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I N C LU S I V E G R E E N G R O W T H: T H E PAT H WAY TO S U S TA I N A B L E D E V E LO PM E N T

BOX 7.2 policies

MCA4Climate: A practical framework for planning pro-development climate

Climate change is a pervasive and complex problem, with uncertainty surrounding its multifaceted impacts. Setting priorities is hampered by the lack of a systematic and comprehensive description of the issues concerned, the links among them, and the trade-offs involved. Structured guidance is needed to underpin long-term policy planning in this area— guidance that systematically considers the direct and indirect economic, social, environmental, and institutional costs and impacts. The goal of the MCA4Climate initiative is to help fi ll this gap by developing practical guidance that enables governments to identify low-cost, environmentally effective, and pro-poor climate mitigation and adaptation policy choices. The multicriteria framework offers a useful planning tool for prioritizing and populating with concrete measures, including Nationally Appropriate Mitigation Actions,

National Adaptation Programs of Action, and other broad, economy-wide climate strategies. MCA4Climate rests on three main principles: • Climate change policy has multidimensional implications for human societies and the environment, affecting multiple interests and a wide range of values and priorities. • If formulated appropriately, policy responses to climate change can help meet country-specific development objectives. • Nonmonetary values, uncertainty, and the longterm dynamics of environmental, socioeconomic, and technological systems are inherent to climate change. They should be considered in the development of any policy response to it. Source: UNEP 2011.

TABLE 7.4 Framework for measuring potential benefits from green growth policies Type of benefit

Channels

Examples of indicators

Environmental

Improved environment

Indicators specifically developed for the domain in question (for example, reduction in greenhouse gas emissions, natural area protected from development, air or water quality)

Economic

Increase in factors of production (physical capital, human capital, and natural capital)

Measured by the additional production from increased capital (potentially measured by the value of ecosystems or renewable resources), or by the value of additional capital

Accelerated innovation, through correction of market failures in knowledge

Measured by productivity indicators (for example, efficiency of photovoltaic panels used to produce electricity) or dissemination indicators (for example, the fraction of the population with access to photovoltaic electricity)

Enhanced efficiency, through correction of nonenvironmental market failures

Measured by indicators for resource efficiency (for example, the material or energy intensity of production, reduction in the value of time lost from congestion), or by additional production

Increased resilience to natural disasters, commodity price volatility, and economic crises

Measured by metrics related to the project, from avoided disaster losses (in monetary terms) or number of people at risk from floods to a measure of the vulnerability to oil price volatility

Job creation and poverty reduction

Measured by the number of jobs created or an indicator of the impact on the poor (for example, reduction in the number of people without access to drinking water and sanitation)

Social

Inclusive Green Growth  

As the global population heads toward 9 billion by 2050, decisions made today will lock countries into growth patterns that may or may not b...