What is Green Economy? Things to Know About a Green Economy

The term green economy argues that economic development should be considered together with environmental and social problems. It is an economy model which enables low carbon emissions with renewable energy resources, minimization of damage to the environment due to human activities, and protection of biodiversity. Fair use of natural assets is one of the fundamental principles of a green economy. On the other hand, a green economy also considers the social aspects of development and ensuring social equity.

In this article, we compiled everything you need to know about the green economy and the green economic transition!

What is a Green Economy?

The notion of green economy has showed up with the sustainable development approach. The green economy model integrates the environmental and social dimensions of the economic development. According to United Nations, green economy, is an inevitable model to achieve Sustainable Development Goals. Transition to a low carbon economy, widespread use of renewable energy resources, efficient use of existing natural assets and inclusion are the core elements of a green economy.

A green economy is a multidimensional model that includes economic, social and environmental dimensions. The economic dimension of a green economy aims to provide prosperity and increase employment through economic developments. The social dimension, on the other hand, has the goal to provide social equity with the green economy and to reduce social injustice and income inequality. It indicates a fair and inclusive development model. As it is expected, the environmental dimension envisions the efficient use of our natural assets and increasing the use of green energy resources.

What is the Origin of the Green Economy?

Today, many economic, environmental and social problems are debated to be a result of unsustainable growth. Various issues including global warming, inefficient use of natural resources, unemployment, income inequality are closely related to sustainable development.

This is where the green economy comes into play. Taking into account the adverse environmental and social factors of growth-oriented economic development policies is of great significance for creating sustainable communities.

Development had only been considered with the economic aspects for long years. Therefore, environmental and social impacts had been ignored. Sustainable development argues that both social justice and the environmental issues should be analyzed.

Definition of a Green Economy

The economic crises and climate change have forced the whole world to reassess our lifestyles. At that point, sustainable development has become a part of our lives. On the other hand, with sustainable development, several concepts, including green economy, low carbon economy and sustainable production, have emerged. International organizations, such as UNEP, talks about encouraging economic activities that tackle the climate crisis while defining the concept of green economy. European Union, on the other hand, indicates the prosperity to emerge by encouraging energy efficiency and renewable energy use while defining the notion of green economy.

The concept of “green growth” or “green economy” is a mentality that prioritizes the investment and consumption of goods and services that contribute to environmental remediation. While this perspective contributes to environmental sustainability, it is claimed that it will also contribute to economic development, income increase, employment and reducing poverty.

However, there is no single, recognized definition of green economy concept in general. We have defined the green economy and talked about the different dimensions of the green economy model. So, what are the social and historical developments that pave the way for the green economy model to emerge?

Social and Historical Framework of the Green Economy

Increasing industrial production and consumption following the industrial revolution picked up speed after the World War II. As this global model, which is focused on growth, consumption and exhaustible resources of energy (natural gas, petroleum, etc.) became widespread, it brought along environmental and social degradation.

People raise awareness on the adverse impacts of the climate change due to global warming day by day. The major transformation required to reduce the impacts of climate change due to global warming is energy transformation. Taking these developments into account, the green economy model argues that our mentality regarding economic and social development should be revised. Green economists explain that we could decrease our carbon emissions by expanding renewable energy technologies and avoid the negative impacts of global warming.

Briefly, the green economy model indicates that the climate crisis cannot be tackled by considering environmental problems only. The model argues that we should address global warming considering the economic, social and ecological dimensions. One of the most popular development models of the green economy, on the other hand, argues that the communities we live in should be redesigned economically and socially based on a green and new deal.

What is the Green New Deal?

The Great Depression was a great economic downturn in US history, which began in 1929. Following the Great Depression, a new development plan was required. US President Roosevelt enacted a plan he called the 'New Deal'. The plan included regulations, taxations, and incentives for a fundamental change in the economic structure. Inspired by this economic breakthrough of Roosevelt, the Green New Deal models the transition to a green economy and anticipates an economic, social and environmental reform.

Simply put, the Green New Deal argues that increasing energy efficiency and renewable energy sectors will create new job opportunities for people. Transition to renewable energy is argued to be beneficial in terms of economy and to bring significant economic development and breakthrough. Thus, transition to a 'green economy' is foreseen to increase the wellbeing of people.

So, what exactly are we talking about when we mention the green economy model, which is argued to increase social wellbeing?

What Does a Green Economy Involve?

The Green Economy Coalition argues that the green economy model follows 5 principles. These are:

1) Wellbeing and Development: The green economy suggests that wellbeing does not only have a material aspect. The level of wellbeing is not calculated by per capita income, but by taking into account social injustice in societies, working hours, access to clean air, etc. In the green economy, 'development' refers to sustainable development. 

2) Equity and Justice: The green economy argues that equal opportunities should be increased, social injustice should be reduced and a fairer income distribution should be achieved in a society. For example, women’s empowerment is one of the shared material issues of both green economy and sustainable development. 

3) Protecting the Environment: Traditional development models encouraged inefficient use of natural resources, as they were 'growth' oriented. Green economy, on the other hand, considers protecting natural resources and the environment, reducing carbon emissions, investing in renewable energy resources, energy efficiency, protecting biodiversity, etc. The green economy model argues that transition to renewable energy resources is one of the material issues in tackling the climate crisis.
4) Efficiency: The green economy argues that resources should be used efficiently and production processes should be more efficient. 

5) Inclusion: The green economy indicates that social collaboration is significant for the implementation of a sustainable development model. This principle covers several issues including development of organizations, strengthening civil society, and structuring inclusive and transparent decision-making processes. In brief, this principle argues that sustainable development cannot be achieved unless social dialogue and social collaboration are established.

How Can the Green Economy Model be Implemented?

As the importance of sustainable development increases, the concept of green economy becomes a part of our lives. So, how will the green economy model be implemented? The Green Economy Coalition draws a roadmap for the green transformation process. This roadmap covers various areas such as participation of all stakeholders, creating social dialogue, awareness studies on the importance of green economy, adopting an inclusive approach, transparent management of the process, compliance with the sustainable development goals, encouraging green economy practices, public and private sector partnerships. However, the main factor in the green economy model is: to encourage green energy investments!

We, at Enerjisa Enerji, believe that renewable energy investments play a significant role in constructing the future, and constantly improve and expand our clean energy investments to contribute to a sustainable world.