Global Green New Deal
An Update for the G20 Pittsburgh Summit

September 2009

Pittsburgh 20 Summit _______________________________________________

About UNEPThe United Nations Environment Programme (UNEP) is the overall coordinating environmentalorganization of the United Nations system. Its mission is to provide leadership and encourage
partnerships in caring for the environment by inspiring, informing and enabling nations and people toimprove their quality of life without compromising that of future generations.

About GEI

www.unep.org/greeneconomy
The Green Economy Initiative (GEI) is designed to assist governments in “greening” their economies by
reshaping and refocusing policies, investments and spending towards a range of sectors, such as clean
technologies, renewable energies, water services, green transportation, waste management, green
buildings and sustainable agriculture and forests.
Greening the economy refers to the process of reconfiguring businesses and infrastructure to deliver
better returns on natural, human and economic capital investments, while at the same time reducing
greenhouse gas emissions, extracting and using less natural resources, creating less waste and reducing
social disparities.
Initially envisioned as a two-year project, the GEI has been expanded to include a number of related
UNEP and UN-wide initiatives focused on providing macroeconomic evidence for significantly increasing
investments in the environment as a means of promoting sustainable economic growth, decent job
creation, and poverty reduction.

About this Update
This update report was completed under the overall direction of Pavan Sukhdev, project leader of theGreen Economy Initiative (GEI), with research inputs from Nick Robins, Head of HSBC Climate Change
Centre. The update was coordinated at UNEP by Derek Eaton with inputs from Fatma Ben Fadhl, Nicolas
Bertrand, Karin Bieri, Moustapha Kamal Gueye, Anna Iturrizza, Fulai Sheng, and Benjamin Simmons.

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Global Green New Deal –An Update for the G20 Pittsburgh Summit
UNEP
September 2009
In response to the financial and economic crisis, UNEP has called for a “Global Green New Deal”1 forreviving the global economy and boosting employment while simultaneously accelerating the fightagainst climate change, environmental degradation and poverty. Based on a UNEP-commissioned
report "Rethinking the Economic Recovery: A Global Green New Deal"2, UNEP has recommended that asignificant portion of the estimated US$ 3.1 trillion in economic stimulus packages be invested in fivecritical areas:
•
•
•
•
•

Energy efficiency in old and new buildings;
Renewable energy technologies, such as wind, solar, geothermal and biomass technologies;
Sustainable transport technologies, such as hybrid vehicles, high speed rail and bus rapid transit
systems;
The planet's ecological infrastructure, including freshwaters, forests, soils and coral reefs; andSustainable agriculture, including organic production.

The G20 countries host 66 per cent of the world’s population, produce 90 per cent of global GDP, 80 per
cent of global greenhouse gas emissions and command much of the world’s annual US$ 150-250 billion
fossil fuel subsidies. G20 countries should ensure that investments being made to address the economic
crises of today can also contribute to the mitigating and adapting to the effects of climate change,
addressing the scarcity of natural resources and creating decent employment for the close to two billion
unemployed or under-employed people globally.
UNEP has called on the 20 most advanced economies to engage in a Global Green New Deal by investingat least 1 per cent of their total GDP in promoting green economic sectors. UNEP recommends thatthese economies give priority to investments focused on improving energy efficiency in new and existingbuildings, stimulating renewable energy sources and enhancing sustainable transport. Given thebudgetary constraints which have been exacerbated by the financial and economic crisis, industrialized
economies should also foster foreign aid and support, both financial and in other forms such as technicalassistance, to developing economies. The Global Green New Deal policy brief
It has been estimated that at least 15 per cent of the global stimulus packages to date can be consideredgreen in nature3. While encouraging, these commitments are largely concentrated in a few leading
members of the G20 and much more is clearly needed to fill large gaps and approach a target of 1 percent of GDP. Moreover, to achieve its desired economic effect, any fiscal stimulus, including a green one,requires swift implementation. Ensuring that this is not at the expense of transparency, accountability
and effectiveness, demands both flexibility and creativity.

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Changes in domestic and international policy architectures
The green investments contained in the global stimulus packages need to be supported by domestic andinternational policy architectures in order to ensure they contribute to a long-term transition to a green
economy. Six domestic policy reforms are recommended:• Reduce perverse subsidies (for example on fossil fuels and non-sustainable agriculture);• Create positive incentives and appropriate taxes to reward more sustainable practices;• Improve land use and urban policy;• Develop integrated management of freshwater resources;• Introduce and improve environmental legislation and enforcement; and• Implement systems for monitoring and accounting for the economic contributions made bygreen investments, such as environmental economic accounting.
The Global Green New Deal policy brief also identified the international policy architecture requiring
attention: trade, aid, carbon pricing, markets for ecosystem services, development and transfer oftechnology, and policy coordination. As part of reforms in these areas, further support should be offered
for green investments in non-G20 countries to ensure we achieve a global green economic transition.
A Progress Report
With only one quarter of 2009 to go, signs of economic turning points are appearing in some countries.
However, the prospects of a long and hard recession remain the reality for many others.
The G20 Pittsburgh Summit provides a unique opportunity for participating governments to renew theircommitment to a Global Green New Deal and to sealing a deal on climate change in Copenhagen.
G20 Green Stimulus Spending Per Sector(US$Bn)Green Stimulus Ranking as % of Total Stimulus
as of August 2009140

Republic of Korea
79%

120
100

China 34%

80
France 18%

60
40

Germany 13%200South Africa 11%

Lo
w

Ca
rb
o

n

Ve
hic
les

Ot
he
r
CC
S/

ow
er
eP
wa
bl

Re
ne

Bu

ild

ing

EE

as
te

id
W

at
er
/w

Gr

Ra

il

US 12%

Source: HSBC Global Research, UNEP

Mexico 10%
Source: HSBC Global

Looking at developments in seven G20 countries (China, France, Germany, the United States, Mexico,
Republic of Korea, and South Africa), this brief summarizes progress in both green elements of fiscal
stimulus packages, including the pace of disbursement, and domestic policy reforms 4 . All sevencountries considered have announced green components in their stimulus packages, with many in the
10 to 20 per cent range. China and South Korea stand out, however, with green investments that
represent 34 and 78 per cent of their stimulus packages, respectively. There are also substantial
differences between the countries in terms of expenditure per capita (See figure and the table of 13
countries in the Appendix).

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Overall, there are encouraging signs ofprogress in implementing the stimulus
packages and their green components. A
common theme, though, appears to be aseries of delays in approvals anddisbursements, with less than onequarter likely to be spent in 20095.

Total Stimulus Package per capita and Green
Component (US$)
Green
component percapita

3500
3000
2500

Rest of thestimulus
package percapita

2000
1500
1000

M
ex
ic o

ica

a

Af
r

in

th

Ch

So
u

Fr
an
ce

an
y

Ge
rm

So
u

th

Ko
re
a

US
A

Based on this interim review, UNEP
5000encourages the G20 governments tomaintain and even accelerate momentum
on green investments in the stimulus
packages. The success of these Source: HSBC Global Research, UNEP
investments in stimulating a transition toa green economy also depends on integration with accompanying medium and long-term policy
measures. Among the most important of these will be a demonstration by world leaders that they canseal the deal on climate change in Copenhagen.

China
Green Stimulus
In absolute terms, China’s green stimulusof US$ 218 billion tops the G20. Almost
half of this amount is allocated to railway
infrastructure. By the end of April 2009,about 15 per cent of the total stimulus
fund had been disbursed, and this is likely
to have risen further since then. Of theamount disbursed, the main green
element has been the construction ofmuch needed water infrastructure thathas benefited 14.6 million people,
thereby contributing to the achievementof the related Millennium Development
Goal (MDG 76).
Climate change is also an important focus of China’s green stimulus. In July 2009, in addition to thegreen stimulus package, the government announced that it would share 50 per cent of the investment
costs for solar power capacity over 500 MW through 2011 (70 per cent for remote regions). The Ministryof Finance estimates that this is likely to generate a total investment of US$ 2.5 billion, and contribute toplans to achieve 2GW of solar capacity by 2011 and 10GW by 2020 as compared to 100MW in 2008.
Beyond recovery: Investment and policy reform towards a green economy
Even before the outbreak of the financial crisis in October 2008, the government had projected the needfor green investments in the amount of US$ 220 billion or about 1.35 per cent of GDP in the context of
their 11th Five-Year Plan (2006-2010). Under this plan, investment in all forms of energy conservation

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would amount to US$ 71 billion and US$ 214 billion would be invested in renewable energy. By 2020,
China’s investment in energy efficient buildings alone is expected to reach US$ 214 billion.
The investment generated from the FiveYear Plan has been fuelling the growth of
China’s green industry. During the 11th
Five-Year Plan period, annual growth inChina’s green industry services is
expected to be 15 per cent, reaching agross output value of US$ 126-157 billion
by 2010, and accounting for 3.4 per centof GDP. Furthermore, the renewableenergy sector alone is expected togenerate an output value of at least US$
118 billion.
Next to public finance, the growth in green investment and green sectors has also been supported
through the promotion of green standards and targets. The government, for example, has indicated thatby 2010, energy consumption per US$ 1,430 (RMB 10,000) of GDP should be reduced from 1.22 tonnesof standard coal in 2005 to 0.98 tonnes. It has also set a renewable energy target at 10 per cent of thetotal commercial energy use.
Chinese experts estimate that for every US$ 100 billion of green investment, GDP would grow by US$
143 billion, tax revenues by US$ 1 billion, and household consumption by US$ 60 billion. In addition, it isestimated that 600,000 new jobs would be created. The government has also publicly announced its
commitment to developing a resource-saving, environmentally-friendly green economy. The call by theUnited Nations for a transition towards a green economy is also expected to be reflected in the 12thFive-Year Plan (2011-2015).

FranceGreen stimulus
Green investments account for 18.3 per cent (US$ 6.1
billion) of the US$ 34 billion French Economic Revival
Plan to be spent over a period of 2 years (2009 and2010). The different climate and environmental
measures of the stimulus package are financed along
the priority areas identified within the “Grenelle del’Environnement”, a framework which aims at defining
the conditions for the development of a new French
approach to sustainable development and theestablishment of a national environmental roadmap infavor of ecology, sustainable development and land use
management.

4

Grenelle de l’Environnement
In July 2009, the first Law of the Grenelle del’Environnement was passed. This called forenhanced environmental measures in 13
sectors (Urban development, Buildings,
Transport, Energy, Agriculture, Research,
Waste,
Benchmarking
thestate,
Governance/information/training
andgreening of overseas territories). The green
stimulus package is to be spent on thesepriority areas.

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The French portfolio of green measures isdominated by sustainable transport,
buildings and renewable energy measures.
The government has also made acommitment to start all projects in 2009and spend 75 per cent of the total stimulus
during the year.

France's Green Stimulus Spending per Sector
1% 4%

19%

39%

37%

Beyond recovery: Investment and policy
reform towards a green economy
Renewable Energy
Energy Efficienct Buildings Transport Waste Others
Beyond the stimulus package, theSource: HSBC Global ResearchcommitmentsoftheGrenelle
Environnement from now until 2020 represent over US$ 600 billion in further green measures. It is
expected that this investment will generate more than 500,000 jobs and an annual return of about US$ 30
billion. The following green measures are also expected to benefit businesses in key sectors of theeconomy that currently represent 15 per cent of the GDP and 1.5 million jobs:•
Improving energy efficiency in buildings;•
Developing a sustainable transport policy with a priority on transport of goods by rail, and theenhancement of public urban transport;•
Promoting energy consumption through tax incentives, including a proposed “Ecotax” on carbon
emissions to be launched in 2010 at a starting price of approximately US$ 25 per tonne CO2 (€ 17 is theexact figure proposed); and•Promoting clean energy technologies.

Germany
Green stimulus
Germany’s two stimulus packages totalling
Germany's Green Stimulus Spending per Sector
US$ 105 billion are equivalent to an
20%
estimated 1.5 per cent and 2 per cent of
GDP in 2009 and 2010, respectively. The
packages include both tax cuts and5%
infrastructure investment, with green
investments accounting for 13 per cent of
the total stimulus packages. The green
75%
investments are concentrated in climate
protection and energy efficiency withRail
Low Carbon Vehicles
Energy efficient buildings
spending plans for energy efficiency focused
Source: HSBC
on buildings and vehicles. An estimated
25,000 jobs are expected to be created in manufacturing and construction for retrofitting buildings forenergy efficiency.
It now appears that actual spending of the stimulus package will occur mostly in 2010, with estimatesthat only 20 per cent will be spent in 2009, and that this will essentially be for road infrastructure7.
Other, possibly “greener” transport investments in railways (US$ 1.7 billion) or research on innovative
propulsion (US$ 655 million) seem to be taking longer to initiate. These and other delays in green

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investments may in part be due to the establishment of administrative procedures designed to ensuretransparency and accountability.
Beyond recovery: Investment and policy reform towards a green economy
Germany has also announced a number of plans that can be seen as shifting the economy towards agreen path, building on some of the initiatives under the stimulus package.
One component is the Renewable Energy Sources Act, which entered into force in 2009. Germany’s goal
is to increase the share of renewable energy in total electricity consumption to at least 30 per cent by
2020, a doubling of the current share of almost 15 per cent8. Renewable energy accounted for 280,000
jobs in 2008 and planned investments, some of which will be financed out of the stimulus package, areexpected to create more, including some 30,000 in the construction of offshore wind parks.9
Renewable energy has also been a visible component in Germany’s efforts in international cooperation
on knowledge and technology transfer. One example is the Transfer Renewable Energy and Efficiency(TREE) project, launched in 2008.10 With annual project funding of US$ 130 million, technical support on
the development of renewable energy is being provided to over 50 countries.

MexicoGreen stimulus
Mexico launched a “National Agreement inFavourof
Family,Economyand
Employment” on 7 January 2009. The
stimulus package, including measures at thenational, market and household levels,
amounted to a total of US$ 7.7 billion, theequivalent of 0.67 per cent of Mexico's GDP
in 2008. A total of US$ 0.8 billion (about 10
per cent of the total stimulus package) was
allocated to environmental themes,
including US$ 0.75 billion to promoting
energy efficient buildings.11
Beyond recovery: Investment and policy reform towards a green economy
Mexico has assumed a leading role in the combat of climate change. It is one of the first developing
countries to commit to a voluntary carbon reduction target by pledging to halve GHG emissions by 2050.
Mexico also plans to put in place a domestic cap-and-trade system by 201212.
Among other significant measures, the government enacted the Special Program for Climate Change 20092012 (PECC). This program lays out a long-term vision for combating climate change while establishing thesectoral level interventions that will result in emission reductions. It also creates a framework formonitoring improvements and establishes a blueprint for emission reduction initiatives. Through the
PECC, Mexico is evaluating the vulnerability of the country to climate change and conducting an economic
valuation of the priority measures for intervention13.

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Other key measures that promote thegreen economy at the national, market
and household level include: Appliances Replacement Program,
aimed at helping households toreplace appliances with newenergy-efficient models. Between
March and September 2009,
100,000 households participated in
the scheme.
 Forest fire prevention measures
which will include a portion of the
250,000 additional temporary jobs
created through the Temporary
Employment Program.
 Creation of five Natural Protected
Areas.

National and foreign private funds, as well as local andinternational support, focused on greening the Mexican
economy has also been forthcoming, including: La Ventosa Wind Farm in Oaxaca – Alreadyinaugurated, this is the second wind farm in
Mexico and one of the biggest of the world. It has
been registered under the Kyoto Protocol’s Clean
Development Mechanism (CDM).
 La Yesca Dam – once in operation, this long term
project will contribute 750 megawatts to the
National Electric System, while employment
creation is estimated to be 5,100 direct jobs,
matched by a similar number of indirect ones
(Source: (IADB, Environmental and Social Strategy
La Yesca Hydroelectric Project).

Republic of Korea
Green stimulus
The Republic of Korea launched a
Republic of Korea's Green Stimulus Spending per“Green New Deal” on 6 January 2009
Sectoras a means of stimulating job creation
6%
and revitalizing the economy. The
20%
stimulus package, which is comprised
45%
of a mix of financial, fiscal and taxation
policies, amounted to a total of US$
6%38.1 billion, the equivalent of 4 percent of Gross Domestic Product (GDP),
to be implemented over the period23%
2009-2012. A total of US$ 30.7 billion
Renewable Energy
Energy efficient buildings Low carbon vehicles(about 80 per cent of the total stimulus
Railways
Water and waste
package)wasallocatedtoSource: HSBC Global Research
environmental themes such as
renewable energies, energy efficient buildings, low carbon vehicles, and water and waste
management14.
A recent report noted that the Republic of Korea has been particularly efficient in the actual spending of
its green stimulus, with almost 20 per cent of funds disbursed at the end of the first half of 2009,
compared to only 3 per cent for most countries15.

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Beyond recovery: Investment and policy
reform towards a green economy
Beyond the green stimulus, the Republic ofKorea appears to be making a major shift inorienting its economy towards a long-term
strategy for green growth. In July 2009, thecountry adopted a “Five-Year Green GrowthPlan” (2009/2013) to serve as a mediumterm plan for implementing a “low-carbon,
green growth vision” announced a year
earlier. Under the plan, US$ 83.6 billion,
representing 2 per cent of GDP, will bespent in the area of climate change andenergy, sustainable transportation and thedevelopment of green technologies. This
five-year plan is expected to stimulate
production in the amount of US$ 141-160
billion and to create 1.56-1.81 million jobs ingreen industries.

Some key measures to promote green growth in themedium-term Setting up of a national GHG inventory reportsystem and a carbon emissions trading system
 Doubling of the share of renewable energy from
2.7 per cent in 2009 to 6.08 per cent in 2020 andadoption of a Renewable Energy Portfolio
Standard
 Increasing energy efficiency from 0.317(TOE/thousand dollars) in 2009 to 0.233(TOE/thousand dollars) in 2020
 Restoration of Korea’s four major rivers toenhance adaptation to climate change andpromote rural development
 Increasing the passenger transport load of trainsfrom 19 per cent in 2009 to 30 per cent in 2013
 Increasing the share of green ODA from 14 percent in 2009 to 20 per cent in 2012

A set of policy, regulatory and fiscal reforms are being adopted to provide the policy architecture forachieving green growth. In August 2009, the government unilaterally announced a range of options forvoluntary emission reduction targets that would reduce carbon emissions by either 21, 27 or 30 per
cent, compared to projected growth in 2020, from their 2005 levels. In promoting regional cooperation,
the country triggered the adoption of a declaration in support of an East Asia Climate Change
Partnership Fund of US$ 200 million to support efforts towards low carbon development in East Asia.

South Africa
Green stimulusSouth Africa launched a US$ 7.5 billion
fiscal stimulus package in February 2008
covering the period 2009-2011. Amid
recession, the government’s focus isprimarily on investments that create more
decent jobs, and related to this,investments in infrastructure. Around 11
per cent of this stimulus package,representing US$ 0.8 billion (0.29 per centof GDP) was allocated to environmentrelated themes, such as railways, energy
efficient buildings, and water and waste
management16.

8South Africa's Green Stimulus Spending per Sector
13%

13%

74%

Railways

Water and waste

Energy efficient buildings
Source: HSBC

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Beyond recovery: Investment and policy reform towards a green economy
In March 2009, South Africa announced that it would put in place a binding climate change policy within
three years to cap emission growth by 2020-25. Measures contained in the plan include a regulatory,
fiscal and legislative framework that would make tracking and reporting of emissions mandatory.
In September 2009, South Africa released a document entitled, “Green Paper: National Strategic
Planning.” This policy paper seeks to put in place a planning process that sets out clear long-term energy
options, including outlining targets for greenhouse gas emission reductions and targets for the energy
intensity of the economy in general. The Green Paper notes that “our understanding of the objectivesof society has become more clearly expressed: social, environmental and political dimensions have been
added to the economic concept of development”17. A National Planning Commission will also beestablished, consisting of independent experts and strategic thinkers, to contribute to mainstreaming
the environment in the development process, and to initiating the transition to a green economy.
South Africa plans to generate some 15 per cent of its electricity from renewable sources by 2020 andenhance energy efficiency. The South African government is also considering the introduction of a longterm, escalating carbon tax to help curb GHG emissions, particularly from coal-fired power plants.
Moreover, in June 2009, the Finance Minister stressed the pursuit of economic stimulus measures withplans for the government and its utilities to spend US$ 96.7 (787 billion rand) over the next three years
building and upgrading infrastructure.18

United States of America
Green stimulus
Provisions for the United States’ stimulus
packages are contained in two laws; namely,
the Emergency Economic Stabilization Act(EESA) of October 2008 and the American
Recovery and Reinvestment Act (ARRA) of
February 2009. The EESA includes US$ 185
billion in tax cuts and credits, including US$
18.2 billion for clean energy. The ARRA
includes an estimated US$ 94 billion of“green spending” out of a total of US$ 787
billion (or 12 per cent), including on energy
efficiency, renewable energy, water andwaste, mass transit and rail (figure).

United States' Green Stimulus Spending per Sector
11%
29%
9%

14%
5%

Renewable Energy
Energy efficiency
Rail

32%

Low Carbon Vehicles
Water/waste
Grid
Source: HSBC
Global Research

In addition, the proposed federal budget for 2010 includes US$ 4.9 billion to be allocated to a highspeed rail state grant, the Environmental Protection Agency’s Clean Water State Revolving Fund and theDrinking Water State Revolving Fund.
Combined, green investments in the two stimulus packages together with those of the proposed budget
amount to over US$ 117 billion, or 12 per cent of the total.

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Pittsburgh 20 Summit _______________________________________________A Recovery Accountability and Transparency Board was established to oversee ARRA spending and thisinformation is made available online19. HSBC estimates that 70 per cent of the green stimulus will bespent over the next four years, with the bulk of spending in 2010 and 201120. As of July, spending seemedso far to be in line with those expectations21.
Beyond recovery: Investment and policy reform towards a green economy
Many of the new US Administration's green priorities are outlined in the proposed 2010 Budget which
presents a programme for creating jobs and investing in “long-term economic growth”. This includes a
proposal to create a “Clean Energy Economy”; a comprehensive energy and climate change plan to invest
in clean energy, decrease dependence on oil, address the global climate crisis, and create new jobs22.
Some of proposed initiatives, such as using the federal Title XVII Loan Guarantee (of the Energy and Policy
Act of 2005) to Reduce Greenhouse Gas Emissions, clearly respond to the call to develop a positive
incentive framework for the green economy.
Recent legislative developments include the proposed Waxman-Markey American Clean Energy andSecurity Act of 2009 (ACESA) which includes a cap-and-trade GHG reduction plan.23 Combined with the
ARRA, this could create an estimated 1.7 million new jobs.24

From green stimulus to sustained growth of the green economy
The review of country experiences with green stimulus packages reveals that much more needs to bedone if the G20 is to follow through on its commitment to accelerate the transition to the Green
Economy.
UNEP reiterates its Global Green New Deal call, and urges G20 governments to invest US$ 750 billion of
the US$ 2.5 trillion stimulus package (about 1 per cent of global GDP) towards building a green economy– one that reduces carbon dependency, addresses poverty, generates good quality and decent jobs,
maintains and restores our natural ecosystems, and moves towards sustainable consumption.
While UNEP supports the progress that has been made in stimulating a low carbon economy throughinvestments in a range of initiatives such as improved rail transportation, water infrastructure, grid
expansion and improved building efficiency, in many cases there remain large gaps between
government declarations and practice.
The effectiveness of the green stimulus risks being compromised by delays in the allocation of funds. At
the end of the first half of 2009, only around 3 per cent of committed green funds had been disbursed.
Moreover, many G20 members have not included sufficient green investments in their overall stimulus
packages.
Overall, the amount allocated to renewable energy falls short of the investment needed to reducecarbon emissions and to keep the rise in global average temperature under two degrees Celsius. Some
incentives, such as subsidies to the production and consumption of fossil fuels, are working against
efforts to build a sustainable future.
Furthermore, while developing countries did not cause the economic and financial crisis, they have been
severely affected by it. Development assistance to poor countries has fallen in real terms over the past
decade, and millions more vulnerable people will be trapped in poverty this year because of the10

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recession and the effects of climate change, undermining efforts to achieve the Millennium
Development Goals. Further efforts by G20 members now would set a positive tone leading up to theDecember 2009 climate negotiations in Copenhagen.
To scale up the benefits of these encouraging decisions and work towards a green economy, continued
attention and enhanced commitment is needed on a number of issues:
Pace of disbursements: To be effective, the amounts announced in the green stimulus packages of theG20 countries need to be disbursed rapidly. This has not been the case so far, with a few exceptions, as
only 3 per cent of the overall G20 announced green investments being spent within the first half of2009. Opportunities for streamlining procedures should be pursued in order to ensure the investments
reaching their targets as efficiently as possible.
Maximizing overall environmental gains: While working towards faster implementation, countries stillneed to put in place mechanisms and processes to monitor the environmental and social impacts of thestimulus packages to ensure any negative impacts are avoided or mitigated. This is especially importantfor many of the large scale infrastructure investments.
“Seal the Deal” on climate change: Although the current economic recovery packages are a set of
mostly independent domestic stimulus efforts, a deal in Copenhagen provides the opportunity for a
global stimulus package that can kick-start the shift to a low carbon world. Any Copenhagen agreement
will need to develop appropriate mechanisms to trigger the investment needed. The development ofinternational funding mechanisms, based on countries’ emission levels and their ability to pay, areneeded to secure the predictable and sustained financial flows required by developing countries.
Further commitment to energy investments: Although support for renewable energy forms a major
component of most stimulus packages, it still falls short of what is required. Investments in sustainableenergy must increase more than two-fold, to US$ 500 billion per year, needed by 2020 if CO2 emissions
are to peak and to keep the rise in global average temperature under 2 degrees Celsius. While publicfunding will play an important role, much of the investment will need to come from the private sector.
Therefore, governments also have a role to play in catalyzing larger flows of private sector resources by,in part, adopting new policy measures that support a medium and long-term transition to a green
economy.
Cooperation with developing countries: While developing countries did not cause the economic andfinancial crisis, they have been severely affected by it. With its broad membership, the G20 provides amechanism for working closely with developing countries and committing to international financing
mechanisms that would allow these countries to strengthen and expand their own green stimulus
packages. With foresight, flexibility and consultation, G20 countries should also ensure that their green
stimulus packages do not inadvertently undermine the competitiveness of developing country
businesses and exports.
Policy reforms: As emphasized in the Global Green New Deal policy brief, stimulus packages need to becomplemented by more comprehensive policy reforms. The limited review of experiences above reveals
that there are positive signs of plans in some countries to make greater use of incentives, such as
emissions trading and taxes. However, more attention is needed in other areas identified for action,such as reforming perverse subsidies, land use policy, management of freshwater resources,
environmental legislation, and monitoring and accounting for the economic contributions made bygreen investments.

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Appendix: Green Stimulus Rankings per Capita as of August 2009
Economic Stimulus per Capita (US$)

GDP Per Capita (US$)
1
2
3
4
5
6
7
8
9
10
11
12
13

Australia
USA
Germany
CanadaFranceUnited Kingdom
Italy
Japan
Spain
Republic of Korea
MexicoSouth Africa
China

48,846
48,606
46,53546,30845,90245,21839,92437,95836,643
17,724
10,2695,620
3,168

Green fund percentage of the total GDP
1
2
3
4
5
6
7
8
9
10
11
12
13

12

Republic of Korea
China
Australia
USA
Japan
GermanySouth Africa
FranceUnited Kingdom
CanadaMexico
Italy
Spain

1
2
3
4
5
6
7
8
9
10
11
12
13

Japan
USA
Australia
Italy
Republic of Korea
Germany
CanadaFranceUnited Kingdom
China
Spain
South Africa
Mexico

5,014
3,164
2,000
1,722
1,573
1,277
942
518
493
487
309
152
69

Green stimulus per capita (US$)
6,99%
5,24%
0,87%
0,75%
0,74%
0,36%
0,29%
0,20%
0,19%
0,17%
0,07%
0,06%
0,05%

1
2
3
4
5
6
7
8
9
10
11
12
13

Republic of Korea
Australia
USA
Japan
Germany
China
FranceUnited Kingdom
CanadaItaly
Spain
South Africa
Mexico

1,238
420
365
282
168
166
94
84
77
22
18
16
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UNEP/Green Economy Initiative

_______________________________________________Pittsburgh G20 Summit

Green Fund share of Economic Stimulus
1
2
3
4
5
6
7
8
9
10
11
12
13

79%
34%
21%
18%
17%
13%
12%
11%
10%
8%
6%
6%
1%

Republic of Korea
China
Australia
FranceUnited Kingdom
Germany
USA
South Africa
MexicoCanada
Spain
Japan
Italy

Explanatory Notes:• 2008 data of Nominal GDP provided by the IMF were used.
• Australia announced an additional stimulus package of US$ 17.1 billion for the period 2009-2013, withnew green measures worth US$ 6.8 billion (to be added to the US$ 2.5 billion green package formerly
announced).
• South Korea has increased its “Green New Deal Package” by US$ 22 billion, from the previous US$ 38
billion to the current US$ 59 billion.
• The EU announced an economic stimulus plan of US$ 39 billion with 64 per cent focused in green
investment (US$ 25 billion).
Sources:
Robins, N., R. Clover, and C. Singh (2009). A Global Green Recovery ? Yes, but in 2010. August. HSBC Global
Research, London.
Ottmar Edenhofer & Nicholas Stern (2009), Towards a Global Green Recovery, Recommendation for Immediate
G20 Action, March.
International Monetary Fund (GDP data)

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Pittsburgh 20 Summit _______________________________________________

1

UNEP (2009). Global Green New Deal Policy Brief, www.unep.org/pdf/A_Global_Green_New_Deal_Policy_Brief.pdf
The UNEP publication was authored by Professor Edward Barbier of the University of Wyoming, USA and is available at
http://www.unep.org/greeneconomy/docs/GGND-Report-April2009.pdf
3Based on estimates of HSBC Global Research; these concentrate on climate change investment themes, and thus
account for a large portion of investments that contribute to the shift to the green economy. Source: Robins, N., R. Clover,and C. Singh (2009). A Global Green Recovery ? Yes, but in 2010. August. HSBC Global Research, London.
4
The list of countries represents two from each of the following regions: Asia-Pacific, Europe, North America, plus one
from Africa, with the highest proportion of their fiscal stimulus packages allocated to green components, as analyzed by
HSBC Global Research.
5
Robins, N., R. Clover, and C. Singh (2009). A Global Green Recovery ? Yes, but in 2010. August. HSBC Global Research,
London6
MDG 7 – Ensure Environmental Sustainability, Target 3: Halve, by 2015, the proportion of the population without
sustainable access to safe drinking water and basic sanitation (http://www.un.org/millenniumgoals/).
7
Robins, N., R. Clover, and C. Singh (2009). A Global Green Recovery ? Yes, but in 2010. August. HSBC Global Research,
London.
8
http://www.bmu.de/english/renewable_energy/general_information/doc/4306.php
9
http://www.bmu.de/english/current_press_releases/pm/44848.php
10
http://www.bmu.de/english/current_press_releases/pm/43263.php
11
Robins, N., R. Clover, and C. Singh (2009). A Global Green Recovery? Yes, but in 2010. August 2009. HSBC Global
Research, London.
12
World Bank (2009). Program Information Documentation (PID) Appraisal Stage. Report No. AB5003.
13
World Bank (2009). Program Information Documentation (PID) Appraisal Stage. Report No. AB5003.
14
Robins, N., R. Clover, and C. Singh (2009). Building a Green Recovery. May. HSBC Global Research, New York.
15
Robins, N., R. Clover, and C. Singh (2009). A Global Green Recovery ? Yes, but in 2010. August. HSBC Global Research,
London.
16
Robins, N., R. Clover, and C. Singh (2009). A Global Green Recovery ? Yes, but in 2010. August. HSBC Global Research,
London.
17
The Presidency - Republic of South Africa: Green paper: National strategic planning. September 2009.
http://www.info.gov.za/view/DownloadFileAction?id=106567
18South Africa says to pursue economic stimulus, boost jobs, Reuters, 23 June 2009.
http://af.reuters.com/article/southAfricaNews/idAFLN87150420090623
19
http://www.recovery.gov
20
Based on Congressional Budget Office, 2 February 2009. Cost estimate, American Recovery and Reinvestment Act of2009 (http://www.cbo.gov/ftpdocs/99xx/doc9977/hr1senate.pdf).
21
US$ 355m green spending is in line with HSBC spending projections (p.4) and general US$ 70.2bn spending under ARRA
is in line with expectations (p.10), in Nick Robins, Robert Clover and Charanjit Singh, (2009). A Global green Recovery? Yes,
but in 2010. August. HSBC Global Research, London.
22
Office of Management and Budget, 2009. FY 2010 Budget: “A New Era of Responsibility: Renewing America’s Promise”.
23
US House of Representatives, 2009. Discussion Draft Summary. American Clean Energy and Security Act(http://energycommerce.house.gov/Press_111/20090331/acesa_summary.pdf)
24
Pollin, R, G. Heintz and H. Garrett-Peltier (2009). The Economic Benefits of Investing in Clean Energy. Center for
American Progress, June. http://www.americanprogress.org/issues/2009/06/clean_energy.html
2

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UNEP/Green Economy Initiative