Green GDP

ISA Economics Project by

Class 12
INTRODUCTION TO
GREEN GDP
WHAT IS GREEN
GDP?
The
The Green
Green GDP
Product)
Product) is
GDP (Gross
is an
(Gross Domestic
an index
index of
Domestic
of economic
economic growth
growth
with
with the
the environmental
environmental consequences
consequences of of
that
that growth
growth factored
factored into
into aa country's
country's
conventional
conventional GDP.GDP.
Green
Green GDP
GDP monetizes
monetizes thethe loss
loss of
of
biodiversity,
biodiversity, and
and accounts
accounts forfor costs
costs
caused
caused byby climate
climate change.
change.
Some
Some environmental
environmental experts
experts prefer
prefer
physical
physical indicators
indicators (such
(such asas "waste 
"waste 
per
per capita"
capita" or
or "carbon
"carbon dioxide
dioxide emissions
emissions
 per
 per year"),
year"), which
which maymay bebe aggregated
aggregated to
to
indices
indices such
such asas the
the ""
HOW IS GREEN GDP
CALCULATED?
Calculating
Calculating green
green GDP
GDP requires
requires that
that net natural
net natural
capital consumption, including 
capital consumption, including 
resource
resource depletion, 
depletion, 
environmental
environmental degradation, protective and 
degradation, protective and 
restorative environmental
restorative environmental initiatives,
initiatives, be
be
subtracted
subtracted from
from traditional
traditional GDP. 
GDP. 
Some
Some early
early calculations
calculations of of green
green GDP
GDP take
take into
into
account
account oneone or
or two
two but
but not
not all
all environmental
environmental
adjustments.
adjustments.
These
These calculations
calculations can can also
also be
be applied
applied to 
to 
net
net domestic
domestic product (NDP),
product (NDP), which which deducts
deducts
the
the depreciation
depreciation of of produced
produced capital
capital from
from GDP.
GDP.
In
In each
each case,
case, itit is
is necessary
necessary toto convert
convert the
the
resource
resource activity
activity into
into aa monetary
monetary value,
value, since
since itit
is
is in
in this
this manner
manner that that indicators
indicators are
are generally
generally
JAPAN GREEN
GDP
POLICY ADOPTED BY
JAPAN
●● Japan
Japan takes
takes pride
pride in
in its
its constant
constant efforts
efforts made
made towards
towards aa sustainable
sustainable
economy.
economy.
●● The
The vision
vision is
is to
to “Become
“Become aa leader
leader toward
toward aa future
future where
where economic,
economic,
social
social and
and environmental
environmental improvements
improvements are are attained
attained in
in an
an
integrated, sustainable and
integrated, sustainable and resilient
resilient manner
manner while
while leaving
leaving no
no one
one
behind.”
behind.”
●● Japan
Japan strives
strives towards
towards anan inclusive
inclusive green
green world
world through
through
collaborations,
collaborations, trainings,
trainings, seminars
seminars and
and laws
laws on
on aa local
local and
and
international
international level.
level.
●● Its
Its technology
technology driven
driven economy
economy adapts
adapts itself
itself to
to the
the dynamic
dynamic efforts
efforts
INTERNATIONAL
COLLABORATIVE
●● In
In December
December 2019,
2019, Energy
Energy Conservation
EFFORTS
Conservation Center,
Center, Japan
Japan (EECJ),
(EECJ),
invited
invited representatives
representatives of
of 10
10 ASEAN
ASEAN countries
countries to
to provide
provide training
training
for:
for:
1.
1. Development
Development and and refinement
refinement of of energy
energy conservation
conservation techniques.
techniques.
2.
2. Countermeasures
Countermeasures for for the
the unsustainable
unsustainable building
building crisis
crisis in
in ASEAN
ASEAN
countries.
countries.
3.
3. Support
Support and
and promote
promote energy
energy conservation
conservation inin south
south east
east Asia.
Asia.
●● Japan
Japan has
has started
started various
various training
training programs
programs forfor Chinese
Chinese officials
officials to
to
help
help bring
bring change
change in
in the
the hazardous
hazardous pollution
pollution levels
levels in
in China
China
APPROACH
LEGAL STEPS TAKEN FOR
GREEN DEVELOPMENT
●● On
On 21
21 January
January 2020,
2020, Japan
Japan amended
amended its
its ENERGY
ENERGY
CONSERVATION
CONSERVATION ACT ACT toto create
create regulatory
regulatory bodies
bodies for
for industries
industries
like:
like:
1.
1. Electric
Electric vehicles
vehicles
2.
2. Gasoline
Gasoline
3.
3. Insulation
Insulation devices
devices
●● EECJ
EECJ updated
updated its
its standards
standards for
for the
the energy
energy consumption
consumption andand
efficiency
efficiency ofof high
high power
power heating
heating devices.
devices. Japan’s
Japan’s main
main energy
energy
consumption
consumption revolves
revolves around
around heating
heating appliances
appliances like
like water
water heaters
heaters
and
and coil
coil heaters.
heaters.
DOMESTIC MEASURES FOR
SUSTAINABILITY
●● On
On 66 February
February 2019,
2019, itit was
was made
made mandatory
mandatory for
for all
all small
small and
and
medium
medium houses
houses to
to energy
energy conservation
conservation standards
standards set
set by
by the
the EECJ.
EECJ.
●● The
The conformity
conformity ratio
ratio has
has been
been set
set to
to 20%
20% -- 50%
50%
TOP RUNNER PROGRAM
●● Top
Top runner
runner Program
Program was
was launched
launched inin in
in 1999,
1999, isis aa set
set of
of energy
energy
efficiency
efficiency standards
standards for
for energy
energy intensive
intensive products,
products, such
such as
as home
home
appliances
appliances and
and motor
motor vehicles. 
vehicles. 
●● It
It aims
aims to
to increase
increase electric
electric vehicle
vehicle usage
usage for
for passenger
passenger
transportation
transportation by
by 20%
20% byby 2040.
2040.
●● Kyoto
Kyoto Protocol
Protocol was
was established
established inin 1998,
1998, Japan
Japan was
was required
required toto
further
further accelerate
accelerate energy
energy conservation
conservation efforts
efforts to
to achieve
achieve itsits GHG
GHG
emission
emission reduction
reduction target
target (6%
(6% reduction
reduction byby 2008–2012
2008–2012 compared
compared toto
the
the 1990
1990 level).
level).
●● The
The Top
Top Runner
Runner Approach
Approach was was expected
expected to to be
be an
an effective
effective strategy
strategy
UK GREEN GDP
RANGE OF ADVANTAGES
● Manage risks, such as those from increasing and
fluctuating fossil fuel prices;
● Increase resilience, such as to the impacts of climate
change
● Seize the opportunities from new and emerging markets
SOME KEY POINTS
● Transition brings challenges along with the opportunities
● UK businesses should be well placed to take advantage of
the significant business opportunities
GOVERNMENT PLAYS A
MAJOR ROLE
● Range of policy tools to support the transition.
● Using these tools in the right way that balances
supporting good behavior and discouraging poor
environmental outcomes is important.
USA GREEN GDP
USA GREEN GDP
GEOGRAPHICAL
LOCATION
• The United States shares land borders with Canada and
Mexico.
• The contiguous forty-eight states are otherwise bounded
by the Pacific Ocean, the Atlantic Ocean, and the 
Gulf of Mexico.
• Hawaii lies far to the southwest of the mainland in the
Pacific Ocean.
ECONOMY
The economy of the United
States is highly developed and 
mixed It has the world's eighth-
highest 
per capita GDP (nominal) and
the tenth-highest 
per capita GDP (PPP) in 2019.
It has the seventh-highest total-
estimated value of natural
GREEN GDP 2020
$22.32 Trillion

U.S. Nominal GDP: $21.44

trillion - U.S. GDP
(PPP): $21.44 trillion. The
U.S. has retained its position of
being the world's largest
economy since 1871.
USA GREEN GDP DUE TO
COVID 19 atat aa
●● The US economy shrank
The US economy shrank
dizzying
dizzying 33
33 per
per cent
cent annual
annual rate
rate
in
in the
the April-June
April-June quarter
quarter by
by far
far
the
the worst
worst quarterly
quarterly plunge
plunge ever
ever
when
when the
the viral
viral outbreak
outbreak shut
shut
down
down ..
●● The
The Commerce
Commerce Department's
Department's
estimate
estimate decline
decline in
in the
the gross
gross
domestic
domestic product,
product, the
the total
total
output
output of
of goods
goods and
and services,
services,
DIVISION OF GDP
In 2017, agriculture
contributed around 0.9
percent to the GDP of
the United States, 18.2
percent came from industry,
and 77.4 percent from the
service sector.
UAE GREEN GDP
UAE GREEN GDP
The year 2016 marked a turning point for
the UAE in many ways. In February, His
Highness Sheikh Mohammed bin Rashid
Al Maktoum, Vice President and Prime
Minister of the UAE and Ruler of Dubai,
announced a major restructuring of the
federal government. The move included
the transformation of the former Ministry
of Environment and Water into the
Ministry of Climate Change and
Environment (MOCCAE). The formation
of the new Ministry was aimed at tackling
Given
Given the
the prospective
prospective growth
growth in in population
population and and demand
demand for for energy
energy andand
resources
resources in in the
the country,
country, itit is
is evident
evident that
that the
the UAE’s
UAE’s ambition
ambition for for further
further
economic
economic growth
growth andand high-quality
high-quality lifestyles
lifestyles will
will not
not be
be met
met by
by simply
simply
replicating
replicating thethe conventional
conventional development
development model. model. An
An alternative
alternative pathway
pathway toto
manage
manage the the country’s
country’s economic
economic aspirations
aspirations and and natural
natural heritage
heritage must
must be
be
sought
sought where
where sustainable
sustainable development
development is is placed
placed at
at the
the heart
heart of
of the
the UAE’s
UAE’s
development.
development. This This is
is aa huge
huge challenge,
challenge, but but the
the UAE
UAE is is rich
rich in
in the
the human
human
capital,
capital, innovative
innovative capacity
capacity and and technological
technological leadership
leadership that
that are
are required
required to
to
realize
realize such
such aa radical
radical transformation
transformation in in
the
the coming
coming decades.
decades. AnAn accelerated
accelerated effort
effort toto decouple
decouple environmental
environmental impact
impact
from
from economic
economic growthgrowth is is also
also expected
expected to to bring
bring significant
significant new
new competitive
competitive
advantages
advantages and and job
job opportunities
opportunities to to the
the country.
country.
This
This chapter
chapter provides
provides an an overview
overview of of the
the action
action plan
plan for
for the
the country’s
country’s green
green
economy
economy transformation,
transformation, the the UAE
UAE Green
Green Agenda
Agenda 2030,
2030, which
which waswas launched
launched in
in
AN OVERVIEW OF THE
GREEN AGENDA
In February 2010, the UAE Vision 2021 was unveiled by His
Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the
UAE, to chart the nation’s new development path and present its
united ambition and determination. The primary and ambitious
objective of this comprehensive national strategy is for the UAE
to be among the best countries in the world by the time of the
nation’s golden jubilee celebration in 2021. “The environment and
wellbeing” was identified as one of the Vision’s six major
challenges where the UAE aims for excellence over 10 years,
USD 27 BILLION DUBAI
GREEN
Development ofFUND
a AED 100 billion (USD 27 billion) Dubai
Green Fund was announced in November 2015, as part of
the Dubai Clean Energy Strategy 2050 launched by His
Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice
President and Prime Minister of the UAE and Ruler of
Dubai. The strategy aims to provide 7% of Dubai’s energy
from clean energy sources by 2020, 25% by 2030 and 75%
by 2050, eventually making it the city with the smallest
carbon footprint in the world by 2050.
NATIONAL ENERGY STRATEGY
FOR
In 2050
In January
January 2017,
2017, His
LAUNCHED
His Highness
Highness Sheikh
Sheikh Mohammed
Mohammed
bin
bin Rashid
Rashid Al Al Maktoum,
Maktoum, Vice
Vice President
President and
and Prime
Prime
Minister
Minister ofof the
the UAE
UAE and
and Ruler
Ruler of
of Dubai,
Dubai, unveiled
unveiled
the
the UAE
UAE Energy
Energy Plan
Plan for
for 2050.
2050. The
The new
new energy
energy
strategy
strategy aims
aims to to increase
increase the
the contribution
contribution ofof clean
clean
energy
energy inin the
the total
total energy
energy mix
mix toto 50%,
50%, thus
thus saving
saving
AED
AED 700700 billion
billion (USD
(USD 191
191 billion)
billion) by
by 2050.
2050. This
This
is
is the
the first
first unified
unified energy
energy strategy
strategy inin the
the country
country
planned
planned based
based onon the
the balance
balance between
between supply
supply and
and
demand
demand and and the
the consideration
consideration of of its
its international
international
INDIA GREEN
GDP
INDIA GREEN
GDP
INDIA
● In 2016, India ranked a very low 68 out of 80 countries, in terms
of performance ranking, analyzed in the Global Green Economy
Index (GGEI), which is a data driven analysis of national green
economy performance
● India ranked amongst the last in the Environment Dimension and
Leadership and Climate Change; and Efficiency Sectors
dimension. It however performed well in the Markets &
Investment dimension, falling near the top twenty. Interestingly,
India achieved a relatively high perception rank of 19, (citizens’
GOVERNMENT
●●India’s
India’s 12th
12th Five
Five Year
Year plan
plan (2012-
(2012- 17)
17) for
for the
the first
first time
time made
made
environmental
environmental sustainability
sustainability aa central
central pillar
pillar of
of India’s
India’s development
development
strategy
strategy
●●Some
Some political
political parties
parties have
have taken
taken up
up key
key issues
issues around
around sustainability
sustainability
and
and inclusivity
inclusivity during
during elections;
elections; however
however environmental
environmental sustainability
sustainability
issues
issues are
are usually
usually given
given only
only ornamental
ornamental importance
importance at at the
the national
national
level
level and
and highlighted
highlighted inin the
the natural
natural resource
resource dependent
dependent geographies.
geographies.
●●In
In the
the 2017
2017 elections
elections in
in the
the state
state of
of Goa,
Goa, adverse
adverse balance
balance between
between
environment
environment andand development
development became
became aa major
major issue
issue in
in elections.
elections.
Citizens
Citizens outraged
outraged over
over the
the state
state government
government decision
decision toto classify
classify
BUSINESS
●●The
The larger
larger perception
perception inin India
India among
among businesses
businesses and and policy
policy makers
makers
remains
remains thatthat environmental
environmental protection
protection comes
comes at at the
the cost
cost of
of economic
economic
growth
growth and and development
development
●● Financial
Financial markets
markets for
for green
green investments
investments areare at
at aa nascent
nascent stage
stage and
and
systems
systems to to direct
direct funding
funding towards
towards green
green and
and responsible
responsible investments
investments
are
are inadequate
inadequate
●● Green
Green technology
technology is is generally
generally thought
thought of
of as
as unreliable
unreliable andand not
not cost-
cost-
competitive.
competitive.
●● The
The thinking
thinking that
that India
India cannot
cannot afford
afford to
to ‘pollute
‘pollute now,
now, clean
clean up
up later’
later’
has
has still
still not
not gained
gained mainstream
mainstream acceptance.
acceptance.
BEYOND GDP
●●India
India announced
announced its its intention
intention to to unveil
unveil its
its “green
“green GDP”
GDP” figures
figures as
as far
far
back
back as
as 2009.
2009. InIn 2013,
2013, anan expert
expert group
group under
under an an eminent
eminent economist
economist
submitted
submitted their
their report
report containing
containing aa framework
framework for for green
green national
national
accounts.
accounts. These
These figures
figures were
were scheduled
scheduled to to be
be published
published from
from 2015
2015
onwards,
onwards, however,
however, due due to
to aa lack
lack ofof micro
micro level
level data
data on
on natural
natural capital,
capital,
lack
lack of
of budgets
budgets andand the
the complexity
complexity of of the
the exercise,
exercise, the
the process
process has
has been
been
put
put on
on hold.
hold. InIn 2013,
2013, India
India suffered
suffered aa loss
loss equivalent
equivalent to
to 8.5%
8.5% of
of GDP
GDP as as
aa result
result of
of air
air pollution.
pollution. There
There are are aa few
few isolated
isolated cases
cases in
in India
India where
where
state
state governments
governments have have taken
taken initiatives
initiatives to to go
go beyond
beyond GDP.
GDP. InIn 2016,
2016,
Madhya
Madhya Pradesh
Pradesh became
became the the first
first state
state to
to set
set up
up aa Happiness
Happiness
BUSINESS SUSTAINABILITY
REPORTING
●While not mandatory, preparing sustainability report is a
rising trend in India. The rate of reporting has grown over
20% between 1999 and 2009. About 63% of the top 100
companies and 77% of non-100 companies now prepare
sustainability reports, the majority of which use the GRI
framework. Over time, the quality of these reports is
improving.
ENERGY
●According to a report by the UN Environment Program (UNEP)
India was ranked seventh in the world in terms of investment in
sustainable energy.
●The Ministry of New and Renewable energy targets to set up
renewable energy capacities to the tune of 175 GW by 2022 of
which about 100 GW is planned for solar, 60 for wind and other
for hydro, bio energy. Total installed renewable energy capacity
(including large hydro projects) in India touched 114.43 GW as
of May 2018, which is around 33 per cent of total energy
GREEN ECONOMY AND
SUSTAINABLE DEVELOPMENT
IN
The
INDIA
The concept
concept
inclusivity
inclusivity to
of
of green
green growth
growth assumes
to sustainable
assumes centrality
sustainable development
centrality of
development in
in India.
of socio-economic
India. The
socio-economic
The project,
project, Initiative
Initiative on
on
Green
Green Growth
Growth andand Development
Development in in India,
India, aims
aims to
to build
build evidence
evidence through
through
which
which the
the Indian
Indian economy
economy can can move
move towards
towards an
an inclusive
inclusive green
green growth
growth
paradigm
paradigm of of development
development .Five
.Five high-impact
high-impact sectors
sectors key
key to
to the
the Green
Green
Economy
Economy transition
transition in
in India
India are
are Agriculture,
Agriculture, Construction,
Construction, Power,
Power,
Manufacturing,
Manufacturing, Transport
Transport and
and Tourism.
Tourism. In
In 2015,
2015, Sikkim
Sikkim was
was named
named the
the
first
first fully
fully organic
organic state
state in
in the
the country.
country.
OVERCOMING
ENVIRONMENTAL
In
In the
the last
last decade,
decade, India’s
India’s strong
strong growth
growth has
has created
created more
more employment
employment
opportunities
opportunities and
and allowed
allowed millions
millions to
to come
come out
out of
of poverty.
poverty. India’s
India’s
CHALLENGES
remarkable
remarkable growth
growth record,
record, however,
however, has
has been
been clouded
clouded by
by aa degrading
degrading
environment
environment andand growing
growing scarcity
scarcity of
of natural
natural resources.
resources. Mirroring
Mirroring the
the size
size
and
and diversity
diversity of
of its
its economy,
economy, environmental
environmental risks
risks are
are wide
wide ranging
ranging and
and
are
are driven
driven by
by both
both prosperity
prosperity and
and poverty.
poverty.

In
In aa recent
recent survey
survey of
of 178
178 countries
countries whose
whose environments
environments were
were surveyed,
surveyed,
India
India ranked
ranked 155th
155th overall
overall and
and almost
almost last
last in
in air
air pollution
pollution exposure.
exposure. The
The
survey
survey also
also concluded
concluded that
that India's
India's environmental
environmental quality
quality is
is far
far below
below all
all
WHAT CAN BE DONE?
AA low-emission,
low-emission, resource-efficient
resource-efficient greening
greening ofof the
the economy
economy should
should be
be possible
possible atat aa very
very low
low cost
cost in in terms
terms
of
of GDP
GDP growth.
growth. AA more
more aggressive
aggressive low-emission
low-emission strategy
strategy comes
comes at
at aa slightly
slightly higher
higher price
price tag
tag for
for the
the
economy
economy while
while delivering
delivering greater
greater benefits.
benefits.
Emissions
Emissions reduction
reduction would
would have
have aa minimal
minimal impact
impact on on GDP
GDP which
which would
would be be offset
offset by
by savings
savings through
through
improving
improving health
health while
while substantially
substantially reducing
reducing carbon
carbon emissions.
emissions.
●● AA 10%
10% particulate
particulate emission
emission reduction
reduction will
will lower
lower GDP
GDP only
only modestly.
modestly. GDPGDP willwill be
be about
about $46
$46 billion
billion
lower
lower inin 2030
2030 duedue toto interventions,
interventions, representing
representing aa loss
loss of
of 0.3
0.3 % % compared
compared to to business
business as
as usual.
usual.
●● AA 30%
30% particulate
particulate emission
emission on on the
the other
other hand
hand reduction
reduction will
will lower
lower GDP
GDP by by about
about $97
$97 billion,
billion, or
or 0.7
0.7
%.
%.
●● GDP
GDP growth
growth rate
rate will
will bebe negligibly
negligibly reduced
reduced by by about
about 0.02
0.02 toto 0.04%
0.04% in in both
both scenarios.
scenarios. There
There will
will be
be
significant
significant health
health benefits
benefits under
under both
both scenarios
scenarios whichwhich will
will compensate
compensate for for the
the projected
projected GDP
GDP loss.
loss.
●● The
The savings
savings from
from reduced
reduced health
health damages
damages will will range
range from
from $105
$105 billion
billion in
in the
the 30%
30% case
case and
and byby $24
$24
billion
billion with
with aa 10%
10% reduction.
reduction.
●● Under
Under thethe scenarios,
scenarios, another
another important
important benefit
benefit would
would be
be aa substantial
substantial reduction
reduction in in CO2
CO2 as as aa co-
co-
benefit
benefit which
which hashas aa potential
potential of
of being
being monetized.
monetized.
CONCLUSION: WHERE DOES
INDIA STAND ON GREEN
ECONOMY?
●●While
While progress
before
progress has
has been
been made
made there
there is
is still
still aa long
long road
road to
to be
be travelled
travelled
before the
the transformation
transformation is
is complete.
complete. In
In order
order toto accelerate
accelerate the
the
transition
transition the
the following
following recommendations
recommendations are are made
made
●●Reforming
Reforming Finance
Finance
●●Greening
Greening High-Impact
High-Impact Sectors
Sectors
●●Investing
Investing in
in People
People
●●Valuing
Valuing Nature
Nature
“The
“The green
green economic
economic transition
transition is
is moving
moving slowly,
slowly, and
and the
the progress
progress made
made
is
is insufficient
insufficient compared
compared toto what
what is
is needed.”
needed.”
THE END