The economic model of developing countries is often based on natural resources exploration, often at the expense of environmental quality and society.
Strong economic and demographic growth in emerging markets (80% of the world population) over the past decade has helped to lift up of the poverty millions of people but has often led to environmental degradation and natural resources depletion that can undermine the well-being of future generations, expose the developing countries to greater climate risks, contributes to global climate change. Estimates of some economic costs demonstrate the need to make a shift towards more sustainable and climate resilient economic growth and development.
Developing countries are critical partners for achieving global environmental objectives, such as reducing GHG emissions and slowing biodiversity loss.
Since 2010 the OECD has reviewed the progress of several emerging economies such as Brazil, Chile, Colombia, Mexico, Peru, South Africa, and Turkey towards green growth and the changes needed to fully integrate economic and environmental decision making. In these reviews, the OECD has offered a number of the reforms aimed at raising productivity, boosting competitiveness, lowering trade barriers in a sustainable way.
The 2019 Environmental performance review admits a little progress in improving the resource use efficiency and slow increase in non-energy material use productivity, highlight the growing problems of air pollution and water scarcity and suggests the potential policy options to improve the situation and accelerate the progress towards green growth, that means effectively aligning economic growth and environmental objectives and requires fully mainstreaming green growth across ministries and sub-national organisations, on the one hand, and into relevant sectoral policies, programmes and regulations, on the other. Mainstreaming environmental and green growth considerations requires both clear strategic direction and effective implementation instruments.
This is particularly important in emerging market economies (EMEs), where some of the most important sectors in terms of employment and GDP are also major sources of environmental damage and resource degradation. Agriculture, fisheries, forestry, mining, oil and gas extraction, and transport should be prime targets for green growth mainstreaming. However, environment has traditionally been the exclusive domain of environmental ministries, and other institutions often lack the capacity or direction needed to contribute effectively. OECD research and EPRs have highlighted some core elements that are essential for an effective mainstreaming of green growth (OECD, 2015a): • High-level strategic direction – all ministries need clear mandates from heads of government. • Accountability – those with responsibilities should be held accountable for results. • Resources – adequate financial and human resources are essential to implementation. • Knowledge dissemination – widely sharing research, data, analysis and lessons learned is crucial.
