Green growth is essential to any stimulus
By Ban Ki-moon and Al Gore
Published: February 16 2009 19:40
Economic stimulus is the order of the day. This is as it must be, as governments around the world struggle to jump-start the global economy. But even as leaders address the immediate need to stimulate the economy, so too must they act jointly to ensure that the new de facto economic model being developed is sustainable for the planet and our future on it.
What we need is both stimulus and long-term investments that accomplish two objectives simultaneously with one global economic policy response – a policy that addresses our urgent and immediate economic and social needs and that launches a new green global economy. In short, we need to make “growing green” our mantra
First, a synchronised global recession requires a synchronised global response. We need stimulus and intense co-ordination of economic policy among all main economies. We must avoid the beggar-thy-neighbour policies that contributed to the Great Depression. Co-ordination is also vital for reducing financial volatility, runs on currencies and rampant inflation as well as for instilling consumer and investor confidence. In Washington last November, G20 leaders expressed their determination “to enhance co-operation and work together to restore global growth and achieve needed reforms in the world’s financial systems”. This needs to happen urgently.
Stimulus is intended to jump-start the economy, but if properly conceived and executed it can also launch us on a new, low-carbon path to green growth. Some $2,250bn (€1,750bn, £1,569bn) of stimulus has already been announced by 34 nations. This stimulus, along with new initiatives by other countries, must help catapult the world economy into the 21st century, not perpetuate the dying industries and bad habits of yesteryear. Indeed, continuing to pour trillions of dollars into carbon-based infrastructure and fossil-fuel subsidies would be like investing in subprime real estate all over again.
Eliminating the $300bn in annual global fossil fuel subsidies would reduce greenhouse gas emissions by as much as 6 per cent and would add to global gross domestic product. Developing renewable energy will help where we need it most. Already, developing economies account for 40 per cent of existing global renewable resources as well as 70 per cent of solar water heating capacity.
Leaders everywhere, notably in the US and China, are realising that green is not an option but a necessity for recharging their economies and creating jobs. Globally, with 2.3m people employed in the renewable energy sector, there are already more jobs there than directly in the oil and gas industries. In the US, there are now more jobs in the wind industry than in the entire coal industry. President Barack Obama’s and China’s stimulus packages are a critical step in the right direction and their green components must be followed through urgently.
We urge all governments to expand green stimulus elements, including energy efficiency, renewables, mass transit, new smart electricity grids and reforestation, and to co-ordinate their efforts for rapid results.
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