Kenya’s Shift to Green Economy Could Generate $45 Billion by 2030

Kenya’s transition to a green economy could generate an estimated 45 billion US dollars by 2030 for the East African country.  A greener economy could also result in greater food security, a cleaner environment and higher productivity of natural resources.  This is according to the Green Economy Assessment Report released by the Kenyan government and the United Nations Environment Program (UNEP).

“Green Economy driven by resource efficiency is the basis for sustainable development and poverty eradication. A green economy revolution is already taking place in Kenya, where the harvesting of geothermal energy from the East African Rift is just one of the many renewable energy projects underway across the country,” Judi Wakhungu, cabinet secretary of the Kenyan Ministry of Environment, Water and Natural Resources, said in a statement.

Wakhungu also advised, “By learning to more accurately value our own natural resources, Kenya will be able to better harness these strategies as it moves towards a holistic, inclusive green economy in the future.”  The report also finds that with an investment of two per cent of Kenya’s GDP (Gross Domestic Product) into a green economy, the country’s national GDP would exceed its current rate by about 12 per cent, or 3.6 trillion Kenyan shillings (KES).

This will result in national income per capita doubling from KES 39,897 to KES 69,702 by 2030, as well as Kenya’s greenhouse gas emissions reduced by nine per cent.  “Under a business-as-usual investment scenario and a two per cent investment, GDP would only increase to KES 53,146 over the same period of time,” said the statement.

Also, while agriculture accounts for about a quarter of Kenya’s national GDP as well as 65 percent of its exports, the report finds that green economy investments would increase Kenya’s average agriculture yield by about 15 per cent from its current baseline.  Renewable energy recourse would also double geothermal capacity by 2030 and will contribute to 20 percent of the country’s total power supply.

Achim Steiner, executive director of UNEP and the UN under-secretary-general, added that Kenya has already demonstrated leadership by pioneering green economy approaches to its various sectors.  “The next wave of investment and innovation in Kenya will be driven by the need for new energy sources, wealth generation and job creation. Kenya is already demonstrating leadership by pioneering green economy approaches in the energy, urban and natural resources sectors as a vehicle to deliver its national development goals,” he said.

Steiner also said, “This report confirms that the country can achieve even greater prosperity and well-being by scaling up its green investments in key sectors, while also factoring the conservation and efficient use of its natural capital into future decisions related to infrastructure, investment in the development of the energy, transport, agriculture and industry sectors.”

According to the Kenyan government’s Second Medium Term Plan, the country has already begun implementing policies and initiatives to move towards a green economy.  A Inter- Ministerial Committee on Green Economy was also formed by various Kenyan institutions and supported by UNEP in order to drive this initiative.

Source: CNBC Africa