Green Economy and its Impact on Economic Growth in the 21st Century

Abstract

Development of the global economy resulted in environment degradation. It became evident that people had to work out new paradigm for sustainable economic growth. Green economy is a new model of economic development based on economic growth, social development, environment protection and inclusive development for all people. Countries face many challenges in the transition to a green economy, including lack of funding and technology. Th e most innovative economies in Europe are the world leaders in moving towards a green economy. Developing economies recognize the need for green transformation, but the structure of their economies is in many cases based on extraction, processing and exports of raw materials. Due to this fact it is diffi cult for this countries to meet the modern carbon footprint standards. Th e European Green Deal is not only an attempt to preserve the environment, but also a tool to secure competitiveness of European companies in international trade.