Sustainable and energy efficient practices in construction and business have gained global prominence throughout the past decade. In line with this, the concept of a green economy has become a key topic for debate among policy makers, who have increasingly been using the dire global economic conditions as an opportunity to promote green economy initiatives aimed at supporting the development of a more sustainable way forward. This green economy notion has also seen the continuous development of green industries and concepts such as green accounting for businesses has become a significant focus point in the quest to support a global green economy.
A vital step toward a green economy is educating businesses on the subject and getting them on board by encouraging the adoption of sustainable practices within their everyday operations or incorporating green business accounting into a traditional business accounting system.
From a business accounting perspective, and they also include this will entail the reduction of non-sustainable capital and supporting initiatives and businesses that champion these same values.
Among the many challenges of a green economy, there are also seemingly endless benefits. These benefits include economic and environmental factors such as the long-term benefits of clean energy, public health benefits and improved resource security, as well as the potential to create jobs related to growing green industries.
The proof is in the pudding, or in this case, the pockets, with green industries enjoying record investment numbers within the past decade, which, in turn has driven the global growth of green industries, with more and more governing bodies supporting and even driving sustainable practices in industry and in businesses.
According to the International Energy Agency, support and financial backing for clean energy projects will continue to attract billions of Dollars’ worth of investment globally.
The key in ensuring this growth lies with role-players and decision makers within the industry and government, who should ideally collaborate to ensure ongoing financial investment in the sector. Multi-national companies could also prove a key player in the race toward a green economy, as these companies should be collaborating globally to secure finance and reduce risk on green investment.
However, this is easier said than done, given the fact that green finance is often considered a more risky approach due to elevated costs of green technologies, the fact that the industry and these technologies are new players and hence lack the experience of tried and trusted technologies, as well as the lack of regulation in terms of sustainable business operations etc.
This cycle can, however, be broken through the implementation of policies that drive down the costs of these technologies, creating local industries will be able to develop these technologies and provide these services, and actively engaging and educating the public around the impact and benefits of a green economy.