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CHAPTER 1
GREEN ECONOMY AND SUSTAINABLE
DEVELOPMENT
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In the first decade of the twenty-first century, the idea of green
economy became increasingly prominent. This emerging concept
produces new environmental and social challenges for the world but
creates also new opportunities. Traditionally when we talk about
economic and environmental issues we think of these as opposites, but
this idea is challenged from a new modern perspective. Environmental
problems are increasingly seen today as opportunities for innovation,
that spur to new products, processes, markets, and business models.
Driven by a variety of factors like competition, activist pressures,
customer demands and public expectations, more and more companies,
are taking the opportunity to create new business value by improving
their operations and reputation through new economic models. One
such model is referred to as Green Economy.
The Green Economy is based on the need to slow down a wrong
economic model conceived in opposition to nature, supporting a new
symbiotic and integrated approach respectful of the environment
1
.
Every human action has an environmental impact and awareness of
this, helps the protection of the environment and promotes an
economic development respectful of the limits of nature.
The Green Economy approach is, needless to say, supported first of all
by green marketing strategies. More and more companies leave their
old marketing methodologies for the Green Marketing, a new plan of
action that aims to achieve at the same time profits and the
preservation of the planet. Thanks to the Green Marketing, companies
can reorganize their whole business structure and processes in an
environmentally friendly manner, while at the same time consumers
are able to change their style of consumption.
1
Rio+20 - United Nations Conference on Sustainable Development, June 2012
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The greening of mainstream business is nonetheless not an entirely
new phenomenon. It has in fact been growing for many years, despite
its absence from the mainstream media. To analyse this phenomenon
it is important to understand what is actually meant by green economy
and all the implications of this new concept in our everyday life.
The process of greening economy is the result of a wide range of
environmental debates started since the 1970. For this reason it is
essential to illustrate the origin and development of this process, and
also its integration with the idea of sustainable development.
1.1 The Green Economy
The concept of a green economy has become the centre of policy
debates in recent years. Today it is much more than only an economic
concept, its objective being the creation of a new discipline able to
face the needs related to sustainability, well-being and social inclusion.
This idea underlines a new economic growth paradigm friendly to the
earth’s ecosystems, that encloses many multidisciplinary aspects.
The green economy can be explained as an eco-friendly economy, a
new way to obtain economic benefits thinking green and encouraging
the protection of the environment. For some academic scientists, this
process is the only possibility that today countries have to overcome
the economic crisis, also thanks to many facilitations and incentives
available for companies that want to follow this new trend.
The first work about green economy can be said to date back to 1962,
with Silent spring
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the critical essay by Rachel Carson on the chemical
industry. This essay was a landmark for the growth of the
2
R. Carson, Silent Spring. Houghton Mifflin, Boston 1962
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environmental movement. Over the years the theories about green
economy has been extended up to the inclusion of this notion with the
older concept of sustainable development, the main topic of the
United Nations’ work for decades.
The importance of the relationship between economy and environment
was further underlined in 1972 with the birth of the UNEP-United
Nations Environment Programme, whose aim was to encourage an
economic reflection and a practical application of the idea of
environmental protection.
Today there is not a single definition of green economy, but according
to a recent UNEP report, it responds to the “growing recognition that
achieving sustainability rests almost entirely on getting the economy
right”
3
.
In its report the UNEP has developed a working definition of a green
economy as
“one that results in improved human wellbeing and social equity,
while significantly reducing environmental risks and ecological
scarcities”
4
.
This means that, while underscoring the links between economy and
environment, it should not lose sight of the equity dimensions,
including the needs of developing countries and, of course, of future
generations. Nowadays the concept of green economy is more and
more important because it gives an answer to the world crises of
3
UNEP, Towards a Green Economy: Pathways to Sustainable Development and
Poverty Eradication, 2011, cit., p. 9
4
United Nations Environment Programme, Towards a Green Economy: Pathways
to Sustainable Development and Poverty Eradication, 2011, cit., p. 9
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recent years, with a new paradigm that assures growth and protect also
the earth’s ecosystems.
One of the most complete definitions of Green Economy was
formulated by Kevin Danaher, director of the Global Citizens Center,
in his book Building the Green Economy: Success Stories from the
Grassroots . He uses the terms of a "triple bottom line", more
specifically a Green Economy should be:
- Environmentally sustainable, based on the preservation of our
biosphere and its finite resources because we depend on the these
natural resources. For these reasons we must create a new economic
system respectful of the ecosystems.
- Socially just, based on an economic system that ensures all people
the access to a decent standard of living and full opportunities for
personal and social development.
- Locally rooted, based on the belief that the local reality is the starting
point for a real sustainability.
The Green Economy is first of all a meeting of needs of the citizens
and can be realized only through a responsible local production.
The green economy is also defined as a sustainable economy and
society with zero carbon emissions and a one-planet footprint where
all energy is derived from renewable resources which are naturally
replenished. A green economy rigorously applies the triple bottom line
of people, planet and profits across all corporations at the
microeconomic level and throughout the entire economy at the
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macroeconomic level. In contrast to a green economy, a traditional
“black” energy economy is based on carbon-intensive fossil fuels such
as coal and petroleum. By definition, a low-carbon economy is distinct
from a green economy because it still generates carbon emissions.
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(Green Economy Group)
In 2012 during the Rio+20 conference
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, the stakeholder forum
identified fifteen principles that can today represent the guiding
principles for the green economy:
1. Equitable distribution of wealth
The promotion of an equitable distribution of wealth and resources
within nations can reduce disparities and achieve the social and
economic justice.
2. Economic equity and fairness
The pillar of this idea is the principle of common but differentiated
responsibilities, we have to minimize the gap between the developed
and developing countries, supporting the environmental sustainability.
3. Intergenerational Equity
The safeguard of the environmental resources can be the only
possibility to preserve the environment for the future generations.
4. Precautionary Approach
5
http://greeneconomygroup.com
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Rio+20 - United Nations Conference on Sustainable Development, June 2012
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Through the identification of environmental risks, science can help
society to enhance social and environmental results preventing
environmental degradation.
5. The Right to Development
Human development in harmony with the environment is fundamental
to the achievement of sustainable development, so that individuals and
societies are empowered to achieve positive social and environmental
outcomes.
6. Internalization of Externalities
Building true social and environmental value should be the central
goal of policy. The local benefits should be one of the most important
targets to realize.
7. International Cooperation
All the States must cooperate for the application of environmental
standards within the international community.
8. International liability
The cooperation should play a central role between the countries. The
development of international law can regulate actions that can cause
environmental impacts beyond national jurisdictions.
9. Information, participation and accountability
The civil society should have access to information concerning the
environment, as well as the opportunity to participate in the decision-
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making process. All the institutions must use the tools that enable the
involvement of citizens.
10. Sustainable Consumption and Production
This rule is based on the principle of the 3R, reduce reuse and recycle
the materials used. We should reduce unsustainable patterns of
production and introduce a new sustainable consumption.
11. Strategic, co-ordinated and integrated planning to deliver
sustainable development, the green economy and poverty alleviation
An integrated approach must be adopted at all levels to expedite the
achievement of socio-economic and environmental sustainability
through strategic planning with civil society and stakeholders..
12. Just Transition
We should make a real transition to a low carbon, green economy. In
this process of change the developed countries must support the most
vulnerable, for this reason the developing countries must have access
to appropriate financial and technical assistance.
13. Redefine Well-being
Today Gross Domestic Product it’s our tool for measuring social
wellbeing and environmental integrity, but for a real transition we
should consider the quality of life and the environmental health the
new objectives for the society development.
14. Gender Equality
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Gender equality and equity are prerequisites to the transition to a
green economy and the achievement of sustainable development.
15. Safeguard biodiversity and prevent pollution of any part of the
environment
Protect and preserve biodiversity and natural habitats it’s one of the
first steps for the safeguard of human and environmental wellbeing.
As the fifteen points above make clear, the green economy is more
than just environmental in scope; it concerns about development and
economy, it “offers a development path that reduces carbon
dependency, promotes resource and energy efficiency and lessens
environmental degradation”
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.
A sustainable economic development can be achieved only if our
economic growth and investments become more sensitive to
environmental quality.
Moving towards a green economy is a process with many advantages
for society and the environment, it is also the only way for a future
growth improvement. The change in behaviour can have a positive
impact on society and can assure a new long-term strategy for
economic development.
The green economy is not a stop, the end of the current industrial
reality: it is only a new modus operandi that includes both
environmental sustainability and social prestige for the companies.
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UNEP, Towards a Green Economy: Pathways to Sustainable Development and
Poverty Eradication, 2011
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1.2 The Environmental Debate
Today we are used to talk about environmental problems and
how to prevent them, but the path for the development of this idea
started in the eighteenth century. If we want to understand the
importance of these concepts we have therefore to analyse the
evolution of the environmental debate during the last three centuries.
The starting point of this analysis is without a doubt the eighteenth
century, the industrial revolution
is the first step towards globalization, with the introduction of new
massive changes that transformed the ability of human action. The
revolution led to huge transformations and consequences in the
economy, society, politics and environment, giving society the
possibility to expand the human capacity of exploitation, and
consequently to interfere with nature. The increase in production
coincides with an evident degradation of ecosystems and with the
pollution of air and water.
During the nineteenth century, and until the first half of the twentieth
century, the progress follows in the industrial revolution footsteps, and
the exploitation of natural resources caused profound changes in the
relationship between humans and nature.
As De Oliveira argues, “The social and environmental problems
caused by rapid industrialization and urbanization, such as air
pollution and income inequalities, were regarded as the price to be
paid for development”
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. This idea represented the point of view of
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DE OLIVEIRA, Green Economy and good governance for sustainable
development, United Nations University Press, New York 2012, cit., p. 66
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most of the developed countries: they look for development at any
cost, and this caused many iniquities, social and environmental
problems.
In the first half of the twentieth century in the United States the
conservationist movement can be considered the first modern
environmental movement. They tried to preserve some natural
ecosystems from human action; some of the initiatives implemented
by the movement for the protection of the environment still exist
today, for example the creation of the national parks, and some
conservation policies.
In the 1960s the gap between developed and developing countries was
already outlined, developed countries achieved significant levels of
consumption and material wealth but on the other hand the
contamination of the environment led to new health problems. A
dilemma came to light, how to combat all the environmental problems
and make economic development compatible with environmental
quality. The only way to create an alternative was to halt industrial
development, but neither businesses nor governments were willing to
take action.
It is at this point that the environmental movements started to appear
and started to play a key role in civil society. Many of the these
movements were sure that a trade-off between environmental
protection and economic development was possible. Over the years
they became more influential in politics, they were the seeds of the
transnational environmental movements we have today.
In the second half of the twentieth century the discussion about the
environment became more and more remarkable on the global scenery.
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The birth of many social movements demanding social and political
changes introduces the use of a new term sustainable development. It
was coined and popularized in the 1980s.
In the 1970s had already started the real process of participation of the
citizens and social movements in the world politics through protests
and reports, these actions led in 1972 to the organization of the United
Nations Conference on the Human Environment in Stockholm.
The agenda of this conference highlights a set of problems concerning
the industrial pollution in developed countries. This conference brings
out also the different point of view of the developing countries on
environmental issues, they saw with scepticism the intentions behind
the environmental concerns, as attempts to block developing countries
from opportunities to develop their economies.
The Stockholm conference was the first world conference about the
environmental debate, and it led to the creation of the United Nations
Environment Programme (UNEP), a very important authority that
nowadays is still essential for the resolution and regulation of some
aspects of the environmental debate.
During the 1980s the environmental agenda expanded to a large
number of countries, with the creation of national and sub-national
laws and organizations for the supervision of the environmental
problems.
In 1983 to reinforce the idea of environmental protection the United
Nations created the World Commission on Environment and
Development, also known as the Brundtland Commission. The
Commission worked on a very important report called Our Common
Future, released in 1987. Widely known as the Brundtland Report, it
popularized for the first time the concept of sustainable development
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and declared beyond doubt that economic and social development can
go hand in hand with the environmental protection. In this report were
included also the needs of future generations for a balanced
development, in fact sustainable development is defined as
“development that meets the needs of the present without
compromising the ability of future generations to meet their own
needs”
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The Brundtland report had a huge impact on international and national
policies all over the world, and placed environmental issues firmly on
the political agenda. It tries to make the environmental protection
compatible with social and economic development for present and
future generations.
In 1992 new problems arose with global causes to solve, such as
biodiversity loss and global warming. For this reason the United
Nations coordinated a second global environmental summit, the
United Nations Conference on Environment and Development “Rio-
92”, in Rio de Janeiro. Some important documents such as the Agenda
21 and the Convention on Biological Diversity are the results of this
second summit.
Rio-92 was a landmark conference for the participation and the
influence of civil society groups on the discussions. The most
important result of this summit was the Rio Declaration, a document
that highlighted the basic principles for the promotion of sustainable
development such as intra and intergenerational equity, respect for
diversity and common but differentiated responsibility.
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WCED, Our Common Future, Oxford University Press, Oxford 1987, cit., p. 43
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