Kenya's shift to green economy should generate USD 45 billion by 2030

Nairobi, Kenya - Kenya's transition to a green economy could produce major economic benefits - equivalent to an estimated USD 45 billion by 2030 - as well as greater food security, a cleaner environment and higher productivity of natural resources. Per capita national income would nearly double from USD 498.70 to USD 871.30. Under a business-as-usual investment scenario and a two per cent investment, GDP would only increase to USD 664.30 over the same period of time. These are the main findings a new study launched by the Government of Kenya and the UN Environment Programme.

As green economy measures mitigate the impact of climate change, the report finds the country's aggregated Green House Gas Emissions measured in tonnes of carbon dioxide equivalent would be 9 per cent lower by 2030 under a green economy scenario with an investment of two per cent of GDP compared to a business-as-usual scenario and a two per cent investment.

The report finds that further green energy investments could lead to about a two per cent reduction in energy consumption and an expanded supply of electricity from renewable sources compared to business-as-usual. For example, under a green economy scenario, renewable energy would double geothermal capacity by 2030, compared to business-as-usual, and other renewable energy resources would also grow during this period, contributing to 20 per cent of the total power supply.

The report, which examines the economy-wide impacts of green investments under different scenarios, reveals that positive returns could be realized within seven to ten years. It confirms that an overall green economy, resources efficiency and recycling policy framework is fundamental to underpin the success of these sector initiatives. To accelerate these efforts, the report urges the government to consider adopting targeted clean energy solutions for households and institutions, such as energy efficient lighting and appliances; and, making additional investments in renewable energy, such as geothermal, solar, wind and biofuel energy.

Kenya is already implementing policies and initiatives to move towards a green economy, and this approach is recognized in the country's long-term development blueprint and in the government's Second Medium Term Plan (2013-2017).

UNEP supported a consortium of Kenyan institutions that formed the "Inter-Ministerial Committee on green economy" to lead the green economy in the country. The Committee comprised members from various government ministries and the private sector organizations.

Source: IWR Online, 17 Apr 2014