Why in the news?

  • There exists an Urban-rural divide in terms of Green economy adoption where rural India stands behind the urban India in attraction of Green investments and infrastructure.

Green Economy

  • What is it?:
    • The Green Economy is an economic model that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.
    • It is low-carbon, resource-efficient, and socially inclusive, ensuring sustainability and resilience.
    • The concept gained prominence after the 2008 financial crisis and was mainstreamed in the Rio+20 Conference (2012).
  • Key Features:
    • Low Carbon: Reduction in greenhouse gas (GHG) emissions.
    • Resource Efficient: Optimum use of natural resources.
    • Socially Inclusive: Equitable access to jobs, energy, and resources.
    • Sustainable Development: Long-term ecological balance.
    • Green Jobs: Employment in sectors contributing to preserving or restoring the environment (e.g., renewable energy, waste management).
  • Sectors Driving Green Economy:
    • Renewable Energy (Solar, Wind, Hydro, Bioenergy).
    • Energy Efficiency (Green buildings, smart grids).
    • Sustainable Agriculture (Organic farming, soil conservation).
    • Green Transport (EVs, public transit, hydrogen mobility).
    • Waste Management & Circular Economy.
    • Forestry & Blue Economy (ecosystem restoration, mangroves, oceans).
  • Pillars of Green Economy:
    • Economic: Green growth, sustainable consumption & production.
    • Environmental: Protection of ecosystems, biodiversity, climate resilience.
    • Social: Poverty eradication, inclusiveness, equity, livelihood security.
    • Institutional: Governance reforms, green finance, policies & regulations.
  • India’s Initiatives towards Green Economy:
    • National Action Plan on Climate Change (NAPCC): Missions on solar, energy efficiency, sustainable habitat, green India.
    • Renewable Energy push: 500 GW capacity target by 2030.
    • Green Hydrogen Mission (2023): Making India a hub of hydrogen economy.
    • Perform, Achieve, Trade (PAT) Scheme & Renewable Energy Certificates (RECs).
    • Green Credit Programme under LiFE (Lifestyle for Environment).
    • National Electric Mobility Mission (FAME scheme for EVs).
    • Carbon Credit Trading Scheme (CCTS) 2023.
    • India Green Finance Facility (IGFF) launched with GCF (2024).
  • Challenges:
    • High initial investment cost.
    • Lack of awareness & skilled manpower.
    • Resistance from fossil-fuel dependent industries.
    • Weak policy enforcement and green finance gaps.
    • Social equity concerns (job losses in traditional sectors).
    • Urban-Rural divide in adoption and development.
  • Way Forward:
    • Strengthen Green Finance (Green Bonds, Carbon Markets).
    • Promote Research & Development in clean technologies.
    • Build capacity & skills for green jobs.
    • Foster public-private partnerships.
    • Integrate circular economy principles in production.
    • International cooperation on technology transfer & climate finance.