Understanding the Green Economy: Benefits, Drawbacks, and Pillars (2024)

The green economy is an economy that aims at combining economic prosperity and environmental well-being. It promotes economic activities that reduce environmental degradation or at least do not harm the environment. All profitable activities in this economy aim to preserve nature, and its resources, and promote social equity.

The green economy focuses on creating infrastructures that encourage economic and environmental sustainability. Its objective is to increase the level of employment and income without negatively affecting the environment. The concept of a green economy tells us to move from traditional and environmentally harmful development strategies toward more sustainable and equitable development models.

‘Green Economy is the one that results in improved human well-being and social equity while significantly reducing environmental risks’-- says the UNEP’s definition of a Green Economy.

The new and revolutionary idea of a green economy works on a few principles. These principles are the foundation of a green economy and act as its pillars. They can help you understand its concept in a clearer and better way. We have mentioned 4 common pillars of the green economy below:

• Principle of Well-being:

The first principle states that a green economy is a human-oriented model. It emphasizes growing wealth without deteriorating social and human well-being. It allows all the people to create and enjoy prosperity. It ensures that the benefits of economic development reach all.

• Principle of Sustainability:

A green economy ensures that economic activities do not affect the environment negatively. This principle says that it plans to use resources efficiently without exploiting them. The model of the green economy insists on using renewable energies and sources within their regenerating capacity.

• Principle of Green Innovation:

The word ‘Green Innovation’ here refers to innovations that are environmentally friendly. It states that a green economy aims at conserving the ecosystem along with economic development. It encourages society to practice the concept of the 3Rs, i.e. Reduce Reuse, and Recycle to utilize and conserve limited resources.

• Principle of Green Jobs:

As we know, the green economy focuses on both environmental preservation and economic development. This principle talks about the latter. Due to the increased attention to the maintenance of ecological balance, job opportunities have started to emerge in the fields related to sustainability. The green economy focuses on creating policies and regulations that help the corporate sector to grow while maintaining ecological balance.

These principles provide a framework for policymakers, businesses, and individuals to align their actions to create a sustainable and prosperous future for all while safeguarding the planet’s ecological balance.

You must be wondering why the term ‘The Green Economy’ is becoming popular among the people. The reason behind this is the increasing awareness about environmental responsibilities among them, especially the young generation. People have come to understand that our beloved Earth is heading toward a dark future, and if proper actions are not taken on time, the circ*mstances can be unpredictable.

Keeping the real facts and existing circ*mstances in mind, governments around the world are taking the initiative to slowly and smoothly shift towards a more sustainable development approach. Policies have been made with the motive of creating a healthy balance between the environment and the economy. But that’s not all of it! Adopting a more sustainable model, a.k.a. The Green Economy is important for other reasons as well. We have broadly classified those reasons into two points; take a look at them below:

• Better future of Earth:

Another aspect of the green economy is that it focuses on the well-being of the environment and the efficient use of natural resources. The concept itself is enough to remind humans about their environmental responsibilities. It guides people to frame developmental policies in a way that utilizes the natural resources within their regenerating capacity, hence not pressuring the ecosystem. If the practice of green economy is done properly, then it can also help to reduce the degree of environmental degradation. A green economy also ensures that social equity is there and benefits are enjoyed by all.

• Generates job opportunities:

Employment generation is the most important reason why the green economy has become the top priority for the whole world. Shifting onto an eco-friendly strategy will kickstart the employment generation in new sectors. The problem of unemployment is expected to get solved to an extent with the increase in the number of job sectors. A green economy creates jobs that protect the ecosystem and biodiversity;these are known as ‘Green jobs; Investments in renewable energy, the construction sector, the R&D sector, agriculture, fisheries, forestry, etc., will also provide employment opportunities.

You may have understood why the world is taking the green economy seriously. The idea of the green economy is a blend of economic, social, and environmental well-being together, which is very much needed in the present time.

• Energy Efficiency

Given the exploitation of scarce resources for our needs, At this point, the green economy is beneficial because it tends to rely on renewable sources of energy like solar energy, hydra- energy, etc. This leads to an efficient utilization of resources. More energy can be produced with fewer amounts of resources. This reduces the number of resources used by the corporate sector and enables other economic sectors to utilize the existing resources as well.

• Benefits to the Environment

The green economy is a boon for the environment. Its core idea is to preserve natural resources and maintain ecological balance for the betterment of the environment. It emphasizes on efficient use of resources and encourages the adoption of renewable practices. If practiced properly and consistently, a green economy can help to reduce the amount of waste generated by factories and industries. Air quality is expected to improve as the amount of carbon emission in the air decreases. Thus, we can keep our ecological system safe and can nurture it.

• Generation of employment

Another advantage that we can reap from a green economy is job opportunities. As more economies transform their development strategies into green strategies, chances of employment in new and different sectors will increase. Investment in the sector of R&D, construction, renewable energy, etc., will stimulate innovations and eco-friendly practices. Increased job opportunities in agriculture, fisheries and forestry, horticulture, etc., will help in eradicating poverty and allow them to enjoy the benefits as well.

• Social Equity

Social unfairness and inequality are another big concern for us. But don’t worry;the green economy has got our backs. The model of green economy addresses social inequalities. Its motto is ‘prosperity for all’ and aims at bringing back the lost equity in society. It ensures that everyone enjoys the equal distribution of prosperity and helps to improve the well-being of marginalized communities.

• Cost saving

Indeed, cost-saving is another significant benefit of the green economy.. It can reduce the pressure on pockets of civilians as well as governments around the world. Although the initial investment is required to successfully implement this model, the benefits will cover it all. It can help the government save money that is being spent on the discovery of alternative resources. Energy-efficient technologies can show long-term benefits and outweigh additional costs borne by civilians.

• Employment threatening

You might wonder how transitioning to a green economy can threaten certain jobs. A quick answer to this is that it creates danger in the jobs related to fossil fuels and non-renewable sectors. No doubt, it opens the door for employment in new sectors, but on the other side, it also brings job displacement in sectors related to unsustainable practices like coal mining.

• Beginning costs

The green economy is cost-cutting in the long term, but if we look at the short-term effects, initial investments are a notable concern. Switching to a green strategy requires a variety of resources, renewable infrastructures, electric vehicles, etc. It might be difficult for some businesses and countries to shift to a green model. Small businesses face challenges in going green because it includes research, development, marketing, etc. which increases the expense of switching.

• Reliability concerns with renewable energies

By now, you might have been familiar with the idea of the green economy. It heavily depends on renewable resources, but not to forget renewable sources are not dependable. Renewable energies like solar energy, hydra energy, etc., are heavily dependent on weather. This dependence on weather conditions can lead to a demand-supply gap, causing discomfort to civilians.

While the disadvantages of a green economy require attention, it’s important to remember that the effect of some difficulties can be reduced with the help of proper planning and global support. The advantages of a sustainable and environment-friendly economy balance the disadvantages in the long term, leading to a healthier planet.