green growth essay

A ship carrying liquefied natural gas passing by the Saint-Nazaire offshore wind farm in western France, 30 September 2022. Photo by Stephane Mahe/Reuters

We need to find a way for human societies to prosper while the planet heals. So far we can’t even think clearly about it

by Ville Lähde   + BIO

At the heart of current environmental debates is a crucial question: is economic growth possible without environmental destruction? Climate change, biodiversity degradation, overexploitation of natural resources and many forms of pollution are evident problems, and their recognition is backed by a strong consensus of the sciences. It is a sign of the times that most people no longer deny the maxim that endless material growth is impossible on a limited planet. There are limits to growth, material and ecological. Only people dreaming about asteroid mining fuelled by fusion and facilitated by terraforming deny this tenet. Despite being often super-rich, like Elon Musk, in this regard they are fringe. Recognition of key environmental problems is becoming increasingly widespread, even if this is not met by necessary action.

However, alongside this is the dominant and widely accepted economic belief that growth is necessary – economic growth. It is needed not only to feed and clothe the poor of the world, but it is necessary for the energy and momentum of societies everywhere. Actually, if one listens to the eulogies of economic growth by politicians in wealthy countries, like my home country Finland, the latter is usually the main argument. Growth is needed, or else unemployment soars, pensions are unpaid, and debts accumulate.

It is widely acknowledged that in recent decades and centuries, economic growth has caused environmental problems. The severity of the ecological crisis is debated, some of it even denied, but this is the big picture. However, in recent years there has been a consistent effort to resolve this tension between economic growth and ecological limits with the notion of ‘decoupling’. (This should not be confused with the ‘decoupling’ of global trade and ‘friendshoring’ that is debated around US-China relations.) The basic idea is that economic growth can continue and literally decouple, or part ways, with material growth and environmental degradation. Growth can be green.

There are surely ecological problems, but they are not insurmountable. Just like the ‘dark Satanic Mills’ were cleaned, just like ozone depletion was overcome, any and all environmental problems will be resolved with growth, not without it. The connection between economic growth and negative impacts can be broken.

B ut not everyone agrees, and decoupling has become a hot topic in public debates. In February 2023, The New York Times published Paul Krugman’s column ‘Wonking Out: Why Growth Can Be Green’. Krugman stated that ‘it’s possible to decouple growth from environmental harm’ and aimed his column explicitly at people who claim that economic growth and environmental protection cannot be combined. He saw this putatively false claim emanating both from environmentalists (or the Left) and from people who oppose environmental policies. In effect, the former were labelled as useful idiots for the latter.

To back himself up, Krugman drew statistics from the Our World in Data site. Similar sentiments have been published in articles on the site over the years. In his article ‘How Much Economic Growth Is Necessary to Reduce Global Poverty Substantially?’ (2021), Max Roser stated forcefully that it will be possible to decouple economic growth from environmental harm. He too aimed his critique at an opposing group of people. For him, doubters of decoupling do not take poverty seriously:

If those who say that it is not possible to decouple growth from environmental harm are right, then the future will be bleak. If indeed there should be no possibility to sufficiently decouple growth from environmental impacts then the future will be either one of continuing global poverty or one of continuing environmental destruction, or both.

In the article ‘Shrink Emissions, Not the Economy’ (2018), also published on the Our World in Data website, four authors made a case for decoupling, focusing on climate emissions. They too noted how denying decoupling brings anti-environmentalists and some environmentalists into the same camp. However, now the opposition was named specifically: ‘degrowthers’. In a nutshell, degrowth is a loose intellectual and political movement that calls for stopping the kind of economic growth that is driving ecological destruction.

The idea is that environmental harm increases as countries become more affluent but tapers off after that

One vocal representative of the degrowth movement is Timothée Parrique. He wrote a detailed response to Krugman, accusing him of cherry-picking his evidence. Parrique ended his response with strong words:

The story of decoupling is reassuring; it’s a don’t worry, everything is fine, everything is going to be okay kind of thing to say. And this is precisely why that story is dangerous. As ecosystems are getting nightmarishly worse, the fable of green growth is acting as a kind of macroeconomic greenwashing, especially when mobilised to discredit other, more radical solutions to the ecological crisis.

A similar public exchange of words took place after Andrew McAfee’s combative essay ‘Why Degrowth Is the Worst Idea on the Planet’ (2020) was published in Wired . He claimed that the world’s richest countries have learned how to reduce their ‘footprint on Earth’. He also attacked degrowthers as being practically anti-science:

Some voices in the conversation about the environment seem wedded to the idea that degrowth is necessary, and they are unwilling or unable to walk away from it, no matter the evidence.

Referring to examples of cleaning local air pollution, he invoked another specialist concept: ‘the environmental Kuznets curve’. The idea is that environmental harm increases as countries become more affluent but tapers off after that. In a nutshell: only wealthy societies can really take care of the environment.

One of the big names in the degrowther circles, Jason Hickel, responded to McAfee on his blog. Like Parrique, he referred to the extensive research literature on the decoupling question, and pointed out how partial or false is the rosy picture about wealthy societies. He also claimed that, in criticising Hickel and degrowth in general, McAfee had distorted his views. His ending was, however, diplomatic:

My appeal to McAfee: let’s try to get beyond this sort of thing and engage more honestly with the empirical and theoretical work that has been done, so we can have more meaningful conversations. If we are going to realise our shared goals, we can and must do better.

S hould not this engagement with empirical work and honest debate just be a matter of looking at the facts, checking out the right statistics? But this is not a simple matter. If we want to be serious about the issue, we have to frame the question properly. Meaningful discussion and even disagreement must happen within a shared frame.

Certain key questions have to be answered before any facts can be brought to bear on this issue. First of all: what kind of decoupling are we talking about? Is it relative or absolute? (More on this below.) Secondly: what is decoupled? It does not suffice to answer ‘environmental harm’ or ‘footprint on Earth’. As I wrote in an earlier essay for Aeon , environmental problems are legion, and aggregating them is highly problematic. And thirdly: from what are we supposed to decouple? What should keep growing?

If these questions are not answered, any discussion and debate will end up in confusion. There are no meaningful generic answers to the questions ‘Is decoupling possible?’ or ‘Is decoupling happening?’

If the current situation is unsustainable, relative decoupling is not enough

If decoupling of environmental impacts (or use of natural resources) from economic growth takes place, it can be of two kinds. It can be relative or absolute . In relative decoupling, both graphs keep climbing up, but environmental impacts grow slower. The speeds of growth decouple relative to each other. But environmental impacts still keep getting worse.

Depending on what kinds of impacts you are talking about – local air pollution, deforestation, climate emissions, plastic pollution – the critical limits are set differently. Perhaps some increase of some environmental impact can be stomached somewhere , if it is necessary to raise people from poverty or grow more food, for example. But if the current situation is unsustainable, relative decoupling is not enough. You need to diminish the impacts. When connected to the growth imperative, this means you need absolute decoupling. The economy grows while the impacts decrease.

It is, however, not sufficient that the impacts decrease. This has to take place fast enough. Again, here, environmental problems differ in their ecological dynamics, but with many there are specific timetables of mitigation. With climate change, you have the aspirational ‘safety limits’ of 1.5°C or 2°C and the carbon budgets that dictate the target years of net zero. In general, when there are serious risks of ecosystems (and, with them, human systems) flipping into new dangerous regimes, so-called ‘tipping points’, or else of severe irreversible damage, meeting the timetable becomes crucial.

B ut what do we need to decouple absolutely? As environmental problems differ in their geographic scale, their causes and their ecological dynamics, not all decouplings are equal. Successful elimination of local air pollution in cities is often used as an example of decoupling. However, one can quite easily understand that such pollution can be combatted by legislation or technological fixes irrespective of economic growth or decline. If certain practices are banned or made mandatory, that is it. As Parrique notes, air quality can very well be better in poorer circumstances.

Perhaps declining climate emissions is a more representative example? First of all, climate emissions are directly connected to the overall activity in society, especially energy production. If there is absolute decoupling there, that says something more general than, say, removing sewage from streets. Secondly, it is possible, quite self-evidently, to decrease climate emissions while growing the economy. If you shut down a lot of coal plants and transition to low-emission energy sources, emissions go down. Of course the economy can grow: new power systems have to be constructed, old ones dismantled. Eventually, societies will run into the realm of ‘hard to abate’ emissions from industry and agriculture, but the opening salvos are no-brainers. And, as Krugman notes, they can be good business.

As the climate scientist Zeke Hausfather noted in 2021, absolute decoupling of climate emissions has taken place already in many countries, mostly affluent Western countries that have increasingly moved away from coal and have more climate legislation. Nowhere has emission decline been fast enough: no country is on track to meet the stringent emission-cut targets. Note that absolute decoupling in these cases is true even if consumption-based emissions, that is, emissions inherent in imported goods, are counted in. Some decades ago, domestic emission decline was still somewhat illusory: it was mainly due to ‘externalising’ emissions through trade, that is, buying stuff from less wealthy countries. Since then, emission decline has stemmed more and more from domestic changes in energy production. Externalisation of some emissions takes place still, but it is not large enough to offset the general decline in emissions. And, of course, energy systems can change in the export countries too. Just look at China. Too little, too late, most likely, but still good news.

Because the current situation is unsustainable, the sustainable way is down – towards material degrowth

However, it is crucial to keep in mind that behind the façade of ‘the environmental crisis’ there is a legion of diverse issues. It is surely possible to lower climate emissions while other problems get worse: overfishing, plastic pollution, freshwater scarcity, erosion of farmland, deforestation… and, especially in its myriad forms, biodiversity decline .

Actually, climate mitigation, if done wrong, can end up exacerbating other problems. Bioenergy with carbon capture and sequestration (BECCS) is inherent in most climate scenarios. In a nutshell, it means that energy crops are grown, burned for energy, and then most of the emissions are captured technologically and stored somewhere. Large-scale cultivation of energy crops threatens to cause further deforestation, soil degradation and biodiversity decline, and added pressure on already scarce water resources in many areas. Bioenergy in general, for example excessive reliance on forest wood as fuel, tends to erode biodiversity. And many countries are waking up to realise (like Finland) that, as carbon sinks and storages in forests diminish, the putative green credentials of wood go up in smoke.

This is why, increasingly in studies of decoupling, extraction of natural resources has become a favourite metric. It is a rough tool, of course. Overfishing and sustainable fishing are different. Clearcutting rainforests is a particularly bad form of forestry. Sand is not herrings is not uranium is not apples is not oranges. If done carelessly, using flows of natural resources as a metric risks all kinds of problems of aggregation. Quality is paramount: we cannot read from those flows what we can and should do.

But we can read what we should not do. We are in an unsustainable and potentially disastrous situation with many dimensions of the environmental crisis. And material flows, the sheer amount of stuff extracted, processed, transported, used and discarded simply is the key driver for a variety of central forms of environmental impact. Because the current situation is unsustainable, the sustainable way is down – towards material degrowth. Here the analogy with climate emissions breaks down: there is no evidence of economy-wide absolute resource decoupling.

Economic growth all over the world is still strongly coupled with growing material consumption. Modern life has not ‘dematerialised’ with the promise of paperless offices, with internet and with the growing service economy. What’s more, ‘externalisation’ of resource use is still a fact of life. It is not analogous with the case of climate emissions. This makes sense: importing fruit and coffee from water-scarcity areas still uses up water; stuff produced with cleaner energy still needs raw materials.

This is why answers to the question ‘Is decoupling happening?’ can diverge radically depending on what environmental metric you are using and in which part of the world you are. And there is still the other question: ‘Is it happening fast enough?’ If not, the question arises whether it could happen faster without the growth imperative.

T hirdly, from what are we supposed to decouple? Remember, the issue of decoupling is not about whether environmental pressures can be diminished. Of course they can be. The issue is whether this can happen in the context of continuous economic growth. Some even claim that it is possible only with economic growth, the engine of innovation. At the extreme, the most technologically obsessed see acceleration through the worst of it, ‘burning through’ the historical bottleneck, as the only answer. We can clean up afterwards. Staying still is stagnation. But coining a phrase from James Baldwin, the fire next time can burn down the house and the foundations, along with the fire brigade.

The whole idea of decoupling remains tied to economic growth, and in our world that still means GDP. Pretty much everyone agrees that it is a crappy metric, but still those who argue for the necessity of growth end up arguing for continued GDP growth. Decoupling gives this crude tool a new lease of life. Alongside economic growth, people are of course talking about poverty elimination, education, ending hunger and creating human wellbeing. But the question is, are these things fatefully tethered to increasing GDP and thus increasing extraction of natural resources?

A crucial ancillary question is, does the world need to see economic growth for everyone, everywhere, all the time? This is actually an issue pointed out repeatedly by degrowther figures like Parrique and Hickel. We live in a world of deep systemic inequality within regions and between regions, with overconsumption and underconsumption, with humongous carbon and material footprints for some, and specific problems related to poverty and insecurity for some. The latter people surely need economic growth, and material and energetic growth. But the future will be bleak, if bettering the lot of billions requires overconsumption by the affluent minority.

The real issue is whether diverse environmental pressures are relieved fast enough to safeguard our continuation

This perhaps is the great lure of the idea of decoupling: it promises that everything can change without anything really changing. We are already on our way to a better world, so any kind of systemic change is not needed. All boats are raised, wealth trickles down, and so on.

In the end, however, the whole toing and froing about decoupling may itself be a confusing dead end. It anchors us to the abstraction of GDP, to any idea of aggregated and undifferentiated growth and, conversely, it seems to invite an equally abstract environmental metric as a counterpoint. Decoupling A from B. It plays havoc with contextuality.

The crux of the matter is not whether decoupling is possible. The real issue is whether, both globally and in regions all around the world, diverse environmental pressures are relieved fast enough to safeguard the continuation of our societies. It would be quite nice if we also safeguarded the continuation and resilience of the diverse ecosystems we live among. In the end, these goals are connected, even if the connections are not always clearly defined, and thus are easily ignored. Living without a stable life support system is not possible. And, of course, the world is inhabited by other beings too.

It is a secondary question how the economic accounting of that development is made. GDP itself is a creature conjured by accounting, and not a stable one at that. Changes in accounting practices can and have caused shifts of GDP without corresponding changes in material reality. So perhaps clever collective accounting tricks can be devised to put a positive economic sign for reaching a safe ecological zone for our societies. That would be a radical change.

The other crux of the matter is not growth, it is wellbeing. This has been grasped beautifully under the banner ‘A Good Life for All Within Planetary Boundaries’. Starting with a landmark article in Nature in 2018, a group of researchers has tried to answer a devilishly difficult question. Is it possible to realise sufficiently good life for all people of the world, even until the global population stabilises, and remain within a safe ecological zone? Currently, no society in the world manages to do both. And, conversely to what the eulogists of decoupling repeatedly state, the wealthier societies tend to overstep overall ecological boundaries more, even if they succeed better in some dimensions.

Answering this question, and making it a reality, will require contextual understanding and tailored solutions. It requires changing the provision systems of societies, the ways we are housed, clothed, fed, healed, transported, educated and so on. People live in different circumstances, and societies too face different challenges. There is no one grand question of decoupling that needs answering. We need many better questions and a legion of answers for the host of our problems.

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Green Growth: India’s strategy for Green Economy

Last updated on July 31, 2024 by ClearIAS Team

Green growth is one of the seven top priorities of the Union Budget 2023-24 for ushering green industrial and economic transition, environmentally friendly agriculture, and sustainable energy in the country. Read here to get a comprehensive understanding of India’s efforts towards green energy transition.

The Union Budget 2023-24 has envisaged several projects and initiatives spread across various sectors and ministries like Green Hydrogen Mission, Energy Transition, Energy Storage Projects, Renewable Energy Evacuation, Green Credit Program, PM-PRANAM, GOBARdhan Scheme, Bhartiya Prakritik Kheti Bio-Input Resource Centres, MISHTI, Amrit Dharohar, Coastal Shipping, and Vehicle Replacement.

The aim is to accelerate the momentum for green growth in the country by forwarding new-age reforms along with finding solutions to current challenges.

The green energy announcements in the budget play a key role in establishing India as a leading player in the global green energy market. India has been the fastest in renewable energy capacity addition among major economies since 2014.

Table of Contents

What is Green Growth?

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Green growth means fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies.

Green growth is not a replacement for sustainable development.

• It provides a practical and flexible approach for achieving concrete, measurable progress across its economic and environmental pillars while taking full account of the social consequences of greening the growth dynamic of economies.
• The focus of green growth strategies is ensuring that natural assets can deliver their full economic potential on a sustainable basis.
• That potential includes the provision of critical life support services – clean air and water, and the resilient biodiversity needed to support food production and human health.
• Natural assets are not infinitely substitutable and green growth policies take account of that.

Green growth policies are an integral part of the structural reforms needed to foster strong, more sustainable, and inclusive growth . They help in several aspects of growth-

• Enhancing productivity by creating incentives for greater efficiency in the use of natural resources, reducing waste and energy consumption, unlocking opportunities for innovation and value creation, and allocating resources to the highest value use.
• Boosting investor confidence through greater predictability in how governments deal with major environmental issues.
• Opening up new markets by stimulating demand for green goods, services, and technologies.
• Contributing to fiscal consolidation by mobilizing revenues through green taxes and the elimination of environmentally harmful subsidies.
• These measures can also help to generate or free up resources for anti-poverty programs in such areas as water supply and sanitation, or other pro-poor investments.
• Reducing risks of negative shocks to growth due to resource bottlenecks, as well as damaging and potentially irreversible environmental impacts.

Strategies for greener growth need to be tailored to fit specific country circumstances. They will need to carefully consider how to manage any potential trade-offs and best exploit the synergies between green growth and poverty reduction.

Green growth strategies also recognize that focusing on GDP as the main measure of economic progress generally overlooks the contribution of natural assets to wealth, health, and well-being.

They, therefore, need to rely on a broader range of measures of progress, encompassing the quality and composition of growth, and how this affects people’s wealth and welfare.

India’s Green Growth strategy

Green growth, from green credits to green energy to green mobility to green farming, was among the seven main priorities that the latest budget announced.

Indian green growth and energy transmission are outlined on three pillars:

• Increasing the production of renewable energy
• Reducing the use of fossil fuel in the economy
• Rapidly moving towards a gas-based economy in the country

Measures like ethanol blending , PM KUSUM Yojana, incentives for solar manufacturing, rooftop solar scheme, coal gasification, and battery storage in the Budgets of the past few years underlined the strategy.

Other initiatives like green credit for industries, PM Pranam Yojna for farmers, Gobardhan Yojna for villages, vehicle scrapping policy for cities, and Green Hydrogen and wetland conservation are also paving the way to achieve the same.

India has been the fastest when it comes to renewable energy capacity addition among major economies since 2014.

• India achieved the target of 40% contributions from non-fossil fuels in the installed electricity capacity 9 years before the target date.
• India achieved the target of 10% ethanol blending in petrol 5 months before time and emphasized that the nation strives to achieve 20% ethanol blending in petrol by 2025-26 instead of 2030.
• A capacity of 500 GW will be achieved by 2030.
• The launch of E20 fuel and emphasis on biofuels has brought new opportunities for investors.
• The development of waterways in India is being given priority to encourage water-based transport and greener cargo handling.

India has to increase its battery storage capacity to 125 gigawatt hours in the next 6-7 years.

• Funding has also been initiated for Battery Energy Storage Systems: a capacity of 4,000 MWH will be supported with Viability Gap Funding (VGF).
• The VGF support and greater thrust on pumped hydro are critical to helping India move towards meeting the Energy Storage Obligation targets.
• To further green mobility, the import of capital goods and machinery required for the manufacture of lithium-ion cells for batteries used in electric vehicles will be exempted from customs duties.

Under the National Green Hydrogen Mission , India is moving with a target of production of 5 MMT of green hydrogen.

• An allocation of Rs 19 thousand crores has been made to incentivize the private sector in this field.
• Other opportunities such as electrolyzer manufacturing, green steel manufacturing, and long-haul fuel cells are also being given importance.

The vision of “LiFE”, or Lifestyle for Environment , will move the country and world towards an “environmentally conscious lifestyle”.

India is moving forward firmly for the panchamrit and net-zero carbon emission by 2070 to usher in green industrial and economic transition.

Read: Leadership Group for Industry Transition (LeadIT)

Government Initiatives for Green Growth

Some of the other major initiatives driving India’s green growth are:

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) Scheme is aimed at ensuring energy security for farmers in India.

It is honoring India’s commitment to increase the share of installed capacity of electric power from non-fossil-fuel sources to 40% by 2030 as part of Intended Nationally Determined Contributions (INDCs) .

The scheme was launched in 2019 with 3 components:

• Component-A: For Setting up 10,000 MW of Decentralized Grid Connected Renewable Energy Power Plants on barren land.
• Component-B: For Installation of 17.50 Lakh stand-alone solar agriculture pumps.
• Component-C: For Solarisation of 10 Lakh Grid Connected Agriculture Pumps.

Gobardhan Yojana

India has the potential of producing 10 thousand million cubic meters of biogas from Gobar (cow dung) and 1.5 lakhs cubic meters of gas which can contribute up to 8% to the city gas distribution in the country.

Gobardhan Yojana launched in 2018, is an important component of India’s biofuel strategy. In this budget, the government has announced plans to set up 500 new waste-to-wealth plants under the Gobardhan Yojana.

The Galvanizing Organic Bio-Agro Resources Dhan (GOBAR-DHAN) scheme is implemented under the Swachh Bharat Mission Gramin -Phase 2, by the Department of Drinking Water and Sanitation under the Jal Shakti ministry.

India’s vehicle scrapping policy

This is a crucial part of the green growth strategy as it creates space for a cleaner fleet of vehicles.

The Vehicle Scrappage Policy launched on August 13, 2021, is a government-funded program to replace old vehicles with modern & new vehicles on Indian roads.

According to the new policy, commercial vehicles aged >15 years and passenger vehicles aged >20 years will have to be mandatorily scrapped if they do not pass the fitness and emission tests

The policy is expected to reduce pollution, create job opportunities and boost demand for new vehicles. Following the principle of Reuse, Recycle, and Recovery gives new strength to our circular economy .

The government will promote and facilitate one crore farmers to adopt natural farming through Prime Minister Program for Restoration, Awareness, Nourishment, and Amelioration of Mother earth (PRANAM).

The main objective of this scheme is to reduce the use of chemical fertilizers and promote the balanced use of chemicals, promote green growth, and reduce the negative impact on the environment.

Green Credit programme

A Green Credit program to encourage behavioral change will be notified under the Environment (Protection) Act .

This will incentivize environmentally sustainable and responsive actions by companies, individuals, and local bodies, and help mobilize additional resources for such activities.

MISHTI and Amrit Darohar

‘Mangrove Initiative for Shoreline Habitats & Tangible Incomes’ or MISHTI, which will involve planting mangroves along the coastline and on salt pan lands, wherever feasible, through convergence between MGNREGA , CAMPA Fund, and other sources.

Amrit Darohar is another new scheme, that will be implemented over the next three years to “encourage optimal use of wetlands, and enhance biodiversity, carbon stock, eco-tourism opportunities, and income generation for local communities”.

Way forward

India has huge potential to lead the world when it comes to technology for Green Energy and it can forward, the cause of global good apart from generating Green Jobs.

Also, as the G20 President for the term, the concept of green growth being a priority area validates how sustainable development is a major vision of Indian policymaking.

The budget 2023-24 also identifies 100 projects to improve last-mile connectivity for industries like coal and ports, as well as activities that would not be considered green growth, such as building 50 extra airports.

Also, there are no funding resources for important initiatives like the National Mission on Himalayan Studies, the National Adaptation Strategy, and the National Climate Change Action Plan. This occurs at a time when Joshimath and several other Himalayan cities are undergoing land subsidence .

Thus, India has to make sure that funding is going towards low-carbon technology, as well as identify the economic sectors and environmental degradation hotspots and take action to remedy them.

Read: Green Energy Partnerships of India; Battery Energy Storage System (BESS); Zero carbon buildings

-Article written by Swathi Satish

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The Role of Technological Change in Green Growth

By reducing the costs of environmental protection, technological change is important for promoting green growth. This entails both the creation of new technologies and more widespread deployment of existing green technologies. This paper reviews the literature on environmentally friendly technological change, with a focus on lessons relevant to developing countries. I begin with a discussion of data available for measuring the various steps of technological change. I continue with a discussion of sources of environmental innovation. Given that most innovation is concentrated in a few rich countries, this leads to a discussion of the remaining role for lower-income countries, followed by a discussion of technology transfer. Because of the importance of market failures, I then discuss the role of both technology policy and environmental policy for promoting environmentally friendly technological change. The review concludes with a discussion of what environmental economists can learn from other fields.

This paper was produced for the Green Growth Knowledge Platform (www.greengrowthknowledge.org), a joint initiative of the Global Green Growth Institute, Organisation for Economic Co-operation and Development, United Nations Environment Programme, and the World Bank, and also appears as World Bank Policy Research Working Paper #6239. I thank Michael Toman, Marianne Fay, and Stephane Hallegatte for helpful comments on an earlier draft of this paper. In addition, the discussion in this paper has also been informed by my work with various colleagues on other projects related to technological change and the environment, including Richard Newell, Adam Jaffe, Nick Johnstone and Jung Eun Kim. Their implicit contributions to this work are duly noted. Any remaining errors are solely my responsibility. Views and errors remain mine alone, and should not be attributed to the World Bank Group or its member countries. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.

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An International Perspective

This report illustrates China’s progress towards green growth from an international perspective, with focus on industry and the interplay between industrial development and environment. It starts with depicting the structural shifts that the Chinese economy, in particular its industry, has undergone since the early 1990s. It briefly discusses the driving forces behind China’s emergence as global manufacturing powerhouse, and the environmental implications of this rapid phase of industrialisation. It also assesses China’s position vis-à-vis green growth using the OECD green growth measurement framework and indicators.

The findings suggest that China has made great strides towards improving the environmental and resource productivity of its economy, but more opportunities can be exploited for greater efficiency gains that are vital to the shift to a low carbon, resource efficient and competitive economy. They also indicate that the policies in place, though showing first results, remain insufficient to cope with increasing environmental pressures and with historical and cumulated pollution loads. Further progress will largely depend on the country’s capacity to integrate environmental aspects into decision-making in all policies and sectors, and at all levels, and ensure that industrial and environmental policy objectives and measures are well aligned and mutually supportive.

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Author(s) Myriam Linster i  and Chan Yang i i OECD

19 Oct 2018

No. 2018/05

• Understanding Poverty
• Environment

Toward a Clean, Green, Resilient World for All

The World Bank Group's Environment Strategy 2012-2022 lays out an ambitious agenda to support "green, clean, resilient" paths for developing countries, as they pursue poverty reduction and development in an increasingly fragile environment.

The Environment Strategy, which covers the World Bank, International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA), recognizes that while there has been notable progress in reducing global poverty, there has been significantly less progress in managing the environment sustainably. While developing countries will still need rapid growth to reduce poverty over the next decade, the global environment has reached a critical state that could undermine livelihoods, productivity, and global stability.

"Green" refers to a world in which natural resources, including oceans, land, and forests, are sustainably managed and conserved to improve livelihoods and ensure food security. It's a world in which healthy ecosystems increase all the economic returns from the activities they support. Growth strategies are focused on overall wealth rather than GDP as it is currently measured. Governments pursue regulations that encourage innovation, efficiency, sustainable budgeting, and green growth. Biodiversity is protected as an economically critical resource. In this world, good policies enable the private sector to use natural resources sustainably as part of good business, creating jobs and contributing to long-term growth. 

Biodiversity continues to decline as a result of habitat destruction and degradation. Over the past 40 years, there have been significant declines in healthy ecosystems-e.g., forests, mangroves, sea grass beds, coral reefs-and their flora and fauna populations, with species loss affecting everything from fungi to insects, plants, frogs, tigers, and gorillas. Forests have seen annual losses of 5.2 million hectares between 2000 and 2010, despite declines in deforestation rates and increased forest plantations. As a result, the capacity of ecosystems to provide services such as water provisioning and flood control has declined significantly. Land degradation is also worsening as a result of deforestation and poor agricultural practices, with soil erosion, salinization, and nutrient depletion contributing to desertification. Freshwater supplies are seriously stressed, with 1.4 billion people living in river basins in which water use exceeds recharge rates. Oceans and shared seas are also under stress from climate change, overharvesting, pollution, and coastal development. The decline of marine resources threatens the livelihoods of over 100 million men and women involved in fish processing.

Through the global Wealth Accounting and Valuation of Ecosystem Services (WAVES) partnership, partnership, the Bank Group is supporting efforts to measure the value of countries’ natural assets and thereby inform policy choices. The Bank Group is also supporting the Global Partnership for Oceans to help restore the world's oceans to health and optimize their contributions to economic growth and food security. In addition, the World Bank Group will build on its experience in carbon finance to test the market's willingness to encourage the protection of critical habitat areas while also providing carbon storage benefits; continue innovative work on forests and land use linked to the Reducing Emissions from Deforestation and Degradation (REDD) program; and develop methodologies to capture and monetize carbon co-benefits—for example, through wildlife conservation programs. 

"Clean" refers to a low-pollution, low-emission world in which cleaner air, water, and oceans enable people to lead healthy, productive lives. It is a world where development strategies put a premium on access-so that rural women no longer spend their days hauling wood-alongside options for low-emission, climate-smart agriculture, transport, energy, and urban development. Cleaner production standards spur innovation, and industry is encouraged to develop clean technologies that provide jobs and support sustainable growth. Companies and governments are held to account on their low-emission, low-pollution commitments, and innovative financing helps to spur change. 

The poorest countries suffer directly and measurably from an increasingly polluted and degraded environment, with women and children disproportionately affected. Air and water pollution are rising sharply in cities in lower- and middle-income countries, and developing countries' water resources are under threat from drawdown and pollution-human waste, phosphorus, and nitrogen that deplete waterways of oxygen and causing the death of fish and invertebrates. The increased use of fertilizers for food crops over the next 30 years is expected to result in a 10- to 20-percent global increase in river nitrogen flows to coastal ecosystems (UNEP 2007). In some regions, levels of heavy metals, stockpiles of persistent organic pollutants (POPs), and other chemical wastes from industry, which affect human and animal health, water supplies, and land, are increasing. Meanwhile, carbon dioxide emissions continue to rise, reaching a record high in 2010 and making it more challenging to limit the rise in global temperatures to 2 degrees by 2100.

Recognizing that countries cannot "grow dirty and clean up later," the Bank Group is encouraging low-emission development strategies and innovative financing for renewable energies, climate-smart agriculture, and lower-carbon cities. It is also supporting pollution management through river clean-up and legacy pollution projects, using carbon finance funds to scale up use of cleaner stoves to reduce indoor pollution for women and children, and developing partnerships with the private sector to spur cleaner production standards and strategies.

"Resilient" means being prepared for shocks and adapting effectively to climate change. In a resilient world, countries are better prepared for more frequent natural disasters, more volatile weather patterns, and the long-term consequences of climate change. Healthy and well-managed ecosystems are more resilient and so play a key role in reducing vulnerability to climate change impacts. Climate resilience is integrated into urban planning and infrastructure development. Through effective social inclusion policies, countries and communities are better prepared to protect vulnerable groups and fully involve women in decision-making. 

Climate change will increase the vulnerability of human and natural systems. The economic costs of climate change and variability will be large, making it even more challenging to address issues of poverty and environmental degradation. Natural hazards-earthquakes, droughts, floods, and storms-continue to cause significant loss of life and economic damage, with women and children the most affected by disasters. Cities and Small Island Developing States are also particularly vulnerable. 

The Bank Group is helping countries adapt to climate change through better coastal zone management and climate-smart agriculture; improving disaster risk management by expanding the use of climate risk insurance and other financial instruments to help with recovery after natural disasters; and assisting vulnerable Small Island Developing States to reduce dependence on oil imports, build sound infrastructure, and restore protective coastal ecosystems such as mangroves.

Executive Summary English ,  Arabic ,  Chinese ,  French ,  Portuguese ,  Russian ,  Spanish ,  Vietnamese

Chapter 1: A New Environment Strategy, a New Vision Chapter 2: An Environment Under Assault Chapter 3: Coming Together to Transform Challenges Into Opportunities Chapter 4: Lessons Learned and Voices Heard Chapter 5: From Vision to Action Chapter 6: Environmental Actions and Commitments From World Bank Group Regions Chapter 7: From Actions to Results Annex 1: Actions by World Bank Group Sectors Addressing Environmental Sustainability

Analytical Papers

Assessing the Environmental Co-Benefits of Climate Change Actions The Role of Biodiversity and Ecosystems Strengthening Environmental Institutions and Governance Managing Pollution for Poverty Reduction and Green Development Valuing Ecosystem Services Financing Environmental Services in Developing Countries  Lessons from Environmental Mainstreaming Monitoring Envrionmental Sustainabililty Gender and Environment Furthering World Bank's Corporate Environmental Sustainability Use of Country Systems for Environmental Safegurds

Europe & Central Asia

Relative to GDP, carbon emissions in ECA are among the highest in the world. So the Region faces dual challenges of managing its energy security while maximizing options for cleaner energy. Pollution management and shifting attention to new models for managing industrial pollution continue to be a major challenge in ECA that will require addressing current and future pollution flows and associated risks, as well as legacy pollution and brownfield regeneration. The region also faces the challenge of maximizing wealth creation from natural resources and the sustainability of natural resource-based economic activities, such as forests, which are a major source of employment, timber, and ecological services. While upgrading infrastructure, improving water resource management, and improving water utilities and energy systems are needed independently of climate change, they would also help to make the region more resilient.

The ECA Region is engaged in a large and multifaceted program of energy supply augmentation and modernization, with a significant focus on clean energy options. In a number of countries, new “green economy” studies are being undertaken to assess the implications of implementing EU policies on cleaner production and consumption as well as climate change. The World Bank is also supporting efforts to address legacy pollution, and sustainable forest management, with an emphasis on governance, the role of communities and the private sector, and conservation and environmental services, including carbon sequestration. To improve resilience, the Region has launched programs for the modernization of hydro-meteorological services to target enhanced emergency preparedness and planning and better institutional coordination in flood-prone river basins. Improved pasture management is also helping build climate resilience in Central Asia.

Highlights:

• A principal focus of the region is sustainable forest management, with an emphasis on governance, the role of communities and the private sector. 
• In a number of countries, new 'green economy' studies are being undertaken to assess the implications of implementing EU policies on cleaner production and consumption. 
• The region has launched programs for the modernization of hydro-meteorological services in Russia, Moldova, and the countries of Central Asia.

Latin America & the Caribbean

The unique and rich biodiversity resources of the Latin America and Caribbean (LAC) Region continue to be under threat from settlements, inappropriate agriculture, logging, and mining, as well as from inadequate protected areas management. The region continues to be plagued by persistent environmental health risks from urban air pollution, indoor air pollution, and inadequate access to improved water sources and sanitation, all of which result in higher health costs. Rising industrial pollution combined with weak monitoring and enforcement further compounds the contamination of air, water, and soil from emissions and effluent discharges. Several countries have weak environmental institutions and poor environmental governance. In many countries in LAC and in the Region as a whole, GHG emissions from the transportation and energy sectors are expected to rise in tandem with rising motorization rates.

LAC is strengthening its green agenda by undertaking analytical work to underpin the economic value of functioning ecosystems, investing in biodiversity protection, and mobilizing innovative sources of financing, including through the linkage between biodiversity and climate change. Through participation in the WAVES partnership, this work includes shifting toward greater recognition of the economic value of ecosystems and biodiversity services and of the high economic costs of their loss. It also supports the management of protected areas (Brazil, Peru, Bolivia, and the Organisation of Eastern Caribbean States), the integration of biodiversity conservation into productive landscapes (Uruguay, Mexico, Brazil, and Panama), and the use of payments for environmental services (Costa Rica, Mexico, and Brazil). Work will also be stepped up to meet the growing interest in forest carbon partnerships (REDD+, for example in Mexico and Costa Rica) and forest investment programs (Mexico, Peru, and Brazil) to build institutional capacity, forest governance, and information, as well as investments in forest mitigation efforts. LAC is the most urbanized region in the world, so support for countries to move toward a cleaner development path is a high priority for the region. Supporting countries like Argentina and Uruguay to strengthen their industrial pollution abatement and cleaner production processes is another key priority, while for Brazil, encouraging “green cities” by incorporating environmental considerations into urban planning and design is a key focus. LAC is increasingly addressing the need for enhanced climate resilience by boosting work in adaptation, mitigation, and disaster risk management.

• The region is strengthening its green agenda by undertaking analytical work to underpin the economic value of functioning ecosystems, investing in biodiversity protection, and mobilizing innovative sources of financing. 
• Support for countries to move toward a cleaner development path is a high priority. 
• The region is increasingly addressing the need for enhanced climate resilience by boosting work in adaptation, mitigation, and disaster risk management. 

The Environment Sustainability Index shows that the environmental performance of countries in the South Asia Region (SAR) lags behind other countries at similar per capita income levels. The poorest areas of the Region overlap with the most environmentally stressed regions, with high levels of soil erosion, highly variable rainfall, and degraded forests. Environmental health impacts are exerting a heavy toll on economies in SAR. According to World Bank estimates, environmental degradation costs between 5 and 10 percent of GDP in India, Bangladesh, Nepal, and Pakistan. The largest share of these costs is associated with environmental health impacts, accounting for about 20 percent of the total burden of disease in the Region, comparable to malnutrition. Moreover, the SAR region is expected to face increased vulnerability to extreme climatic events, including more-intense weather, floods, and drought. Climate change is also expected to reduce agricultural productivity, potentially increasing malnutrition, decreasing water availability in many areas, and affecting people’s livelihoods negatively. Sea-level rise is another critical threat, particularly for coastal India, the Maldives, Bangladesh, and Sri Lanka. 

The SAR Region is supporting the promotion of environmental mainstreaming in key natural resource sectors and regional approaches to biodiversity conservation. Its approach to the clean agenda in the region includes promoting structural transformations for reducing the costs of environmental degradation on human health and reducing pollution from key sources. Its approach to the resilience agenda includes increasing the resilience of ecosystems, infrastructure and highly vulnerable areas.

• The region is supporting the promotion of environmental mainstreaming in key natural resource sectors and regional approaches to biodiversity conservation. 
• The approach to the clean agenda in the region includes promoting structural transformations for reducing the costs of environmental degradation on human health and reducing pollution from key sources. 
• The region’s approach to the resilience agenda includes increasing the resilience of ecosystems, infrastructure and highly vulnerable areas.

The challenge for Africa in managing its forests is to cope with the poor governance issues plaguing the forestry sector and the fragmentation of external funding. Africa is still home to less-developed coastlines that still harbor intact ecosystems that protect coastal cities and infrastructure from flooding and provide protection for fisheries, but its seascapes are increasingly threatened by human pressure, and destruction of coastal mangrove forests has increased the vulnerability of coastal settlements. The region is also burdened with the pollution impacts of a long history of mining, and faces challenges in managing waste in its fast-growing cities. Finally, Africa needs to address land and soil degradation affecting at least 425 million people, as well as water scarcity or stress.

The key to realizing the sustainable development potential of Africa’s forests and woodlands is improved governance at all levels. Besides working through REDD and similar mechanisms to monitor progress, the World Bank will address natural resources governance through development policy lending, technical assistance, and the Extractive Industries Transparency Initiative, and support sustainable land and water management production benefits that have significant biodiversity benefits. The World Bank will undertake new analytical work on hazardous waste and persistent organic pollutants, and work to enhance the enabling environment for responsible private sector investment. Urban environmental sanitation upgrading will be piloted. To improve resilience, the World Bank will support sustainable land management strategies through the TerrAfrica partnership, demonstrate integration of climate risk and resilience into development planning and implementation through the Climate Investment Funds and the Pilot Program for Climate Resilience, and provide continued assistance for river basin programs. Coastal zone management and flood mitigation will become an area of increased investment.

• To stem the tide of biodiversity loss, the focus will be on various types of sustainable land and water management production systems that have significant biodiversity benefits. 
• The World Bank will continue to provide assistance to river basin programs; new areas of intervention include country-specific water assistance strategies.
• Through technical assistance, the region aims to ensure that transparent environmental regulatory frameworks and competent institutions for monitoring environmental compliance are available. 

East Asia & The Pacific

Rapid economic growth, urbanization, and industrialization combined with an unsustainable use of the natural resource base are leading to degradation of air, water, land, and their related environmental services in the East Asia and the Pacific (EAP) Region. This is threatening sustainable economic development and affecting people’s health and livelihoods. Policy, institutional, and related governance elements have not evolved rapidly enough to cope with rapid changes, nor has the implementation and enforcement capacity of existing systems developed fast enough. Global and regional environmental externalities have rapidly intensified, resulting in a major environmental footprint of the Region. 

As part of the overall strategy to address these challenges, the World Bank’s EAP Region will provide analytical support and technical assistance, and facilitate knowledge creation, including South-South collaboration; further develop the regional lending portfolio of environmental and natural resources management operations; expand and deepen the mainstreaming of environmental management in the regional sector lending program; facilitate financing through a combination of global environmental programs, lending products, and other leveraged sources of environmental finance, including the Global Environment Facility (GEF); and further develop the regional climate change portfolio with attention to synergies between emissions reduction, climate adaptation, and disaster risk management. 

• The region will have a stronger forestry and sustainable forest management portfolio, reflected in increased climate and biodiversity focus. 
• The region will expand its greenhouse gas (GHG) emission reduction projects, with increased emphasis on sustainable urban development and sustainable transportation. 
• Ecosystem-based adaptation will be promoted in several countries through analytical work and pilot projects. 

Middle East & North Africa

The long-term green challenge for MENA is to sustainably maximize wealth creation from fragile natural resources. Water scarcity is aggravated by increased degradation of water quality, which primarily affects the region’s poor. High population densities and economic and population growth have accentuated the pressures on natural resources and environmentally sensitive ecosystems, putting further stress on water and land. Air, land, and marine-based pollution threaten the region's cities, waterways, and shared seas. Managing vulnerability to climate change impacts such as drought is a key challenge.

The region’s shared seas programs support environmental management capacity building of the riparian countries to address pollution reduction, improved water and marine resources management, renewable energy, and sustainable fisheries. The MENA-Desert Ecosystems and Livelihoods Program is a 10- to 15-year program that aims to enhance livelihoods from desert ecosystems by harnessing their value in an environmentally and socially sustainable manner. Continued commercialization of low-carbon, renewable energy options is another important goal for the region. Concentrated solar power is closest to economically viable energy storage. It is therefore in a strong position to become a long-term renewable energy option, without the need for fossil fuel backup. The World Bank is working with the African Development Bank and other partners to accelerate its expansion in the Region. Smarter urban design and development is also a priority. Building codes that drive greater water and energy efficiencies, smart approaches to urban transport to reduce congestion, and integrated solid waste management that also reduces leaching and resulting groundwater contamination are important areas of focus. The World Bank Group is supporting efforts to map groundwater resources and increase the use of treated wastewater, and to analyze the economic costs and environmental implications of desalination.

• The Desert Ecosystems and Livelihoods Program aims to enhance livelihoods from desert ecosystems by harnessing their value in an environmentally and socially sustainable manner. 
• Continued commercialization of low-carbon, renewable energy options is an important goal for the region. 
• Efforts to map groundwater resources and increase the use of treated wastewater, and to analyze the economic costs and environmental implications of desalination, are under way. 

• Assessing the Environmental Co-Benefits of Climate Change Actions
• The Role of Biodiversity and Ecosystems
• Valuing Ecosystem Services
• Lessons from Environmental Mainstreaming
• Strengthening Environmental Institutions and Governance
• Managing Pollution for Poverty Reduction and Green Development
• Financing Environmental Services in Developing Countries
• STRATEGY Toward a Clean, Green, Resilient World for All
• CONCEPT NOTE Environment Strategy Concept Note
• CONSULTATIONS Environment Strategy Consultations

Environment Strategy Supports Clean, Green, Resilient Growth

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What is green growth and how can this transition be promoted?

18 Feb 2021

Domaines professionnels

August 22, 2020 marks the Global Overshoot Day : on this date, humanity has spent all the resources that the Earth can generate in one year. From that day on, we will have felled more trees, caught more fish and cultivated more land than nature can provide us with in a year. We will also have produced more greenhouse gases than our forests and oceans can absorb. In the face of the climate emergency, it is necessary to review our consumption and production patterns and adopt more environmentally friendly behaviour, as our economic growth is unsustainable for the planet. Can we use resources reasonably without curbing economic growth? It is entirely possible: green growth makes it possible to implement economic development that is sustainable in the long term while remaining within a sustainable development approach . What actions can be taken to promote green growth? Are there training courses available to adopt a sustainable business model ? We tell you everything in this new article.

Sustainable business model

What is green growth?

Achieving green growth means promoting economic growth and development while taking care not to alter the natural capital - the resources on which our future depends. Green growth aims to respect biodiversity , natural resources and working conditions. The green economy also means limiting greenhouse gas emissions by removing fossil fuels from our consumption.

According to the OECD, implementing a green growth strategy allows for the continuation of our society's economic model of capitalism and sustainable growth, taking into account a rational use of resources. In order to adopt a strategy for sustainable economic development, structural reform of business activities, both in decision-making and operational processes, is necessary. Of course, these changes must be gradual: they are part of an ecological transition process.

For or against green growth?

Green growth is a sensitive subject, at the heart of many ecological, political and economic debates. Greenwashing , for example, is a dubious practice: many national and multinational companies brand green growth only to restore or maintain their brand image, without taking any real action for the environment.

Some do not believe in green growth, particularly in view of exponential population growth , and prefer growth reduction strategies aimed at maintaining GDP growth below 1% per year, given that resources are not infinite. Scientists, on the other hand, argue that growth is possible even without resources and decouple resource consumption from growth, making green growth possible.

You have understood that green growth places ecology and sustainable development as new growth drivers. Thanks to an increase in the efficiency of our economic system, we could, according to this theory, reduce our consumption of raw materials while continuing our economic growth.

The challenges of green growth for businesses

Being part of a green growth approach is becoming a necessity for companies and meets a number of challenges:

• a better brand image ;
• more economic opportunities;
• a reasoned use of resources due to the increase in their price (such as gas, oil, paper...);
• energy sovereignty;
• minimal costs and investments compared to those that will have to be made if climate change persists.

Training in sustainable development is therefore essential for companies. Training in ecological transition enables them to have a global vision and to be able to implement actions in favour of sustainable development within their company. This training concerns all citizens, whatever their profession and position: the climate emergency can no longer be ignored and implies changing our energy and raw material consumption habits.

Training in ecological transition

Sustainable development paths for green growth

• A circular economy : this economic model consists of producing services and goods in a sustainable way, limiting waste and the production of waste. This implies, for example, using sustainable materials, collected in a more environmentally friendly way, and limiting the use of disposable objects.
• Recycling and zero waste : this involves selecting recyclable materials and limiting the production of polluting waste. These practices exclude the use of disposable products, which are not reusable, and over-packaging.
• Thermal renovation : our homes and premises must be insulated and renovated in order to limit heat loss. This limits energy consumption and environmental impact.
• Energy efficiency or energy efficiency : this makes it possible to minimise energy consumption for the same service provided. Attending a training course on energy efficiency allows you to become familiar with artificial intelligence and the many new technologies in order to think about the opportunities for more responsible digital behaviour.
• Eco-production : producing in an ecological way is entirely possible. It is a question of banking on a sober economy, while improving competitiveness. It is based on several principles: optimisation of flows (waste, water, energy), processes and products, strategy and governance, and buildings.

You have understood it: green growth makes it possible to maintain economic growth in the world, within companies, while taking into account global warming and environmental constraints. It allows for the protection of the environment while maintaining our energy performance and our economy: it is the transition towards a more climate and ecologically sound economy and management of resources .

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Essay on Green Growth for Competitive Exams

Essay on Green Growth : Green growth is one of the seven pillars of Union Budget 2023-24. It has become most important essay topics for All competitive as well as academic exam. Here we have written an essay on Green Growth which cover all the important points like What is Green Growth? What does green growth aims to achieve? and what is strategy for green growth?. Lets see essay on Green Growth .

Essay on Green Growth

In this rapidly growing population age, world is facing two challenges simultaneously. These are expanding economic opportunities for all in the context of a growing global population; and addressing environmental pressures. If any one of these left unaddressed, this could undermine our ability to seize the opportunities of economic development. Economic development is necessary but by exploiting our environment it will be of no use. Both of these issues can be addressed by adopting Green Growth which harmonize economic growth with environmental sustainability.

What is Green Growth?

In simple words, Green Growth means fostering economic growth and development in such a way which ensures that natural assets continually provide the resources and environmental services on which our well-being relies. It is a such economic growth and development that is environmentally sustainable. Green Growth is a new revolutionary development paradigm that envisages economic growth while at the same time ensuring climatic and environmental sustainability.

Green growth is neither opposing nor replacement of sustainable development but it focuses on practical and flexible approach for achieving concrete, measurable progress across its economic and environmental pillars. Download PDF of this Essay: Click Here

What does Green Growth aims to achieve?

The green growth aims to harmonize economic growth with environmental sustainability. It focuses on improving the eco-efficiency of economic growth and enhancing the synergies between environment and economy. Green growth policies are such structural reforms which are required to foster strong, more sustainable and inclusive growth which can unlock new growth engines. It aims to enhance productivity by improving efficiency in the use of natural resources by allocating resources to the highest value use, reducing waste and energy consumption and unlocking opportunities for innovation and value creation.

It also aims to open up new markets by enhancing demand for green goods, services and technologies. It contributes to fiscal consolidation by revenues through green taxes and by elimination of environmentally harmful subsidies. It also aims to reduce the risks of negative shocks to growth which can arise due to resource bottlenecks as well as damaging and potentially irreversible environmental impacts.

Strategy for Green Growth

Strategies for Green Growth should be tailored to fit specific country circumstances which focuses bring together social, economic, environmental, technological, financial and development aspects into a comprehensive framework. While focusing on GDP as the main measure of economic progress contribution of natural assets to wealth, health and well-being should be noticed. Every action for economic development should be taken with proper care of environment. Green Growth should be promoted by investments in long-term environmental sustainability in order to diversify and ensure economic resilience which enhances the synergy between environment and economy.

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Making synergy with environment for sustainable economic development is need of hour. Green growth has vision and potential for achieving the same by harmonizing economic growth with environmental sustainability. Green growth makes efficient use of natural resources, minimizes pollution and environmental impacts and paves the way of environmentally sustainable economic development which is essential for our well being.

Hope you liked this essay on Green Growth and it helped you in your exam preparation. This essay on economic growth is very important for all competitive as well as academic exams.

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Growing a Sustainable Future: Exploring the Benefits and Challenges of Green Entrepreneurship

• Thaya Madhavi , Priya Todwal , Divya Bhatt
• Published in Communications on Applied… 17 July 2024
• Environmental Science, Business

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Developing green entrepreneurship skills in indonesia: a community perspective, doing business in a green way: a systematic review of the ecological sustainability entrepreneurship literature and future research directions, emerging green market as an opportunity for green entrepreneurs and sustainable development in india, toward a theory of sustainable entrepreneurship: reducing environmental degradation through entrepreneurial action, drivers of entrepreneurial intentions in sustainable entrepreneurship, an empirical survey of the ramifications of a green economy, technological development for sustainability: the role of network management in the innovation policy mix, entrepreneurial ecosystem: case study on the influence of environmental factors on entrepreneurial success, are greener start-ups of superior quality the impact of environmental orientation on innovativeness, growth orientation, and international orientation, market imperfections, opportunity and sustainable entrepreneurship, related papers.

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• Recently the Ministry of Finance listed priorities for Green Growth in the Budget submission for 2022-2023.

Key Takeaways :

• The Union ministry has listed a series of seven initiatives from green hydrogen to mangroves protection to green credit to replacement of polluting vehicles.
• These principles complement each other and act as the ‘Saptarishi’ guiding India through the Amrit Kaal .
• Previously, the Prime Minister has given a vision for “LiFE”, or Lifestyle for Environment, to spur a movement of environmentally conscious lifestyle.
• India was moving towards the ‘panchamrit’ and net-zero carbon emission by 2070 to usher in green industrial and economic transition .

Push for Green Growth :

• Green growth is crucial for India as it offers a pathway for sustainable economic development while preserving the environment. 
• In India, green growth can address challenges such as air pollution, water scarcity, and climate change. Adopting green growth strategies can increase the use of renewable energy, promote resource efficiency, and support sustainable agriculture, resulting in a more inclusive and sustainable development. 
• The shift towards green growth can also create new job opportunities in the fields of renewable energy and sustainable agriculture. Overall, green growth is essential for India’s economic and environmental well-being.

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Green finance and renewable energy growth in developing nations: A GMM analysis

• Chen, Jian Ming
• Umair, Muhammad

This research aims to examine the interrelationship between green finance and its influence on the renewable energy industry in a sample of 30 developing nations from 1990 to 2018. The main aim of this study is to investigate the interconnected effects between green bonds, investments in renewable energy, and carbon markets, with a specific emphasis on the influence of the banking system in shaping these interrelationships. To accomplish this objective, the Generalized Method of Moments (GMM) is utilized to examine the data and comprehend the intricate interrelationships among the variables. The emergence of green finance offers a favourable prospect for tackling environmental issues while concurrently fostering sustainable economic development. Nevertheless, the degree to which it impacts the adoption of renewable energy and carbon markets has yet to be thoroughly investigated, especially in developing nations. This study seeks to provide insights into the factors that influence the development of green finance and its implications for investments in renewable energy by examining a diverse group of 30 emerging countries. The findings of this research provide compelling revelations regarding the interdependence between green finance and its influence on the renewable energy industry. The results underscore the notable contribution of the banking sector in enabling the transfer of capital into sustainable energy initiatives via the utilization of green bonds. Furthermore, we have discovered dynamic spillover effects between green bonds, renewable energy investments, and carbon markets. These financial mechanisms have the potential to influence each other within the framework of sustainable development. A comprehensive comprehension of the complex interconnections among green finance, renewable energy, and carbon markets is imperative for policymakers, investors, and financial institutions seeking to promote sustainable practices and efficiently allocate resources. This research adds to the expanding corpus of literature on green finance and offers significant implications for advancing a more environmentally friendly and sustainable future in developing nations.

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• Green energy;
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• Renewable energy consumption;
• Green financing

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Nexus Select Trust's Strategic Growth and Robust Performance in Q1 2024-25

Nexus select trust, a retail real estate reit, reported a 7% rise in net operating income to rs 412.7 crore for the june quarter. the company plans to raise rs 1,700 crore through commercial papers and debentures and has signed term sheets to acquire new retail assets, further expanding its extensive portfolio..

Nexus Select Trust, a listed REIT anchored in retail real estate, on Tuesday announced a 7% increase in its net operating income, reaching Rs 412.7 crore for the June quarter. Additionally, the trust revealed its intentions to secure up to Rs 1,700 crore through the issuance of commercial papers and debentures.

According to a regulatory filing, the REIT achieved retail Net Operating Income (NOI) of Rs 371.9 crore for the April-June period this fiscal year, marking an 8% increase compared to the previous year. Nexus Select Trust also declared a distribution of Rs 325.3 crore or Rs 2.147 per unit for the first quarter of 2024-25.

The company disclosed that it has signed two term sheets for the acquisition of 0.8 million square feet of retail assets and has commenced due diligence. This brings the total number of assets under acquisition to five. The board has also approved the issuance of up to Rs 500 crore in commercial papers and Rs 1,200 crore in non-convertible debentures in multiple transactions.

(With inputs from agencies.)

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