In this GGKP Partner in Focus feature, Dirk Messner, Director of the German Development Institute / Deutsches Institut fuer Entwicklungspolitik (DIE), talks about DIE’s work in the field of Green Growth.
DIE is one of the leading research institutions and think tanks for global development and international development policy worldwide. The institute is based in the UN City of Bonn. DIE builds bridges between theory and practice and works within international research networks. The key to DIE’s success is its institutional independence, which is guaranteed by the Institute’s founding statute. Since its founding in 1964, the German Development Institute / Deutsches Institut fuer Entwicklungspolitik (DIE) has based its work on the interplay between Research, Consulting and Training. At present, about 80 researchers from around the world are working at the institute.
The world is experiencing an unprecedented period of economic growth. But the overexploitation of natural resources and limited sink capacities result in the degradation of ecosystems and may lead to ‘tipping points’ of the Earth system where environmental damage becomes irreversible. This means that continuing business-as-usual is not an option and that new development paradigms are needed. Energy systems, industrial production and natural resource use need to be re-oriented fundamentally towards sustainability in a short time period. By sustainability-oriented transformation we mean a low-carbon development and a resource efficient path that is ecologically sustainable and climate resilient and at the same time socially inclusive, opening up new development opportunities for disadvantaged strata of society. Furthermore, national strategies of developing, emerging and developed countries need to consider the global dimension: increases of prosperity should not trespass global boundaries for the use of natural resources and ecological sink capacities. For developing countries the reconciliation of economic, social and environmental objectives presents a particular challenge.
With respect to industrial production and energy systems, environmental costs need to be systematically internalised and models of economic growth need to incorporate resource productivity. However, the framework conditions for environmental innovations in developing countries differ widely from those in developed countries. High and sustained economic growth and improved access to affordable energy are political imperatives, leaving less scope for the internalisation of environmental costs into investment decisions. At the same time, developing countries may have resource-efficient production opportunities that are not available in rich countries, because existing infrastructure and network effects lock the latter into less efficient patterns. Hence, developing countries may lose certain advantages but gain others. For the more advanced developing countries, leapfrogging into low carbon technologies may be a viable option.
By integrating different research strands (innovation systems research, environmental and behavioural economics, political economy) and conducting empirical case studies in developing and developed countries, DIE tries to gain new insights in effective green industrial and innovation policymaking.
Furthermore, natural resources need to be used in a manner that is low carbon, climate resilient, resource efficient, ecologically sustainable and social inclusive. DIE therefore examines opportunities and challenges towards the transformation of natural resources management towards these multiple objectives. Particular focus is being put on the water governance reforms, small-holder agriculture in Africa and trade-offs involved in the introduction of REDD+ (reducing emissions from forest degradation and deforestation) and hydropower schemes. In this context, DIE researchers also take a critical view at green growth discourses and examines potential trade-offs between low carbon development strategies, ecological sustainability and social inclusiveness. Overall, the focus is on understanding the political economy of the green transformation with a focus on natural resources management.
Eventually, development pathways need to be compatible with planetary boundaries. Ideally, this requires cooperation at the global level. DIE therefore examines the evolution of global environmental governance with a particular emphasis on the global climate and climate finance regime. DIE researcher furthermore explore the effects of changing global norms and discourses, such as on climate finance or on sustainable hydropower, on environmental policy in developing countries.
The DIE is the most influential German development research institute, delivering policy advisory work to the German government, the European Union and International Organizations. One important international Green Growth initiative the DIE engages in is the "Indo-German Expert Group on Inclusive and Green Economy"., which brings together renowned experts from ten leading research institutions and political think tanks in India and Germany. It has been initiated by the German Ministry for the Environment, Nature Conservation and Nuclear Safety in close dialogue with Indian partners. Its aim is to jointly explore pathways and provide guidance for policymakers in both countries to support the transformation towards a green and inclusive economy. DIE researchers are engaged in many similar networks, bridging research and policy, in countries like China, Indonesia, Peru, or in the European Union. Furthermore the German Development Institute is hosting a Global Governance School for participants from emerging economies and Europe, facilitating joint learning processes, joint research and global dialogues on sustainable development transformations.
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The opinions expressed herein are solely those of the authors and do not necessarily reflect the official views of the GGKP or its Partners.