The Principles and Initiatives of Green Economy

Green economics is a branch of economics that seeks to develop strategies that promote peaceful relationships between people and the natural world. It covers a variety of topics, such as how to interact with nature and manufacturing processes. 

 

Green economists study the economics of alternative energy sources, materials, foods, and industrial processes. Ecological and green economics are inextricably linked, but the former takes a more comprehensive approach and advocates for politically viable sustainable solutions.

 

These green investments must be enabled and supported by targeted public spending, policy reforms, and tax and regulatory changes. UN Environment advocates for a development path that recognizes natural capital as a critical economic asset and a source of public benefits, particularly for the poor whose livelihoods rely on natural resources. 

 

The concept of a green economy does not replace sustainable development, but rather creates a new emphasis on the economy, investment, capital and infrastructure, employment and skills, and positive social and environmental outcomes throughout Asia and the Pacific.

 

What is the Green Economy?

 

To different people, the green economy means different things. These perspectives sometimes overlap, and sometimes they contradict each other. Some people are opposed to the idea of a green economy. The purpose of Why Green Economy? is to bring these various points of view together in one place.

 

Green economics is an economic methodology that promotes the harmonious interaction of humans and nature while attempting to meet the needs of both simultaneously. Green economists may research the effects of alternative energy sources, sustainable agriculture, wildlife conservation, or environmental policies.

 

A green economy can be defined in several ways. 

 

The International Chamber of Commerce (ICC) defined a green economy as one "in which economic growth and environmental responsibility work together in a mutually reinforcing fashion while supporting progress and social development" in its "10 Conditions for a Transition Toward a Green Economy" report in 2011. Green economics has entered the mainstream through consumer-facing labels indicating the degree of sustainability of a product or business.

 

The green economy's goals include ensuring wealth and assets to the poorest segments of the population, equitable wealth distribution among current generations, and completely sustainable development. Advocating for good governance is a necessary precondition for achieving sustainable development.

 

Green economists argue that a stable and predictable macroeconomic environment is required to attract domestic and foreign investment. The environment of a green economy will be scrutinized with care, and it will be transparent and accountable. The role of effective institutions and governance structures in ensuring the effective implementation of green economy policies, plans, and programs is critical. 

 

The transition to a green economy necessitates a completely new mindset as well as the ability of skilled professionals who can work in a variety of sectors. These calibers must be prepared through training and formal education, as well as the implementation of vocational training packages aimed at greening the sectors.

 

What are the Principles of the Green Economy?

 

It takes a long-term view of the economy, focusing on how resources are used to deliver value to society, and how resource efficiency and sufficiency can be fostered to create wealth, resilience, and well-being for today and future citizens within the planet's ecological limits. 

 

A green economy is inclusive and non-discriminatory, from investments in well-being to sustainable practices. The main 5 principles of the green economy are:- 

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Principles of Green Economy

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1. The Principle of Wellbeing:

 

A green economy allows everyone to create and enjoy wealth. People are at the heart of the green economy. Its goal is to foster genuine, shared prosperity. It focuses on building wealth to support happiness. This wealth is not only financial, but also includes human, social, physical, and natural capital.

 

It prioritizes investment and access to the sustainable natural systems, infrastructure, knowledge, and education that all people require to thrive. It provides opportunities for sustainable and decent livelihoods, businesses, and jobs. It is based on individual choices while relying on collective action for public goods.

 

2. The Principle of Justice:

 

The green economy fosters equity both within and across generations. The green economy is non-discriminatory and inclusive. It distributes decision-making, benefits, and costs fairly, avoids elite capture, and promotes women's empowerment in particular. 

 

It encourages the equitable distribution of opportunity and outcome, thereby reducing disparities between people, while also providing adequate space for wildlife and wilderness.

 

It takes a long-term view of the economy, creating wealth and resilience that benefit future citizens while also acting quickly to address today's multifaceted poverty and injustice. It is founded on solidarity and social justice, and it promotes human rights, the rights of workers, indigenous peoples, and minorities, as well as the right to sustainable development.

 

3. The Principle of Planetary Boundaries:

 

The green economy protects, restores, and invests in the environment. An inclusive green economy recognizes and nurtures nature's diverse values, including functional values of providing goods and services that underpin the economy, cultural values that underpin societies, and ecological values that underpin all of life.

 

It recognizes natural capital's limited substitutability with other capitals, employing the precautionary principle to avoid the loss of critical natural capital and exceeding ecological limits. It invests in biodiversity conservation, growth, and restoration of soil, water, air, and natural systems.

 

It is innovative in managing natural systems, guided by properties such as circularity, and aligned with biodiversity and natural system-based livelihoods in local communities.

 

4. The Principle of Efficiency and Sufficiency:

 

The green economy promotes sustainable consumption and production. An inclusive green economy is low-carbon, resource-conserving, diverse, and circular. It accepts new economic development models that address the challenge of creating prosperity within global boundaries.

 

It recognizes that there must be a significant global shift to limit natural resource consumption to physically sustainable levels if we are to stay within planetary boundaries. It recognizes a social floor of basic goods and services consumption that is necessary to meet people's well-being and dignity, as well as unacceptable consumption 'peaks.’

 

5. The Principle of Good Governance:

 

The green economy is guided by institutions that are integrated, accountable, and resilient. An inclusive green economy is evidence-based, with interdisciplinary norms and institutions that employ both sound science and economics, as well as local knowledge, for adaptive strategy.

 

It is backed up by institutions that are integrated, collaborative, and coherent - horizontally across sectors and vertically across governance levels - and can carry out their respective roles in an effective, efficient, and accountable manner.

 

It necessitates public participation, prior informed consent, transparency, social dialogue, democratic accountability, and the absence of vested interests in all institutions - public, private, and civil society - for enlightened leadership to be supplemented by societal demand.

 

The green economy is a global, transformative change to the status quo. It will necessitate a significant shift in government priorities. This change will not be easy, but it is required if we are to meet the Sustainable Development Goals.

 

Green Initiatives by Government:

 

Some of the green initiatives by the Indian Government are:

 

1. Corporate Tax Reduction:

 

For the time being, businesses in the renewable energy sector rely primarily on these indirect state incentives because there are no clear rules or policies in place to protect the renewable energy market. Because the corporation tax rate in India is now among the lowest in the world, Indian businesses will be more competitive in the international market. They will want to stay in India and expand their business. 

 

A 15% personal income tax rate is an option for new domestic companies founded on or after October 1, 2019, that only operate in the manufacturing sector. This tax break is available to businesses that begin manufacturing on or before March 31, 2023. These companies pay an effective tax rate of 17.01%.

 

2. Green Skill Development Initiative:

 

Moving away from technical or industrial skills, the Ministry of Environment, Forestry, and Climate Change launched the Green Skill Development Programme in June 2017. Green skills are those that help to preserve and restore the environment and create a sustainable future. 

 

As a result, the program focuses on developing youth skills in the environment and forest sector. During the pilot phase, the ministry offered three-month courses for biodiversity conservationists and para-taxonomists in ten different locations.

 

Harsh Vardhan, Union Minister for Environment, Forests, and Climate Change stated in May 2018 during the launch of the GSDP mobile app that 2.25 lakh people will be employed through GSDP by next year, and approximately five lakh people by 2021.

 

3. Improve the purchase of land:

 

Private companies are currently finding it extremely difficult to acquire land in India. Because of the government's efforts to change the mechanism for land acquisition, private companies should now see a shift in this. The so-called "plug and play" concept will eventually replace the current mechanism for awarding renewable energy projects, reducing significant risks. 

 

The government will essentially buy the land and manage the initial and most critical permissions later, according to the "plug and play" plan. Following that, the acquired projects and land will be distributed to private enterprises by the established bidding process.

 

4. Swachh Bharat Abhiyan:

 

Clean India Mission The Swachh Bharat Abhiyan, or national cleanliness drive, is perhaps the most popular environmental campaign carried out by the Modi government. The movement was launched on Mahatma Gandhi's birth anniversary, October 2, 2014, with people coming out to clean the roads across India. Photographs of Modi sweeping the streets caused quite a stir when he launched the first cleanliness campaign.

 

Various versions of the campaign were launched over the years. Gramin Swachh Bharat Mission and Bal Swachhata Abhiyan are examples of such initiatives. These looked into, respectively, implementing the same effort in rural India and instilling the same values in children.

 

5. Quintessential power purchase agreements:

 

The government is now considering national standardization of all solar and wind energy power purchase agreements ("PPAs"). According to the Ministry of New and Renewable Energy, the new power purchase agreements should include a stiff penalty if the state breaches its responsibilities or defaults. Letters of credit should be accepted as payment as well.

 

Advantages of a Green Economy:

 

Some of the benefits of a green economy are discussed below:- 

 

• A green economy has the potential to reduce environmental pollution, thus improving the quality of soil, water, and air while also protecting environmental well-being.

 

• Global warming, biodiversity loss, deforestation, desertification, and resource depletion can be gradually slowed by implementing a Green economy, which will save the earth and its animals as much as possible from destruction.

 

• The establishment of new markets for biofuels and renewable energy resources boosts economic growth.

 

• The establishment of new markets has the potential to support international advantages by attracting funds through exports while also increasing domestic sales.

 

• More industries mean more jobs, and more jobs mean a more stable society because people will be more secure economically.

 

• Due to the obvious emphasis on green technologies, agricultural industries will be able to achieve a dignified position.

 

• Innovation necessitates innovative skills, which will encourage the establishment of more educational institutions, thereby expanding the opportunities for students.

 

Conclusion:

 

In conclusion, Despite significant international commitments to the Paris Climate Agreement and the 2030 Global Development Agenda, India ranks 68th out of 80 countries on the Global Green Economy Index (GGEI). 

 

In the face of numerous crises and increasing resource scarcity, the economic paradigm of greening the economy has taken center stage in regional and global sustainable development processes. A green economy requires the timely provision of high-quality and relevant skills. 

 

Workers must update or learn new skills, as well as be prepared with sustainability-related capabilities, which is Education for Sustainable Development (ESD).