What is and how does green economy work?

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According to Oxford dictionary the Green Economy is “an economy based on or guided by environmentalist principles; (also) the economic sector devoted to products and services which are intended to minimize or remediate harm to the environment.”

In other words, we could say that the Green Economy is the set of productive activities aimed at reducing the environmental impact through new energy sources, technological innovations and waste reduction. It is inspired by ecological sustainability and is already widespread in the world, so that an ever-increasing number of companies are already investing in Green, obtaining profitable revenues and creating Green Jobs, the employment opportunities born from the green economy. Furthermore, the Green Economy is not only concerned with production, but also with the impact it will have on the environment. Thanks to private interventions and public funding, it is possible to reduce pollution, safeguarding the ecosystem and biodiversity.

THE GREEN ECONOMY MODEL

The green economy represents a theoretical model of economic development that takes into account the impact of human actions. Private investments, together with public spending, make possible those political reforms and those changes that safeguard nature and the ecosystem.

The better management of natural resources, optimizing production and increasing GDP would help the planet to sustain the impact of man and this would certainly lead to economic development. The excessive consumption of raw materials causes the price increase and damages the system, while the green economy creates new jobs and improves the labour market in areas such as agriculture, renewable energy, bio-architecture and recycling.

Objectives of Green Economy

The really “green” productive activities do not derive only from renewable energy sources or waste recycling, rather they include all the sustainable conversion of traditional sectors, therefore:

Therefore, innovation can actively contribute to reducing waste and environmental impact, as well as revamping a green economy.

Eurostat data shows that in Europe the wealth produced by the green economy has increased from 135 to 289 billion euros in the last 15 years and also the turnover has grown exponentially, reaching 700 billion euros. In addition, the sustainable employment has an exponential growth, with a 49% increase for Green Jobs and only 6% for traditional occupations.

Greenitaly confirms the growth of the Green Economy also in Italy, where many national companies have already invested in green products and technologies to reduce environmental damage, improve sustainability and keep an eye on climate change.

It is expected that in 2025 approximately 190 billion of investments will be made, with 682 billion increase in production and around 800,000 new jobs, focusing on sustainability, improving energy efficiency and the reduction of energy consumption.

The objectives and economic and employment impacts of the Green Economy are:

PRON AND CONS OF GREEN ECONOMY

The Green Economy requires a profound transformation of society, which can represent a limit, since the community is often not yet able to conceive the advantages. A corporate awareness is needed (corporate social responsibility), a corporate social responsibility that involves the use of tools and technologies with low environmental impact. Here are the limits of the Green Economy:

However, the green economy remains a very advantageous sector for investments, above all for economic, working and sustainable competitiveness in a country rich in renewable energy sources such as Italy. The advantages of the Green Economy are therefore natural, but also economic and social:

“Green thinking” is also integrated into the lifestyle of the communities and the quality of the products and services of large retailers. Think about the diffusion of terms such as “eco-friendly” or “ecobio” behaviours, they now entered into the common language, or the separate collection and renewable energy, the nature excursions, from detox food to makeup without of artificial allergens and fragrances. In recent years, in terms of recycling and photovoltaics, Italy is registering encouraging data and many of the progress made are helping people to adopt more conscious measures and attentions, which are not yet adopted by everyone. Conscious consumption for some is still a luxury, given the costs of certified organic farming foods.

As regard education, instead, those who have a medium-high educational qualification support eco-sustainable energy, this shows the need for continuous awareness to respect for the environment and for others, with communications and incentives accessible to all social classes.

Therefore, even if there is still a long way to go, it is certain that almost 90% of Italians believe that the green economy is a good approach to reduce consumption.

If you are looking for an authoritative partner for digital solutions and projects that promote technologies for the environment and the green economy, IPPO Engineering could be the solution for you.