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The vision of the green economy SP/Di No 01-12 in Latin America and the Caribbean 11 1. Regulations, standards and targets are important to provide direction. However, developing countries must be allowed to move at their own speed, respecting their development objectives, circumstances and constraints. Developed nations have a key role to play in building skills and capacity in developing countries, and in creating international market and legal infrastructure for a green economy. 2. Use economy-based arguments to promote a change in public and private investments, so as to transform key sectors for greening the global economy. UNEP points out that jobs that are created in green sectors can offset job losses in the transition to a green economy. 3. Prove that a green economy can reduce persistent poverty by promoting a number of important sectors: agriculture, forestry, freshwater, fisheries and energy. Sustainable forestry and environmentally friendly agricultural practices help preserve soil fertility and water resources, thus ensuring production sustainability in the long term. 4. Offer guidelines as regards the necessary policies to bring about such transformation: a. Phase out harmful subsidies to the environment or those that support the brown economy, which are a deterrent to achieving a green economy, (e.g. subsidies to gasoline, coal or highly polluting carbon-based energy sources). In select circumstances and over defined periods however, the rational use of subsidies can facilitate the transition to a green economy. b. Deal with market failures due to externalities or lack of information, through market-based incentives, an adequate regulatory framework and green procurement, while encouraging investment in those industries that adopt green practices. c. Use taxes and other market-based instruments to encourage the necessary investment and innovation to finance green transition. Although the scale of financing required for a green economy transition is large, it can be mobilized by smart public policy and innovative financing mechanisms. In reviewing the foregoing definition and general policy motivations, one can conclude that UNEP’s concept of green economy incorporates very important elements of positive economics such as: efficiency, benefits from market signals in some areas, market failures and imperfections, problems prevailing in the current brown economy, the negative impacts of the of the current patterns of production and consumption on the environment and natural capital, the importance of investment as a catalyst and as a mechanism for change and transition towards a green economy, and the economic benefits of adopting a low-carbon economy, to mention a few. All these concepts are detailed in the document from a factual descriptive approach, underscoring the causes and effects of the behaviour of economic agents (UNEP, 2011). Additionally, UNEP offers some recommendations that are typical of normative economics, proposing specific economic policies which, in its opinion, are essential to ensure the transition to green economy. In those policies, UNEP makes value judgments in referring to issues such as: social justice, resource allocation mechanisms, measurement and points of views about inequality and poverty, how to eradicate it through the green economy, and the role that governments should play, to mention a few.PDF Image | green economy In Latin America and the Caribbean
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