Green Economy Vs Blue Economy: The Challenges and Opportunities (2024)

Introduction:

The concept of green economy and blue economy has gained significant attention in recent times as they offer a potential remedy to reduce the existing exploitation of the ecosystem while considering economic development. As per a report from Millennium Ecosystem Assessment, 2005, 60% of the world’s major ecosystems including both terrestrial and aquatic ecosystems have been degraded in the past few years due to unsustainable exploitation by humankind[1]. According to scientific consensus, any increase in the Earth's average temperature over 2°C is likely to have unpredictable and potentially disastrous effects, such as the extinction of the world's rainforests, a significant rise in sea levels, and in the long run extinction of all species. The green and the blue economy are two novel ideas that offer a potential remedy to reduce the existing exploitation of the ecosystem while considering economic development.

Green economy and blue economy are two different economic models that aim to promote sustainable development and environmental protection. Green economy refers to an economic model that focuses on reducing carbon emissions and promoting the use of renewable resources. While Blue economy refers to an economic model that focuses on the sustainable use and management of ocean resources. Green economy includes sectors such as renewable energy, sustainable agriculture, and waste management while, Blue economy includes sectors such as fisheries, tourism, marine transportation, etc. Both aim to create jobs and economic growth while reducing environmental impact.

According to the United Nations Environment Program (UNEP), shifting to a green economy could offer up to $10 trillion in annual business opportunities by 2050, while also providing millions of employment globally[2]. Similarly, the World Bank, 2022, The Organization for Economic Cooperation and Development research states that the blue economy has the potential to generate over $3 trillion in annual economic value by 2030 while creating millions of employment globally[3]. Job creation, Reduction of carbon emissions, and Economic growth are some of the key advantages whereas, being heavily dependent on government policies and subsidies, which can be subject to change depending on political priorities is a key disadvantage of both Green and Blue Economies.

Challenges and Opportunities associated with Green Economy amp; Blue Economy with special context to India

India has surpassed the United Kingdom to become the fifth-largest economy and also became the world's most populated nation. Over the past 20 years, it has experienced some of the highest economic development in the world, pulling millions of people out of poverty. India's G20 Presidency presents a rare chance to prioritize the green and blue economy for the sake of growth, sustainability, and social fairness (Ghosh. N,2023)[4]. India now ranks third in the world for annual CO2 emissions due to the significant increase in the country's use of fossil fuels. As a massive developing economy with more than 1.4 billion people, India's efforts toward sustainable development programs and policies are transformative for India and the entire world.

Challenges

Green Economy: One of the major challenges of green economy in the world especially in India is the lack of political will to implement sustainable policies and practices. For example, SDG14 requires $175 billion per year to be met by 2030, but only about $10 billion was invested between 2015 and 2019. The ocean target is the least financed of the 17 SDGs proposed in the United Nations 2030 Agenda in 2015 (World Economic Forum, 2022)[5]. Similarly, Despite the Indian government's commitment to achieving sustainable development goals, there are several instances where environmental policies are disregarded or not enforced properly. For instance, despite the Swachh Bharat Abhiyan's many accomplishments in the areas of sanitation and waste management, there is still a dearth of piped supplies of clean drinking water, poor toilet construction, and a lack of capacity building among rural people in these areas.

Another challenge of green economy in India is limited access to finance and high transition cost, particularly for small and medium-sized enterprises (SMEs). Green businesses require significant investments in research and development, technology, and infrastructure, which SMEs may not be able to afford. Furthermore, access to green finance is limited, and the cost of capital is high, making it difficult for businesses to make the transition to a green economy.

Inadequate infrastructure is another challenge that hinders the development of a green economy in India. The country lacks the necessary infrastructure, such as public transport systems, waste management facilities, and renewable energy infrastructure, to support sustainable development. This lack of infrastructure makes it difficult to transition toward a green economy.

Blue Economy: One of the main challenges of blue economy in India is the lack of a legal framework that governs the sustainable use of ocean resources. While the government has taken some steps to promote sustainable ocean development, such as the implementation of the National Maritime Development Programme, the draft policy framework has to be converted into an official policy with a focus on strategy and a practical roadmap.

Another challenge of blue economy in India is the lack of technical expertise in the field of ocean science and technology such as offshore wind farms, ocean thermal energy conversion, and marine biotechnology. India will have to carefully balance its concerns and economic engagements with neighboring countries like Pakistan, China, Bangladesh, and Sri Lanka.

Climate change and marine pollution are major challenges that affect the sustainability of the blue economy in India. Rising sea levels, ocean acidification, and increasing temperatures can have significant impacts on marine ecosystems and biodiversity, leading to a decline in fish stocks and other marine resources.

Opportunities

Green Economy: India has already taken significant steps toward building a green economy by investing in renewable energy sources like solar, wind, and hydropower and schemes like Green Hydrogen Mission, Energy Transition, Energy Storage Projects, Renewable Energy Evacuation, Green Credit Program, PM-PRANAM, GOBARdhan Scheme. As per a report from NITI Aayog, 2015, The country has set an ambitious target of achieving 175 GW of renewable energy capacity by 2022, which includes 100 GW of solar power, 60 GW of wind, 5 GW of small hydro, 10 GW of Bioenergy[6]. This target is expected to create several employment opportunities in the renewable energy sector.

Apart from renewable energy, India can also benefit from green economy opportunities in the agriculture and forestry sectors. Sustainable agriculture practices such as organic farming can help reduce greenhouse gas emissions and protect soil health. Similarly, sustainable forestry practices can help conserve biodiversity and reduce deforestation. In addition, there are opportunities in the manufacturing sector to produce eco-friendly products that are biodegradable, recyclable, and made from sustainable materials.

Blue Economy: India has a coastline that stretches for around 7,517 kilometers, according to the Ministry of Earth Sciences (MoES). There are 1,382 islands in the country's geography, and nine of its 29 states have coastlines. There are close to 199 ports, including 12 important ones that move about 1,400 million tonnes of cargo annually[7]. Additionally, the Exclusive Economic Zone of India, which is over two million square kilometers, is rich in recoverable resources including crude oil and natural gas. Over 4 million fishermen and coastal villages are also supported by the coastal economy. Blue Economy holds a key prospective position in India's economic growth due to its enormous maritime interests. The country has already started exploring opportunities in the blue economy by promoting marine tourism, fisheries, Deep Sea Mining and offshore wind energy with programs like Deep Ocean Mission.

MISHTI, or the Mangrove Initiative for Shoreline Habitats & Tangible Incomes, aims to plant mangroves wherever it is practical along the shoreline and on salt pan areas. Another new project is Amrit Darohar, which will be implemented to "encourage optimal use of wetlands and enhance biodiversity, carbon stock, eco-tourism opportunities, and income generation for local communities[8]." With an investment of Rs. 20,050 crores, the Government of India established the Pradhan Mantri Matsya Sampada Yojana (PMMSY) in May 2020 to bring about a Blue Revolution through responsible and sustainable development of the country's fisheries sector[9].

Conclusion

In conclusion, the green economy and blue economy are both significant approaches to sustainable development, each with its own set of advantages and challenges. While the green economy promotes the sustainable use of natural resources and the reduction of environmental consequences, the blue economy promotes the sustainable use of ocean resources and the expansion of coastal economies. Combining the concepts of both methods allows one to work for sustainable growth while also ensuring the well-being of people and the earth. To establish a truly sustainable future, it is critical to combine economic growth with environmental conservation and social well-being.

[1] Millennium Ecosystem Assessment, 2005. Ecosystems and Human Well-being: Synthesis. Island Press, Washington, DC.

[2] UNEP. (2011). Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication - A Synthesis for Policy Makers, www.unep.org/greeneconomy