Championing green economy across the globe
As defined by the United Nations Environment Programme (UNEP), a green economy is a “macroeconomic approach focused on investing in green economic activities, infrastructures, and skills that allow reduced carbon emission and pollution, enhanced energy and resource efficiency, and prevention of the loss of biodiversity and ecosystem services.” Simply put, a green economy is one that improves well-being and development while reducing climate impacts; and renewable energy, green financing, and waste management are some of the key factors in this approach.
Throughout the years, the transition to a green economy has become increasingly progressive and successful across the globe, with the business community playing significant roles to advance sustainable development.
According to the nonprofit environmental organization Earth.Org, there is significant progress in the race toward green economies over the years. As sustainability action stepped up, initiatives, policies, and strategies that effectively mitigates climate and environmental risks were identified.
A primary example is the greening of economic sectors. In a Green Economy Coalition (GEC) report, green sources and technologies are setting new records. Illustrating a progressive transition to a green economy is the global adoption of electric vehicles (EVs). The year 2024 recorded 17 million electric car sales, which marked the emergence of EVs as a mass-market product, as reported by the International Energy Agency (IEA). Moreover, countries that are dominating the market share include China, Europe, and the United States. The remarkable advancements in the EV scene serves as proof of the world’s significant commitment to environmental sustainability.
Also making waves are renewables in the energy sector, driving unprecedented advancements in both energy consumption and capacity. This momentum accelerated in 2024, with solar energy experiencing an impressive 88% increase in capacity growth, which added a total of 18.6 gigawatts (GW). Solar energy thus emerged as the leading source of generation, significantly surpassing wind, hydropower, and nuclear energy.
Renewable energy is expected to continue growing at a strong pace. Another IEA report highlighted the impact of renewables in driving decarbonization across various industries, transportation, and buildings. The report projects that renewable energy sources will double at 30% and will account for 46% of the global electricity generation by 2030. Notably, solar photovoltaic (PV) or solar panels, which convert sunlight directly into power and electricity, is emerging as the largest renewable source.
The green economic transition is also not without the development of new global green architectures, the GEC’s report said. This includes accelerated green financing, increasing access to climate finance, and revamping financial global institutions.
In addition, green financing, through green bonds and sustainable investments, play a pivotal role in the green economy. Green bonds are debt instruments designed for funding environmental projects, while sustainable investment funds focus on investments in companies and projects that prioritizes environment, social, and governance (ESG). These accelerates funding for green initiatives and the transition to a green economy.
Lastly, a circular economy is also redefining sustainable growth. The report emphasized how sustainable consumption and production is crucial to the development of green architecture. A circular economy supports green enterprises and circular business models that impact various industries, planning, and policies.
A circular economy presents sustainable solutions for industries like fashion and textile, which are among the largest contributors to carbon emissions globally. Data from the UNEP indicates that these sectors are driving overconsumption and waste pollution, with 92 million tons of textile waste generated, amounting to 2%-8% of global greenhouse gas emissions, 9% of microplastic pollution, and 15,000 chemicals used in the manufacturing process.
To address these environmental impacts, the industry is encouraged to adopt zero-waste management practices and promote sustainable consumption and production. Accordingly, the United Nations Fashion Industry Charter for Climate Action has noted that many fashion companies are shifting their approach to production and waste management to achieve net-zero emissions and combat the ongoing waste pollution crisis.
These successful transitions clearly demonstrated how the world is championing the green economy — a global effort that must be embraced for the sake of livable and healthier environments.
“A green economy is fundamentally about enhancing people’s well-being while simultaneously restoring nature. Such a dual approach — both green and fair — is key to overcoming the fear of change and potential transition trade-offs, such as the shuttering of high-carbon industries or complex distributional effects of economic change,” the GEC said. — Angela Kiara S. Brillantes
