Some would argue that 2015 was a successful year for humanity in that fewer people were suffering from starvation, more people were receiving better education and the average life expectancy was on the rise, instilling a sense of enthusiasm and a positive vibe for the future.
The most notable scenes on the environment and development front in 2015 were the International Conference on Financing for Development in Addis Ababa; the Sustainable Development Summit in New York and the COP21 Climate Change Conference in Paris.
2015 was a momentous year for the United Nations as all the meetings delivered above expectations. These meetings overlap with each other as the mobilisation of means of implementation, including financial resources, technology development and transfer and capacity building and the role of partnerships are acknowledged as critical.
However, the fact of the matter is that we are faced with global challenges such as climate change, energy security, food and water scarcity and material price increases. The gap between the rich and the poor is widening in spite of global wealth increase, thus greater emphasis needs to be placed on finding a sustainable model of economic growth. The impacts of ageing and urbanisation are also affecting the economic, social and environmental prospects of countries around the world.
Global momentum is building towards a sustainable economy. An increasing number of countries are determined to transition to an inclusive green economy as they recognise the fact that economic growth and sustainable development are complementary objectives. Also, renewable energy is no longer seen as an indulgence that needs to be tolerated. According to UNEP’s 9th “Global Trends in Renewable Energy Investment 2015,” renewables are growing rapidly in both developed and developing countries, with China leading the way.
China saw more than $83 billion in investments in renewables in 2014. The US came in second worldwide, with about $38 billion in investments and Japan ranked third with nearly $36 billion. Investments in renewables totalled $131.3 billion in developing nations in 2014, up 36 per cent over 2013. A growing number of companies are realising that renewables are the only part of the energy sector with a long-term future. Solar and wind accounted for 92 per cent of all investment in renewable and fuels worldwide in 2014. Wind and solar sectors are highly likely to carry on flourishing.
Shifting towards renewables is a win-win for the environment and the economy. Small-scale renewables offer an efficient way to provide energy access to vast numbers of people living without power. In fact, renewable energy can meet a number of objectives for developing nations by focusing on increasing energy access to their populations, improving poor air quality in cities by reducing emissions, enhancing sustainability of economic development and helping to move away from fossil fuel energy reliance.
Over the next decades, huge investments will be flowing into the energy sector. Therefore, it is critical to seek ways to green those investments. According to The Guardian, at least nine companies globally, including Unilever, General Electric, Ikea, Nike and Toyota generate a billion dollars or more in revenue annually from sustainable products or services. If the Paris climate agreement was anything to go by, 2016 is the year that the green industrial revolution will begin to gather momentum. 2016 is the year when the energy industries need to think about ways to decarbonize the energy sector to respond to the challenges of tomorrow.
Although we are witnessing positive signs in a breakthrough in renewables, we will only be successful in addressing global challenges if we mainstream green growth into the policy agenda. The Global Green Growth Institute, a Seoul-based international organization of which I serve as the Director-General, is a good example. We assess the risks and opportunities related to green growth and then work with countries to implement strategies in four main areas: energy, cities, water and land use. Our programs vary from country to country. We deliver green growth programming in Asia, the Middle East, Africa and Latin America. What we do is determined by the nature of the countries that we work with and their priorities. We work as advisors to government and are exclusively focused on green growth and the priorities of partner countries.
Yvo de Boer is the director-general of the Global Green Growth Institute (GGGI), a Seoul-based international organisation.