Green is the new GOLD! Right from the ‘green’ number plates of EV cars and bikes to the everyday headlines about new businesses focused on building eco-friendly solutions, the economy is heading towards a green zone. About time too, right? Vanishing forests, extreme pollution, bad quality of life, a combo no one wants is slowly becoming a reality! We all know how important it has become to adopt sustainable practices as they can impact not only our grocery bills but also our jobs, our economy, in short our whole life! But what about the impact of this new age Next Gen Green Revolution on the economy? The answer is actually quite interesting! Welcome to the concept of Green Economy! Read on to unravel some interesting mysteries.
What is the Green Economy?
Nope, it’s not just a colour! The vision behind this concept goes way beyond simple growth or development in an economy! The idea is to design an economic system in a way that focuses on three main things: reducing carbon emission (in short reducing pollution!), efficient use of resources and being socially inclusive. Economic growth is matched with sustainability and responsibility!
Examples of Green Practices Live Around You!
The cozy rooftops at homes are now being replaced by panels of solar power units! That’s an example of a green economy at work. We have been consciously and unconsciously adopting this lifestyle too, here are a few examples:
- EV vehicles, powered by batteries, are designed to rescue the dependency on petrol, diesel and CNG. The biggest bonus being they reduce air pollution too!
- Solar power panels for electricity are cheaper than coal and for homes in India an added advantage is being provided by the government under PM Surya Ghar in the form of some free electricity units every month!
- Organic Products: Undoubtedly right from fruits and veggies to even millets and milk, as consumers, you might have noticed that organic products are easily available now. We all have started preferring organic food. This is a part of green practice too!
- Eco Friendly Products: Who would have thought detergents and floor cleaners too needed to be eco friendly, but now the awareness and availability of both is on the rise.
- LED Lights: This one is quite a common household good now! Do you now have your home equipped with LED batons or do you still prefer the traditional tubelights?
- The National Green Hydrogen Mission is also one of the very special initiatives in India to make hydrogen from renewable sources!
- Even in US countries like New York sustainable initiatives are being taken up!
On similar lines many more examples of waste reduction, recycling etc. may be around you. Do share with us which green example did you notice recently?
Fun fact: Did you know Iceland, Denmark, the Netherlands, Norway, Sweden and Germany often top when it comes to global indices like the Sustainable Development report and even the Green Future Index?
The Global Challenge of Climate Change That Led to Demand For a Green Economy
The suffocation of Delhi pollution is still etched in the minds of its residents. Not to forget the frequent forest fires around the world too have contributed immensely to the air pollution. Undoubtedly the serious spike in pollution around the world combined with the global warming issue was an eye opener that clearly spelt that the survival ahead depends how soon we make the green economy a reality!
One big initiative taken in this regard was the Paris Agreement. Even countries like the EU have taken steps on their level. EU’s Carbon Border Adjustment Mechanism (CBAM) regulates the carbon intensive products being imported in the country.
AI and Economics Meet Their Friend Green Economy
Love it or hate it but AI is here to stay! Way beyond ChatGPT, artificial intelligence is sneaking into our daily lives slowly yet steadily. If we talk about the green economy, AI can play and in some cases is already playing a crucial role in ensuring energy use is optimized, supply chain efficiency is improved and it is also predicting climate risks. AI models can not only help in reducing the logistics costs but also in ensuring the most optimum use of resources.
For example, when AI is integrated in farming via smart irrigation practice, it can help reduce water wastage. Even regular cab services or courier companies are relying on AI models for optimizing delivery routes which helps in cutting fuel costs!
Right from tracking carbon emissions to forecasting climate change induced commodity price hikes, everything can be tracked by AI. These provide a good guide to take timely decisions.
All these can lead to more resilient economies, which means the perfect GDP growth formula with focus on reducing costs, increasing productivity and of course utilizing resources optimally!
In short, well built AI models compliment the vision of a green economy ensuring that data backs the vision!
Green Startups and How They Are Making the GDP Growth Richer?
Are you a fan of Shark Tank? If yes, am sure you would have noticed the majority of the new business ideas are focused around building sustainable solutions! The business world has gone way beyond Fintech and FMCG, in fact even both these industries too are turning greener!
Whether it’s big companies like Ola Electric, Hero etc. venturing towards e-scooters or brands building solar powered appliances or even sustainable cookware and packaging options, the business ideas are unique yet impactful!
The best part? Here eco-friendly matches with economic growth!
- New jobs are being created.
- Import dependency is getting greatly reduced.
- Long term economic risks are getting reduced as even the infrastructure being created is climate resilient.
- Most importantly, foreign investment in the novel sustainability focused ventures is giving the economy a further boost.
Just the other day, I read an article saying India is projected to receive a 5x growth with green investments projected to cross Rs. 31 lakh crore between 2025-2030! Woah! Also, the plethora of tax benefits and easier compliance for green startups has made this business a good choice too.
These green startups are the perfect combo of being built to scale, fully tech-driven and of course cost effective. In short their contribution to GDP growth numbers will only spiral in the future. Growth focused on being inclusive, clean, quality and future ready.
Wow! Businesses are surely getting rich while saving the planet!
Biggest Hurdle in Making the Green Economy the New Normal?
Adaptability! Not everyone is fond of change. Especially if the alternatives are costly!
Would you be happy to replace a regular floor cleaner with an eco-friendly one that is 2X the price of the former? Am sure the answer is a hesitant yes or an outright NO!
We have to look at our budget, the same holds true for the industries and other market players. Mainly the hesitancy is because of being too attached to the age-old practices (just like you may love the smell of your original laundry cleaner!) and of course avoiding the higher costs.
For old industries replacing their complete machinery or raw materials involves huge costs accompanied by the training costs of labour too. The requirement of high investment and financial constraints makes things difficult. For consumers mainly we don’t like change and sometimes the eco-friendly alternatives may not be affordable at all.
Apart from this, there could also be technological hurdles.
Why is the Green Economy Good for Us?
Fresh air, shared prosperity and a happy life, all accompanied with growth and development! Who won’t love that? That’s the most beautiful dream that only adopting a green economy will fulfill!
Surely, this beautiful concept is way beyond being related to vanishing forests, super high pollution and not to forget global warming. We all definitely deserve a clean and happy future. Are you fond of eco-friendly alternatives or do you still prefer buying things that you have grown up with? Do share your thoughts on this and the concept of a green economy too.