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The vision of the green economy SP/Di No 01-12 in Latin America and the Caribbean EXECUTIVE SUMMARY 3 The concept of green economy is relatively new. It refers to the way in which natural resources are used to produce satisfiers for the population. Even though this concept is still under analysis and it has not been applied to its full potential, this idea reflects significant concerns such as sustainable growth, production, use of natural resources, and environment protection. Ultimately, it involves a new form of production and a new way of relating to our environment. The financial and economic crisis experienced by the global economy has placed the issue of how the recovery should occur at the centre of the debate. An increasing number of government agencies and civil society stakeholders are considering the green economy as the best alternative to retake the course of growth. In fact, during the G-20 Summit in Cannes on 3 and 4 November 2011, the leaders decided to encourage and promote clean energy in order to optimize the potential of green growth and ensure sustainable development in all countries of the world. This document intends to respond to three key questions: 1) What is green economy? 2) How could Latin America and the Caribbean (LAC), at the regional and national levels, move ahead towards a green economy on the basis of an analysis of its energy matrix? and 3) How could this contribute to a better quality growth that would allow for reducing income inequalities while bolstering the fight against poverty? The study begins with an analysis of the various definitions and concepts of green economy and green growth. The first section analyzes the different definitions and contrasts those offered by agencies such as the United Nations Environment Programme (UNEP) and the Organization for Economic Cooperation and Development (OECD). In addition, based on the concepts identified, the Permanent Secretariat of SELA proposes elements to contribute to an appropriate definition for the region, giving priority to social inclusion in view of the urgent need to address the serious gaps in inequality in LAC. The second section discusses the energy matrix of the region to provide an overview of the energy resources available to move towards a green economy. It identifies some countries with alternative energy sources. Based on a scoring system for the types of energy sources used, which was designed by the Permanent Secretariat of SELA, the study offers a roadmap of the current situation of energy and its uses in Latin America and the Caribbean (LAC). For instance, this analysis found that Paraguay has the highest ranking in terms of sustainability and clean energy. The third section deals with the implications – at the regional and country levels – of moving towards a green economy, and explores the policies and actions that the countries should follow in order to achieve such change. It examines the region’s situation in terms of its investments in renewable energy, because the region must make huge investments if it is to change its energy production matrix and therefore its energy supply. The study underscores how important it is for the State to play an active role in promoting, through a series of policies, the transition towards a green economy so that it turns out to be a socially inclusive process. Such a qualitative leap should bring about a way to reduce poverty, inequality and social exclusion. Hence, this paper offers some guidelines to discuss how the State should develop policies to ensure participation of the majority of the population, so that they can benefit from a new production scheme.PDF Image | green economy In Latin America and the Caribbean
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