Green economy

In 2011, the United Nations Environment Programme defined the green economy as ‘one 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’. It is an economy which recognises the true value of environmental resources and ecosystems and is closely related to the term ‘sustainable development’, since both relate to the aim of conserving environmental resources for future generations.

In December 2019, the European Commission issued its European Green Deal communication. This set out the growth strategy for the European Union (EU), taking into account its commitment to tackle climate and environmental challenges, and transform it into a modern, resource-efficient and competitive economy. The Green Deal aims to make the EU climate-neutral by 2050, boost the economy through green technology, create sustainable industry and transport, and cut pollution. The intention is to turn climate and environmental challenges into opportunities which will make the transition to the EU’s green economy just and inclusive for all.

The challenges facing EU Member States to make their transition towards a green and climate-neutral economy are immense, especially for those that depend on fossil fuels and carbon-intensive industries. The EU has set in place the Just Transition Mechanism to support them in their transition.