Green Growth: Definition, Importance, and Implications on Employment

The future will either be green or not at all. -?Jonathon Porritt, British Environmentalist

With what’s happening right now globally, Mr. Porritt’s words are not far from the truth.

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The world has seen different ideas, concepts, and movements, which aim to protect and save the planet from mass extinctions, increasing climate temperatures, and depletion of natural resources and habitats. We all know how alarming this is and how urgent our actions are and yet, we are far from fulfilling our mission. The problem goes beyond recycling, upcycling, and reducing waste. Even if some transactions are paperless and digital, even if jobs nowadays are mostly remote, and even if meetings are usually held online, these are all bits and pieces compared to tremendous environmental issues that we’re going to face in the future.

There has been a call for a transition from Economic Growth, which is closely associated with the increase in production, consumption, and resource use with adverse effects on human health and the natural environment, to Green Growth, which is defined by OECD as fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies.

?Dov Zerah, former General Director of the French Development Agency, mentioned in a publication that there is a pressing urgency in rethinking and advancing energy production methods and energy consumption patterns, with their major economic, social, and environmental consequences. This move will involve many sectors (e.g., energy, transport, building, industry, etc.) and actors (states, public institutions, funding agencies, local authorities, private enterprises, and consumers).

?The United Nations Industrial Development Organization (UNIDO), a specialized agency of the United Nations, strongly supports the call for a new economic paradigm that no longer centers on labor productivity, but on resource productivity. As resources become scarcer, and the global population continues to increase, achieving resource-efficient growth is more necessary than ever to sustain Earth’s ecosystems and protect its natural resources.

?Originating from the Asia Pacific Region, the term first emerged in 2005 at the Fifth Ministerial Conference on Environment and Development (MCED) in Seoul, South Korea, where the Seoul Initiative Network on Green Growth was founded. Since then, several international organizations followed suit and diverted their attention to green growth. In 2011, the OECD published a Green Growth Strategy at the request of various countries. In 2012, the Green Growth Knowledge Platform (GGKP) was launched by the World Bank, UNEP, OECD, and GGGI.

?There is another concept, green economy, (or an economy defined as low carbon, resource-efficient, and socially inclusive ), which is sometimes used interchangeably with green growth. Other organizations use these terms differently while some organizations also include social aspects in their definitions.

?Based on an article by Armand Kasztelan , the main reason behind the emergence and development of green economy and green growth concepts is, undoubtedly, the movement towards a more integrated and comprehensive approach to incorporating the environment in economic processes. The two concepts, as Armand further explained in the article, aim to identify feasible ways of developing the results of economic activity keeping in mind the existing climatic problems and increasing deficiency in natural resources, mainly through resource- and energy-efficient technological innovations.

?Armand also argues that the restructuring of the economy aiming at the so-called "green" solutions (green economy), based on the assumptions of the strategy of green growth, is the basic condition for entering the path of sustainable development .

?Now, you might think, “Why Green Growth? What are its benefits?”

?The European Commission associated green growth and innovation with driving jobs and economic growth through the delivery of technologies, solutions, and services that benefit the environment. They see this as an opportunity for the EU to take a leading role in overcoming global environmental challenges while encouraging a more competitive economy.

?They believe that the benefits of green growth and technology in the region can (1) build a more competitive low carbon economy that makes efficient, sustainable use of resources, (2) protect the environment by reducing emissions and preventing biodiversity loss, (3) capitalize on Europe’s leadership in developing new green technologies and production methods, (4) introduce smart electricity grids, (5) Harness EU-scale networks to give businesses an additional competitive advantage, and (6) improve the business environment, particularly for SMEs.

?Moreover, Nick Ferris, a data journalist based in London, mentioned that green growth investment offers a better rate of return than the conventional equivalent in both the short and long term. In a 2021 IMF report , the transition to green and sustainable infrastructure has an economic multiplier two to seven times larger than traditional infrastructure investments. On the other hand, an OECD analysis suggests increasing the $6.3trn (€5.19trn) the world spends annually on infrastructure by just 10% ($600bn) would help limit global temperature rise to below 2°C.

?Now, based on an OECD report for the G7 environment ministers in June 2017 , ambitious green policies won’t negatively impact overall employment if well implemented. Thus, it will improve the quality of the environment while maintaining economic growth. Furthermore, green policies can achieve job creation in various ‘green’ economic sectors and through a transition of the economy towards more labor-intensive services sectors.

?Let’s take Europe, for example. The European Commission stated that by 2017, the contribution of the green sector to the GDP increased from 1.6% (in 2000) to 2.2% . Employment in the environmental sector also grew much faster compared to the overall economy (by 32% between 2000- 2016 versus 9% overall), due to the green sector’s expansion up to 2011, with a pattern of increasing green jobs by close to 3% a year (on average). By 2011, the 3.2 million green jobs (full-time equivalents) of 2000 rose to around 4.1 million, and it mostly stayed there since then (except 2013-14). Some invigoration was observable in 2017, as the number of green jobs reached 4.15 million.

?As mentioned earlier, the transition to a decarbonized economy is a driver of economic growth potentially creating millions of green jobs. According to International Labor Organization (ILO) , green jobs (i.e., positions in agriculture, manufacturing, R&D, administrative, and service activities aimed at substantially preserving or restoring environmental quality) increase efficient energy consumption and raw materials, limits greenhouse gas emissions, minimizes waste and contamination, protects and restores ecosystems, and contributes to climate change adaptation. Experts conclude that there are five sectors that have the most potential to create green jobs: (1) Energy, (2) Agriculture, (3) Design, (4) Tourism, and (5) Transport.

?Green jobs today are quite broad, so a single training isn't enough for green-collar workers. Apart from degrees, there are postgraduate courses or specific training within the environmental sector available for individuals pursuing a green career. There’s no such thing as “one size fits all.” If you’re a farmer aiming to reduce your carbon footprint, you may consider a career in sustainable farming. If you’re a professor aiming to bring public awareness to nature and environmental issues, you may consider a career as an environmental educator. Even the waste management and recycling industry require several types of workers (e.g., waste management specialists, recycling sorters, facility managers, etc.) with diverse skill sets and credentials to operate efficiently.

?Going back to Mr. Porritt’s statement: The future will either be green or not at all. My answer is that it will still be green if we all want to and if we start working on it. It’s in our hands now.

?We are currently going through a rapid change. Just like what the European Economic Area (EEA) said in its article , growth is ingrained culturally, politically, and institutionally, and change requires us to address these barriers in a democratic way. This only means that governments, scientists, think tanks, foundations, non-governmental organizations, and nonprofit organizations all over the world must come together to formulate innovative ideas, policies, blueprints, and narratives in successfully attaining global green growth. Perhaps some of them have done so. But we need to do more. We also have to act fast (and smart) before it’s too late and the effects become irreversible.??