Inclusive Green Growth

INCLUSIVE GREEN GROWTH THE PATHWAY TO SUSTAINABLE DEVELOPMENT The world's population is predicted to reach 9 billion people by 2050, and they will all need food, water, and energy to survive. 0ur current growth patterns are highly inefficient and stand in the way of truly sustainable development. The way forward is inclusive green growth that is clean in its treatment of the environment, efficient in its use of natural resources, resilient, and meets the needs of all people. WHY GREEN GROWTH? For the past 250 years, economic growth has come largely at the expense of the environment. The damage has reached a scale that threatens human welfare and prospects for future growth, and despite impressive gains in the last two decades, many basic needs remain unmet. Two decades of .but not without a significant toll on the environment. unprecedented growth have greatly improved welfare. 3X Increase in water withdrawals in last 50 years, leading to water scarcity and ground water depletion. POVERTY RATE 13 MILLION Hectares of forest lost 42% 550 BILLION+ annually between 2000 and 2010, equivalent to the landmass of Nicaragua lost Tons of CO, emitted globally from 1990 to 2010. 25% 85% Ocean fisheries categorized as fully exploited, over-exploited, or depleted. every year. 15%* $1 TRILLION Spent annually to subsidize the over-exploitation of natural capital, including fossil fuels. – Nicaragua 1990 2005 2015 *Projected Meanwhile, massive basic needs remain unmet. ............... o sanitation People without safe, clean drinking water People without access People without access to electricity 2.6 BILLION 1.3 BILLION 900 MILLION GREEN GROWTH OPPORTUNITIES As countries continue to grow and urbanize, we must design energy, transportation, and agricultural systems that facilitate commerce while limiting environmental impacts. Today, 2.6 billion people live in cities. By 2030, there will be 4 billion. Sustainable energy is one opportunity for green growth. There are others. O DENSITY 2 EFFICIENCY 3 TRANSPORT Urban density enables more efficient land use, transportation, and commerce. Energy-efficiency technologies can reduce energy consumption in new buildings by up to 30 percent. City residents and businesses benefit from efficient and accessible public transit and no-fuel options. 4 OCEANS 6 INDUSTRY 6 LANDSCAPES Better management could increase the wealth of global fisheries from $120 billion to $900 billion. Every $1 invested in energy efficiency saves at least $2 in energy Sound forest and watershed management boosts household incomes and, along with climate-smart agriculture, bolsters resilience to drought, landslides, and flooding. expenses. MEASURING GREEN GROWTH A country can increase its GDP by exploiting natural capital, but overuse of those resources will reduce the country's national wealth. Natural capital accounting enables smarter planning and better decision-making. Composition of natural capital in developing countries. 36% 9% Protected Areas 5% Minerals Share of developing countries' wealth that comes from natural capital. 77% Crops, Pasture, Forest 9% Non-Renewable Energy Non-Exploitation: A Value Proposition When a country accounts for natural capital, it may find that the most valuable choice is conservation. IValue of a hectare of mangrove Chopped down for wood Removed for shrimp farming Conserved as a barrier against floods $18,000 $11,000 $1,000 Green growth strategies will vary across countries, reflecting local contexts and preferences-but all countries, rich and poor, have opportunities to make their growth greener and more inclusive. To learn more, please visit worldbank.org/inclusivegreengrowth THE WORLD BANK