Andrea Bassi, UNEP

A review of UNEP’s work on Green Economy indicators

Nairobi, 2 July 2013 Andrea M. Bassi, Ph.D. UNEP Consultant, Founder and CEO, KnowlEdge Srl

1. Introduction UNEP’s definition of the green economy includes: • Increased human well-being and social equity, • Reduced environmental risks and ecological scarcities. GE to be measured in a comprehensive manner: • The state of a green economy and how it is reached;

Indicato rs work in context

Guidance manual for Green Economy policy assessmen ts

Using Indicators for Green Economy Policy Making

Using Models for Green Economy Policy Making

Green Growth Knowledge Platform (GGKP)

Moving towards a Common Approach on Green Growth Indicators

Green Growth Knowledge Platform Scoping Paper

Green Growth Knowledge Platform

The Green Growth Knowledge Platform (GGKP) is a global network of researchers and dev experts that identifies and addresses major knowledge gaps in green growth theory and Through widespread consultation and world-class research, GGKP provides practitio policymakers with better tools to foster economic growth and implement sustainable develop GGKP was officially launched in Mexico City in January 2012 by the Global Green Growth (GGGI), Organisation for Economic Co-operation and Development (OECD), United Nations En Programme (UNEP), and World Bank.

1. Introduction (2) • A booklet and manual (forthcoming) present the framework and a stepby-step approach on how to delimit, classify and measure a green economy transformation. • It is a practical approach for the identification, definition of use of indicators within the context of the green economy policy process.

Ib. Expected use • Support interested countries to: – – –

Use indicators as a tool for identifying priority issues; Formulating and assessing green economy policy options; Evaluating the performance of policy implementation.

• Focus is being given on those policy options with “multiple dividends”.

Ib. Expected use (2) • The manual includes: – – –

Illustrative examples (more than 50) Specific country examples (20) Mock countries, with specific (customized) examples and sample tables of indicators (5) ●

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Land-locked dry and sub-humid country, with dominant agriculture and in early phases of demographic transition and urbanization. Tropical or sub-tropical small island developing state with dominant tourism and fisheries.

Low-lying coastal middle income country with rapid industrialization and urbanization, and relatively advanced demographic transition. Mountainous coastal country with mining, agriculture, and fisheries Developed country with little natural resources but high potential (and financial resources) for efficiency improvement.

2. Policy and Indicators Indicators are needed in all phases of the policy cycle, in particular: a. Issue Identification and Agenda Setting –

Environmental issues and targets

b. Policy Formulation –

Policy interventions

c. Policy Assessment –

Policy costs and effectiveness, impact on wellbeing

d. Policy Monitoring and Evaluation –

Effectiveness, impacts on well-being and equity

2. Policy and Indicators (2) Policy evalua on makes use of the indicators iden fied in the first two steps, to evaluate the effec veness of the interven on and the emergence of unexpected impacts and trends.

PolicyMonitoring andEvalua on

Policy Implementa on

Issue Iden fica onand AgendaSe ng

Issues, and rela ve policy goals, can be of general nature, social, economic and environmental (with the la er being more relevant for UNEP)

Policy Formula on Assessment

Decision Making

Policy formula on analysis focuses on issues and opportuni es and on the broader advantages and disadvantages of policy implementa on

Decision making is based on the results of the policy formula on stage, and should account for the forecasted impacts of policy implementa on on the environment, the economy and overall wellbeing of the popula on.

2. Policy and Indicators (3) Table1: Overview of thestructureof themanual, and main stepsproposed to support thepolicymakingprocess.

Starting froma problemor an opportunity, identified with the help of agenda setting indicators, policies are identified and defined through the use of policy formulation indicators. Policy assessment indicators are then used to forecast policy impacts, and all the three categories are used to support monitoring and evaluation.

Agenda setting

Indicators for issueidentification (Chapter 2)

Policy Formulat ion

Indicators for policy formulation (Chapter 3)

Indicators for policy assessment (Chapter 4)

Decision MakingImplement ation

Indicators for Monitoringand Evaluation (Chapter 5)

Identify potentially worrying trends Assess the issue and its relation to the natural environment Analyze more fully the underlying causes of the issue of concern Analyze more fully how the issue impacts society, the economy and the environment

Identify desired outcomes: define policy objectives Identify intervention options and output indicators

Measure policy impacts across sectors

Measure policy impacts in relation to the environmental issue

Analyze impacts on the overall well-being of the population

Measure the investment leveraged

Analyze advantages and disadvantages and informdecision making

Measure impacts across sectors and on the oval wellbeing of the population

4a. Indicators for Issue Identification

Indicators for issue identification are instruments that help decision makers identify and prioritize problems and set the agenda for policy interventions. Four main steps: ● Identify potentially worrying trends; ● Assess the issue and how it relates to the natural environment; ● Analyze more fully the underlying causes of the issue; ● Analyze more fully how the issue impacts society, the economy and the

4a. Indicators for Issue Identification (2)

4b. Indicators for Policy Formulation

Indicators that allow to evaluate the adequacy of the interventions analyzed, taking into account their repercussions on the key actors in the economy and impacts across sectors. Two main steps: ● Identify policy objectives; ● Identify intervention options. This chapter as well as the following ones will differentiate the effects of

4b. Indicators for Policy Formulation (3) Policy Green investment Green fiscal reform Pricing externalities and valuing ecosystem service

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Green procurement

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Green job skill training

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Indicators R&D investment (% of GDP) EGSS investment ($/year) Fossil fuel, water and fishery subsidies ($ or %) Renewable energy incentive ($ or %) Carbon price ($/ton) Value of ecosystem services (e.g. water provision) Expenditure in sustainable procurement ($/year and %) CO2 productivity of government operations (ton/$) Training expenditure ($/year and % of GDP) Number of people trained (person/year)

4c. Indicators for Policy Assessment

Indicators that support the estimation and evaluation of policy impacts across sectors, with a more marked focus on indicators for socio-economic impacts and well-being. Three main steps: • Estimate policy impacts in relation to the environmental issue; • Analyze policy impacts across sectors; • Analyze impacts on the overall wellbeing of the population.

4c. Indicators for Policy Assessment (2)

Well-beingand equity Employment Total wealth Access to resources Health

Indicators -

Construction (person, %) Gini coefficient Value of natural resource stocks ($) Net annual value addition/removal ($/year) Access to modern energy (%) Access to sanitation (%) Level of harmful chemicals in drinking water (g/litre) - Number of people hospitalized due to air pollution (person)

4d. Indicators for Policy Monitoring and Evaluation Indicators for policy monitoring and evaluation support the assessment of the performance of the intervention implemented. The integrated policymaking cycle is continuous, if impact of policies ≠ expectations, unsolved issues remain high in the agenda.

Three main steps to measure: • Policy impacts in relation to the environmental issue (indicators for issue identification);

• Policy performance

(indicators for policy

5. Conclusions • Work done to highlight the role of indicators in all phases of the policy cycle, adopting and proposing an integrated approach. • Aimed at providing assistance for the development and implementation of policies that would effectively contribute to

Feedback is welcome!

Thank you www.unep.org/greeneconomy [email protected]