Jou nal o Resea ch and De elopmen
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The Na u e and Scope o he G een Economy
D .Suni a Dnyandeo Banka
Assis an P o esso (Economics Depa men ),
Subhash Babu ao Kul A s, Comme ce & Science College
Kedgaon, Tal- Daund, Dis -Pune
Email: suni a.banka [email p o ec ed]
Manusc ip ID:
JRD -2025(I)-170929
ISSN: 2230-9578
Volume 17
Issue 9(I)|
Pp. 122-126
Sep . 2025
Submi ed: 9 Aug. 2025
Re ised: 20 Aug. 2025
Accep ed: 20 Sep . 2025
Published: 30 Sep . 2025
Abs ac :
The g een economy is an economic model ha p omo es sus ainable de elopmen by in eg a ing
economic g ow h wi h en i onmen al p o ec ion and social inclusion. In India, i 's pa icula ly impo an
because i can help add ess majo issues like clima e change, esou ce deple ion, and pollu ion while
simul aneously c ea ing new jobs and os e ing economic g ow h. This app oach shi s he ocus om a
adi ional, esou ce-in ensi e economy o one ha is low-ca bon, esou ce-e icien , and socially
equi able. As pe UNEP, a g een economy is de ined as an economy ha is low ca bon, esou ce e icien
and socially inclusi e. The new de elopmen pa adigm o e s a ans o ma i e ision and p ac ical
pa hway o genuinely holis ic, sus ainabal and inclusi e social p og ess. This pape del es in o he scope
and na u e o his ans o ma i e concep , explo ing i s p inciples, key sec o s, and he challenges and
oppo uni ies in i s implemen a ion in India. I a gues ha a success ul ansi ion o a g een economy
equi es a undamen al ee alua ion o economic alua ion, policy amewo ks, and in es men s a egies
o align economic p ospe i y wi h ecological sus ainabili y and social equi y.
Keywo ds- G een economy, Economic g ow h, G een Hyd ogen, Renewable Ene gy,
Implemen a ion
In oduc ion:
The 21s cen u y has been ma ked by a se ies o in e connec ed c ises: clima e change,
biodi e si y loss, esou ce sca ci y, and pe sis en po e y. T adi ional economic models, which
p io i ize GDP g ow h a all cos s, ha e p o en inadequa e in add essing hese complex issues,
o en exace ba ing hem by ex e nalizing en i onmen al and social cos s. In esponse, he
concep o he g een economy has gained signi ican ac ion as a iable and necessa y
al e na i e. I 's no a eplacemen o sus ainable de elopmen , bu a he a p ac ical,
mac oeconomic app oach ha ocuses on angible economic ac i i ies, in es men s, and policies
o achie e sus ainabili y goals. The co e p emise o he g een economy is he decoupling o
economic g ow h om en i onmen al deg ada ion. This means ha as economies expand, hei
nega i e impac on he en i onmen should no inc ease p opo ionally. Ins ead, g ow h should
be d i en by in es men s in "g een" sec o s, such as enewable ene gy and sus ainable
ag icul u e, which gene a e employmen and income while p ese ing na u al capi al. India's
ansi ion o a g een economy is a monumen al unde aking, augh wi h complex challenges
ha span inancial, echnological, social, and poli ical domains. While he go e nmen has
demons a ed s ong poli ical will and se ambi ious a ge s, o e coming hese hu dles will be
c i ical o a success ul and equi able ansi ion
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Add ess o co espondence:
D .Suni a Dnyandeo Banka , Assis an P o esso (Economics Depa men ),Subhash Babu ao
Kul A s, Comme ce & Science College, Kedgaon, Tal- Daund, Dis -Pune
How o ci e his a icle:
Banka , S. D. (2025). The Na u e and Scope o he G een Economy. Jou nal o Resea ch &
De elopmen , 17(9(I)), 122–126. h ps://doi.o g/10.5281/zenodo.17164986
O iginal A icle
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Ene gy Secu i y Reduces dependence on ossil uel impo s, enhancing sel - eliance.India has abundan sola , wind,
and biomass esou ces. Rajas han and Guja a lead in sola ene gy gene a ion, while Tamil Nadu excels in wind ene gy.
Objec i e:
1. To ocus on he g eening o essen ial economic sec o s.
2. To explo e he obs acles o implemen ing a g een economy.
3. To unde s and how in es men can suppo g een economic de elopmen .
The Na u e o he G een Economy-
The na u e o he g een economy is de ined by i s ounda ional p inciples, which dis inguish i om a
business-as-usual app oach. These p inciples a e no me ely aspi a ional; hey o m he basis o policy design,
in es men decisions, and business p ac ices.
1. The Th ee Pilla s
Economic: I p omo es g ow h and job c ea ion h ough g een in es men s and sus ainable economic ac i i ies.
Ecological: I ensu es en i onmen al sus ainabili y by educing ca bon emissions, conse ing esou ces, and p o ec ing
biodi e si y. Social: I s i es o social equi y and inclusion, ensu ing ha he bene i s o g een g ow h a e sha ed
equi ably and ha ma ginalized communi ies a e no le behind. This holis ic app oach ecognizes ha human well-
being is inex icably linked o he heal h o ou plane and he ai ness o ou social sys ems.
2. Key P inciples
The Well-being P inciple: The pu pose o he g een economy is o c ea e genuine, sha ed p ospe i y ha ex ends
beyond inancial weal h o include human, social, physical, and na u al capi al. The Jus ice P inciple: I is inclusi e
and non-disc imina o y, aiming o sha e decision-making, bene i s, and cos s ai ly. This p inciple is i al o ensu ing
a "jus ansi ion" o wo ke s and communi ies elian on ca bon-in ensi e indus ies. The Plane a y Bounda ies
P inciple: I acknowledges he ini e na u e o na u al esou ces and he ecological limi s o he plane . I employs he
p ecau iona y p inciple o p e en he loss o c i ical na u al capi al.E iciency and Su iciency: The g een economy
ad oca es o sus ainable consump ion and p oduc ion, p omo ing esou ce e iciency and a shi owa d a ci cula
economy ha minimizes was e.
3. The Scope o he G een Economy
The scope o he g een economy is as and mul i-sec o al, encompassing i ually e e y aspec o economic
and social li e. I equi es a sys emic ans o ma ion o how goods a e p oduced, consumed, and disposed o . 1.Key
Sec o s and Indus ies The ansi ion o a g een economy is d i en by a shi in in es men and policy owa d speci ic
sec o s: Renewable Ene gy: Mo ing away om ossil uels o clean ene gy sou ces like sola , wind, and hyd opowe is
a cen al componen . This in ol es signi ican in es men in new in as uc u e and echnologies. Sus ainable
T anspo : This includes he de elopmen o elec ic ehicles, e icien public ansi sys ems, and non-mo o ized
anspo o educe ca bon emissions and ai pollu ion.G een Buildings: Focusing on ene gy-e icien design,
sus ainable ma e ials, and educed wa e consump ion in cons uc ion and ope a ion. Wa e and Was e Managemen :
Implemen ing closed-loop sys ems o wa e use and p omo ing obus ecycling and was e- o-ene gy p og ams.
Sus ainable Ag icul u e and Fo es y: P omo ing p ac ices ha enhance soil heal h, conse e wa e , p o ec
biodi e si y, and educe he use o ha m ul chemicals.Ecosys em Se ices: Recognizing and aluing he economic
con ibu ions o na u al sys ems, such as pollina ion, wa e pu i ica ion, and clima e egula ion.
2. Policy and Go e nance
The scope o he g een economy also ex ends o undamen al changes in policy and go e nance. This includes:
Fiscal Re o ms: Implemen ing policies like ca bon axes and phasing ou ossil uel subsidies o make en i onmen ally
ha m ul ac i i ies mo e expensi e and g een al e na i es mo e compe i i e.
Regula o y F amewo ks: Es ablishing clea egula ions and s anda ds o incen i ize sus ainable p ac ices and
discou age unsus ainable ones.
In e na ional Coope a ion: Fos e ing global pa ne ships and ag eemen s o acili a e he ans e o g een echnologies
and inance, pa icula ly o de eloping na ions.
Signi ican ba ie o g een economy in India:
1. Financial and In es men Cons ain s-
High In es men Needs: The ansi ion o a g een economy demands massi e in es men s in enewable ene gy
in as uc u e, g een echnology, and a mode nized powe g id. Es ima es sugges ha India needs illions o dolla s by
2070 o achie e i s ne -ze o goals, a sum ha canno be me by public unds alone. Lack o G een Finance: Despi e a
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g owing in e es , he g een inance ma ke in India is s ill nascen . The e is a need o clea e policies, s anda dized
g een inancial p oduc s, and incen i es o channel p i a e and o eign capi al in o g een p ojec s, especially o small
and medium-sized en e p ises (SMEs) ha o en lack he esou ces o adop cleane echnologies. Ini ial High Cos s:
The up on cos s o adop ing g een echnologies like elec ic ehicles, sola oo ops, and ene gy-e icien machine y
can be p ohibi i e o businesses and indi idual consume s, slowing down widesp ead adop ion.
2. Technological and In as uc u e Gaps-
India's dependence on impo ed echnology and i s aging in as uc u e pose signi ican challenges.
Reliance on Impo s: Fo key g een echnologies like sola PV cells, ba e ies o EVs, and wind u bine componen s,
India hea ily elies on impo s, p ima ily om China. This no only c ea es a ade imbalance bu also exposes he
coun y o geopoli ical isks and supply chain ulne abili ies. Ou da ed In as uc u e: The exis ing powe g id was no
designed o handle he in e mi en na u e o enewable ene gy sou ces. A majo challenge is upg ading he
ansmission in as uc u e o in eg a e enewable ene gy om emo e loca ions (like sola pa ks) in o he na ional g id
wi hou signi ican ene gy losses. R&D and Inno a ion: While he e a e e o s o p omo e domes ic manu ac u ing, a
subs an ial gap emains in R&D and inno a ion o cu ing-edge g een echnologies, pa icula ly in a eas like ene gy
s o age solu ions and ca bon cap u e.
3. Social and Employmen Challenges-
Jus T ansi ion: The shi away om ossil uels h ea ens millions o jobs in coal-dependen s a es like Jha khand,
Chha isga h, and Odisha. Wi hou obus e-skilling and social sa e y ne s, hese communi ies and wo ke s ace he
isk o unemploymen and economic ha dship. The concep o a "jus ansi ion" is s ill gaining momen um in India,
and i s on- he-g ound implemen a ion is a signi ican challenge. Land Acquisi ion: La ge-scale enewable ene gy
p ojec s, such as sola and wind a ms, equi e as ac s o land. This o en leads o land acquisi ion issues,
displacemen o local communi ies, and con lic s o e land use, which can delay o s all p ojec s. Skill Gaps: The
wo k o ce needs new skills o h i e in a g een economy. The e is a need o comp ehensi e aining and educa ion
p og ams o equip wo ke s wi h he necessa y skills o jobs in enewable ene gy, was e managemen , and sus ainable
ag icul u e.
4. Policy and Go e nance Issues-
Policy and Regula o y Unce ain y: F equen policy changes, such as he imposi ion o new a i s o du ies,
can c ea e an unp edic able in es men en i onmen . This de e s p i a e in es o s who need long- e m s abili y o
commi o la ge-scale g een p ojec s. F agmen ed Go e nance: The esponsibili y o en i onmen al and ene gy
policies is sp ead ac oss mul iple minis ies and depa men s, leading o a lack o coo dina ion and po en ial policy
con lic s. This agmen ed app oach can esul in ine icien implemen a ion and missed syne gies. Weak En o cemen :
While India has a s ong legal amewo k o en i onmen al p o ec ion, en o cemen o en emains inconsis en .
Inadequa e moni o ing and weak penal ies o non-compliance can unde mine he e ec i eness o g een policies.
5. Public Awa eness and Beha io Change-
A success ul g een economy equi es a shi in consume and business beha io , which is o en di icul o
achie e. Low Awa eness: Despi e g owing en i onmen al conce ns, public awa eness abou sus ainable consump ion
p ac ices, ene gy e iciency, and he bene i s o a g een economy emains limi ed, pa icula ly in u al and semi-u ban
a eas. Mindse Shi : Many businesses and policymake s s ill hold he iew ha en i onmen al p o ec ion comes a he
expense o economic g ow h. O e coming his ing ained belie is a undamen al challenge o ully emb acing he g een
economy.Consume Choices: G een p oduc s and se ices a e o en pe cei ed as mo e expensi e, making i di icul o
d i e consume demand o sus ainable goods and se ices on a la ge scale.India despe a ely needs a g een economy o
add ess i s in e wined en i onmen al and socioeconomic challenges. The adi ional g ow h model has led o
signi ican en i onmen al deg ada ion, including se e e ai and wa e pollu ion, de o es a ion, and a decline in na u al
esou ces. These issues pose a di ec h ea o public heal h, ag icul u al p oduc i i y, and he na ion's long- e m
economic s abili y. A g een economy p o ides a s a egic pa hway o ackle hese p oblems by decoupling economic
g ow h om en i onmen al ha m.
The Co e Reasons like En i onmen al Deg ada ion happens in India. Because India is home o some o he
wo ld's mos pollu ed ci ies, wi h ai quali y eaching dange ous le els. This pollu ion is a majo cause o espi a o y
illnesses and p ema u e dea hs. The coun y's i e s, including he Ganges, a e highly pollu ed om indus ial and
domes ic was e he g een economy p omo es esou ce e iciency and ci cula economy p inciples, which a e i al o
conse ing wa e and o he na u al esou ces. Ini ia i es like was ewa e ecycling and e icien i iga ion sys ems a e
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in eg al o his app oach. As a opical coun y wi h a la ge coas line, India is highly ulne able o he impac s o
clima e change, including ising sea le els, ex eme hea wa es, loods, and d ough s. These e en s dis up ag icul u e,
displace popula ions, and cause immense economic damage. A g een economy is c ucial o building esilience by
ansi ioning o enewable ene gy, p omo ing clima e- esilien ag icul u e, and in es ing in g een in as uc u e ha can
wi hs and u u e clima e shocks.
Key Pilla s o G een P oduc ion in India
1. Renewable Ene gy Manu ac u ing
This is a guably he mos c i ical componen o India's g een p oduc ion s a egy. The go e nmen has se
ambi ious a ge s, such as achie ing 500 GW o non- ossil uel-based ene gy capaci y by 2030. To mee his goal and
educe eliance on impo s, India is hea ily p omo ing domes ic manu ac u ing o enewable ene gy equipmen . Sola
PV Manu ac u ing: Th ough schemes like he P oduc ion-Linked Incen i e (PLI) Scheme, he go e nmen is
incen i izing he p oduc ion o sola PV modules, wa e s, and polysilicon. This aims o c ea e a obus domes ic supply
chain and make India a global hub o sola manu ac u ing.Wind Tu bine Manu ac u ing: India is al eady a signi ican
playe in he global wind ene gy ma ke , and policies a e being pu in place o u he boos domes ic manu ac u ing o
wind u bines and hei sub-componen s. This includes e o s o inc ease expo capaci y and s eng hen he local
indus y. G een Hyd ogen: The Na ional G een Hyd ogen Mission is a landma k ini ia i e o make India a global hub
o g een hyd ogen p oduc ion. This will no only deca bonize ha d- o-aba e sec o s like s eel, cemen , and e ine ies
bu also c ea e a new domes ic indus y o elec olyze manu ac u ing and associa ed echnologies.
2. Ci cula Economy and Resou ce E iciency
Mo ing away om a linea " ake-make-dispose" model is c ucial o a esou ce-cons ained coun y like
India. The ci cula economy model emphasizes was e educ ion, euse, ecycling, and emanu ac u ing. Was e
Managemen Policies: India has enac ed ules o managing a ious ypes o was e, including plas ic, e-was e, and
cons uc ion and demoli ion was e. The Ex ended P oduce Responsibili y (EPR) amewo k holds manu ac u e s
accoun able o he end-o -li e managemen o hei p oduc s, incen i izing hem o design o du abili y and
ecyclabili y. Indus ial Symbiosis: This in ol es companies sha ing esou ces, such as by-p oduc s, wa e , and
ene gy, o educe was e and imp o e e iciency. This concep is being explo ed in indus ial clus e s o c ea e a mo e
in eg a ed and esou ce-e icien manu ac u ing ecosys em.Vehicle Sc apping Policy: This policy aims o p omo e he
euse o ma e ials om old ehicles, educing he need o new aw ma e ials and cu ing down on pollu ion om old,
ine icien ehicles.
3. G een Manu ac u ing and Indus ial Policies
India is inc easingly in eg a ing en i onmen al conside a ions in o i s b oade indus ial policy amewo k.
Ene gy E iciency Schemes: The Pe o m, Achie e, and T ade (PAT) scheme is a ma ke -based mechanism ha
incen i izes ene gy-in ensi e indus ies o imp o e hei ene gy e iciency. I se s speci ic ene gy-sa ing a ge s and
allows companies o ade "ene gy-sa ing ce i ica es," c ea ing a inancial incen i e o sus ainable p oduc ion.
P omo ing G een Technology: The go e nmen p o ides ax bene i s, subsidies, and o he inancial incen i es o
encou age businesses o adop cleane echnologies and p ocesses. This includes suppo o he adop ion o elec ic
ehicles (EVs) and he de elopmen o g een in as uc u e. Eco-Ma k Rules: These ules p omo e he demand o
en i onmen ally iendly p oduc s by p o iding a ce i ica ion o goods ha mee speci ic en i onmen al c i e ia. This
encou ages manu ac u e s o adop mo e sus ainable p oduc ion me hods.
Challenges and Oppo uni ies
While he g een economy o e s a p omising pa h o wa d, i s implemen a ion aces signi ican challenges.
One o he p ima y isks is he po en ial o a "g een" di ide, whe e he bene i s o he ansi ion a e cap u ed by he
weal hy, lea ing poo na ions and ma ginalized communi ies behind. Conce ns also exis abou "g een p o ec ionism,"
whe e en i onmen al s anda ds a e used as a ba ie o ade, and he isk o he concep being used o jus i y business-
as-usual p ac ices wi h minimal en i onmen al imp o emen s.
Despi e hese challenges, he oppo uni ies a e immense:
Job C ea ion: The shi o a g een economy can c ea e millions o new jobs in sec o s like enewable ene gy, ene gy
e iciency, and ecosys em es o a ion. Inno a ion: I spu s inno a ion and echnological de elopmen in clean
echnologies, c ea ing new ma ke s and economic oppo uni ies. Enhanced Resilience: By educing eliance on ola ile
ossil uel ma ke s and enhancing na u al capi al, g een economies a e mo e esilien o u u e shocks and c ises.
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Po e y Alle ia ion: When implemen ed wi h a ocus on social equi y, he g een economy can empowe communi ies,
c ea e sus ainable li elihoods, and imp o e access o essen ial esou ces.
Conclusion
The g een economy is mo e han a lee ing buzzwo d; i 's a comp ehensi e and p ac ical amewo k o
achie ing a sus ainable and equi able u u e. I s na u e is de ined by a deep in eg a ion o economic, ecological, and
social goals, while i s scope ex ends ac oss all sec o s o he economy. A success ul ansi ion will equi e bold poli ical
will, a eo ien a ion o public and p i a e in es men , and a commi men o global coope a ion. By emb acing his new
pa adigm, na ions can mo e beyond he limi a ions o pas economic models and build a u u e whe e p ospe i y is no
only measu ed in inancial e ms bu also in he heal h o ou plane and he well-being o all people.
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Resou ces Ins i u e P ess, 2015.
3. Himannshu Sha ma and Tina Sob i: An in oduc ion o sus ainable de elopmen goals ,2018.
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