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Permanent Secretariat Extra-Regional Relations 10 For the purposes of this document, an inventory of the definitions of the concepts of green economy and/or green growth used by UNEP and OECD, respectively, has been prepared. In addition, an analysis is made of the positive and normative economic elements9 of such definitions, and how they relate to the concept of sustainable development. Finally, the Permanent Secretariat of SELA provides its own views on this subject matter along with some elements that could be included in the definition of green economy from an inclusive approach for Latin America and the Caribbean. UNEP: Green economy In its seminal document Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication, UNEP defines Green Economy as “one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.” In this connection, a green economy can be thought of as one which is low carbon, resource efficient and socially inclusive. Another definition used at the XVII Meeting of the Forum of Ministers of Environment of Latin America and the Caribbean – held in Panama City, Panama, from 26 to 30 April 2010 – is as follows: “A Green Economy is a system of economic activities related to the production, distribution and consumption of goods and services that results in improved human well-being over the long term, whilst not exposing future generations to significant environmental risks and ecological scarcities. It is environmentally friendly and ecological, and for many groups, it is also socially just.” 10 Green economy public policies At present, enabling conditions are heavily weighted towards, and encourage, the prevailing brown economy (carbon-based economy), which, inter alia, depends excessively on fossil fuel energy. To make the transition to a green economy, specific enabling conditions will be required, namely: 1) The backdrop of national regulations on production; 2) Energy policies; 3) Domestic subsidies and incentives to move towards a green economy; 4) Legal and institutional infrastructure to promote the adoption of a green economy; and 5) Trade and aid protocols to effectively support such transition.11 UNEP notes that economic policy makers at the national level are at the very core of decisions to create the enabling conditions for greater investment in the transition to a green economy. To that end, it makes the following recommendations: 9 Positive economics is defined as the branch of economics that aims at describing those economic phenomena that affect individuals from a theoretical and completely objective point of view, without explicit value judgments. In contrast, normative economics refers to "what ought to be" in economic matters, providing opinions and value judgments about economic justice and equity, and seeks solutions to economic problems. In other words, positive economics is “what is”, while normative economics is "what ought to be". Normative economics: Economic approach characterized by the predominance of value judgments (“what ought to be"), closely related to the formulation of economic strategies and policies. Positive economics: Economic approach focused on the analysis of facts and economic data as they actually are, without explicit value judgments. See: http://www.enotes.com/topic/Normative_economics and http://www.bcv.org.ve/c1/abceconomico.asp. 10 UNEP, 2010. General information that can be used by the Ministers and Heads of Delegation for the dialogue on Green Economy. XVII Meeting of the Forum of Ministers of Environment of Latin America and the Caribbean. Panama City, Panama, from 26 to 30 April 2010. (UNEP/LAC-IG.XVII/4). 11 UNEP, 2011. Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication.PDF Image | green economy In Latin America and the Caribbean
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