Green Economy in a Blue World-Full Report

A framework for a green economy in a blue world Greening the blue economy does not just make environmental sense, it is essential if society is to find a way of sustaining the three capitals upon which sustainable economies must be built: economic capital, social capital and environmental capital. Historically, civilization was built by converting environmental capital (forests, marsh lands, and non-renewable materials) into economic capital (industry). In the best cases, this new economic capital was, in turn, used to build new social capital by alleviating poverty, providing better education, and building social infrastructure and communities. In some places, environmental capital is rebuilding in both absolute terms and in economic value. Higher standards of living, increased productivity andmore public capacity have allowed communities to restore forests, rebuild oyster beds, and reduce contamination of coastal waters to levels not seen in nearly one hundred years. In many other cases, however, new economic capital has not been reinvested in environmental or social capital. Poverty rates continue to rise in many parts of the world, habitat loss and pollution exist at historic levels, even while standard measures of economic well-being (gross domestic product) continue to grow. The unequal distribution of wealth continues to increase. At a global level, our dwindling environmental capital could make it more and more difficult to find economic substitutes for lost species and ecosystem services. Technology can only go so far to create man-made replacements for the essential services provided by marine and coastal ecosystems (oxygen production, climate regulation, nutrient cycling, and the regulation of the global water cycle). If increases in economic and social capital cannot keep pace with these losses in environmental capital, global economic well-being will decline. The poor are most likely to be affected. Even where economic and social capital continue to grow incrementally, the resilience and ultimate sustainability of these capitals is undermined by a decline in the integrity of ecosystems and environmental processes which know no boundaries and cannot be managed in isolation. New challenges from climate change, diminishing supplies of freshwater, and the demands of a growing world population only serve tomakemore crucial the role of ecosystems and environmental capital in sustaining economic and social well-being. The effects of climate change will be felt acutely by coastal zones, especially in areas where current levels of poverty make emigration difficult (MGEC, 2011).

can be reversed by shifting to a greener, more sustainable economic paradigminwhichhuman well-being and social equi t y are improved, while environmental risks and ecological scarcities are reduced. Technological advances now permit more profitable industrial output with fewer environmental impacts. Evidence presented in this volume shows that many ocean industries and businesses benefit directly from cleaner, more ecologically robust marine ecosystems. Policies and collaborative solutions are emerging which internalize the external costs of practices which damage the environment. Similar programmes reward those who create external benefits through environmentally- sound uses of marine and coastal ecosystems. Markets, bilateral agreements and other types of payments now provide incentives for better stewardship of ecosystem services (see box on payment for ecosystem services, PES). Novel sources of funding and public-private partnerships are emerging to promote healthier environments. In the Caribbean new financing mechanisms are being implemented by the Caribbean Regional Fund for Wastewater Management to reduce nutrient pollution in coastal areas. For instance, ocean tourism is the foundationof the local economyonthePlacencia Peninsula. Recognizing the importance of clean water to sustainable tourism, local private interests and the government have joined forces to create a Wastewater Revolving Fund. Governments can do much to promote the transition to a greener economy. Providing enhanced collaboration and coordination across agencies, at different scales of (national and local) governance and across industrial sectors will lead to more strategic decision making and efficiency in resources use. Strategic Environmental Assessment for example is a sustainable development tool which promotes coherence and coordination between related andoverlapping activities. SEA is basedonbased on transparency, stakeholder participation and dialogue and provides a mechanism for conflict avoidance and resolution (see box). More targeted government investment in green technologies will help industries overcome financial obstacles which sometimes impede the creation of environmental technologies. Governments also can contribute directly to a greener economy by reforming harmful subsidies and policies which encourage waste and pollution. The elimination of subsidies in the energy, water, agriculture and fisheries sectors could save as much as 1-2 per cent of GDP annually (UNEP, 2011).

in a Blue World

14