Promoting Green Economy Solutions At Protected Areas Of Egypt
Promoting Green Economy Solutions atProtected Areas of EgyptAn Initiative ProposalDeliverable # 014-3668-013Strengthening Protected Area Financing and Management Systems ProjectCairo 2013
وزارة الدولت لشئىن البيئت 3668 EgyptStrengthening Protected Area Financing andManagement Systems ProjectMinistry of State for Environmental AffairsEgyptian Environmental AdministrativeAgency- Nature Conservation SectorGlobal Environment Facility – United NationsDevelopment Programme قطبع محبيت الطبيعت - جهبز شئىن البيئت برنبمج األمم املتحدة اإلمنبئي - مرفق البيئت العبملي مشروع تعسيس أنظمت اإلدارة والتمىيل للمحميبث الطبيعيت Promoting Green Economy Solutions at Protected Areasof EgyptAn Initiative ProposalDeliverable # 014-3668-013ByProfessor. MOUSTAFA M. FOUDANational Focal Point of CBDDirector, Strengthening Protected Area Financing and Management Systems ProjectMahmoud SarhanTechnical Officer, Strengthening Protected Area Financing and Management Systems ProjectCairo, EgyptJanuary 2013
Promoting Green Economy Solutions at Protected Areas ofEgypt - An Initiative ProposalThis report is an output of Strengthening Protected Area Financing and ManagementSystems Project, a co-financed national project financed by Global EnvironmentFacility and Ministry of State for Environmental Affairs and executed by UnitedNations Development Programme and Nature Conservation Sector, under the projectdocument number 3668.Copyright 2012 Global Environment Facility, United Nations DevelopmentProgramme and Ministry of State for Environmental Affairs, Egypt. All rightsreserved. No part of this publication may be reproduced, stored in a retrieval systemor transmitted in any form or by any means - electronic, mechanical, photocopying,recording or otherwise - without prior permission or reference to this source.The project aims at the establishment of a sustainable protected area financing system,with associated management structures, systems and capacities needed to ensure theeffective use of generated revenues for priority biodiversity conservation needs aswell as remove or significantly reduce a wide range of barriers to sustainablefinancing. The project will maintain a sustainable PA system operated by anautonomous NCS having the financial wherewithal and management capacitiesneeded for effective management based on the following pillars: (i) Legal, policy,regulatory and institutional frameworks that support sustainable PA financing; (ii)Tools and practices for revenue generation and mobilization, and (iii) Businessplanning and other tools for cost-effective management
ContentsExecutive summary4Introduction6a) Background6b) Green Economy: Global View7Section 1: Green Economy Initiative in the Protected Areas of Egypta)b)c)d)Current Situation Of Green Economy In EgyptSituation Analysis In Protected AreasAssessment of Green Economy In Protected AreasPriorities For Setting Goals, Policies and Means of ImplementationIn Protected Areas Financial Sustainability Partnerships Development & Technology Transfer Criteria for setting priorities and planned activitiese) Towards the Green Economy Initiative in Protected Areas in EgyptSection 2:Green Economy Solutions1112152224252627282829a) Protected areas contribute to EU's green economy31b) Green Economy Solutions – The Case of Heart of Borneo32c) Building a Biodiversity-Based Sector Green Economy36d) Application to Egypt's Parks37e) UNEP - The Global Green New Deal38Section 3:Cost Benefit Analysis Case (1) Benefits and Costs of Medicinal & Aromatic Plants inSaint Katherine Protectorate in Egypt Case (2) Investing in Beekeeping4041Concluding Notes4954References55
Executive SummaryA green economy is one whose growth in income and employment is driven by publicand private investments that reduce carbon emissions and pollution, enhance energyand resource efficiency, and prevent the loss of biodiversity and ecosystem services.These investments need to be catalyzed and supported by targeted public expenditure,policy reforms and regulation changes. This development path should maintain,enhance and, where necessary, rebuild natural capital as a critical economic asset andsource of public benefits, especially for poor people whose livelihoods and securitydepend strongly on nature.A green economy does not favour one political perspective over another. It is relevantto all economies, be they state or more market-led. Neither is it a replacement forsustainable development. Rather, it is a way of realising that development at thenational, regional and global levels and in ways that resonate with and amplify theimplementation of Agenda 21.This document reviews the current knowledge on green economy (based on UNEPpublication on ―Green Economy‖ 2010), the current situation in Egypt, initiatives bydifferent stakeholders, donors and experts. It also provides a situation analysis andassessment of green economy activities in protected areas, and hope to provide acommon vision, policy, and means of implementation.It also presents an innovative and recent green economy initiative at Borneo Island,Indonesia, extracting lessons and benefiting from knowledge.Is also explores implementation of green economy solutions at protected areas inEgypt. The study also provides cost benefit analysis for some of the proposedsolutions to examines the feasibility for implementation.
The document has concluded that green economy is new approach for sustainabledevelopment. It has also proposed that the Green Economy Initiative in ProtectedAreas of Egypt consists of several components whose collective overall objective is toprovide the analysis and policy support for investing in green sectors and in greeningenvironmental unfriendly sectors. The Initiative includes three sets of activities:1) Promoting the Green Economy Approach and related research materials, whichwill analyse the macroeconomic, sustainability, and poverty reductionimplications of green investment in a range of sectors from renewable energyto sustainable agriculture and providing guidance on policies that can catalyzeincreased investment in these sectors.2) Providing advisory services on ways to move towards a green economy inspecific sectors.3) Engaging a wide range of research, non-governmental organizations, businessand national and international donor partners in implementing the GreenEconomy Initiative.Finally, Adopting green economy solutions at protected areas of Egypt is expected toresult in better environmental management, biodiversity conservation together witheconomic and social development. It is therefore recommended for decision makersand officials to incorporate the green economy within the framework of protectedareas management. A menu of green economy solutions are presented, and stepsshould be taken to mainstream this approach.
Introductiona) BACKGROUNDGreen economy in the context of sustainable development and poverty eradicationwas one of the principal themes of the United Nations Conference on SustainableDevelopment (UNCSD) (2012). The Conference affirmed that there are differentapproaches, visions and tools available for each country to achieve sustainabledevelopment, and green economy is considered one of the important tools, guided bythe RIO Principles, Agenda 21, Johannesburg Plan of Implementation (JPOI)Development Goals (MDGs). A paragraph on Green policy addressed, inter alia: National sovereignty over natural resources;Participation by all relevant stakeholders;Sustained and inclusive growth;International cooperation on finance, among other matters;Unwarranted conditionalities on Official Development Assistance (ODA);Trade discrimination;Technology gaps;Local peoples and non-market approaches;Poverty eradication;Social protection floors;Sustainable consumption and production (SCP); andOvercoming poverty and inequalityOn implementation of policies; there is recognition that each country can choose anappropriate approach, resource efficiency, equitable growth and job creation, and ofthe importance of evaluating a range of social, environmental and economic factors indecision making. On partnerships and networks, RIO 20 noted positive experience insome countries, including in developing countries, of adopting green economypolicies.There was recognition of the power of communication technologies, of linkingfinancing, technology and capacity building, and in emphasis on the importance ofgovernments in showing leadership.Relevant stakeholders, including UN organizatiers, were invited to developsustainability strategies that integrate green economy policies. RIO 20 alsoaddressed the role of cooperatives and micro-enterprises, public-private partnerships,the critical role of technology and technology transfer with reference to JohannesburgPlan of Implementation (JPOI), and assistance. Thus, green economy requires newinstitutional framework for sustainable development.
b) GREEN ECONOMY: GLOBAL VIEWMost economic development and growth strategies encouraged rapid accumulationsof physical, financial and human capital, but at the expense of excessive depletion anddegradation of natural capital, which includes the endowment of natural resources andecosystems. By depleting the world's stock of natural wealth – often irreversibly –this pattern of development and growth has had deterimental impacts on the wellbeing of current generations and presents tremendous risks and challenges for thefuture. The recent multiple crises are symptomatic of this pattern.Existing policies and market incentives have contributed to this problem of capitalmisallocation because they allow business to run up significant, largely unaccountedfor, and unchecked social and environmental externalities. To reverse suchmisallocation requires better public policies, including pricing and regulatorymeasures, to change the perverse incentives that drive this capital misallocation andignore social and environmental externalities.At the same time, appropriate regulations, policies and public investments that fosterchanges in the pattern of private investment are increasingly being adopted around theworld, especially in developing countries.The last few years have experienced an increased recognition of the importance ofadvocating "green economy" as a tool for achieving sustainable development andpoverty eradication. Because of the many concurrent crises (e.g. climate change,biodiversity loss, fuel, food, and water security) and market failure, experiencedrecently, including the financial and economic crisis of 2008, a new economicparadigm-one in which material wealth is not delivered at the expense of growingenvironmental risks, ecological scarcities and social disparities-is emerging.Mounting evidence also suggests that transitioning to a green economy has soundeconomic and social justification. There is a strong case emerging for a redoubling ofefforts by both governments and private sector to engage in such an economictransformation. For governments this would include leveling the playing field forgreen products by phasing out subsidies, reforming policies and providing newincentives, strengthening market infrastructure and market-based mechanisms,redirecting public investment, and promoting green public procurement. For theprivate sector, this would involve understanding and siezing the opportunity offeredby transitioning to a green economy across a number of key sectors, (natural capitalsuch as agriculture, fisheries, coral reefs, mangroves; investing in energy and resourceefficiency such as renewable energy, manufacturing, waste, building, transport,tourism, and cities) and responding to policy reforms and price signals through higherlevels of financing and investment.UNEP defines a green economy as one that results in "improving human well-beingand social equity, while significantly reducing environmental risks and ecologicalscarcities. It is low-carbon, resource efficient, and socially inclusive".It focuses on improving human well-being and reducing social inequity over the longterm, without exposing future generations to significant risks and ecological
scarcities. It seeks to do so in two ways. First, by increasing investment in thesustainability of ecosystems upon which much of the poor people depend, it ensuresthat the environment can continue to be used for the benefit of current and futuregenerations. Second, by developing strategies for economic growth on the basis ofthe sustainable use of natural resources and the environment, a green economygenerates the long-term jobs and wealth that are needed to help eradicate poverty. Agreen economy also recognizes that conventional economic indicators, such as GDP,provides a distorted indicator for economic performance. This is because suchindicators fail to reflect the extent to which production and consumption activitiesmay be drawing on natural capital.Certain enabling conditions (regulations, measures) need to be created and maintainedso that private sector actors will have an incentive to invest in green economy activity.Enabling conditions are defined as conditions that facilitate investment in greensectors. They create a context in which economic activity increases human wellbeing and social equity, and significantly reduces environmental risks and ecologicalscarcities. Enabling conditions can be created by a wide range of actors andinstitutions (e.g. governments, NGOs, for a, multilateral agreements, private sector,etc.)Moving towards a green economy has the potential to achieve sustainabledevelopment and eradicate poverty on an unprecedented scale, with speed andeffectiveness. This potential drives from two concurrent changes. First, there is achanged playing field in which our world and the risks we face have materiallychanged. These changes require a fundamental rethinking of our approach to theeconomy. Second, there is a growing recognition that the natural environment formsthe basis of our physical assets and must be managed as a source of growth, prosperityand well-being.Changing the economic environment in this way is an ambitious undertaking whichrequires a holistic set of policies to overcome a broad range of barriers across theinvestment landscape.These are six key areas of policy making which most governments will need to focuson in order to correct the incentive structures in current unsustainable markets and toalter investment landscapes in the short to medium-term. These policy tools are:1. Promoting investment and spending in areas that stimulate a green economy(green public infrastructure and procurements).2. Addressing environmental externalities and market failures (taxes and tradablepermits).3. Limiting government spending in areas that deplete natural capital (reformingharmful subsidies).4. Establishing sound regulatory frameworks (standards, property laws andaccess right, negotiated and voluntary agreements, information based tools)
5. Investing in capacity building, training and education.6. Strengthening international governance.Carefully designed investment and spending can stimulate the greening of economicsectors. While the bulk of green economy investment will ultimately have to comefrom the private sector, the effective use of public expenditure and investmentincentives can play a useful role in triggering the transition to a green economy.Taxes and market-based instruments are powerful tools to promote green investmentand innovation. Significant price distortions exist that can discourage greeninvestments or contribute to the failure to scale up such investment. In a number ofeconomic sectors, negative externalities, such as pollution, health impacts or loss ofproductivity, are typically not reflected in costs, thereby reducing the incentives toshift to more sustainable goods and services. A solution to this problem is tointernalize the cost of externalities in the price of a good or service via a correctivetax, charge or levy closer to the source of pollution or, in some cases, by using othermarket-based instruments, such as tradable permit schemes.Government spending in areas that delete environmental assets is counterproductiveto a green economy transition. Artificially lowering the price of goods throughsubsidization can encourage inefficiency, waste and overuse, leading to the prematurescarcity of valuable finite resources on the degradation of renewable resources andecosystems such outdated subsidies can also be socially unfair. Moreover, they canreduce the profitability of green investments. Reforming environmentally harmfuland economically costly subsidies can therefore bring both fiscal and environmentalbenefits. However, short-term support measures accompanying the reform may benecessary to protect the poor.A well-designed regulatory framework creates incentives that drive green economyactivity. The use of regulations and enforcement of legislation is necessary to addressthe most harmful forms of unsustainable behavior, either by creating minimumstandards or prohibiting certain activities entirely.Investing in capacity building and training is essential to support a transition to agreen economy. A shift towards a green economy may require capacity to analyzechallenges, identify opportunities, prioritize interventions, mobilize resources,implement policies and evaluate progress. Temporary support measures may berequired to ensure a just transition for affected workers to new jobs.Strengthening international governance can assist governments to promote a greeneconomy. Multilateral environmental agreements, which establish the legal andinstitutional frameworks addressing global environmental challenges, can play asignificant role in promoting green economic activity.Green economy was one of the main topics discussed during the World Summit onSustainable Development (June 2012, RIO 20). Discussions included approach (s),
vision, models, tools, sustainable innovation, enabling environment, green jobs,criteria for green economy, environmental coast and benefits when green economyimplemented, legal and regulatory frameworks, investment in green economytransition, trade barriers, funding and international cooperation, technologicalcommunications, institutional reforms, international platform / fora on greeneconomy, partnerships, networking, information exchange, national strategies andaction plans, database and information needed, gap analysis, political guidelines,voluntary technology transfer, national legislation, and means of implementation(funding, science and technology, capacity building, trade and compliance).
Section 1: Green Economy Initiative in theProtected Areas of Egypt
Section 1: Green Economy Initiative in theProtected Areas of Egypta) Current Situation Of Green Economy In EgyptAt RIO 20, Egypt confirmed that it is moving towards green economy. Developmentpriorities included water, food, national security, and energy, transition to greeneconomy and nature conservation. During the same month (June 2012), Egyptcelebrated with the world, during the International Environment Day, under theumbrella of UNEP ―Green Economy‖.However, situation analysis for green economy in Egypt, has indicated that greeneconomy still at an embryonic stage. It is true that there exist many policies andinitiatives dealing with green economy, including Egyptian Council on CleanDevelopment Mechanism (CDM) (Ministry of Environment), Supreme Council ofGreen Building (Ministry of Housing), Industrial Modernization Centre and theNational Cleaner Production Centre (Ministry of Industry).Resources are being directed towards adapting and undertaking mitigation measuresto combat climate change and other environmental challenges (e.g. air and waterquality, waste management, coastal and marine pollution, nature protection,desertification,). Government is directing mitigation measures toward energy (windpower), manufacturing (12% of the water force) a
Strengthening Protected Area Financing and Promoting Green Economy Solutions at Protected Areas of Egypt An Initiative Proposal Deliverable # 014-3668-013 By Professor. MOUSTAFA M. FOUDA National Focal Point of CBD Director, Strengthening Protected Area Financing and Management Systems Project Mahmoud Sarhan
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