What is the Green Economy?

The green economy is an economic system that aims for growth and prosperity while maintaining environmental integrity and social equity. It focuses on lowering greenhouse-gas emissions, enhancing resource efficiency and protecting natural capital, ensuring that economic activity supports long-term planetary health.

Key sectors include renewable energy, sustainable construction, low-carbon transport, circular manufacturing, regenerative agriculture and green finance. Yet the green economy is not limited to these industries: every sector is expected to operate more sustainably, from digital technology and healthcare to retail and heavy industry.

International organisations such as UNEP describe the green economy as “low carbon, resource efficient and socially inclusive.” This means it seeks to decouple economic development from environmental degradation while creating decent jobs and reducing inequalities. Policy drivers, carbon pricing, clean-energy incentives, biodiversity targets, are accelerating the shift, and businesses that adapt early are often more competitive and resilient. Understanding the green economy provides context for how industries, governments and individuals can align economic activity with the planet’s ecological limits.