KPI for sustainable economy: Measurability of appropriate indicators and accurate monitoring of resources is a key for countries to move towards a more sustainable, greener economy. The green economy approach seeks to redirect economic investments to support growth through policy responses, while taking into account the social implications and the related environmental issues.
Once governments have decided on policy options towards greening of the economy, monitoring and evaluation against a selected set of indicators is essential in consequent implementation.
A paradigm change is obtainable, where growth is measured not only on Gross Domestic Product (GDP) but inclusive of more holistic, internationally comparable indicators that reflect the progress towards a green economy.
The Global Green Economy Index (GGEI) currently ranks 60 countries for their progress towards a green economy (including 3 MENA region countries, Qatar, Morocco and United Arab Emirates). The index is defined by 32 indicators, each contained within one of four dimensions:
- Leadership & Climate Change
- efforts of national leaders to address impacts
- where each nation stands in terms of key climate change indicators
- International efforts to address adverse impacts of climate change
- Efficiency Sectors
- performance in sustainable buildings
- emissions from the transport sector
- sustainable tourism
- renewable energy for electricity production
- Markets & Investment
- promotion of the right mix of fiscal and policy incentives to accelerate green growth
- Environment & Natural Capital
- utilizing the Environmental Performance Indicator (EPI)
Setting specific KPIs for a program of policy formation and supportive structures to build a green economy need to be designed specifically around any country specific strategy. Indicators should be designed to analyze impact of measures across sectors, to quantify the advantages and costs of interventions and to drive the program forward.
The UNDP have identified three principal areas for the work on green economy indicators, highlighting that while countries require flexibility to meet their different needs and green economy pathways, the development and coordination of enabling conditions at the international level requires some degree of standardization and comparability. Indicators for developing the Green Economy center around data associated with: Indicators of economic transformation, Indicators of resource efficiency, Indicators of progress and well-being.
The core message is that the green economy has an inter-temporal vision; strategies, investments and decisions made today must consider the welfare of future generations and the environment. As such, the green economy requires considerable structural and conceptual change on the part of governments, businesses and individuals to ensure that there are no trade-offs in achieving prosperity today and tomorrow.
Article: KPI for sustainable economy