How can you overcome challenges to green growth?

1 Identify and address policy gaps

One of the main challenges to green growth is the lack of coherent and consistent policies that support green objectives and align with other development goals. For example, subsidies for fossil fuels or agricultural inputs can undermine the incentives for renewable energy or organic farming. To overcome this challenge, you need to identify and address the policy gaps that create distortions, trade-offs, or conflicts with green growth. This may involve reforming or removing harmful policies, introducing or strengthening positive policies, such as carbon taxes or green standards, and ensuring policy coordination and coherence across different sectors and levels of government.

2 Correct market failures

Another challenge to green growth is the existence of market failures that prevent the efficient allocation of resources and the internalization of environmental costs and benefits. For example, negative externalities, such as pollution or biodiversity loss, are not reflected in the prices of goods and services, leading to overconsumption and underinvestment in green alternatives. To overcome this challenge, you need to correct market failures by applying the polluter pays principle, creating markets for environmental goods and services, such as emissions trading or payments for ecosystem services, and providing information and transparency to consumers and producers.

3 Strengthen institutional capacities

A third challenge to green growth is the lack of institutional capacities to design, implement, monitor, and evaluate green policies and programs. For example, weak governance, corruption, or lack of accountability can undermine the effectiveness and legitimacy of green initiatives. To overcome this challenge, you need to strengthen institutional capacities by building human and technical skills, improving data and indicators, enhancing stakeholder participation and consultation, and fostering learning and innovation.

4 Change behaviors and mindsets

A fourth challenge to green growth is the resistance or inertia of behaviors and mindsets that are incompatible with green values and practices. For example, consumerism, materialism, or short-termism can hinder the adoption of green lifestyles or technologies. To overcome this challenge, you need to change behaviors and mindsets by raising awareness and education, providing incentives and nudges, creating social norms and networks, and empowering individuals and communities.

5 Leverage opportunities and synergies

A fifth challenge to green growth is the perception that green growth is costly, risky, or unfeasible. For example, some may argue that green growth is incompatible with poverty reduction, job creation, or competitiveness. To overcome this challenge, you need to leverage opportunities and synergies that green growth can offer, such as new markets, technologies, or business models, improved health, well-being, or resilience, or enhanced cooperation, integration, or peace. You also need to communicate and demonstrate the benefits and feasibility of green growth to various stakeholders and audiences.

6 Adapt and innovate

A sixth challenge to green growth is the uncertainty and complexity of the environmental and economic context. For example, climate change, resource scarcity, or technological disruption can pose new threats or opportunities for green growth. To overcome this challenge, you need to adapt and innovate by embracing uncertainty and complexity, anticipating and responding to changes, experimenting and testing new solutions, and learning from failures and successes.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?