A green economy can be defined as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. It is characterised by substantially increased investments in economic sectors that build on and enhance the Earth’s natural capital or reduce ecological scarcities and environmental risks. These investments are driven or supported by national policy reforms and the development of international policy and market infrastructure.
Both fiscal policy and public finance can be key drivers of a country’s transition to a greener economy—or a brake on green growth and low carbon job creation. This paper explores the linkage and options available to policy-makers considering ways to drive and accelerate the transition to lowercarbon, more resource-efficient and socially-inclusive economic growth.