Green growth makes economic sense
What does green growth mean? There is still no universally agreed definition, despite the increasing use of the term by countries, policy-makers and multilateral development banks.
But in general terms green growth is understood as economic development that is environmentally sustainable, low carbon and socially inclusive.
The Journey to Green Growth…..Seeking Solutions to the Challenges is a discussion panel at the EBRD 2017 Annual Meeting and Business Forum
Green growth makes economic sense. Indeed, the EBRD has long recognised that it cannot achieve economic transition – and growth – without environmental sustainability. Being “green” is a critical feature of a well-functioning market economy. Along with being competitive, well governed, inclusive, resilient and integrated.
In recent years there has been progress in reducing environmental degradation in the EBRD regions but they still lag behind: their average carbon intensity is almost five times higher than the EU-28 average, and the level of energy intensity is four times higher.
Particulate emissions in many cities far exceed levels considered safe for human health, while water pollution and other forms of environmental damage remain a major problem. Many of these countries are particularly vulnerable to the effects of climate change – from rising sea levels to extreme weather events – which impact on people and livelihoods.
And there is a clear technological gap that separates these countries from those that moved early to tackle climate change and which are now reaping the economic, environmental and social benefits.
The EBRD is tackling these challenges and encouraging green growth across the region through investments, ground-breaking projects and new approaches.
- In 2016 we invested €2.9 billion (one-third of the EBRD’s total investments) in green economy projects and through them avoided 5 million tonnes of CO2 emissions. Thanks to the EBRD, an estimated 13.7 million people now have improved wastewater treatment and 850,000 have better urban transport services. Just as importantly, our projects are fostering green and inclusive growth through supporting jobs and training for young people and designing projects with specific gender considerations.
- We are helping to mitigate or build resilience to the effects of climate change and other forms of environmental degradation through investments under the Green Economy Transition (GET) approach. With an emphasis on innovation, GET brings suppliers of new green technologies and equipment into the markets, for example through the use of technology transfer mechanisms, such as the Finance and Technology Transfer Centre for Climate Change. We also provide credit lines to local financial institutions through Green Economy Financing Facilities (GEFF), which are influencing the adoption of higher performance technologies, services and practices that support the transition to a green economy.
- We are adopting a holistic approach to urban sustainability through the Green Cities Programme, which aims for more efficient public transport, better waste and water management, improved district heating and safer, more attractive urban centres.
Green growth is at the core of what we do. Join us at the 2017 Annual Meeting to explore the concept of green growth, its relevance to the EBRD’s countries of operations and the solutions necessary to achieve positive sustainable development.