What is Green Economy? Learn How it Works

Green economy proposes to expand the concept of economy. It opens up an economy that understands the importance of connecting in relationships with society and environmental responsibility. After all, with global warming, actions need to be more comprehensive and efficient in the reality of ecological collapse.

Habits need to change, including the outdated thinking that the economy has nothing to do with the environment. It is necessary to understand how much business impacts society and the environment. And, instead of creating a war in these relationships, establish a conversation that results in benefits for all areas.

In this post, you will understand what the green economy is, how it came about and how it works. In addition, you will know what actions can be taken by your company, or everyday life, to enter the reality of the green economy. Nature has been begging for attention and society is sick, and joining forces will only help in the recovery process. Redda+ is already part of this movement.

In this post:

• What is Green Economy?
  • When did the Green Economy emerge?
• What are the principles?
• How important is?
• The GE in Brazil
• How can your company join?
• Get to know Redda+

What is Green Economy?

The Green Economy is a proposal for a sustainable economy, that is, there is a concern with human and ecological relationships. The welfare of society needs to be considered, as well as issues of social equality. But there is also room for reducing environmental risks and developing without degrading the environment.

It is an economic model that recognizes the importance of valuing the whole and the consequences in socioeconomic relationships. The concept has three important characteristics, it must consider: low carbon emissions, efficient use of resources, and the search for social inclusion.

For the United Nations Environment Program (UNEP), the green economy is an “alternative to the dominant economic model that we currently live in, which exacerbates inequalities, encourages waste, triggers scarcity of resources and generates threats to the environment and human health”.

When did the Green Economy emerge?

The Green Economy emerged in 2008 and since then it has been a rather controversial term. It was created by the United Nations Environment Program (UNEP), replacing the term “ecodevelopment”, promoted by the Canadian Maurice Strong. Strong was the first executive director of UNEP and secretary general of the Stockholm Conference (1972) and Rio-92.

From Rio-92, based on the Bruntland Report of 1987, the term green economy is officially accepted. So, in 2008, another step was taken to strengthen the concept and actions related to the proposal. In the Rio+20 agenda, in 2012, the green economy enters the context of sustainable development and poverty eradication.

Since then, around 65 countries have been involved and creating strategies based on it. In 2015, the UN (United Nations) reaffirmed its commitment to discovering paths allied to development and a more inclusive economy. And that’s how the term green economy gained even more strength, even becoming inclusive (Inclusive Green Economy – IGE).

The inclusive green economy, according to UNEP, “is focused on expanding options and choices for national economies, using targeted and appropriate fiscal and social protection policies, and supported by strong institutions that are specifically geared towards safeguarding social and ecological floors.” 

Currently, the term green economy already reflects all the issues addressed by the inclusive green economy. It’s as if the concept just gets even more support for the well-being of society and the environment.

What are the principles of the Green Economy?

The green economy is linked to the 17 UN Sustainable Development Goals, more specifically to five SDGs:

• SDG 1 – Eradication of Poverty;
• SDG 8 – Decent Employment and Economic Growth;
• SDG 9 – Industry, Innovation, and Infrastructure;
• SDG 11 – Sustainable Cities and Communities;
• SDG 12 – Responsible Consumption and Production.

In addition to the selection of these SDGs to assist in green economy actions, they are also expected to be linked to three considerations:

• Low Carbon Emission. Development and growth must not negate impacts in terms of carbon emissions. The present reality in relation to the impacts caused by the excess of greenhouse gases in the atmosphere is worrying. Therefore, it is not possible to invest in actions that simply ignore this emergency, it is necessary to consider low carbon emissions.
• Efficiency in the use of resources. Natural resources are finite and the exploitation of these materials increasingly interferes with nature. From climate change, the destruction of communities and traditional peoples. Therefore, the way in which energy, water and other resources are used must always be considered, applying sustainable solutions.
• Search for social inclusion. Social inclusion is another important factor for the green economy, in the attempt to address SDG item 1 on poverty eradication. But it also includes other issues, such as understanding the importance of traditional people in the forest. The issue of social inclusion encompasses the understanding of the significance of human beings in society, giving them opportunities to integrate.

How important is the Green Economy?

The proposal of the green economy is to encourage investments and conscious consumption, articulating the proper use of natural goods. It is still willing to focus on the valuation of biodiversity and the importance of human beings in society. All these relationships are intrinsic and, so often, they were worked on separately.

Therefore, the importance of the green economy is precisely in positioning itself, showing that capital is not enough. A balance in social, environmental, cultural, and economic relationships is needed for real growth. Sustainable development is a positive outcome when the opportunity for an inclusive green economy opens up.

There are some advantages and disadvantages of the green economy. The proposal itself has the good intention of harmonizing the economic system-environment relationship. However, much is discussed about the behavior of public and private institutions in relation to the green economy. Mainly, in terms of seizing the term just to build a ‘green’ image.

Another disadvantage is the possibility for companies to create a market for natural resources and carbon emissions, without the essence of sustainability.

The Green Economy in Brazil

In Brazil, the green economy has been the subject of meetings between businessmen, politicians, and organizations that understand the importance of the concept. Brazil has great potential in terms of the green economy, to develop with sustainability.

For example, we managed to generate a low-carbon economy, in addition to being responsible for the largest tropical forest. To top it off, we get 12% of all available fresh water on Earth.

All these examples serve to reflect on how we are using these features. The sustainable strategy in the Amazon region, for example, is an impetus to provide basic infrastructure and generate jobs, among other needs. The region leaves most of the 25 million Brazilians in poverty, and sustainable actions can improve this reality.

In Brazil, the agricultural economy does not need more land to explore, it is enough to know how to use the hectares already set aside for this purpose. And, thus, develop sustainable solutions to produce food that can be distributed in the country and also imported. In a way, if the country reflects on the way it uses resources, it will be facing waste that needs to be rethought.

It is necessary to consider the interrelationship between economic, social, and environmental in the Brazilian market. Recognizing the importance of applying the green economy to technological innovation, job creation, social inclusion, and conservation of natural resources.

In 2022, Brazil saw the creation of the Ecological Generation Forum, promoted by the Senate Environment Commission, to discuss this new economy. Some of the proposals presented are the creation of a National Policy for Sustainable Development.

This policy would be concerned with articulating investment in the so-called green hydrogen, a source of clean energy. In addition to a program that guarantees rural and urban employment, as well as the construction of green belts.

How can your company join?

For a company to be considered green, it must demonstrate actions that affirm its commitment to the environment. As well as actions that consider the society in which it is inserted. Sustainability needs to be present in all company decision-making, from relationships with its employees to the production of products.

Therefore, the company must understand the importance of keeping the economy-society-environment triad in balance. There is an involvement of the whole to be really sustainable, investing in the green economy. Some actions that can help in this process are:

• use of sustainable materials;
• low carbon emission;
• use of renewable energy and actions that avoid energy waste;
• recycling and reuse of waste;
• social inclusion;
• respect for human rights;
• encourage conscious consumption;
• support sustainable capitalism;
• having relationships with the surrounding society;
• establish efficient internal communication channels;
• keep operations transparent;
• between others.

ESG practices assist in the process of applying the green economy in your company. Do you already know how ESG works? Click here and read our post on this subject.

Find out how Redda+ and you can help preserve the Amazon

Redda+ is an organization that understands the importance of the green economy, therefore, it has developed projects in the Amazon region. Projects are supported by the 17 UN Sustainable Development Goals, in addition to using REDD mechanisms.

In this way, we believe that communities and traditional peoples receive an opportunity for sustainable growth. And, for that, we carry out diagnoses in the communities, seeking to understand their needs in the social, economic, and cultural spheres. Seeking an integration with the environment that is their home. It is a solution found to create really functional projects.

In Portel, Pará, we follow the results of putting a sustainable project into practice. And, to complete these actions, we insert oxygen into the atmosphere to compensate for excessive carbon emissions. Would you like to know more details about Redda+ projects? So, click here and follow us.