Chris Mole, Associate Editor

• UN launches Green Economy Initiative.
• World must focus on “green” growth.
• Army of “green-collar” workers.

Top economists and UN officials are working on what is being called a “Green New Deal” to help revive the world economy and save the environment at the same time. The Green Economy Initiative, to be launched in London on October 22, calls on world leaders to help finance a massive investment in projects such as energy efficiency and renewable energy. It envisages an army of “green-collar” workers to implement the programme.

Spearheaded by the UN Environment Programme (UNEP), the plan draws its inspiration from Franklin Roosevelt’s New Deal, which ended the 1930s Depression and helped set the world economy on a path of unprecedented growth during the second half of the 20th century. The new initiative, which is being already backed by the German and Norwegian Govts and the European Commission, arises out of a study commissioned by world leaders at the 2006 G8 summit into the economic value of ecosystems. UNEP claims during the last 25 years, world economic growth has doubled, but 60% of the natural resources which provide food, water, energy and clean air have been seriously degraded.

UNEP Executive Director Achim Steiner notes new research showing deforestation annually costs the world economy more than $2.5trn through lost environmental services. Steiner warns, “we are pushing, if not pushing past, the limits of what the planet can sustain.” He adds, if the world changes direction and focuses on “green growth,” it will not only prevent environmental catastrophes, but also rescue the world’s finances. Steiner believes a new, green economy would provide “a new engine of growth” to get the world on the road to prosperity again, in a more intelligent, sustainable way. He notes while the 20th century economy was driven by financial capital, the 21st century one must be based on developing the world’s natural capital to provide lasting jobs and wealth. Steiner points out the world market for environmental goods and service already stands at $1.3trn annually and is expected to double during the next 12 years even on present trends.

He believes there is a huge opportunity to ride on this increasing global demand for environmental improvement and turn it into the driver of economic growth. Steiner notes Mexico is now employing 1.5m people to plant and manage forests, and China has created the world’s biggest solar energy industries from scratch in just a few years. He adds Germany is also embracing renewable energy in a major way by giving people attractive incentives to install it in their homes. Deutsche Bank economist Pavan Sukhdev believes hundreds of millions of new jobs can be created through a new green economy. Sukhdev describes it as “a really huge business opportunity.”

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