Green Growth

Making the link between economic and environmental sustainability.

[dropcap]T[/dropcap]he economy and the environment have always had a fractured relationship. The history of global development has shown that when the former rises, it’s usually at the cost of the latter. But this need not be the case. Caribbean stakeholders are currently working to develop a regional strategy for green growth, one that will mainstream climate change awareness and encourage development without compromising natural resources.

The term ‘green growth’ first entered the economic lexicon shortly after the 2008 global recession when a new approach to development began to gain traction among policymakers. It has been defined by the Organisation for Economic Co-operation and Development as: “A means to foster economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies.”

Blending economic advancement with sound environmental management makes sense on a number of levels: boosting income and jobs in innovative fields such as clean energy technology; investing in resilient infrastructure, and upgrading existing industry practices. Green growth is a particularly relevant concept in the Caribbean where natural resources are key to the health of the tourism industry. In addition, the region is highly vulnerable to the effects of climate change, frequently buffeted by devastating natural disasters, and suffers from a significant infrastructure gap. Growth that’s not green is simply unsustainable.

“Climate change is the single greatest threat to the entire planet, and it is having a disproportionately severe impact on Small Island Developing States,” says Crispin D’Auvergne, Programme Coordinator for Climate Change & Disaster Risk Management at the Organisation of Eastern Caribbean States (OECS). “The region’s survival and future development requires that we incorporate climate change in our development paradigm.”

A REGIONAL BLUEPRINT

The OECS is now working to develop a green growth strategy for the region, with the support of the Global Green Growth Institute (GGGI). “Some countries in the Caribbean have previously developed green economy or similar strategies [but] this is the first time that member states of the OECS are to become involved in a collective approach to green growth,” says D’Auvergne.

In February, the two organisations came together to sign a green growth Memorandum of Understanding (MoU) which will enable the OECS to undertake green projects and activities with GGGI’s support. Plans include strengthening national and local green growth planning and developing financing and institutional frameworks in OECS member states.

The MoU will also give the OECS access to GGGI’s knowledge and research—gathered from years of working with countries around the world—to implement green growth policies. The Caribbean has a lot to learn from trail-blazing nations who are further down the road, but a ‘one size fits all’ approach isn’t adequate for tackling the region’s specific challenges. Developing countries and small island states need a customised blueprint that takes into account high-cost barriers, social concerns, limited resources and the growing informal economy.

D’Auvergne says OECS members can pick and choose what works for them from a range of countries—not just developed nations but also smaller states with similar challenges. Under the green growth initiative, knowledge doesn’t just flow one way. “The sharing of best practices does not have to be confined to a one-way flow from developed to developing countries (north-south). Opportunities also exist for sharing between developing countries (south-south), such as between the Pacific and the Caribbean,” D’Auvergne explains. “Opportunities exist, also, for triangular cooperation (north-south-south) and even south-north learning should not be discounted.

“There is a great deal to be shared in terms of, for example, technology, policies and legislation, processes, stakeholder engagement, success stories and failures. It will be up to member states to identify those practices and lessons that are most applicable to their national circumstances.”

READY FOR CHANGE

Having a green growth plan is essential for the Caribbean’s long-term security and will deliver a host of benefits. Not just at a regional level, but trickling all the way down to every Caribbean citizen. Green growth can deliver more equitable distribution of GDP, economic diversification, higher incomes, more opportunities, and enhanced social and human capital.

“Inclusive green growth is critical as the environment is the basis for all wealth generation and is like the proverbial goose that laid the golden egg,” says D’Auvergne. “If the environment is cared for, it will continue to generate goods and services indefinitely.”

There is already a high level of awareness among policymakers of the need to be more mindful of the environment, and the private sector has begun channelling investment into a range of eco-friendly areas such as climate-smart agriculture and renewable energy initiatives. D’Auvergne says that, with government support, further green investment can follow, provided there are clear guidelines, fiscal incentives and appropriate legislative structures.

Green growth isn’t a radical new policy but merely an improvement of existing structures. Seen as a way to upgrade familiar practices, it becomes less intimidating and easier to facilitate. But it will be a long road. The Caribbean has to do the work before it is green growth ready. D’Auvergne says: “For many Caribbean countries, adopting a green growth approach will require a fundamental shift in development planning, definition of national priorities and in the operation of government service. It will require consultation with and meaningful engagement of stakeholders.

“[The MoU] is a new partnership that will take time to evolve. Nevertheless, it will begin laying the groundwork for building a new approach to development.”