– US EPA senior economist

UNITED States Environmental Protection Agency (US EPA) Senior Economist, Ralph Lucan has suggested that ‘greening’ local industries can lead to economic gains for the country while ensuring environmental sustainability.

According to Lucan, ‘greening’ an industry refers to any activity by which the processes of manufacturing fosters the efficient use of energy, water and raw materials; reduce pollutant discharges and encourage ‘green trade’.

‘Green’ trade, according to the United Nations Environment Programme (UNEP), refers to trade that does not deplete the natural resources, harm the environment and or deteriorate social conditions while promoting economic growth.

To this end, the economist affirmed that green industrial development offers new opportunities to diversify the local economy.

“It improves resource efficiency and thereby competitiveness,” Lucan said and added: “For a country like Guyana, greening industries can be the basis for a structural transformation but investments in innovation capacities, human capital, industrial estates and business services management are essential.”

To achieve this, he recommended that Guyana should move to demonstrate resource efficiency in one sector first then move to transform industrial estates and sugar estates to eco-industrial parks, bolster the export potential of green goods and develop and enforce environmental safeguard mechanisms.

And in so doing, he suggested that Guyana delinks its Gross Domestic Product (GDP) from resources use and pollution.

Lucan explained that it is necessary for Guyana to delink manufacturing activities- which contribute to its Gross Domestic Product (GDP)—from inefficient resource use and pollution. And to do this, the country would have to engage in ‘relative decoupling’.

This relative decoupling occurs when the country’s GDP increases more rapidly that the resource usage.

According to Lucan, a value chain analysis must first be done to ascertain if the positives of bolstering production in a specific sector would outweigh the negative environmental implications.

He gave the example of the agro-processing industry, where increased profits and job generation could be benefits garnered from bolstered production but simultaneously, there is the environmental implication that can be had from using increased pesticides and fertilisers, and an inefficient production process.

Lucan, who was in Guyana for a short period, spoke about ‘greening’ industries at a recently held edition of ‘Green Conversations’. These conversations are a series of talks held throughout the country, with the aim of enlightening citizens on green, economic development and garner information on some of the issues that are emerging from Guyana’s ‘Green’ State Development Strategy (GSDS).

Speaking to the Guyana Chronicle, Project Manager of the GSDS Coordination Office, Deirdre Shurland said that it is important for all citizens to know that ‘greening’ is not a reference to colour, but it is a philosophy of development.

“‘Greening’ industry is about facilitating industrial development, whether at the ‘light level’ in terms of manufacturing plants, but ensuring that industries are cognisant of their corporate responsibility of conserving the environment,” Shurland explained.

In fact, she noted that this falls under a tenet of the GSDS—economic transformation and sustainability. Under this tenet, it is envisaged that Guyana can diversify its economy by moving away from the creation to primary products towards creating more value-added manufacturing, while enforcing principles of conservation.

“It’s not only about environmental sustainability but also economic diversification, producing real jobs, building the capital, and creating opportunities for innovation and getting into the small businesses,” she said.

And there is a lot that can be done in this regard, according to Shurland, but citizens have to take initiative too.

She said, “Government will try to provide a facilitative environment, but it is up to citizens to harness the opportunities. And where there are roadblocks—let it be known, so that they can be removed. The GSDS is promoting the creation of a better business environment so that innovative, great ideas from young entrepreneurs could get into the productive process and create real value here for Guyana.”