COUNTRIES SHOW PROMISE IN LOW CARBON ECONOMIC GROWTH

EDMUND SMITH-ASANTE

In spite of uncertainty surrounding international climate negotiations, countries have forged ahead with low carbon growth strategies in the first quarter of 2010, a report released by the independent non-profit institute AccountAbility, in partnership with the United Nations Environment Programme (UNEP) in Seoul, South Korea on Wednesday has stated.

According to the report known as the 2010 Climate Competitiveness Index, the most comprehensive study to date of national progress to create green jobs and economic growth through low carbon products and services, thirty two countries have made significant improvements, with Germany, China and the Republic of Korea being the outstanding examples. 

It says India, Indonesia, Kenya, Mexico, the Philippines and Rwanda have also enhanced their climate accountability.

Sweden, Denmark, Germany, Japan and France show the most consistent progress on combining accountability and performance, according to the Index, while Switzerland and Austria are strong on performance, with the UK and USA being strong on accountability.

The Republic of Korea, Hong Kong and Malaysia are on the other hand, developing good strategies and the BASIC nations (Brazil, South Africa, India and China) are progressing towards climate competitiveness.

The Index, which analysed 95 countries responsible for 97 per cent of global economic activity and 96 per cent of global carbon emissions, concluded that despite gaps in performance and accountability, 46 per cent of countries have demonstrated some improvement in climate accountability since the UNFCCC Copenhagen conference in December 2009.

The CCI predicts that the global market for low carbon products and services will be in excess of US$2 trillion in 2020. It states that to secure this market however, countries need ambitious climate competitiveness strategies, as well as the institutional infrastructure to build markets and convince investors.

The report underscores the importance of the business sector. It concludes that business must play a proactive role in promoting climate competitiveness. Countries that perform well on the CCI have a critical mass of firms managing, reporting on and reducing their emissions - whilst aggressively growing portfolios of low carbon products and services.  

Commenting on the report, Alex MacGillivray, Managing Director at AccountAbility, said, “This report comes as a breath of fresh air.”

He added that “The CCI shows that countries at all levels of development can develop political leadership, stronger institutions and engage with stakeholders to deliver climate competitiveness.”

“Climate competitiveness is no longer rhetoric. It is a real, massive and dynamic economic frontier. This latest analysis proves that governments are seizing opportunities for Green Growth and making significant strides to tackle the climate crisis,” MacGillivray stated further.

He added, “The Climate Competitiveness Index is the essential guide to understanding opportunities – and accountability - in the multi-trillion dollar low carbon economy of the new decade.”

For his part, Hee Ryung Lee, Lead Analyst at AccountAbility commented that “Releasing this report at this year’s Business for the Environment Summit in Seoul, attended by hundreds of political, business and civil society leaders, is a tribute to the many individuals who play a critical role in building the new Green Economy.”

“This survey proves that the most progressive countries are purposefully and carefully nurturing business as part of their strategy towards enduring low carbon growth,” he submitted.

The CCI demonstrates that the best national performers have a coherent institutional framework of low carbon support for business, including chambers of commerce, stock exchanges, investment agencies, government departments and NGOs dedicated to green growth. The investment promotion agency in Finland, the Presidential Office in the Republic of Korea and Kenya’s Green Energy Foundation are three examples of institutions supporting climate competitiveness.

The CCI indicates also that there is no single blueprint or pathway to climate competitiveness and that countries and regions are pursuing distinctive climate strategies based on national priorities and capabilities. 

As examples, Bolivia, Ghana, Vietnam and Bangladesh all demonstrate strong citizen concern coupled with limited business engagement, while emerging economies like Brazil and the Philippines enjoy strong government leadership.

In other cases, leadership is evident in the business community, for example in Scandinavia and Singapore.

The annual Climate Competitiveness Index (CCI), produced by the independent non-profit institute AccountAbility, in partnership with the United Nations Environment Programme (UNEP), combines two sets of data.

It investigates “Climate Accountability” to validate if a country’s climate strategy is clear, ambitious and supported by stakeholders, as well as “Climate Performance,” considering each country’s capabilities and track record on delivering its strategy.