nearly 50 percent in the next 40 years, but some jobs would be lost as a result in sectors such as fisheries, the report said.
Investment in more sustainable productive activities would, however, offsets those job losses by developing sectors such as renewable energy.
Government subsidies in the fishing industry amount to about $27 billion a year and have created excess capacity and depleted fish stocks globally.
Greening agricultural with practices such as efficient use of water or organic nutrients would offer a means of feeding a global population of about 9 billion by 2050 without damaging nature.
Farming practices currently use more than 70 percent of freshwater resources and contribute more than 13 percent of greenhouse gases.
“Governments have a central role in changing laws and policies, and in investing public money in public wealth to make the transition possible. By doing so, they can also unleash the trillions of dollars of private capital in favor of a green economy,” said Pavan Sukhdev, head of UNEP’s Green Economy Initiative.
Solar photovoltaic on the brink of economic breakthrough
Global investments in solar photovoltaic (PV) technology could double from €35-40 billion today to over €70 billion in 2015, according to a study published today by the European Photovoltaic Industry Association (EPIA) and Greenpeace International. The estimated investments in the European Union alone would rise from today’s €25-30 billion to over € 35 billion in 2015.
New study projects solar investments to double until 2015
This report on the global market outlook for solar photovoltaic, named “Solar Generation 6” (1) foresees that PV could account for 12% of the European power demand by 2020, and up to 9% of the global power demand by 2030.
“Our goal is to make solar photovoltaic technology a mainstream power source through policy support at an optimal cost for consumers,” said Sven Teske, Senior Energy Expert at Greenpeace International. He added that, “Solar photovoltaic is a key technology for combating climate change; our research shows that it creates 35 to 50 jobs per tonnes of CO2 savings and will increase the security of energy supply by reducing dependency on energy imports to Europe.”
“Solar photovoltaic technology has, for many years now, shown increased power efficiencies and cost reductions,” said Ingmar Wilhelm, President of EPIA. “Today’s cost predictions, driven also by economies of scale in light of global photovoltaic capacity, totaling 40,000 MW in 2010, show that the technology is on the brink of an economic breakthrough” Mr. Wilhelm added.
PV prices have dropped some 40% since 2005 and by 2015 the cost of PV systems is expected to drop by an additional 40% compared to current levels. As a result, PV systems will be able to compete with electricity prices for households in many countries of the European Union within the next five years.
“We aim to make this important phase of cost competitiveness visible, and EPIA will provide a realistic road-map for every country with clear concepts on market mechanisms allowing equal treatment of all electricity sources,” added the President of EPIA.
The report estimates that current global solar PV capacity could grow from over 36 GW at the end of 2010 to close to 180 GW by 2015. European PV capacity is expected to increase from over 28 GW in 2010 to nearly 100 GW by 2015, and has the potential to reach up to 350 GW on a global basis by 2020. This would save as much as 1.4 billion tonnes of CO2 emissions globally and 220 million tonnes within the EU every year(3).
In addition to its environmental benefits, the report shows solar energy to be a sustainable way to address concerns about energy security and volatile fossil fuel prices, as well as a substantial factor in economic development. The European PV industry, which already employs over 300,000 people, could provide jobs to over 600.000 by 2015, and has the potential to further increase to 1.6 million in 2020 if general policy support remains effective.
The “Solar Generation 6” report also highlights the enormous PV potential for Europe in the light of the Union’s established 20% renewable energy and the 20% energy efficiency target. Based on this potential for photovoltaic growth, the EU could easily increase its emission reduction target from the current 20% by 2020 to a more aggressive 30% level.
Source: Solarplaza
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