The dramatic effects of climate change are well articulated in the media. Most of the scientific world acknowledges a future fraught with disasters associated with erratic weather such as more severe flooding and droughts. What has not come out, however, is that economic growth can be compatible with efforts to address climate change, and the tools are available at our disposal.

Without action, the economic costs of erratic weather will be high. Jakarta has been hit hard by flooding and Australia is in the midst of a big dry spell that could leave many of its cities with no water by midsummer. Such weather events are likely to become more prevalent and offer a glimpse into to a more unpredictable future.

China - being the biggest emitter of greenhouse gases in our region - has acknowledged that it can no longer grow at the expense of the environment and that pollution has taken a heavy toll on the country. Yet the country has shared its worries that the costs of mitigating climate change may derail its strong economic growth.

Concerns like these are not new. Whenever a call to address an environmental problem is voiced, the economic sectors in the countries concerned will jump to a damage-control response citing the threats to their economies and the financial implications. This myth must be shattered once and for all. This time round, our Earth is chiming loudly that it is warming at an alarming rate and will wreak greater havoc on us quicker than expected. The year-round ice at the poles will not be gone by 2050, but by 2020. From a fresh water standpoint alone we must act. Taking steps to slow climate change and sustaining our precious natural resources is what will keep our economic engines going. I am pleased to see that, despite reservations expressed, the report endorsed by the IPCC meeting last week does conclude that climate change can be tackled with no great damage to the economy.

The UN Economic and Social Commission for Asia and the Pacific (Unescap) predicts that developing economies in the Asia-Pacific will grow by an impressive 7.3 per cent this year, driven by the rising economic powerhouses of China and India. The growth of these countries has been to the benefit of millions who lacked economic opportunities to break out of the extreme poverty cycle. That is something that no government, indeed no one, would want to see reversed. However, such growth is driven by high resource consumption accompanied by excessive pollution and waste generation in a region with the least ecological carrying capacity. In short, such gains could be reversed very quickly with little chance of rebounding in the future.

Fortunately, tools and instruments are available for the Asia-Pacific region to further its economic growth without degrading the environment, overexploiting resources and fuelling global warming.

Unescap has been advocating a Green Growth strategy. It was endorsed by our member governments at a regional meeting two years ago. That meeting brought together ministers for the environment and ministers responsible for economic development. They all agreed that Green Growth was a unique instrument and a most strategic answer to improving the environmental sustainability of economic growth. It reconciles the number one millennium development goal, reducing poverty, with goal number seven, environmental sustainability, while addressing climate change at the same time.

Green Growth seeks to improve the ecological efficiency, ie, to maximise resource efficiency and minimise pollution impact. Policy measures to improve ecological efficiency include introducing green tax, building sustainable infrastructure, encouraging a sustainable consumption pattern, and promoting the greening of business. Green tax reforms will change the tax base from income to pollution, thus ensuring that market prices properly reflect the ecological costs.

Taxing activities which cause pollution not only compensates for the increased costs to society, it also encourages energy efficiency, conservation and sustainable consumption. Green Growth also calls for investing in ecologically efficient infrastructure, such as sustainable public transport as a viable alternative to automobile centred infrastructure. Other measures, such as road pricing and congestion charges, are also useful tools in curbing unsustainable consumption patterns. With such tools at hand, the only cost that we can not collectively bear is the cost of inaction.

Kim Hak-Su is the United Nations under-secretary-general and the executive secretary of the UN's Economic and Social Commission for Asia and the Pacific.

Kim Hak-Su

Special to The Nation