What is Green Economy?
What is the meaning and definition of a Green Economy, and how do projects that follow the Green Economy principles look like?
Explanation of green economy
After the industrial revolution in the 1800s, it became obvious that traditional production techniques had a significant carbon footprint, resulting in rapid global climate changes that adversely affect every living species on the globe in numerous ways. To combat this situation, worldwide organizations, lawmakers, ministries, and businesses adopt new plans on a regular basis to safeguard the earth and all living creatures on this planet.
The term ‘green economy’ is one of several developed concepts that is used as advice for individuals who desire to strive towards a more sustainable and equitable economy.
In its report ´Towards a Green Economy´ from 201, the UNEP defines a green economy as:
green economy as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.
UNEP, 2011
As such, the green economy may be defined as an attempt to change ‘business as usual’ as we have known it since the beginning of the industrial revolution into more sustainable, socially balanced norms.
To be more precise, numerous organizations such as the UN Environment, UNDP, OECD, GGGI, and the Green Economy Coalition specified five principles as part of the green economy that is used as guidance by everyone who wants to work towards a green economy.
The five principles of green economy
1) Well-being
Green economy shall generate sustainable, shared well-being by prioritizing human wealth in forms of growth, health, happiness, education, and community before economic gain.
2) Justice
A green economy prioritizes the protection of human rights (e.g., freedom of speech or child protection), equity, equality, community cohesiveness, social justice, particularly for those of disadvantaged minorities. It aims for a fair transition that benefits all people, including those yet to be born.
3)Planetary boundaries
Green economy shall recognize that human prosperity is entirely dependent on a well-functioning natural world. Thus, green economy defends the purposes and boundaries of nature, as well as biodiversity, soil, water, air, and other ecosystem capitals.
4) Efficiency & sufficiency
Low-carbon, diverse, and circular economies are the features of the green economy. It acknowledges that the need to achieve wealth within planetary constraints while also aligning economic incentives with genuine societal costs is our single most pressing economic challenge.
5) Good governance
Good governance in a green economy supports the creation of organisations or institutions that include dynamic democratic accountability, sound science, relevant metrics, and local knowledge. Also, good governance should prioritise civil life in terms of public participation, social dialogue, informed consent, accountability, and transparency.
As a result, the green economy is more than simply an inspiration for entrepreneurs to raise the sustainability and social values of their firms. Green economy is a concept that attempts to direct policymakers, governors, and others with economic authority to make future-oriented decisions based on the five principles of the green economy.
However, the phrase can still be beneficial for private individuals, such as company owners or investors, who wish to operate in a sustainable and forward-thinking manner, or, in other words, those who want to act like a ‘green economist.’
But: How does a project or company that implemented the five green economic principles successfully look like?
Successful green economic examples
Since the term “green economy” has been in use for more than 10 years, certain projects have effectively applied the five green economy principles as possible. Here are some examples of what such projects seem like:
Renewable Energy in China
The Chinese government has committed to producing 16% of its primary energy from renewable sources by 2020. In 2019, the country already produced around 26% of its energy needs from renewable sources (solar- and wind power, bio-fuel, and hydropower). This process of growth might be accomplished by investing large sums of money in both domestic and foreign green enterprises.
However, for a country recognized for its great industrial output, generating that quantity of electricity from renewable energy sources in a very short period of time is one example of how a country can take a step toward a greener national economy.
Organic agriculture in Uganda
The usage of fertilizers and pesticides has been ruled unconstitutional by the government. This strategy was constructed on interventions in nine different policy areas:
- Advocacy of the use of organic agriculture methods
- The creation of a standardization system
- Accreditation and certification
- Investing in research
- Assisting the growth of organic markets
- Education and training support
- Improved post-harvest procedures
- Sustainable usage of natural resources
- Special interest groups’ participation (women, youth, poor)
By implementing such policies and taking associated actions, farmers in Uganda adapted their farming methods and systems to be more organic. In addition, the policies supported smallholders in a variety of ways, making it simpler for them to finance a livelihood. As a result, Uganda has taken an important step in increasing its organic agriculture production with this project.
Another good example for policy change towards a green economy.
Sustainable urban planning in Brazil
Brazil has the world’s fourth-largest urban population, after China, India, and the United States. Like in many other countries, cities in Brazil are permanently growing.
The Brazilian city of Curitiba has taken the first steps towards implementing sustainable urban living standards to develop into a city that contributes to the green economy. For example, the city has built a Public Transport System to lessen residents’ reliance on automobiles, so reducing traffic congestion and air pollution. There are also other plans for industrial development and employment generation.
Curitiba is Brazil’s first city to adopt smart urban planning approaches that increase the city´s efficiency, productivity, and living quality for its residents. Other towns in Brazil may follow, and further ‘green economic’ developments in urban areas are expected to occur.
Ecosystem Services in Ecuador
In this project, the City of Quito established a Fund for the Protection of its Water Supply. The municipality and a non-governmental organization formed the ‘FONAG’ fund in 2000. Quito’s water availability is dependent on the preservation of protected natural areas, as the city’s water supply is sourced from two reserves. The FONAG fund fosters the collaboration of many stakeholders who demand and utilize water, including farmers, hydropower firms, other companies, and families, to safeguard and secure the water supply. Every user contributes to the fund at a variable rate (based on water use).
The FONAG fund, therefore, supports watershed management initiatives as well as long-term programs focused on communication, environmental education, forestry, and river basin management training.
To sum up, FONAG may be considered as an initiative that brings together many stakeholders who have a common goal towards increasing water supply in crucial locations and thereby contributing to higher living standards for the residents.
How can you support or use the green economy sector?
There are several ways for someone to use or support the green economic sector:
1) Corporate with companies that have a high ESG rating
The ESG evaluation is a process used by business analysts to assess firms or brands across three dimensions: environment, social, and governance. In this article, you can read about the ESG assessment in further detail and how you can find companies with a high ESG-rating. When you’ve located firms or brands that suit you, you could invest in them or buy their products.
2) Spread the word
The term “green economy” refers to how the global economy could get improved. Changing a global economy takes a lot of time, policy changes, money, ideas, motivation, and everyone’s willingness to collaborate and adapt. However, you may begin to take little steps towards a fairer, more sustainable economy by sharing the concept of a green economy with others. For example, leave a comment about your opinions in the comment section below.
3) Try to integrate some aspects
It makes no difference if you are an entrepreneur or a worker. In both cases, ideas for integrating some, or perhaps all, of the ‘green economy principles’ into firms or specific processes can be heard and tested. If you are an employee, you may submit green economic ideas and share them with your coworkers or chef. If you are an entrepreneur or in a management role, you may develop innovative strategies for appropriate procedures that help to the creation of a more sustainable, equitable business or corporation.
The creativity is on you ;)
What ideas of a great green economic project do you have?
You can, of course, leave some thoughts and share your ideas as a comment.
Have a good day.
Lars from SusEco
