United Nations to the World: Go Green!

The United Nations has issued a blueprint for green investment over the next forty years. Calling for a complete change in direction for the market forces that affect the environment, the UN Environment Programme (UNEP) suggests that 2 percent of global gross domestic product (about $1.3 trillion) be funneled towards low-carbon, resource-efficent investments.

An investment of this magnitude would dramatically alter green initiatives. The report, Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication, notes that too many resources have been invested in the "wrong" sectors: "During the last two decades, much capital was poured into property, fossil fuels and structured financial assets with embedded derivatives, but relatively little in comparison was invested in renewable energy, energy efficiency, public transportation, sustainable agriculture, ecosystem and biodiversity protection, and land and water conservation."

The United Nations is asking countries around the world to initiate legislation that channels funds towards green initiatives: "Unfettered markets are not meant to solve social problems, so there is a need for better public policies, including pricing and regulatory measures to change the perverse market incentives that drive this capital misallocation."

The UNEP report notes that agriculture, public transportation, and the fisheries sector are key areas of concern (and places for substantial growth) in the green market. While the United Nations has no way of tracking exactly how much individual nations invest in sustainable markets, this report paves the way for broad reforms in governmental spending over the next several years.

Photo credit: Jared and Corin