International economics report GREEN ECONOMY PROMOTING SUSTAINABLE DEVELOPMENTS APPLICATIONS IN VIETNAM

TABLE OF CONTENT I. Abstract .......................................................................................................... 2 II. Introduction ................................................................................................... 2 III. Literature Review .......................................................................................... 4 IV. Methodology ................................................................................................... 5 V. Definition – differentiate with other related economic concepts ............... 5 VI. The Importance of Green Economy: Case study ........................................ 9 a. With environment ................................................................................................ 9 b. With economy ................................................................................................... 12 c. With society ...................................................................................................... 16 VII. Analysis the trend of green growth in the world and Viet Nam using EPI index 18 a. EPI framework .................................................................................................. 18 b. Trend in the world ............................................................................................. 20 c. Green growth in Viet Nam (Current EPI ) ........................................................ 22 VIII. The implement in Vietnam ......................................................................... 25 a. Vietnam Green economy context ...................................................................... 25 b. Vietnam Government’s Policy .......................................................................... 27 c.Economic assessment towards green growth in Vietnam through a number of indicators 29 d. Solutions to ensure efficiency 34 IX. Conclusion 39 X. Appendix 41 XI. References 42 1 I.Abstract Since joining the WTO in 2007, Vietnam has become increasingly integrated into the global economy, which is both good and evil. The 2008 global financial crisis, combined with Europes increasing public debt, drastically halted Vietnams thenrapidly developing economy. Vietnam must reevaluate the sustainability of its brown economy and develop strategies toward the adoption of a green economy growth model to alleviate the longterm repercussions of that economic shock and promote growth adequate to meet the requirements of its citizens. Vietnam is fortunate to be in a region that has seen rapid economic development and has many advantageous social and legal conditions for the development of a green economy with its neighbors. Despite this, Vietnams economy continues to be fueled by a brown growth model defined by an overreliance on raw materials production, excessive consumption of fossil fuels and natural resources, and escalating environmental pollution. To conclude, although Green Growth initiatives have been implemented in Vietnam for many years, they have yielded some initial favorable effects while also posing significant practical issues. This article will examine and evaluate the overall execution of green growth in Vietnam, as well as the challenges that must be addressed and make some recommendations based on the findings AI.Introduction Developing a green economy to achieve green growth has become an inevitable trend of the modern world economy. Green growth reflects how economies respond to climate change and natural resource depletion; it reflects the trends of looking for new growth models with the green industry emerging as a spearhead, creating a new and highly competitive growth engine. At the same time, it demonstrates governments efforts in restructuring the economy towards green and sustainable growth. The green economy is being promoted as a solution to environmental and economic problems. Dating back to the last decades, the worlds economy has witnessed a tendency toward integration and sharing economic development experiences, especially after 1945. For example, the post–World War II economic growth, sometimes known as 2 the Golden Age of Capitalism, was a period of the global economic boom that lasted from 1945 to 1975, commencing after WWII and ending with the 1973–1975 recession. In particular, the United States, the Soviet Union, Western European and East Asian countries saw extraordinarily strong and persistent growth, as well as full employment. However, along with these prominent achievements is the overexploiting energy from fossil fuels and other limited natural resources. As a result, numerous environmental problems have arisen, including air pollution, water pollution, soil degradation, forest loss, shortage of resources, et cetera. This old method of economic development, say, the brown economy, has not only affected the environment but also threatened human life and sustainable economic activities. With a view to addressing the problem, the green economy a new strategy for economic development was promoted by the United Nations Environment Program (UNEP). Many research and experts believe that it is the green economy that eliminates ecological shortages and environmental dangers. While doing so, it can even bring longterm development and tackle the problem of persistent poverty. Up to now, this model is convinced to be the optimal option for now and the future. Within the context of the worldwide trend of economic development like today, Vietnam has begun to acknowledge the urgency of pursuing a green economy. What is more, Vietnam is one of the five countries suffering the most devastating effects of climate change. Therefore, establishing this method is a necessary and wise choice. In order to lead the progress, it is also very critical to understand the opportunities and challenges clearly. In fact, green economy is not a very new term. The Club of Romes study Limits to Growth, published in 1972, was a watershed moment. In recent years, the topic of sustainability has risen to the top of the global agenda. Vietnams government has also taken this approach into account since 2012. However, practice in Vietnam shows that the green concept is still relatively new among the population and many businesses and has not been applied thoroughly. Being aware of the topics significance, the authors will carefully analyze the existing data and documents in order to make the most appropriate proposals and recommendations. Hence, help promote the green economy development and application in Vietnam more efficiently. 3 III.Literature Review The green economy has been a popular topic since the 1970s, and especially since October 2008, when UNEP, in collaboration with developed economies, launched the green economy model. Its important to separate research reports on the green economy into two categories. The first category focuses on the fundamental concepts, principles, and perspectives of green economic development. The second group, led by UNESCO (2011), examines unique problems and development plans in a number of countries and regions, ranging from green economies to green societies. UNEP (2010), Green Economy: Success Stories from Developing Countries, Nairobi; Stern, N. (2007), The Economics of Ecosystems and Biodiversity: Mainstreaming the Economics of Nature: A Synthesis of the Approach, Conclusions, and Recommendations, TEEB; Robins, N. et al (2010), The United Kingdom has been struck by green austerity. Climate Change, HSBC Global Research, OECD, London (2011), Preliminary study on a green growth strategy for food and agriculture, Paris; UNEP (2010), Driving the green economy through public finance and fiscal policy reform, Nairobi; J. Stephenson and S. Upton (2010), Strategies for green growth: Framing and issues, OECD. The publications mentioned above share the view that a green economy is necessary for sustainable development and is the most viable economic model for many developing countries despite the high cost of implementation of the necessary strategies. From such publications, 14 models of green economic development can be sketched. Although each country has 38 its own models, the common feature that they share is investment in clean technology, clean production, efficient use of natural resources and green energy. Despite the significant expense of implementing the essential methods, the publications mentioned above all agree that a green economy is necessary for sustainable development and is the most viable economic model for many developing countries. 14 models of green economic development can be derived from such studies. Despite the fact that each country has its own model, they all invest in clean technologies, clean production, efficient use of natural resources, and green energy. Clean economy, environmentfriendly economy, and green development are the three key pillars of the green economy in Vietnam, according to researchers. The ten 4 principles of green economy, according to Mr Bui Quang Tuan, are 1) sustainability, 2)existence, 3) healthiness, 4) humanity, 5) fairness, 6) protection, 7) effectiveness, 8) accountability, 9) sufficiency, and 10) responsible innovation. In Vietnam, green economy development is encouraged in all three areas: economy, society, and environment. This perspective is reinforced in the National Green Growth Strategy, which was approved on September 25, 2012. Mr Do Huu Hao emphasized the importance of green industry as the foundation for the countrys green economy development. While solid financial strength is required for development, Vietnams national reserves are thought to be insufficient, negatively impacting the outcome IV.Methodology Our research approach is structured as follows. First, we introduce the definition of “green economy” and other related concepts to have a broad view of this new economic and social idea, then analyse the detrimental effect of green economy on environment, economy and society, with many case studies to better demonstrate our thorough findings and researches. Next, trends of international green growth with two main contractionary components: greenest countries to adopt its policies and most polluted countries to avoid their dilemma. Finally, the green economy and how it was and is being applied in Vietnam is taken into consideration, with the following order: context, current policies and future endorsements to ensure its longterm efficiency. V.Definition – differentiate with other related economic concepts The definition of the green economy appears to be very diverse. Many experts and international organizations have come up with their own conceptions of this term. The European Union believes that Green economy is a smart, sustainable and fair growth economy (European Commission, 2010). According to the Organization for Economic Cooperation and Development, Green growth means fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our wellbeing relies. (Towards Green Growth, 2011). The International Chamber of Commerce considered the green economy from a 5 business perspective. It said that It is described as an economy in which economic growth and environmental sustainability work together in a mutually reinforcing fashion while supporting progress on social development. Business and industry has a crucial role in delivering the economically viable products, processes, technologies, services, and solutions required for the transition to a green economy. (ICC, 2012). Meanwhile, the Green Economy Coalition proposed a shorter description An economy that provides better quality of life for all within the ecological limits of the planet. Among these, the United Nations Environment Programs (UNEP, 2011) definition is considered the most accurate and complete of Green Economic A green economy as one that results in improved human wellbeing and social equity, while significantly reducing environmental risks and ecological scarcities. In its simplest expression, a green economy can be thought of as one which is low carbon, resource efficient and socially inclusive. Until now, the concept and perception of a green economy have remained ambiguous. Even though there are numerous approaches to comprehend and interpret it, we can see a common aim: to reduce the negative impacts of economic activities on the environment and society. Accordingly, the Green Economy not only sets economic development goals but also pays much attention to human happiness, social justice, and environmental and ecological issues. Whatever approach is taken, a green economy always involves three primary purposes: Low carbon emissions, efficient resource usage, and maintaining social fairness. In other words, it supports economic growth and boosts employment, reduces the use of carbon energy and natural resources, and assures poverty reduction targets, all of which improve the quality of a standard life. With a broader view, we want to discuss more on the relationship between the green economy and other related economic concepts. Prior to the green economy, the worlds development was primarily based on the brown economy. The term Brown Economy refers to a widely held development viewpoint. Within this method, economic development came first, followed by environmental treatment. “Brown implies pollution in the environment. In terms of resource utilization, its also inefficient. According to the United Nations Environment 6 Program (UNEP), brown economy is considered an economy focused on fossil energy sources, ignoring renewable energy alternatives. The cost of abusing the method of brown economy for development is substantial for the environment and human health. Proven fact, this concept has caused enormous damage to the environment, such as increasing greenhouse gas emissions and global climate change. These consequences have threatened human life and resulted in a loss of economic activity. It also affects countries longterm sustainable development goals. Because of the negative impact of the methods in the green economy, the shift to applying the green economy is inevitable, and it is a widespread tendency in most countries throughout the world. Thus, we can say the brown economy and the green economy are diametrically opposed concepts. While the brown economy can be considered as the opposite of the green economy, green growth is quite closely related to this term. However, there are still certain differences between them. Green growth emphasizes on promoting economic growth while maintaining a harmonious balance with the natural world especially, avoiding pressures that would disrupt the environments balance, with the ultimate goal of sustaining growth. There is no guarantee, though, that the gains of Green Growth will be dispersed fairly across society. Meanwhile, the Green Economy places a greater emphasis on environmental constraints rather than just ecological balance; in particular, the Green Economy promotes human happiness and social justice. To put it in other words, the Green Economy is more comprehensive when paying attention to sustainable development with all three pillars of economy, environment, and society. On the other hand, green growth is necessary for a green economy in many places where poverty exists. This is most likely why, in the early years of the twentyfirst century, Green Growth garnered more attention than Green Economy. In addition, there is another term, “sustainable development”, which has appeared a lot and is closely related to the concept of green economy. It can be noted that the concept of a green economy does not, and cannot replace the concept of sustainable development”. It is becoming more widely recognized as a viable strategy for achieving 7 it. To put it another way, a green economy is an economic approach for achieving longterm development goals. Figure 1 Green economy in relation to sustainable development The prosperity of human Aim: promote equality and social responsibility Ecosystem Economy Aim: ensure the Aim: improve resilience of the resource efficiency ecosystem Indeed, the green economy is also concerned with three main aspects of sustainable development (economic development, social development, and environmental development). However, the green economy prioritizes its focus on the economy (produced capital) and the environment (natural capital) from an ecosystem perspective. It then uses that as a foundation to promote human prosperity (social and human capital). This strategy is based on the reality that progress toward sustainable development must be made based on appropriate economic growth. Yet, the difference in focus does not mean that the green economy takes human wellbeing lightly. On the contrary, factors such as social justice, quality, better quality of life, human happiness, and social justice have always been strongly stressed in green economy concerns. In fact, these points are reflected in the process of the green economys performance in Europe, which include many indicators relating to social capital and human capital. 8 VI.The Importance of Green Economy: Case study a.With environment The green economy is proposed to eradicate environmental pollution in society. As stated in its definitions and principles, the green economy is resource and energyefficient. It maintains biodiversity and ecosystems while respecting planetary boundaries, ecological constraints, and scarcity. It was discovered that the natural environment has long supported the concept of green growth establishment theory. The environment has provided the foundation for green growth in three ways: adapting wastes, utilizing resources, and providing environmental services. Green economy adoption in countries can be beneficial on both economic and social levels, as it helps reduce pollution and waste of limited resources. Study case in China China has been seen investing in green sectors to aim for energy efficiency and renewable energy. The Chinese government prioritizes renewable energy investment because it allows the country to address air and water pollution while also reducing the risk of socioeconomic instability. Among these targets, air pollution is considered the most crucial reason for the Chinese government encouraging renewable energy. Intending to prioritize economic growth, China has made very rapid progress. In 2014, with a gross domestic product (GDP) of 17.4 trillion in purchasing power terms, it overtook the United States as the worlds largest economy for the first time. Moreover, today, this country is still the second economy in the world behind the US, with a GDP of 12,238 trillion. However, this rapid expansion has resulted in increased environmental concerns and a greater focus on longterm development. China has overtaken India as the worlds greatest energy consumer and secondhighest SO2 emitter. In some countries, coal is the primary source of sulfur dioxide (SO2) emissions, especially in China, accounting for 92 percent of its total emissions (2007). Because of its interaction with other airborne molecules, SO2 is a hazardous chemical that causes a wide range of health and environmental issues. Respiratory 9 issues, reduced sight, acid rain, and corrosion are just a few of them. Air pollutions economic and physiological effects have been extensively studied, showing shocking results. In 2013, Asian Development Bank reported that China has seven of the top ten most polluted cities in the world. According to the World Health Organization, air pollution kills about 1 million people in China each year. Meanwhile, a University of Chicago study also stated that suspended particles are shortening the lives of half a billion people in northern China by an average of 5 years. In terms of economics, a largescale survey conducted by Chinas Ministry of Environmental Protection in 2013 revealed that 16.1% of the countrys land area. According to the RAND Corporation, air pollution cost China 535 billion in 2012, or 6.5 percent of its GDP, due to lost worker productivity. These consequences push China to confront them and propose remedies. This government has set itself lofty ambitions in terms of increasing renewable energy. Chinas commitment to renewables is backed up by the countrys vast potential for both production and consumption. China intends to boost nonfossil fuels in the share of overall electricity production by 4% to 39% in 2020, within the objectives of the 13th FiveYear Electricity Plan (20162020). Nonfossil fuel sources are expected to account for 20% of the countrys electricity consumption by 2030. China is also predicted to account for 36% and 40% of global solar and wind energy growth in the next five years, respectively, said the International Energy Agency. China also spends a huge amount of money on this program, demonstrating its ambition to make China a leader in the field of green economy. By 2020, more than 360 billion will be invested in renewable energy development and can create 13 million jobs. The BRICS New Development Bank has issued a longterm green loan totaling 811 million to its members to fund clean energy projects. Hardly surprising, China is a member of it.

TABLE OF CONTENT

I Abstract 2

II Introduction 2

III Literature Review 4

IV Methodology 5

V Definition – differentiate with other related economic concepts 5

VI The Importance of Green Economy: Case study 9

a With environment 9

b With economy 12

c With society 16

VII Analysis the trend of green growth in the world and Viet Nam using EPI index 18 a EPI framework 18

b Trend in the world 20

c Green growth in Viet Nam (Current EPI ) 22

VIII The implement in Vietnam 25

a Vietnam Green economy context 25

b Vietnam Government’s Policy 27

c Economic assessment towards green growth in Vietnam through a number of indicators 29

d Solutions to ensure efficiency 34

IX Conclusion 39

X Appendix 41

XI References 42

1

I Abstract

Since joining the WTO in 2007, Vietnam has become increasingly integrated into

the global economy, which is both good and evil The 2008 global financial crisis,

combined with Europe's increasing public debt, drastically halted Vietnam's

then-rapidly developing economy Vietnam must reevaluate the sustainability of its "browneconomy" and develop strategies toward the adoption of a "green economy" growth

model to alleviate the long-term repercussions of that economic shock and promote

growth adequate to meet the requirements of its citizens Vietnam is fortunate to be in

a region that has seen rapid economic development and has many advantageous socialand legal conditions for the development of a green economy with its neighbors

Despite this, Vietnam's economy continues to be fueled by a brown growth model

defined by an overreliance on raw materials production, excessive consumption of

fossil fuels and natural resources, and escalating environmental pollution To

conclude, although Green Growth initiatives have been implemented in Vietnam for

many years, they have yielded some initial favorable effects while also posing

significant practical issues This article will examine and evaluate the overall

execution of green growth in Vietnam, as well as the challenges that must be

addressed and make some recommendations based on the findings

II.Introduction

Developing a green economy to achieve green growth has become an inevitabletrend of the modern world economy Green growth reflects how economies respond toclimate change and natural resource depletion; it reflects the trends of looking for newgrowth models with the green industry emerging as a spearhead, creating a new andhighly competitive growth engine At the same time, it demonstrates governments'efforts in restructuring the economy towards green and sustainable growth

The green economy is being promoted as a solution to environmental and economicproblems Dating back to the last decades, the world's economy has witnessed a tendencytoward integration and sharing economic development experiences, especially after 1945.For example, the post–World War II economic growth, sometimes known as

the Golden Age of Capitalism, was a period of the global economic boom that lastedfrom 1945 to 1975, commencing after WWII and ending with the 1973–1975recession In particular, the United States, the Soviet Union, Western European andEast Asian countries saw extraordinarily strong and persistent growth, as well as fullemployment However, along with these prominent achievements is the over-exploiting energy from fossil fuels and other limited natural resources As a result,numerous environmental problems have arisen, including air pollution, waterpollution, soil degradation, forest loss, shortage of resources, et cetera This oldmethod of economic development, say, the "brown economy," has not only affectedthe environment but also threatened human life and sustainable economic activities.With a view to addressing the problem, the green economy - a new strategy foreconomic development - was promoted by the United Nations Environment Program(UNEP) Many research and experts believe that it is the green economy thateliminates ecological shortages and environmental dangers While doing so, it caneven bring long-term development and tackle the problem of persistent poverty Up tonow, this model is convinced to be the optimal option for now and the future.

Within the context of the worldwide trend of economic development like today,Vietnam has begun to acknowledge the urgency of pursuing a "green economy." What

is more, Vietnam is one of the five countries suffering the most devastating effects ofclimate change Therefore, establishing this method is a necessary and wise choice Inorder to lead the progress, it is also very critical to understand the opportunities andchallenges clearly

In fact, green economy is not a very new term The Club of Rome's study Limits toGrowth, published in 1972, was a watershed moment In recent years, the topic ofsustainability has risen to the top of the global agenda Vietnam's government has alsotaken this approach into account since 2012 However, practice in Vietnam shows thatthe green concept is still relatively new among the population and many businessesand has not been applied thoroughly Being aware of the topic's significance, theauthors will carefully analyze the existing data and documents in order to make themost appropriate proposals and recommendations Hence, help promote the green

III.

Literature Review

The green economy has been a popular topic since the 1970s, and especially sinceOctober 2008, when UNEP, in collaboration with developed economies, launched thegreen economy model It's important to separate research reports on the green economyinto two categories The first category focuses on the fundamental concepts, principles,and perspectives of green economic development The second group, led by UNESCO(2011), examines unique problems and development plans in a number of countries and

regions, ranging from green economies to green societies UNEP (2010), Green Economy: Success Stories from Developing Countries, Nairobi; Stern, N (2007), The Economics of Ecosystems and Biodiversity: Mainstreaming the Economics of Nature: A Synthesis of the Approach, Conclusions, and Recommendations, TEEB; Robins, N et al (2010), The United Kingdom has been struck by green austerity Climate Change, HSBC Global Research, OECD, London (2011), Preliminary study on a green growth strategy for food and agriculture, Paris; UNEP (2010), Driving the green economy through public finance and fiscal policy reform, Nairobi; J Stephenson and S Upton (2010), Strategies for green growth: Framing and issues, OECD The publications mentioned above share

the view that a green economy is necessary for sustainable development and is the mostviable economic model for many developing countries despite the high cost ofimplementation of the necessary strategies From such publications, 14 models of greeneconomic development can be sketched Although each country has 38 its own models,the common feature that they share is investment in clean technology, clean production,efficient use of natural resources and green energy Despite the significant expense ofimplementing the essential methods, the publications mentioned above all agree that agreen economy is necessary for sustainable development and is the most viable economicmodel for many developing countries 14 models of green economic development can bederived from such studies Despite the fact that each country has its own model, they allinvest in clean technologies, clean production, efficient use of natural resources, and greenenergy

Clean economy, environment-friendly economy, and green development are the

three key pillars of the green economy in Vietnam, according to researchers The ten

principles of green economy, according to Mr Bui Quang Tuan, are 1) sustainability,

2) existence, 3) healthiness, 4) humanity, 5) fairness, 6) protection, 7) effectiveness,

8) accountability, 9) sufficiency, and 10) responsible innovation In Vietnam, green

economy development is encouraged in all three areas: economy, society, and

environment This perspective is reinforced in the National Green Growth Strategy,

which was approved on September 25, 2012 Mr Do Huu Hao emphasized the

importance of green industry as the foundation for the country's green economy

development While solid financial strength is required for development, Vietnam's

national reserves are thought to be insufficient, negatively impacting the outcome

IV.

Methodology

Our research approach is structured as follows First, we introduce the definition

of “green economy” and other related concepts to have a broad view of this neweconomic and social idea, then analyse the detrimental effect of green economy onenvironment, economy and society, with many case studies to better demonstrate ourthorough findings and researches Next, trends of international green growth with twomain contractionary components: greenest countries to adopt its policies and mostpolluted countries to avoid their dilemma Finally, the green economy and how it wasand is being applied in Vietnam is taken into consideration, with the following order:context, current policies and future endorsements to ensure its long-term efficiency

V.

Definition – differentiate with other related economic concepts

The definition of the green economy appears to be very diverse Many experts andinternational organizations have come up with their own conceptions of this term The

European Union believes that "Green economy is a smart, sustainable and fair growth economy" (European Commission, 2010) According to the Organization for Economic Cooperation and Development, "Green growth means fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies." (Towards Green Growth, 2011).

The International Chamber of Commerce considered the green economy from a

business perspective It said that "It is described as an economy in which economic

growth and environmental sustainability work together in a mutually reinforcing fashion while supporting progress on social development Business and industry has a crucial role in delivering the economically viable products, processes, technologies, services, and solutions required for the transition to a green economy." (ICC, 2012).

Meanwhile, the Green Economy Coalition proposed a shorter description "An economy

that provides better quality of life for all within the ecological limits of the planet."

Among these, the United Nations Environment Program's (UNEP, 2011) definition is

considered the most accurate and complete of Green Economic "A green economy as

one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities In its simplest expression, a green economy can be thought of as one which is low carbon, resource efficient and socially inclusive."

Until now, the concept and perception of a green economy have remained ambiguous.Even though there are numerous approaches to comprehend and interpret it, we can see acommon aim: to reduce the negative impacts of economic activities on the environmentand society Accordingly, the Green Economy not only sets economic development goalsbut also pays much attention to human happiness, social justice, and environmental andecological issues Whatever approach is taken, a green economy always involves threeprimary purposes: Low carbon emissions, efficient resource usage, and maintaining socialfairness In other words, it supports economic growth and boosts employment, reduces theuse of carbon energy and natural resources, and assures poverty reduction targets, all ofwhich improve the quality of a standard life

With a broader view, we want to discuss more on the relationship between thegreen economy and other related economic concepts

Prior to the green economy, the world's development was primarily based on thebrown economy The term "Brown Economy" refers to a widely held developmentviewpoint Within this method, economic development came first, followed byenvironmental treatment “Brown" implies pollution in the environment In terms ofresource utilization, it's also inefficient According to the United Nations Environment

Program (UNEP), brown economy is considered "an economy focused on fossil energy sources, ignoring renewable energy alternatives."

The cost of abusing the method of brown economy for development is substantialfor the environment and human health Proven fact, this concept has caused enormousdamage to the environment, such as increasing greenhouse gas emissions and globalclimate change These consequences have threatened human life and resulted in a loss

of economic activity It also affects countries' long-term sustainable developmentgoals Because of the negative impact of the methods in the green economy, the shift

to applying the green economy is inevitable, and it is a widespread tendency in mostcountries throughout the world Thus, we can say the brown economy and the greeneconomy are diametrically opposed concepts

While the brown economy can be considered as the opposite of the greeneconomy, green growth is quite closely related to this term However, there are stillcertain differences between them Green growth emphasizes on promoting economicgrowth while maintaining a harmonious balance with the natural world - especially,avoiding pressures that would disrupt the environment's balance, with the ultimategoal of sustaining growth There is no guarantee, though, that the gains of GreenGrowth will be dispersed fairly across society Meanwhile, the Green Economy places

a greater emphasis on environmental constraints rather than just ecological balance; inparticular, the Green Economy promotes human happiness and social justice To put it

in other words, the Green Economy is more comprehensive when paying attention tosustainable development with all three pillars of economy, environment, and society

On the other hand, green growth is necessary for a green economy in many placeswhere poverty exists This is most likely why, in the early years of the twenty-firstcentury, Green Growth garnered more attention than Green Economy

In addition, there is another term, “sustainable development”, which has appeared alot and is closely related to the concept of green economy It can be noted that the concept

of a "green economy" does not, and cannot replace the concept of "sustainabledevelopment” It is becoming more widely recognized as a viable strategy for achieving

it To put it another way, a green economy is an economic approach for achievinglong-term development goals.

Figure 1 Green economy in relation to sustainable development

The prosperity of human

Aim: promote equality and social responsibility

Aim: ensure the Aim: improveresilience of the

resource efficiency ecosystem

Indeed, the green economy is also concerned with three main aspects ofsustainable development (economic development, social development, andenvironmentaldevelopment) However, the green economy prioritizes its focus on theeconomy (produced capital) and the environment (natural capital) from an ecosystemperspective It then uses that as a foundation to promote human prosperity (social andhuman capital) This strategy is based on the reality that progress toward sustainabledevelopment must be made based on appropriate economic growth

Yet, the difference in focus does not mean that the green economy takes humanwell-being lightly On the contrary, factors such as "social justice," "quality," "betterquality of life," "human happiness," and "social justice" have always been stronglystressed in green economy concerns In fact, these points are reflected in the process ofthe green economy's performance in Europe, which include many indicators relating tosocial capital and human capital

VI.

The Importance of Green Economy: Case study

a With environment

The green economy is proposed to eradicate environmental pollution in society

As stated in its definitions and principles, the green economy is resource and efficient It maintains biodiversity and ecosystems while respecting planetaryboundaries, ecological constraints, and scarcity It was discovered that the naturalenvironment has long supported the concept of green growth establishment theory.The environment has provided the foundation for green growth in three ways: adaptingwastes, utilizing resources, and providing environmental services Green economyadoption in countries can be beneficial on both economic and social levels, as it helpsreduce pollution and waste of limited resources

energy-Study case in China

China has been seen investing in green sectors to aim for energy efficiency andrenewable energy The Chinese government prioritizes renewable energy investmentbecause it allows the country to address air and water pollution while also reducing therisk of socioeconomic instability Among these targets, air pollution is considered themost crucial reason for the Chinese government encouraging renewable energy

Intending to prioritize economic growth, China has made very rapid progress In

2014, with a gross domestic product (GDP) of $17.4 trillion in purchasing powerterms, it overtook the United States as the world's largest economy for the first time.Moreover, today, this country is still the second economy in the world behind the US,with a GDP of $12,238 trillion However, this rapid expansion has resulted inincreased environmental concerns and a greater focus on long-term development

China has overtaken India as the world's greatest energy consumer and highest SO2 emitter In some countries, coal is the primary source of sulfur dioxide(SO2) emissions, especially in China, accounting for 92 percent of its total emissions(2007) Because of its interaction with other airborne molecules, SO2 is a hazardouschemical that causes a wide range of health and environmental issues Respiratory

second-issues, reduced sight, acid rain, and corrosion are just a few of them Air pollution'seconomic and physiological effects have been extensively studied, showing shockingresults In 2013, Asian Development Bank reported that China has seven of the top tenmost polluted cities in the world According to the World Health Organization, airpollution kills about 1 million people in China each year Meanwhile, a University ofChicago study also stated that suspended particles are shortening the lives of half abillion people in northern China by an average of 5 years In terms of economics, alarge-scale survey conducted by China's Ministry of Environmental Protection in 2013revealed that 16.1% of the country's land area According to the RAND Corporation,air pollution cost China $535 billion in 2012, or 6.5 percent of its GDP, due to lostworker productivity.

These consequences push China to confront them and propose remedies Thisgovernment has set itself lofty ambitions in terms of increasing renewable energy.China's commitment to renewables is backed up by the country's vast potential forboth production and consumption China intends to boost non-fossil fuels in the share

of overall electricity production by 4% to 39% in 2020, within the objectives of the13th Five-Year Electricity Plan (2016-2020) Non-fossil fuel sources are expected toaccount for 20% of the country's electricity consumption by 2030 China is alsopredicted to account for 36% and 40% of global solar and wind energy growth in thenext five years, respectively, said the International Energy Agency China also spends

a huge amount of money on this program, demonstrating its ambition to make China aleader in the field of green economy By 2020, more than $360 billion will be invested

in renewable energy development and can create 13 million jobs The BRICS NewDevelopment Bank has issued a long-term green loan totaling $811 million to itsmembers to fund clean energy projects Hardly surprising, China is a member of it

Figure 2: Total SO2 emissions from different categories in China (2005-2019)

Total SO2 emissions from different categories in China

(2005-2019)

Oil & Gas Coal Smelter Total

Unit: kilotonnes per year

Source: author’s research on NASA MEaSURES (partially reclassified)

Although still being such a top emitter, we cannot deny China's efforts in trying toreduce SO2 as well as its positive results The country has made tremendous progress inreducing air pollution since it began implementing a green economy through differentfive-year strategies By the end of 2018, 80% of China's coal-fired power plants had beenconverted to satisfy Ultra-Low Emission standards and this index climbed up to 86% after

a year Compared to its 2011 peak, China's SO2 emissions have decreased substantially by87% Since China is expanding its green economy applications in the renewables field,there is the possibility of even more emissions reductions

China has already surpassed the United States in terms of renewable energygeneration to be at the top of the world It is the world's largest generator of wind andsolar energy, as well as the world's largest domestic and international renewableenergy investor China has several corporations that are big names in the world turbineproduction map such as Sinovel, Goldwind, Dongfang Its ambition to increase theshare of renewable electricity is basically achieved

Figure 3 : China renewable electricity production by source

The Chinese government has recognized the importance of clean energy to theoverall health and survival of millions of residents each year, as well as the country'seconomy Despite being late to the game, China is currently making significantprogress in addressing its environmental issues We can clearly see that China's effortinto utilizing the green economy is worthy and shows very progressive results Chinaand its story of the renewable energy strategy is a typical example of how the greeneconomy can have an impact on enhancing the environment

b With economy

People now are admitting that the green economy is an excellent method proposed

to boost job creation and steer the economy onto a more sustainable path following theglobal economic crisis All countries benefit from the green economy, includingpoverty reduction, job creation Therefore, long-term development, or even thepositive transformation of the whole economy as well

• Firstly, green economy eradicates poverty.

The positive relationship between economic growth and poverty eradication isundeniable Economic growth will undoubtedly lead to a gradual elimination ofpoverty According to cross-country research, if a country's average income increases

by 1 unit, poverty rates will drop by a double amount

Study case in Caribe

Let’s take a look at Caribe in 2013 and its way of applying the green economymethod in boosting economic growth and gradually removing poverty In Caribe, withthe context of deteriorating educational performance contributing to fast-risingunemployment rates, poverty and near-poverty levels have risen The region features ahigh number of female-headed households, with many living in poverty or close to it.The continuance of poverty here may be due to underproductive local sectors andreliance on fluctuating external markets In addition, the government debt has risendramatically, with combined external and domestic debt levels ranging from over 70%

at that time The expense of debt payment has reduced state capability, exacerbatingthe economic crisis The weight of the changes to public services has fallendisproportionately on those who need them the most, adding to increased poverty andsocial inequalities

This context prompts the Caribbean to propose urgent and effective green economicmeasures A more secure, inclusive, and democratic basis is required to change to a moreresilient and green economic route A continuous discussion of what a Green Economyentails in the Caribbean and its implementation is necessary Hence, after analysis, thecountry came up with some highlighted principles of the green economy as listed below.Industries must try their best to optimize the demand-supply link between domesticallyproduced goods and services Among the proposed practices, the best are chosen toreward, while the worst are removed and discouraged Businesses that generate net flows

of monetary, societal, and environmental advantages are known as "triple bottom line"businesses Specific groups' needs and constraints, such as female single mothers, areaddressed through labor and welfare processes and regulations

Caribe also pays attention to education for young people, providing them with relevantknowledge and skills necessary for their lives and future employment chances.Wherever possible, reliance on imported or high-carbon energy sources is lessened.Natural, human, cultural, and physical resources are efficiently utilized based onrealistic appraisal and application Intersectional and regional economic links that arepositive and mutually reinforcing are established From the graph, we can clearly seethat the Caribbean and Latin American countries have seen a fairly steady decline inpoverty rates by adopting a green economy.

Figure 4: Poverty rate in Latin America & the Caribbean from 2000 to 2020.

Latin American & the Caribbean

Source: LAC Equity Lab: Poverty - Poverty Rate, Worldbank.

• Secondly, green economy creates jobs.

Economic expansion leads to more work opportunities and, as a result, a higherdemand for labor In the reverse way, boosting employment has been critical toachieving faster growth In today's globe, the trend toward a green economy hasprevailed The green economy offers enormous potential for boosting the quality andnumber of green jobs, in addition to its promising benefits to the environment and theeconomy

According to the International Labour Organization (ILO), a change to a greenereconomy might result in 24 million new jobs in the world ten years from now, if theproper policies are implemented New jobs will most likely be created by adoptingsustainable energy practices, employing electric vehicles, and enhancing energyefficiency in existing and future buildings Based on predictions as well as practicalstudy, the green economy is believed to have the potential to lift millions of people out

of poverty and provide better livelihoods for current and future generations

As similar to the green economy, green jobs also have a mixture of definitions.Our findings, based on multiple concepts and perspectives, suggest that these jobs may

be varied but have one thing in common: all stem from the intention to boostsustainable development and protect the environment Green employment assistsbusinesses and economic sectors in reducing their adverse environmental effects,gradually reaching a stable system Green jobs aim to reduce energy, raw material, andwater consumption They are primarily resorting to strategies that cut greenhouse gasemissions, decrease or eliminate all sorts of waste output and pollution, as well asconserve and restore biodiversity

Study case in South Africa, South Korea and the United States

Aware of the importance and inevitability of green economy and green jobsexpansion, the South Africa government has shown its determination to develop thismethod for its people The extremely high unemployment rate and its enormous carbonfootprint are the two primary reasons for which South Africa follows the green economystrategy, particularly expanding green jobs The impending national green jobs strategy,

as well as other policy and legal frameworks, must be completed as soon as possible.Jacob Zuma - South Africa president, declared 500,000 jobs would have to be produced

by December 2009 Given that every industry across the world was grappling withemployment losses at that time, this was a risky but ambitious approach The mostsignificant obstacle will continue to be the skills gap The country ensures that the strategyincludes employment, good work, and social inclusion by implementing appropriatesocial and labor market policies, emphasizing skills and education to make

career transitions easier, hence increasing employability Moreover, it also guaranteeseveryone has the same opportunities, especially women.

South Korea is another example The government has taken the lead in directingthe economy in the direction of green growth The investment in the The Four RiversProject to clean up the rivers has been invested in 1.5 billion dollars, and has resulted

in the creation of 350 thousand employment These projects not only improve anation's ecological structure, but its productive natural capital as well The samecontext goes with India, because biomass gasification might provide 900,000 jobs here

by 2025 Meanwhile, the US also follows the trend of expanding green jobs, as theproportion of workers in such green industries is much more than the old ones Forexample, there are 2.3 million people working in the renewable energy sectorcompared to only 2 million in the oil refining market It is predicted that the US wouldhave a massive multiplier effect on employment, given its renewable energy portion ofthe total energy mix increased by five times, from 5% to 25%

c With society

We all confirm that the green economy stimulates greater power and voice amongthe poor by, for example, strengthening their rights to a safe and clean environment,functioning ecosystems, food, and health It also promotes human safety by preventing

or addressing conflicts over land ownership, food, water, and other natural resources,and so on Above all, a green economy aims to enhance the living standards of allpeople and distribute equality between different social classes

Study case in Ethiopia and the United States

Ethiopia's green economy transformation began in 2011 with the adoption of theClimate-Resilient Green Economy Strategy By 2025, it advances Ethiopia's goal ofbecoming a middle-income country with a low carbon level and then enhancing the

population's living standards With over 60 more significant investment projects

launched, this method encourages resource-efficient, low-polluting alternatives toboost economic growth The country decided to implement the investment within foursections: agriculture, forest, renewable energy, and technology Each category is

proposed with different practices For particular, improving grain and livestockproduction, conserving and re-establishing forests, widening the proportion ofelectricity by renewables, and advancing to modern technology, respectively One ofthe outstanding achievements of the government's policies is the sufficient supply ofelectricity for the population here In Sub-Saharan Africa, around 600 million people

do not have access to electricity, including Ethiopia This index witnesses aconsiderable drop by advocating for increased renewable energy production andavailability in the region

Taking the Clean Energy Investment of the US in 2009 as an evidence of howgreen the economy can positively affect the society, in particular, reduce the inequality

of society During presidential campaign for President in 2008, Barack Obama stated

to help and invest federal money into the green energy industry in the United Statesand plan to put 460,000 Americans to work on renewable energy projects and doublethe amount of renewable energy produced over the next three years The 2009 CleanEnergy Investment was a part of the American Recovery and Reinvestment Act of

2009 and it increased federal funds in renewable energy The package included $50billion in spending and $20 billion in tax provisions The investment also included aboost for "green buildings", energy research, and energy-efficient affordable housing.Environment America, an organization of state-based, environmental advocacyorganizations, reviewed the final bill and stated there was $32.80 billion in funding forclean energy projects, $26.86 billion for energy efficiency initiatives and $18.95billion for green transportation, totaling $78.61 billion just for "green" projects Table

1 presents the Benefits of the Clean Energy Investment Program for Low-IncomeHouseholds in the United States This outcome is a summary based on the paper

“Green Prosperity: How Clean-Energy Policies Can Fight Poverty and Raise LivingStandards in the United States” (2009) After this investment, employmentopportunities for lower-income working people were expanded, more jobs across alleducational levels were created The cost of home heating and utility bills werecheaper because of energy efficiency retrofits Besides, this investment also improvedpublic transit which reduces transportation expenses

Table 1: Summary the Benefits of the Clean Energy Investment Program (2009)

for Low-Income Households in the United States

Moving from

unemployment

to employment

• 1.7 million new jobs overall

• 870,000 jobs for workers with low education levels

• Newly employed low-income workers can liftthemselves and family out of poverty

Falling unemployment

produces

• Average low-income worker could see a rise in risingwages earnings of about 2% as unemployment rate falls1%

Building retrofits lower

home heating and utility

• Retrofits could reduce living costs by up to 4%, depending on the climate and quality of current housing

• Requires well-designed policies to create market for retrofits for homeowners and renters so benefits of retrofits are shared by renters

• Households able to replace a car through increasedpublic transport use could save roughly 10% of totalliving costs

Source: Pollin, Wicks-Lim, and Garrett-Peltier 2009.

VII.

Analysis the trend of green growth in the world and Viet Nam

using EPI index

a EPI framework

Using the Environmental Performance Index (EPI), this section assesses the overalllevel of environmental performance in countries around the world The EPI was created incollaboration with the World Economic Forum by Yale University and ColumbiaUniversity to produce a relatively complete measurement of national environmental

performance The EPI is ideally suited to the goal of this report, which is to construct ahigh-level assessment of countries' performance, given the vast range of issue areascovered by this indicator Specifically, the EPI uses 32 performance indicators across 11issue categories, the EPI ranks 180 countries on environmental health and ecosystemvitality These indicators show how close countries are to meeting stated environmentalpolicy goals on a national basis The EPI offers a scorecard that highlights leaders andlaggards in environmental performance and provides practical guidance for countries thataspire to move toward a sustainable future In the 2020 EPI framework, for instance, theEnvironmental Health Index (EHI) measures air quality, water quality, and heavy metalexposure, while the Ecosystem Vitality Index (EVI) covers issue areas such asbiodiversity and climate change The EPI is a weighted average of these two sub-indicators that serves as an overall evaluation of a country's environmental situation.

Table 2: EPI framework (2020)

Biodiversity and habitat (25%)

Forests (10%)Fisheries (10%)

Climate and energy (30%)

Marine Protected Areas (20%)Biome Protection (Global)(20%)

Biome Protection (National)(20%)

Species Protection Index (20%)Representativeness Index (10%)Species Habitat Index (10%)Three Cover Loss (100%) Fish Stock Status (50%) Regional Marine Trophic Index(50%)

CO2 Emissions (Total) (50%) CO2 Emissions (Power) (20%)

N2O Emissions (5%)Black Carbon Emissions (5%)Air Pollution (10%) S2O Emissions (50%)NOX Emissions (50%)

Water resources (25%) Wastewater treatment (100%)Agriculture (10%) Sustainable Nitrogenmanagement (100%)

Source: Yale University, Center for Environmental Law & Policy; Columbia

University, Center for International Earth Science Information Network.

b Trend in the world

Table 3: Top 10 greenest countries based on EPI

Sweden leads in landfill and recycling treatment, while wastewater treatment is led by

a handful of countries within and beyond Scandinavia including Denmark, Finland, theNetherlands, Singapore, and Sweden Canada has first place in North America forbiodiversity and habitat, whereas the United States comes in sixth place internationallyfor agricultural diversity Singapore is the world leader in fishery health andsustainability in Asia.

Table 4: Top 10 polluted countries based on EPI

As can be seen from the table, the five lowest-scoring nations in in the 2020Environmental Performance Index (EPI) are Côte d’Ivoire (25.8), Sierra Leone (25.7),Afghanistan (25.5), Myanmar (25.1), and Liberia (22.6) Liberia has been clearly marked

as a global biodiversity hotspot because it is home to some of the world's last populations

of chimps, forest elephants, and leopards Endangered animals in Liberia have beentargeted for bushmeat, putting their numbers in jeopardy Endangered animals

and their habitats are also threatened by slash-and-burn agriculture and illicit loggingthat leads to deforestation Besides, Myanmar, which is ranked 179th out of 180countries, faces major challenges in waste management, including inadequateinfrastructure and technology, a lack of public understanding of hygienic procedures,and a weak regulatory framework These problems lead to a significant rise in airpollution which is estimated to contribute to more than 45,000 deaths in Myanmar in

2017 (World Bank report)

Overall, it appears the world’s greenest countries tend to focus on all areas ofsustainability, while laggard countries show more uneven performance acrosscategories According to the table 3 and 4, EPI is higher in developed countries andlower in developing or poor countries because poverty and environmental degradationare inextricably linked, and are self enforcing Infrastructure costs are one reason whywealthier countries perform better in terms of sustainable growth Everything from airpollution reduction and water treatment to hazardous waste management and publichealth crisis mitigation is particularly costly, but has a significant potential impact oncitizens

c Green growth in Viet Nam (Current EPI )

According to the 2020 EPI score reported by the Yale Center for EnvironmentalLaw & Policy and The Center for International Earth Science Information Network(CIESIN) at Columbia University’s Earth Institute, Viet Nam ranked at 140 out of 180countries with an EPI score of 33,4 over 100 Breaking down the EPI intoEnvironmental Health Index (EHI) and EcoSystem Vitality Index (EVI) provides moreinformation on VietNam's status in regard to various environmental issue categories,which drive their overall performance While the EHI of Viet Nam ranked at 98th with40.6 points, the EVI only ranked at 176 with 28.5 points As shown in figure 5 , lowperformance in Ecosystem Vitality was majorly contributed by Water Resources,which is 0,3 points and much lower than the world average at 23

Figure 5: EPI Score of Vietnam in 2020

Rank EPI score 10-year Regional Regional

change Rank Average