green economy In Latin America and the Caribbean

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green economy In Latin America and the Caribbean ( green-economy-in-latin-america-and-caribbean )

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Permanent Secretariat Extra-Regional Relations 14 Two broad sets of policies are essential elements in any green growth strategy: The first set mutually reinforces economic growth and the conservation of natural capital, including core fiscal and regulatory settings such as well as innovation policies. The second set includes policies providing incentives to use natural resources efficiently and making pollution more expensive. The document recognizes that It is becoming increasingly costly to substitute physical capital for natural capital, and that the necessary infrastructure to clean natural assets such as water, soil and polluted air can be costly, but the cost of inaction may be even greater. The report says that greening growth is necessary in order to prevent further erosion of natural capital, which could lead to increased water scarcity, worsening resource bottlenecks, greater pollution, climate change, and unrecoverable biodiversity loss, all of which could undermine future growth. In its document Towards green growth, the OECD defines green growth as “fostering economic growth and development, while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. To do this, it must catalyse investment and innovation which will underpin sustained growth and give rise to new economic opportunities.17 The OECD stressed that green growth is necessary because the risks for development are increasing as the economic growth generated by the current status quo economy continues to erode natural capital. Failure to firmly address this challenge and to control its harmful effects, resulting from unsustainable patterns of production and consumption, will inevitably lead to greater water shortages, greater risk of undermining natural resources, increased pollution, progressive exposure to negative effects and chaotic climate change, as well as an irreversible loss of biodiversity on the planet with unusual consequences to welfare of society and human beings. The OECD warns that If we want to ensure that the progress made in living standards in these past fifty years does not grind to a halt, we have to find new ways of producing and consuming things, and even redefine what we mean by progress and how we measure it. According to the OECD, green growth can open up new sources of growth through:  Productivity. Incentives for greater efficiency in the use of resources and natural assets, including enhancing productivity, reducing waste and energy consumption.  Innovation. Opportunities for innovation, spurred by policies and framework conditions that allow for new ways of creating value and addressing environmental problems.  New markets. Creation of new markets by stimulating demand for green technologies, goods, and services; creating new job opportunities.  Confidence. Boosting investor confidence through greater predictability and continuity around how governments deal with major environmental issues.  Stability. More balanced macroeconomic conditions, reduced resource price volatility and supporting fiscal consolidation through, for instance, 17 At the OECD Ministerial Council Meeting in June 2009, Ministers acknowledged that green and growth can go hand-in-hand, and asked the OECD to develop a Green Growth Strategy. In response to this mandate, the OECD published in May 2011 the document Towards Green Growth, which outlines its views and strategy on how to transform the current economy into one with green growth.

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