Sustainable economics
Green Economy
Definition
A green economy is defined by the UN Environment Programme as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities — operationally, an economy that is low-carbon, resource-efficient, and socially inclusive. UNEP launched its Green Economy Initiative in October 2008 and popularised the concept through the 2011 report "Towards a Green Economy"; Rio+20 framed it as an important tool for sustainable development and poverty eradication.
References
UNEP definition
history and related concepts
Overview
What it means
The definition deliberately joins three tests: environmental (reduced risks and scarcities), social (equity and inclusion), and economic (well-being). An economy that decarbonises while deepening inequality fails the definition. The concept competes and overlaps with green growth, which puts more emphasis on growth itself.
How it is used
Governments use green economy strategies and roadmaps (supported by PAGE, the Partnership for Action on Green Economy); the concept structures investment cases for renewable energy, efficient buildings, sustainable transport, and natural-capital sectors.
Why it matters
It reframed environmental action as an economic development strategy rather than a constraint — the framing behind much green industrial policy today.