Global Green Growth Institute Research Articles

The effect of financial inclusion and economic integration on green growth in ASEAN

PurposeThis study was conducted to review the overview of green growth and examine the role of financial inclusion as well as economic integration and other variables on green growth in Association of Southeast Asian Nations (ASEAN) countries.Design/methodology/approachPrincipal component analysis (PCA) was used to construct financial inclusion variables and panel data regression analysis to examine the effect of financial inclusion and economic integration on green growth in 10 ASEAN countries from 2010 to 2021.FindingsThe results showed that financial inclusion had played a role in supporting green growth in ASEAN. The rapid development of green finance and green bonds promoted the implementation of better green growth. The variables of export diversification and trade openness had a significant effect on green growth. Therefore, there is a need for appropriate policies to prevent negative effects on the environment and the behavior of ASEAN countries.Research limitations/implicationsThe findings of this study suggest that policymakers in ASEAN countries not only focus on gaining economic benefits from financial inclusion and economic integration activities but also pay attention to environmental impacts. Moreover, the ASEAN region is actively developing strategic steps in providing easy access to capital and finance as well as expanding international trade activities through ASEAN Free Trade Area (AFTA). Therefore, it is hoped that apart from being able to establish sustainable policies, this region will also encourage and optimize previous policies to make them more environmentally friendly.Originality/valueThis study used a green growth approach with the Index by the Global Green Growth Institute. This index considered aspects of green economic opportunities and social inclusion that have not been applied in previous studies. In addition, this study contributed to review the activities of economic integration and financial inclusion and the sustainability of green growth in ASEAN countries. Until now, there has been no research focused on ASEAN; even though ASEAN has long carried out economic integration and encouraged financial inclusion policies, this region is vulnerable to environmental degradation issues.

GREEN GROWTH IN THE OECD COUNTRIES

The Organisation for Economic Co-operation and Development (OECD) is the leading actor for green growth. The main purpose of this study is to analyze the green growth conditions and achievements of the OECD countries. The Green Growth Index 2022 proposed by the Global Green Growth Institute is used in the analysis. 34 OECD countries are included in the analysis. The OECD countries are examined using green growth index, the dimensions and indicators of green growth index. Descriptive statistics and cluster analysis are used to analyze green growth achievement of the OECD countries. This study tries to identify achievements, needs, strengths and weaknesses of the OECD countries in terms of green growth.

Network science and explainable AI-based life cycle management of sustainability models.

Model-based assessment of the potential impacts of variables on the Sustainable Development Goals (SDGs) can bring great additional information about possible policy intervention points. In the context of sustainability planning, machine learning techniques can provide data-driven solutions throughout the modeling life cycle. In a changing environment, existing models must be continuously reviewed and developed for effective decision support. Thus, we propose to use the Machine Learning Operations (MLOps) life cycle framework. A novel approach for model identification and development is introduced, which involves utilizing the Shapley value to determine the individual direct and indirect contributions of each variable towards the output, as well as network analysis to identify key drivers and support the identification and validation of possible policy intervention points. The applicability of the methods is demonstrated through a case study of the Hungarian water model developed by the Global Green Growth Institute. Based on the model exploration of the case of water efficiency and water stress (in the examined period for the SDG 6.4.1 & 6.4.2) SDG indicators, water reuse and water circularity offer a more effective intervention option than pricing and the use of internal or external renewable water resources.

“Greening” the National Growth: How Global Green Growth Institute (GGGI) Collaborates with Indonesia in 2014-2020

With its natural richness, Indonesia is not immune from environmental, economic, and social problems. Indonesia remains facing the problem of greenhouse gas (GHG) emissions and environmental degradation resulting from economic activities caused by business-as-usual (BaU) activities. Therefore, Indonesia has developed a framework for a green growth program for national economic development with the Global Green Growth Institute (GGGI) since 2014. GGGI is an international organization that is specifically concerned about green growth at the global level. The Green Growth Concept was agreed upon at the 2005 Asia Pacific ministerial meetings in Seoul, South Korea. Indonesia also ratified the agreements to implement this green growth concept at the national level. This research elaborates on how GGGI, as a global actor, collaborates with Indonesia to develop the green growth framework. This study uses a descriptive qualitative research method with secondary data collection through literature, which will discuss GGGI's efforts to help implement the green growth program in Indonesia in 2014-2020. The case study is analyzed through the Management Approach, Normative Approach, and Enforcement Approach approaches. Through these three approaches, GGGI has succeeded in assisting Indonesia in implementing green growth in Indonesia in 2014-2020. Some of the programs that have been achieved include the eCBA program, the development of Special Economic Zones (KEK), and the implementation of the legal regulations in force in Indonesia.

Green Urban Development—Concepts and Praxis

This paper focuses on the green urban development paradigm. Its inspiration is the work of the Global Green Growth Institute (GGGI). It cites perspectives developed by GGGI HQ in Seoul, Korea, enriched by its praxis in Uganda. The latter is through the European Union (EU) funded project, greening urbanisation and industrialisation (2020-24). The argument is in five sections, beyond its introduction and conclusion. Firstly is the green policy impact with an urban bias. Secondly is the green practical impact, explicitly urban, from a responsive institutional perspective. Thirdly, the responsive description is taken to the smart city idea. Fourthly is infrastructure, specifically its shaping or reinforcing urban form. Finally is superstructure—in this case, green buildings. Each section is offered as a step towards a greater appreciation and potential application of green urban development.

Revisiting the role of international climate finance (ICF) towards achieving the nationally determined contribution (NDC) target: A case study of the Indonesian energy sector

Climate change has impacted development progress and increased global inequality. Therefore, all emitters, both developed and developing countries, must implement climate change mitigation and adaptation actions. Indonesia is one of the developing countries that signed the Paris Agreement. In its NDC document, Indonesia has pledged to reduce greenhouse gases emission by 29% using domestic resources (unconditional) and 41% with international support (conditional) from the business as usual (BAU) scenario by 2030. This commitment gives Indonesia the right to take advantage of various types of support, including ICF opportunities offered by the ADB through the non-UNFCCC financial scheme and the Global Green Growth Institute through the UNFCCC financial mechanism. This paper explores to what extent ICF supports the achievement of Indonesia’s Nationally Determined Contribution (NDC) target. The study uses qualitative analysis to provide a general overview of ICF in Indonesia, its climate finance strategies, and the case study of the energy sector. The study finds that ICF in Indonesia continues to develop, albeit with many limitations. Several ICF channels could be utilized more optimally such as, loan and grant instruments. Indonesia cannot rely solely on international support to meet its enormous climate finance needs; it must develop innovative financing through various instruments, such as green sukuk. ICF also plays a role in facilitating the energy transition from coal-based to renewable energy sources and increasing energy efficiency.

El Mercado Verde en Latinoamérica y la Responsabilidad Social Empresarial

El presente trabajo se enfocó a profundizar sobre el tema de las economías verdes y la Responsabilidad Social Empresarial. A través de una investigación documental, se logró evidenciar que las economías verdes siguen estando muy poco desarrolladas en todas partes del mundo, donde Europa es la que más avances posee en dicho tema, quedándose Latinoamérica rezagada al respecto por problemas tecnológicos y de desarrollo. Sobre la responsabilidad social se pudo entender que la misma representa una piedra angular para el desarrollo de las naciones y una de las vías más relevantes para alcanzar la sostenibilidad, reduciéndose problemas como la pobreza y el impacto medioambiental. Se concluyó que la importancia de estos trabajos de investigación radica en la amplitud del análisis que proponen, lo que sirve como un elemento referencial de gran calado desde el cual partir para otras investigaciones.
 Palabras Clave: Sostenibilidad, Responsabilidad, Sociedad, Desarrollo.
 Referencias
 [1]M. Mordt, «Soluciones ambientales sostenibles y economía verde e inclusiva: América Latina en la senda del cambio,» 2019.
 [2]A. Martínez y A. Porcelli, «Reflexiones sobre la economía verde. El New Deal Ecológico Mundial,» Revista LEX, vol. 15, nº 19, pp. 361-408, 2017.
 [3]Global Green Growth Institute, «Green Growth Index Concept,» 2019.
 [4]J. F. Cajiga Calderón, «El concepto de responsabilidad social empresarial,» Ciudad de México, 2007.
 [5]J. A. Cortés y E. Flores, Responsabilidad social, Centro de Investigación y Desarrollo Ecuador, 2017.
 [6]J. M. Araque Ramírez, «Responsabilidad Social del Ingeniero,» San José de Cúcuta, 2016.

Natural capital protection indicators: Measuring performance in achieving the Sustainable Development Goals for green growth transition

Natural capital protection is critical to humanity because biodiversity and ecosystem provide not only goods (e.g., food, energy, water) but also services (e.g., climate regulation, cultural amenities). The article discusses the performance on achieving the Sustainable Development Goals (SDG) for natural capital protection, by framing the green growth concept into four pillars (i.e. environmental quality, greenhouse gas (GHG) emissions reduction, ecosystem and biodiversity protection, and cultural and social value). Natural capital protection is one of the four dimensions of the Green Growth Index developed by the Global Green Growth Institute to measure country performance in green growth transition. The indicators selected for natural capital protection are either SDG indicators or directly contributing to SDG targets. Benchmarked against sustainability targets for the SDGs, Aichi Biodiversity, and the Paris Climate Agreement, the performance scores directly measure the distance to achieving the SDGs. Because the indicators for natural capital protection have not been explicitly framed in other global green growth indices and benchmarked against sustainability targets, hence, the article fills in an important research gap. The results revealed that many regions are performing better in environmental quality and GHG emissions reduction, but struggling to improve the low performance in biodiversity and ecosystem protection as well as cultural and social values. Many countries in Asia and Oceania face an enormous challenge of improving performance in the share of Key Biodiversity Areas covered by protected areas and the potential level of soil biodiversity. If biodiversity loss due to deforestation and intensive farming will continue, the countries will lose the ability to achieve sustainability targets in reducing GHG emissions and environmental quality. The highest average performance scores for the regions are only about 80. Thus, there is still a significant gap in achieving sustainability targets (i.e. 100) in natural capital protection, particularly in the Middle East and North Africa region.

A Time For Transformative Partnerships: How Multistakeholder Partnerships Can Accelerate the UN Sustainable Development Goals

As a global community of nations and some 8 billion people, we share in the desire to achieve the 2030 United Nations Sustainable Development Goals (SDGs). Goals that call for no poverty, zero hunger, good health and well-being, quality education, gender equality, reduced inequality, and climate action, among others. The last of the 17 goals is sustainable development through partnerships--the topic of this report. This report provides a valuable roadmap to help governments, businesses, and civil society organizations (CSOs) assess their role in multistakeholder partnerships and how these partnerships can contribute to transformative change and progress on the SDGs. It reveals four key success factors for transformative partnerships and details how partnerships with transformative ambitions can maximize their effectiveness to accelerate SDG action. This report is in collaboration with Partnering for Green Growth and the Global Goals 2030 (P4G), the Global Green Growth Institute, and the World Economic Forum.

Implementing the New Urban Agenda in Rwanda: Nation-Wide Public Space Initiatives

Rwanda, with its population of 12,600,000, growing 2.8% yearly, and significant investments in infrastructure and construction in its capital Kigali and six secondary cities identified as economic poles of growth, aims to achieve a 35% urbanisation rate by 2024. Kigali and Rwanda’s secondary cities are currently revising their master plans in response to the pressure of rapid urban growth in infrastructure and services. To address the lack of public spaces in its cities, the Ministry of Infrastructure, the Rwanda Housing Authority, local authorities, the Global Green Growth Institute, and other stakeholders have committed to deliver a range of activities in this area. Their commitments include the assessment of public spaces, which will be used as a baseline for the purpose of reporting on the Sustainable Development Goals public space indicators (11.7) and further revision of the master plans of Rwanda’s secondary cities. This article firstly builds on the existing knowledge and understanding of public spaces in Rwanda’s planning documents, followed by an examination of how multiple actors in Rwanda interact in order to promote a nation-wide public space agenda. The main findings indicate emerging forms of innovative collaboration and partnerships for public spaces involving all levels of the Rwandan government, development partners, the civil society sector, and other stakeholders. The article concludes that, as planning documents and strategies on public spaces are in place and in line with the recommendations of the New Urban Agenda, given the limited budget for its development, Rwanda needs access to innovative funding sources in order to effectively implement public space initiatives across the country.

Meeting conditional targets in nationally determined contributions of developing countries: Renewable energy targets and required investment of GGGI member and partner countries

Under the Paris Agreement, countries submitted nationally determined contributions (NDCs) including their GHG emission reduction targets and mitigation measures. Around 175 Parties have mentioned in their NDCs to reduce energy sector emissions by increasing the share of renewable energy in the energy mix. Dissemination of renewable energy requires substantial investment and low and middle-income developing countries tend to present conditional targets assuming external support, therefore essential to estimate how much funding developing countries require and explore how they attract international investment to meet their renewable energy targets. This study examines contributions to carbon mitigation and necessary investment for expansion of renewable energy in Global Green Growth Institute (GGGI) member countries by analyzing their NDCs and national energy plans. It is estimated that the 27 GGGI member and partner countries analyzed in this study would conditionally reduce at least 5058 MtCO2eq of GHG by 2030 and increase the cumulative renewable energy generation capacity up to around 356,184 MW by 2030. To accomplish these pledges, an investment of at least US$258 billion will be required by 2030: US$98–260 billion for solar photovoltaics (PV); US$76–139 billion for wind energy; US$57–330 billion for hydropower; US$10–23 billion for bioenergy; and US$16–45 billion for geothermal.

Multi‐Scalar Practices of the Korean State in Global Climate Politics: The Case of the Global Green Growth Institute

AbstractThe paper examines the significance of state territoriality and the related multi‐scalar practices of the state in the light of the symptoms of post‐politics exemplified in global environmental governance. The focus rests on the South Korean government's Green Growth (GG) strategy and the efforts to export this strategy as a role model to emerging economies worldwide through the establishment of the Global Green Growth Institute. We begin with the question why the Korean government is going global with a political program that is heavily disputed at home. We then study the practices by which the state manages to maintain its territoriality under the conditions of global climate change. Lastly, we discuss how multi‐scalar practices of environmental governance in the GG strategy are applied by state and non‐state actors both in Korea and abroad.

Mining Value Chains and Green Growth in South Africa: A Conflictual But Intertwined Relationship

This Working Paper is drawn from research by TIPS prepared for the Global Green Growth Institute, the Economic Development Department and the Department of Trade and Industry. The research explored the impact of electricity price increases on the competitiveness of selected mining sector and smelting value chains in South Africa, looking at whether this has incentivised mining-related companies to invest in renewable energy, cogeneration and energy efficient.The research concluded that the response of mining value chains to the shift to a green economy cannot be business-as-usual. Successful management of the global green transition will require short-term pragmatism and longer-term planning in the South African mining industry, linking business, government, labour, non-governmental organisations and the research community in support of sustainable development.Key policy recommendations included addressing institutional and legal confusion around environmental regulations; enforcing environmental and social ‘licences to operate’; accelerating and supporting the use of renewable energy and cogeneration; and the need to better understand the interplay between industrial development, trade and the green economy in South Africa, particularly the potential risks and opportunities.

Towards Sustainable Development through Eco-innovations: Drivers and Barriers in Poland

IntroductionChanges in the macro- and micro-environment of enterprises, growing awareness, customer requirements and increasing environmental restrictions give rise to the need to change the current socio-economic development to one that is more sustainable. This is a priority not only for the United Nations (UN) or the Organisation for Economic Co-operation and Development (OECD), but also for the European Union (EU). The implementation of sustainable development is therefore associated with a fundamental change in economic activity, with regard to a systemic and integrated interdisciplinary approach (OECD, 2012; United Nations, 2012). Moreover, a set of participatory processes is required that enables the integration of short- and long-term goals for economic, social and environmental issues (Borys, 2011, pp. 75-81; Poskrobko, 2013, p. 21). It should be added that sustainable development is a complex and multidimensional concept, covering the interdependence of economic, social and ecological order in socio-economic development, as well as the need to preserve resources for future generations (Kates, Parris, Leiserowitz, 2005, pp. 8-21; Famielec, 2009, p. 37; Fiedor, 2013, pp. 8-12; Zielmska, 2014, p. 184).One of the leading trends in supporting sustainable development is the concept of the economy, which is characterized by an increase in human wellbeing and social equity while simultaneously reducing environmental risks and the consumption of natural resources (Allen, Clouth, 2012, p. 9; Ryszawska, 2013, p. 27; Bata, 2011, p. 265). This subject has gained in importance since 2008 when, on the initiative of the United Nations Environment Programme (UNEP), the global agreement called the New Deal was concluded. According to this document, governments should strengthen their cooperation to promote economic transformation towards a economy. The UNEP activities resulted in the launch of the Economy Initiative program, and then in the publication of the report titled Towards a green economy, containing recommendations for governments on the basis of the diagnosis of developments and prospects by 20301.Currently, this is one of the key topics of political debate both at the European and global levels. For this purpose, the Green Growth Knowledge Platform2 has been established by leading international institutions whose aim is to promote global economic development (e.g. World Bank, OECD, UNEP, Global Green Growth Institute. In recent years, these institutions have taken measures to develop both recommendations and a coherent framework for action to move the global economy onto a sustainable path. Another strategic document is the Green Growth Strategy3, developed by the OECD in 2011. This strategy creates a political framework for greater economic integration and changes in consumption and production patterns that lead to the more reasonable use of limited natural resources (OECD, 2011, p. 114).Apart from UN and OECD activities, it is also worth noting that, at the level of the European Union, various initiatives for sustainable development are being undertaken. The essence of this approach reflects not only the EU Sustainable Development Strategy (Council of the European Union, 2006), but also the 2020 strategy for smart, sustainable and inclusive growth, which replaced the renewed Lisbon Strategy in 2010 (European Commission, 2010, p. 5). The 2020 strategy explicitly confirms the need to create synergies between economic and environmental objectives, and advocates the transition towards a economy. Furthermore, improving resource efficiency is a major objective of the document Roadmap to a Resource Efficient Europe adopted on September 20, 2011 (European Commission, 2011b). It contains a vision that, by 2050, the EU economy will grow in a way that takes into account limited access to resources, thereby contributing to global economic transformation. …

Middle powers and climate change: the role of KIA

The paper assesses the role and impact of the middle-power alliance of South Korea–Indonesia–Australia (KIA) in the region. KIA is a middle power and informal grouping. Its three constituents play a key role in the South Korean-based Global Green Growth Institute (GGGI). The paper identifies and discusses how KIA states, within the GGGI, and as a result of their intentions and middle-power strategies, represent a shift away from previous asset or attribute-based middle-power leverage. Instead, a strategic emphasis on issue-specific network positioning is emerging. These strategic and behavioral developments are impacting upon and reflect certain challenges to traditional understandings and expectations of middle-power activity and alliance building in the Asia-Pacific region, and, in the context of their specific responses to climate change impact and governance in the region.

Environmental Security and New Middle Powers: The Case of South Korea

This article considers the role of new middle powers in the climate change debate. We focus on the issue of “green growth.” We argue that new middle powers such as South Korea are increasingly proactive in promoting this green growth agenda and, as a result, challenging conventional realist and liberal approaches and expectations to new middle powers. This diplomacy is aiming to bridge states, great and small, by leading to strategic breakthroughs in the current climate change negotiation deadlock. The article discusses South Korea’s green growth initiative and identifies how this initiative affects South Korea’s middle power role in the global environmental debate with respect to its inclusion in the Environment Integrity Group and its initiative the Global Green Growth Institute (GGGI).

Green Growth, Neoliberalism and Conflicting Hegemonic Interests: The Case of Korea

The 2009 South Korean Presidential Committee on Green Growth set a long-term vision for South Korea to “go green.” The Green Growth Korea (GGK) initiative has been instrumental in the formation of the international Global Green Growth Institute (GGGI). The initiative is heralded as a qualitatively new and exportable growth paradigm. The paper argues that the narrative on “newness” is a myth and that green growth represents a continuity of elite-led responses to the contradictions of capital accumulation in the South Korean developmentalist state. These splits in hegemonic “leadership” are a result of the uneven relationship between domestic and transnational Chaebol interests, and the political interests of the developmentalist state and the promotion of South Korea as “global Korea.” This is creating an economy based on a developmentalist model that has provided the conditions for a decoupling of the economy from big business interests, which have been integral to developmentalist success. These economic interests remain reliant on the economic and political policies of the developmentalist state, which these interests are undermining. Green growth is an elite-led narrative that obscures these elite conflicts under the banner of Korean green growth nationalism.

한국의 GSP 공여를 통한 온실가스감축 개도국 지원방안에 관한 연구 - 인도네시아, 브라질, 에티오피아를 중심으로 -

본 논문은 기후변화협약 당사국회의(COP)에서 지속적으로 갈등을 빚고 있는 개도국의 대선진국 기술개발 지원요구 등에 대응할 수 있는 방안 중 하나로서 일반특혜관세제도(Generalized System of Preferences : GSP)의 도입가능성을 연구하였다. 한국이 GSP의 공여국이 될 경우 온실가스 감축이 예상되는 무역분야를 인도네시아, 브라질, 에티오피아 등 3개국을 대상으로 분석하였다. GSP효과를 분석하는 방법론으로는 양국간 무역경쟁을 나타내는 산업내 무역지수에 한국의 수입유발계수를 가중치로 곱한 값을 사용하였다. 분석의 결과, 한-아세안 자유무역지역(FTA) 관세율을 우선 적용받는 인도네시아의 경우 무관세가 아닌 농림 수산 목축품목에 GSP 혜택을 부여했을 때 한국으로 수출이 증가할 것이며 동분야에서 온실가스 감축이 일어날 것으로 예상되었다. 브라질의 경우 한국이 수입특화하고 있는 제1차금속, 유지, 음식료 등에서 수입량이 증가하면서 온실가스 감축이 발생할 것으로 나타났다. 에티오피아는 '최빈개발도상국에 대한 특혜관세 공여 규정'에 해당하는 최빈국이지만 특례조항에 의해 배제된 농림수산물과 섬유, 가죽 품목에서 GSP 공여의 효과가 있는 것으로 나타났다. 다만, 본 논문은 수혜적인 성격이 강한 GSP 공여에 대해 현재 세계무역규범 상에서는 구속력을 부여하는 방안이 없다는 한계점을 가지고 있다. This paper studies the impact of Korean introduction of the Generalized System of Preferences(GSP) to developing countries, which are continuously arguing to support research and development for reducing greenhouse gas(GHG) emission with developed countries in the Conference of the Parties(COP) of UNFCCC. This paper is focusing on the expecting effects of trade and GHG emission reduction when Korea provides GSP to Indonesia, Brazil, and Ethiopia, which are selected in the first session of Global Green Growth Institute(GGGI). This paper uses the methodology of the intra-industry trade index multiplied by Korean import-induced coefficients. To Indonesia, Korean probable GSP would benefit exports of Indonesian agriculture, forestry, fishery, and livestock farming industries, which would contribute to Indonesian reduction of GHG emission. To Brazil, the exports to Korea would increase in the GHG sensitive industries such as metal, fat, oils, food, and beverage industries. Ethiopia belongs to the least developed countries. So Korean GSP would support the exports and GHG reduction in Ethiopian agriculture, forestry, fisheries, textiles, and leather industries. Without conflicting most favored nation treatment(MFN) principle in WTO, the introduction of GSP would be a good compensation for GHG reduction to developing countries.