Win-Win Approach

Posted: February 27, 2014 in Uncategorized

The “win-win approach” is referenced toward the idea that the Chinese stated in the goal for a cleaner world economy, and means that we have to find a solution that is a win for developed and developing countries. This is a issue that is crucial for the environment, because it will take the world working together to help develop a clean economy. The world’s largest emitters are comprised of both kinds of nations, and the road to finding a “win-win” is not simple.

The logic behind the argument is straight forward, and from the point of view of the developing nations, it has some reasoning. The developed nations have already gone through their primary growth cycle of economies, and while doing so, were the dominant players in carbon emissions. For example, from 1860-1990 the now developed nations were responsible for roughly three quarters of the total carbon emissions during that time period. As the developing countries are now entering their primary growth cycles, they do not want to be constrained by restrictions on energy usage due to the problems caused by the emissions released by the developed countries.

Even further, when we talk about key nations in development, China and India are at the forefront. They make up  almost 3 billion people and within the coming decades, they will likely surpass 3 billion. Of that population, it is estimated that 20% is without adequate electricity supply. The amount of power required by these nations is incredible, and the poverty is also great which means that they are going to look to cheap fuel sources. The photo above provides some simple insight into why this issue is so important. The non-OECD nations have significantly more demand for energy in the coming years, and will be even more sensitive to the costs associated to powering this growth. This relationship is crucial in the search for a cleaner world. The developing and developed nations have to find common ground that will enable for a “win-win” strategy. We will explore this topic in more depth, but in the mean time, read Daniel Yergin’s thoughts on this. He is a world-renowned expert on energy politics and economics, and provides great insight into this issue.

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