Bio-economy and Green Economy - SEDIA...The Size of Bio- and Green Economy Green economy • The...

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Bio-economy and Green Economy Convergence for Sustainability Hezri Adnan Institute of Strategic and International Studies (ISIS) Malaysia BIOBORNEO 2013: Delivering the Borneo Bioeconomy Innovation. Kota Kinabalu, 19-20 February 2013

Transcript of Bio-economy and Green Economy - SEDIA...The Size of Bio- and Green Economy Green economy • The...

  • Bio-economy and Green Economy Convergence for Sustainability

    Hezri Adnan

    Institute of Strategic and International Studies (ISIS) Malaysia BIOBORNEO 2013: Delivering the Borneo Bioeconomy Innovation. Kota Kinabalu, 19-20 February 2013

  • “The 21st century will be the ‘century of biology’…” “…the basis of a new economic system where we will be able to design new species of microbes and plants according to our needs”.

    “The 21st century will be the ‘century of environment’…”

    Dr. Freeman Dyson. Theoretical physicist, Princeton University.

    Dr. Jane Lubchenco US Undersecretary of Commerce for Oceans and Atmosphere.

  • The Size of Bio- and Green Economy

    Green economy

    • The total world market for environmental products and services is currently estimated at around $1370 billion, and is set to double by 2020 (UNEP/ILO 2008).

    • There is a US$ 18 trillion business opportunity in the value of carbon locked in tropical forests

    Bioeconomy

    • The European bioeconomy has an annual turnover of about €2 trillion and employs more than 22 million people and approximately 9% of the total EU workforce.

    • The average annual wage of US bioscience workers was $71,000 in 2006, more than $29,000 greater than the average private-sector annual wage.

  • Evolution of sustainable development

    Bioeconomy policies

  • The Green Economy Debate

    • Driven by the 3 F Crises, pointing to weakness of current economic system

    • The world needs to diversify from fossil fuels, and move towards a sustainable low-carbon economy. – How to break out of the current lock-in to fossil fuels?

    – What are the most promising ways forward?

    • The low carbon goal recalls the complex relationship between the triad • sustainable development, industrial competitiveness, and technological

    change.

    • Creating the Next Industrial Revolution – The globalisation of the market economy often makes technical change and its

    diffusion seem inevitable.

    – It is unlikely for the market to deliver a sustainable energy future by itself

    – Indeed the world is seeing a race for leadership in the low-carbon age

  • New buzzwords

    • Green growth (Korea [low carbon, green growth]; Cambodia)

    • Green job (UN Labour)

    • Green collar economy

    Green Economy

    • Firm level innovation and efficiency

    • Greener supply chain

    • WaveRiders Green Wave

    • Not only clean technology

    • Governance of sustainable technology

    • New Industrial Revolution

    Green Technology

  • International GE Formulation 1

    The Organisation for Economic Co-operation and Development (OECD) promotes ‘green growth’,

    • “green and growth can go hand in hand” by “fostering economic growth and development, while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies”

  • International GE Formulation 2

    UNEP makes a macroeconomic case for jobs and output

    • Towards a Green Economy (UNEP 2011) presents a working definition of a green economy “as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities”. For UNEP, a green economy is “one which is low carbon, resource efficient and socially inclusive”.

  • International GE Formulation 3

    The basic principles for greening growth in UNESCAP countries are quality and eco-efficiency of economic growth as well as environmental sustainability vis-à-vis environmental performance.

    • UNESCAP identified four pillars for the transition to a greener growth namely: eco-tax reform; sustainable infrastructure; the greening of business; and sustainable consumption

  • Green Economy in Malaysia since 2009

    Currently: 2% of GDP from green business By 2015 : 8% of GDP from green business

    THROUGH TARGETED EMPHASIS ON GREEN TECHNOLOGY

    • Introduction of a ministerial portfolio in the Federal administration Established Ministry of Energy, Green Technology and Water (replacing Ministry of Energy, Water, and Communications);

    • Formulation of a national policy statement on green technology – The central role of green technology was emphasized by the release of the National Green Technology Policy overseeing ‘greening’ in four sectors, namely energy, buildings, water and waste management and transportation;

    • Establishment of an implementing agency – On October 2009, Malaysia’s Energy Centre was restructured and rebranded as the Malaysian Green Technology Corporation to implement the Ministry’s agenda for green technology;

    • Formation of an inter-ministerial council as a decision-making body on green technology – Prime Minister established and chaired the Green Technology Council with senior memberships from government and public sectors. The Council was later merged with the Climate Change Council;

    • Registration of a green building association – Malaysia Green Building Confederation (MGBC) was established in 2009 to support the government’s objective of promoting sustainable built environment. The Green Building Index had also been launched to enable green grading and certification of Malaysian buildings;

  • Green Economy in Malaysia since 2009

    Currently: 95,000 green jobs

    By 2015 : 500,000 green jobs forecasted THROUGH TARGETED EMPHASIS ON GREEN TECHNOLOGY

    • Initiation of a green financing scheme – In 2010, a soft loan incentive, the Green Technology Financing Scheme was launched to create a policy environment that will attract innovators and users of green technology;

    • Launching of green townships framework - Green Township Framework would outline comprehensive guidelines for new and existing townships in the country to go green by incorporating environmental friendly technologies;

    • Introduction of green procurement in all government agencies - Green procurement manual, procedures and standards are currently under development

    • Formulation of legislation to promote renewable energy – The Renewable Energy Act 2011 (Act 725) provides for the establishment and implementation of a special feed-in-tariff system to catalyse the generation of renewable energy in Malaysia. The law will be administered by the Sustainable Energy Development Authority.

    • Formulation of Green Growth Act is currently underway

  • Critique of Green Economy

    • “All responses subscribe to mainstream economic thinking, arguing that proposed solutions will contribute to economic recovery, to fight against poverty, and to promote justice, since greener growth would also ensure that planet resources are available to develop the poorest countries and their populations. … The framing of the problem is mainly in terms of allocation, a traditional and a central concern of mainstream economics, which seeks solutions through the well-rehearsed pursuit of greater resource”

    Bina and La Camera 2011

  • Green Economy in Summary

    • Redefinition of wealth, from quantity to quality

    – What are the conditions for the compatibility between economic growth and environmental sustainability?

    • New philosophy – ecology as a productive force

    • Greening the economy refers to the process of:

    – “reconfiguring businesses and infrastructure to deliver better returns on natural, human and economic capital investments while at the same time reducing GHG emissions, extracting and using less natural resources, creating less waste and reducing social disparities” (UNEP)

    • A more constructive role of technology

  • The idea of a new industrial order that relies on biologically-based materials, technologies and 'services.‘ Its drivers are: 1. Latent value underpinning biological materials

    and products = sustainable growth 2. Technology to manipulate biological systems 3. Building a new bio-based economy to create jobs

    and maintain competitiveness Much of the interest in biofuels, bioproducts and the broader bioeconomy stems from the quest for environmental sustainability

    What is Bio-economy?

  • Bioeconomy Sectors

    Bioeconomy

    Health

    Pharmaceuticals

    Medical biotechnology

    Medical technology

    Industrial

    Chemicals

    Energy

    Materials

    Food & drink (processed)

    Primary

    Production

    Agriculture

    Marine

    Livestock

    From petro-economy to bioeconomy

  • Global Markets for Chemical Products

    2001 2010 2001 2010

    Chemical products Chemical products using biotechnology processes

    Fine and specialty chemicals Polymers Basic chemicals and intermediates

    USD 1,200 bn

    USD 1,500 bn USD 310 bn

    USD 30 bn

    450

    650 170

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    Biodegradable (incl. non-biobased)

    Durable (biobased)

    Global Production Capacity of Bioplastics

    1,000 Metric Tons

    European Bioplastics latest update: levels expected to rise from 1.2 million to 5.8 million tonnes over next 5 years

    European Bioplastics, May 2011

  • 1. Mental:

    • lack of ambition/vision/support

    2. Legal:

    • no level playing field in terms of legislation and regulation

    3. Policy:

    • lack of coherence and continuity

    4. Educational:

    • lack of talent

    5. Financial:

    • limited and fragmented

    Barriers to bio-economy mainstreaming

  • 1. Institutional reform process must recognize the urgency of action – Fundamental shift is needed to achieve sustainability while

    ensuring economic growth

    – Transition from a fossil- to bio-based economy = Combine Bio-E and Green-E masterplan as Sustainable Growth Blueprint

    2. The calls for ambitious thinking should not paralyze action – Long-term policy envisioning (50 to 100 years)

    – Sensitive to the limits-to-growth argument by embracing low carbon and resource-efficient strategies

    – Radical incrementalism by adopting a portfolio approach that uses a plethora of initiatives and not the deadlock of searching for a perfect solution or institution

    – Promote growth from sustainable primary production, food processing and industrial biotechnology and biorefineries

    One: Think Boldly and Move Incrementally

  • 1. Change is required in economic policy institutions as much as environmental ones

    2. Economic policy instruments to realign consumption and production patterns

    – Natural resource pricing and subsidy reform

    – Subsidising large-scale production and consumption of conventional biofuels may be an inefficient way of providing income support to rural communities and it consumes large amounts of taxpayers’ money.

    3. Trade and FDI

    Two: Take Economic Policy Seriously

  • 1. Still in infancy – government is still essential in facilitating transition

    – The Malaysian bioeconomy sectors need to innovate and further diversify

    2. Silo and fragmentation – Energy + agriculture + water + health sectors

    – Stronger emphasis on actualization and implementation of policy goals

    – Subsidiarity principle – decision-making should be addressed at the lowest, most appropriate level

    3. There is no need to reinvent the wheel – There are already a number of public and private

    sector efforts to promote sustainability

    Three: Make Implementation the Focus

  • 1. The Government remains central

    – but non-state actors have to be better accommodated

    – Policies supporting bio-economy are still framed primarily as ‘technical’, rather than ‘political’, issues of relevance primarily to policy networks encompassing market actors and their bureaucratic counterparts

    2. Bioeconomy for People or private interest?

    – a profitable bio-economy needs also to be a fair economy

    – Adopt systems approach at all levels between all relevant stakeholders

    3. We are no longer managing in a natural resource cornucopia – period of wealth is over

    3+1: Put Equity at the Centre