Green industry is no longer a niche topic in society, as every actions that has the label of green is rooted to the common and global environmental-related challenges such as climate change and the loss of biodiversity. 

The proponent of green industry believes that it could play instrumental role in the economic development that does not create a trade-off with the sustainability of the environment. There are clear examples on how this feature could be achieved through technology innovations. New technology such as solar panel proves that it could create electricity that benefit communities without emitting additional emission in the process. It is expected that other technological innovations could follow suit, considering its importance and relevance in improving communities’ livelihood and contributing in environmental agenda.

But what green industry actually is, and how it has been emerging to this date?

Green industry is a series of economic activities that intends to minimize impacts on the environment. It could also refer to economic activities that drives sustainable development by promoting a private investment that is responsible to the qualities of the environment. In the United States, green industry has contributed USD 159.57 billion for the economy, and create more than 900,000 jobs in 2018.

There are a number of businesses that could be categorized as green industry. Renewable energy, carbon capture technology, smart transportation system are just a few businesses able to be included in this category.

Green industry has been growing and developing substantially in the last few years. Among the main drivers of it is consumers, who have been gaining awareness on the impact of the service and product they enjoy towards the state of environment. Responding to this demand, companies then have no choice aside from incorporating sustainability principles in their business.

In addition to the role in upholding the social and environmental aspect of ESG practice, business could tap into new market segment by developing green industry, which then could contribute in improving its income. On the other hand, implementing green principles in business would place company in better position, as there are increasing number of countries and investors that has turned their main attention to such projects, in order to accelerate the global decarbonization action.

There are clear policy framework to realize green industry development as well.

In early 2023, European Commission launched the Green Deal Industrial Plan. This is a European regional policy framework and policy to respond the competitive nature of green incentives around the world, that eventually would support the development of net-zero industrial plan.

The United States had passed their own climate spending package in 2022. The policy offers wide-range incentives businesses to invest in low-carbon activities and consumers to buy green products.

When two blocks of major economy has designed specific policy that intends to further the cause of green industry, one could easily concludes that in the near future, this sector could be the main driving force of the economy.

All those developments notwithstanding, there are few things that needs to be considered in the development of green industry.

First of all, relevant stakeholders should take into consideration a just transition in the economy. Policy is essential tool to accomplish the decarbonization of industries, yet it is imperative that the public is consulted in this matter. This step should never be overlooked, to minimize the effect of those affecting by series of green measures and policies developed by governments.

Aside from policy development, every involved parties should take a careful look in new industries’ impact on environment, industry, economy, as well as the social consequences towards women, youth, and overlooked member of society.

Last but not least, collaboration between private and public sector would be a bedrock on which green industry development could finally thrive. The elements in this aspect includes a clear communication and consultation between private and public sector, a proactive planning from governments, as well as the willingness to learn the mistakes of early policies and measures.