Understanding Green Economy: Beginning, Goals, Principles, and Types

Definition of Green Economy – Green Growth or green economic growth is strong economic growth by not setting aside environmental problems, prioritizing low-carbon development and being socially inclusive.

Green economy as an economic activity that can create social welfare through limiting natural resources and low carbon. The Indonesian government has also prepared a Green Growth program as a mitigation measure to deal with climate change. This step includes the policy mix both in terms of substance, institution and financing.

One form of this step is the substitution of climate change aspects in the 2020–2024 Social Medium Term Development Plan (RPJMN). The efforts included in it include improving the quality of the environment, increasing disaster resilience and climate change and using low carbon.

Through green economic growth, it is hoped that the industrial sector of the economy can be integrated to realize the responsible use of natural resources, prevent and reduce pollution and create opportunities to increase social welfare by building a green economy (green economy ) .

That way, sustainable development can increasingly be realized based on the understanding that conflicts between the economy and the environment can be reconciled properly.
Then, what exactly is meant by a green economy? In this article, we will discuss more about the meaning of green economy and its various types. So, see this review to the end, friend.

Green Economic Growth

Green growth is strong economic growth that is environmentally friendly and socially inclusive. In contrast to conventional development models that rely on unsustainable practices such as the draining and destruction of natural resources.

Green growth is a coordinated movement consisting of economic growth, environmental sustainability, poverty reduction and social engagement driven by the development and sustainable use of global resources.

Being green and sustainable not only benefits the environment, it also helps make businesses more successful and profitable. The green lifestyle has also developed in the last few decades and become a popular concept as more and more people and entities recognize the urgent need, as well as the various benefits of sustainable practices.

The main reason for the emergence of the concept of green economy and green growth is the movement towards a more integrated and comprehensive approach to incorporate social and environmental factors in the economic process to achieve sustainable development.

Therefore, green growth is economic growth that contributes to the responsible use of natural capital, prevents and reduces pollution and creates opportunities to increase overall social well-being by building a green economy, and ultimately enables the achievement of sustainable development goals.

So, a green economy is an economic activity that in addition to increasing people’s welfare as the ultimate goal of the economy is also expected to have an impact on achieving justice for both society and the environment as well as the natural resources themselves.

The Beginning of the Emergence of the Green Economy Concept

The pattern of modern human life has made development very exploitative of natural resources and threatens the lives of other living things. Economic activities which include production, distribution and consumption cause greenhouse gas emissions to increase, thus causing a reduction in forest areas and the destruction of various species and biodiversity.

This is because the concept of common property resources can be used to answer why economic activity can lead to environmental damage. Millions of owners have the same right to utilize common property resources such as oceans, air, fish in the sea, land, water, forests and so on.

There is no single rule that limits the use of these shared resources, so there is over-exploitation of these resources. Every beneficiary, both producers and consumers may use it as much as possible with the assumption that other people will take advantage of these resources if they are not used as fully as possible.

Based on the economic lens, misuse of the utilization of common property resources arises because there is no self-generating balancing mechanism that can limit exploitation. When excessive exploitation has occurred, it can certainly cause various problems of pollution and environmental damage at the global and local levels.

Thus, it is necessary to have the idea of ​​” Green Economy ” which is expected to be a way out to make economic actors as well as beneficiaries or consumers more motivated to carry out environmentally friendly activities. So, a green economy in turn becomes a bridge between economic development growth, social justice as well as being environmentally friendly and saving natural resources.

Various Kinds of Green Economy Concepts (Green Economy)

The term green economy first appeared in a British Government report drafted by a group of leading environmental economists entitled For a Green Economy in 1989. However, until now there is still no definition of a green economy that has become a collective agreement internationally.

The following are various definitions and concepts of green economy from the Collection of Thoughts on Green Economy Development in Indonesia (Year 2010 – 2012).

UNEP (2011)

UNEP defines that a green economy is a system of economic activities related to the distribution, production and consumption of goods and services that obtain increased social welfare in the long term. However, without exposing future generations to significant environmental risk or ecological scarcity.

UNCTAD (2011)

UNCTAD defines a green economy as an economic system that results in increased human well-being and reduced inequality through activism that does not cause future generations to face significant environmental risks and ecological scarcities.

UNCSD (2011)

UNCSD defines the green economy as a lens that focuses on seizing opportunities to enhance both economic and environmental objectives simultaneously.

Green Economy Coalition (2011)

The Green Economy Coalition defines a green economy as a resilient economy that can provide a better quality of life. But in the process, it is necessary to limit the earth’s ecological carrying capacity.

International Chamber of Commerce (2011)

The International Chamber of Commerce is of the opinion that a green economy cannot be separated from economic growth and environmental responsibility that work together. Through a green economy system, the two can also strengthen each other to support progress in social development.

Danish 92 Group (2012)

That the green economy is not a condition, but a process of transformation and dynamic progress that is sustainable. According to him, a green economy results in human well-being as well as access to fair opportunities for everyone. In this process, it is also necessary to maintain environmental and economic integrity in order to comply with the earth’s limited carrying capacity.

Government of South Africa (2012)

According to him, the green economy should be able to provide an entry point to broaden the basis of empowerment for the black economy and address the needs of women as well as young entrepreneurs. In addition, the green economy concept can still offer opportunities for companies in socio-economic activism.

Government of Indonesia (2010)

Green economy as a development paradigm centered on a resource efficient approach with a strong emphasis on internalizing the costs of natural resource depletion and environmental degradation. In addition, the green economy is a system of efforts to reduce poverty, create decent jobs and ensure sustainable economic growth.

Green Economy Specific Goals

In practice, the green economy also has several objectives. The specific objectives of the green economy are as follows:

  1. Raise awareness of the urgency to move away from fossil fuels in Indonesia’s energy system.
  2. Optimizing the application of energy efficiency that leads to Indonesia’s energy decarbonization system.
  3. Strengthen domestic climate change mitigation policies.
  4. Improving social welfare and equality of the community while taking into account the risk of environmental damage resulting from these economic activities.
  5. Support efforts to reduce greenhouse gas emissions.
  6. Supporting the implementation of economic development that is oriented towards environmental and ecosystem aspects.
  7. Imposing sanctions on perpetrators of economic activities that are harmful and have the potential to damage the environment.
  8. Encouraging business actors to produce goods, carry out trading activities and their consumers will also consume things that are environmentally friendly or products and services that are more environmentally friendly.

Basic Principles of Green Economy

The main principle of a green economy is being able to meet the needs of the present without compromising meeting the needs of every generation in the future. Well, besides that, there are several other principles in the green economy, these principles are:

1. The Principle of Sustainability

The green economy is a means to realize a sustainable economy.

2. Welfare Principles

The green economy enables everyone to realize and enjoy prosperity.

3. Principle of Justice

Green economy promotes equality within and between generations or supports social and economic equity.

4. The Principle of Dignity

A green economy creates prosperity and well-being for the whole society.

5. Principles of Healthy Nature

The green economy is restoring lost biodiversity, investing in natural systems and rehabilitating degraded forests.

6. Principle of Planetary Boundary

The green economy protects, restores and invests in nature.

7. The Principle of Inclusion

The green economy is inclusive and participatory in decision making.

8. Principles of Good Governance and Accountability

The green economy must be accountable.

9. The Principle of Endurance

A green economy contributes to economic, social and environmental resilience.

10. Principles of Efficiency and Adequacy

The green economy is geared towards supporting responsible and sustainable production and consumption activities.

11. Generation Principle

The green economy invests for the present and the future.

12. Welfare Principles

The green economy encourages everyone to enjoy prosperity and prosperity.

13. Principles of Good Government

The green economy is guided by resilient, integrated and responsible institutions.

Examples of Green Economy Practices

The transition to a green economic system certainly requires a long process and time. Even so, several countries can serve as role models for their commitment to adopting the concept of “green development” or a low-carbon economic strategy.

In fact, there are not a few success stories of large-scale programs that have been able to increase growth or productivity in a sustainable way.
The following are examples of green economic practices in several countries:

  1. South Korea, adopted a national strategy and long-term plan for green growth in the period 2009–2013. In addition, South Korea allocates 2% of their GDP for investment in green sectors such as renewable energy. The Korean government also launched the Global Green Growth Institute (GGGI) program to help other countries, especially developing countries, develop their green development strategies.
  2. China is the country that invests the most in renewable energy. This can be seen from the installed wind power capacity in China which increased by 64% in 2010. In addition, China is also the only country with the largest solar power capacity in the world, which is 130 gigawatts. The International Energy Agency (IEA) even stated that China reached its 2020 target of adding solar energy capacity three years early.

Apart from overseas examples, there are several other examples, such as:

  • Reduction of CO2 exhaust emissions
  • Mitigating the greenhouse effect, such as efforts to reduce carbon dioxide and pollution levels.
  • Increased public or private investment in the green sector, so that available jobs apply the principles of a green economy.
  • Decrease in the use of energy or production unit resources.
  • Greening program.
  • Increase in GDP (Gross Domestic Product) from the green sector.
  • A decrease in consumption that generates a lot of waste.

The Role of Individuals in Participating in Supporting a Green Economy

In carrying out a green economy, the role of each individual cannot be separated. The following is the role of individuals to support green growth.

  1. Turning off the mains connected when not needed.
  2. Reuse cutlery and shopping bags made from materials other than plastic.
  3. Save water.
  4. Reducing carbon emissions by flying less, an alternative that can be used using a cellphone or web conferencing.
  5. Avoid or as much as possible minimize the use of paper.
  6. Travel wisely using public transport.
  7. Recycle by separating waste according to category.
  8. Support organic local products that are environmentally friendly.
  9. Disseminate how to participate in supporting the Green Economy to have a sustainable lifestyle.

Reasons a Green Economy Can Support Sustainable Development

The green economy concept complements and supports the concept of sustainable development. Green economy is one of the important tools available to achieve sustainable development. This economic concept can provide choices for policy makers in making laws and regulations related to the environment. However, it still shouldn’t be a set of rigid rules.

The role of the green economy ( green economy ) is not something different from sustainable development, but its existence functions as the main engine of sustainable development ( sustainable development ).

In an economic system, of course the most important element is investment . If it is drawn into the concept of a green economy, then this element becomes an environmentally sound investment ( green investment ).

The presence of the green economy concept is not a substitute for sustainable development, but rather an affirmation that sustainability can only be achieved by ensuring that humans live in an appropriate and environmentally sound economic model. The economic model referred to as an economy that grows based on social justice and ecological justice means that it does not cause degradation of environmental quality.

The conventional economic transition to a green economy aims to keep economic growth and investment in line with increasing environmental quality and social inclusion.


So that’s an explanation of the green economy concept which is very good to apply so that the earth becomes a place for living things to remain stable. So that it can improve the quality of human life evenly and can also increase economic growth. I hope this article inspires you!

Leave a Comment