Did you know that investing in green has a large correlation with creating jobs? International research shows that the prioritisation of certain areas leads to a consequent increase in green investment (GI).
These priorities include sustainable governance (including green procurement), enhancing the importance of social and environmental assessments, sustainable development indicators, and sustainable consumption and design that helps to improve the life-cycle of products (EU, 2013). Furthermore, international trends have shown that the up-skilling of workers in the green industry has a huge correlation with increased investment in GI, especially in the energy sector (IMF, 2011). Although the role of the private sector is crucial in the success of the green economy, through investment, the public sector and policies will hold a large responsibility in jump-starting this shift.
There is little international consensus, however, about what comprises of GI. Companies across the world very often do not know what to measure for GI figures. Where some definitions of GI focus on outputs, others include green saving, investment and finance. Thus, most industries and governments have chosen to focus on more inclusive definitions of GI.
International trends have shown an increase in GI over the last decades, this has come hand-in-hand with factors such as the increase in the price of crude oil. However, a significant lag in GI was witnessed during the recession, since most green technologies (especially renewables) require significant capital investment. Worthy long-term savings are achieved, however, from the large majority of green technologies and efficiency measures.
GI is an important part of the Green Economy. The move towards the green economy, across the world, has the “potential to achieve sustainable development and eradicate poverty on an unprecedented scale” (UNEP, 2011). Increasingly, it is being understood that it is a myth that the move towards sustainable development creates a trade-off with economic progress. However, it is being shown across the world that the shift to the Green Economy is connected with job growth, increased income levels, improved living standards, eradicating poverty, and long-term progress. In fact, according to the United Nations Enviroment Programme (Towards a Green Economy, 2011), the green economy will provide more jobs in the short, medium and long-term than continuing with a "business as usual" approach.
The Western Cape Government’s “Green is Smart” strategy earmarks the green economy as “Working for the Poor” for this very reason. The Green Economy and GI have the potential to alleviate poverty in South Africa and move towards a more equitable society. The Western Cape Government Green Economy embarked upon the journey to map GI in the Western Cape. Keep an eye on this space to learn about GI trends in the Western Cape.
South African citizens can partake in Green Investment by greening their homes, workplaces, and businesses as a whole. Investments in everything from energy, water and waste efficiencies, to greening supply chains are important steps towards growing the Green Economy.
Have you considered making a green investment? Speak to us if you’re willing to commit your organisation to take steps towards being 110% Green.