Green growth for the UK?

Tanya Pein, co-Chair of the EIA

A report issued on Tuesday by the Organisation for Economic Co-operation and Development (OECD) calls for radical changes to the prevailing economic strategy of rapid growth, due to the heavy damage caused to the environment. “We are on a collision course with nature,” said Angel Gurría, the OECD secretary general. He urged emerging markets not to take a “develop first, clean up later” approach.

The OECD report states “Our current demographic and economic trends, if left unchecked, will have alarming effects in four key areas of global concern – climate change, biodiversity, water and health. The costs and consequences of inaction would be colossal, both in economic and human terms.”

The OECD proposes a clear alternative: “green growth”. This is an economic strategy where growth and development are supported, while protecting natural assets that provide essential resources and the environment on which people’s well-being relies. The UN Environment Programme (UNEP) states that investing an additional 2% of global GDP in key economic sectors could create good quality employment, inclusive economic growth and greater environmental sustainability. The OECD report states “Green growth is the only way forward, for rich and poor countries alike”.

Several emerging markets – including China, Kenya and Ethiopia – have already adopted green growth strategies. China has forecast 5.3 million “green jobs” over two to three years from investments in energy savings, pollutant emissions reduction and adjustment of industrial structure. In addition, China has forecast 20 million mostly temporary green jobs in the period 2005 to 2020, through planting new forests, reforestation and forest management.

Green growth could give the UK sustainable, high skilled jobs with excellent export potential. Will the Chancellor’s Autumn Statement today adopt a “green growth” strategy? Will the Energy Bill currently going through Parliament foster the creation of tens or hundreds of thousands of green jobs? Let’s hope so – for the health of our own economy and society, and for the health of all.

Tanya Pein, co-Chair of the EIA

Investment specialist, advising charities and individuals, at In2 Consulting