Expert hints greening innovations: Climate change poses risks to Phl economy

CEBU, Philippines - The Philippines has been ranked as one of the world's most vulnerable nations to the harsh effects of climate change and environmental degradation.

Experts say transitioning to a green economy is now crucial to the country to enforce mitigation measures against environmental impacts, strengthen regional development and the local economy.

The green economy and green growth are not subjects for the Philippine economy alone, but these are also deemed as issues for all economies in the world.

Dr. Volker Steigerwald, GIZ project manager of the Promotion of Green Economic Development (ProGED), said greening the economy is the sustainable solution to solve the rising problems of climate change, economic downturn, unemployment, and poverty, among others.

United Nations Environmental Program defines green economy as "an economy that improves human well-being and social equity while simultaneously reducing environmental risks and ecological scarcities."

In an interview during the Greening Innovations for Competitiveness forum in Cebu Wednesday, Steigerwald stressed that businesses should now adopt good environmental practices to lessen the effects of climate change on their operations. The forum was one of the highlights of this year's Mandaue Business Month.

To note, the destruction that super typhoon Yolanda brought to the lives of local residents and even to businesses last year showed what climate abnormalities can do to the economy in general. The experience, the GIZ official said, should then push community stakeholders to act toward a greener environment for business and the people.

"The last years have seen a combination of crises that threaten our ability to spread prosperity and sustain our planet," the environment advocate said. "Climate change, poverty, insecurity and inequality seem to feed off one another."

Climate change is seen to threaten the lives and livelihoods of many especially the poor people. In fact, the United Nations has estimated water scarcity could affect one third of the world's population by 2025.

Steigerwald stated the consequences of unsustainability -- deforestation, turning rice lands into housing areas, water shortages, landslides, floods and air pollution -- can be felt everywhere in the Philippines.

"But it is not only climate change, but other environmental challenges are clearly attributable to our way of doing business. So, the ecological results of our current business models are coming to the forefront of discussions and many have started searching for alternatives. This is where green economy or green growth come into place."

Greening the economy

Particularly, the ProGED has called for reduction of emissions to avoid further rise in temperature which is posing negative impacts on people and businesses; improvement of competitiveness of companies by helping them develop green business strategies; credit of the economic value of the nature's capital -- the natural resources.

"International and Philippine companies have realized that developing sustainable business strategies which include greening and beyond greening strategies have become important to build long-term competitiveness," the project manager further said.

He explained greening strategies are the ways enterprises should do to become more competitive through "resource efficiency by improving existing service systems and processes as well as reducing emissions."

The government must have a deliberate policy reforms on the transition to green economy, he added, and its inclusion in the future Philippine Development Plan should be widen.

"Government agencies especially DTI must take a lead to promote this green growth not only for the environment but we also talk about the goal for competitive and long-term growth of the industry and of the business community," he said.

Businesses have to look at the benefits of energy efficiency, green finance, green business and social entrepreneurship. Steigerwald cited some driving forces for green growth: investing in mitigation practices will trigger growth in certain sectors and shifting from a carbon based, resource intensive economy to a green economy will create business opportunities across sectors.

Transforming the "brown" economic model into a low carbon, green one is a work of all sectors of the economy and society.

Green jobs in the renewable energy sector -- for producing and applying clean technology -- are only a few of these opportunities, he said.

The micro, small and medium enterprises in particular should realize the benefits of implementing greening strategies and should see beyond just gaining profit, said Director Kamesh Ganeson of Asia Society for Social Improvement & Sustainable Transformation. He also spoke during the forum.

In a separate interview, Ganeson noted the MSME industry is one of the biggest consumer of electricity and water for production and business operations.

"Most SMEs, they don't really have the vision to go beyond selling and doing business because every SME is more entrepreneurial," he explained. "And usually, entrepreneurs will only look how to grow and sustain the business, rather than looking at environmental challenges -- always the last priority."

While many would say thatopting for a green economy would require a lot of investment from the private sector and government, Ganeson explained changing the mindset and having good behaviors to the environment require no any investment.

He, however, explained that innovative solutions and implementation of technology should be prioritized by business owners for long-term development.

Steigerwald reiterated that making the country's economy green needs the participation of every person in the community. "You know going green makes a lot of business sense, it contributes to inclusive growth and its helps save our earth and our location."

He added the Philippines' way towards globally competitive and innovative industry and services sectors should follow "the resource based economy via an efficiency based economy towards an innovation driven economy." (FREEMAN)