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39 Green Business Ideas for Sustainable Entrepreneurs

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An eco-friendly business, or "green business" is one that demonstrates a commitment to an environmentally sustainable future. Green businesses strive to have a positive impact on the environment and their community. This can be achieved through many practices and strategies, from recycling to sourcing local products to promoting energy efficiency.

Sustainable and green business ideas combine your commitment to the environment with your goal of starting a business. Beyond that, they also deliver on revenue and profit. A study by Nielsen revealed that 66% of global consumers are willing to pay more for sustainable products. If you want to launch a green business, get started with this article containing our top sustainable and green business ideas.

39 green business ideas

Here are 39 sustainable business ideas for you to consider if you want to go green.

1. Energy auditing and green consulting

Work with businesses or individuals to help them implement strategies to reduce their carbon footprint.

2. Garden planning

Landscape eco-friendly, sustainable gardens for families and businesses to feed themselves.

3. Environmental law

Provide legal services to protect the environment or hold entities accountable for violating environmental laws.

4. Composting business

Provide a service to pick up compost or a place to drop it off.

5. Green cleaning

Use eco-friendly products to clean homes and businesses.

6. Air duct cleaning

Dust and dirt can easily accumulate in air ducts, preventing the air conditioning system from working properly and thereby increasing energy consumption. Start an eco-friendly small business that serves to regularly clean air ducts to reduce energy consumption.

7. Fundraiser or grant writer

Many environmental organizations could use help getting funding. Start a career as a freelance grant writer to help them out.

8. Eco-friendly food supplier

Deliver food from local sources to people or businesses who need them. Farm-to-table restaurants are some of the businesses that you could help supply.

9. Eco restaurants

Open a restaurant that uses only locally sourced food and sustainable products and processes.

10. Organic nutritionist

This is a powerful sustainable business idea. Help people eat clean — it’s better for their health and our earth.

11. Wind power development

Build wind farms that produce sustainable energy.

12. Geothermal developer

Build power plants that use steam produced from reservoirs of hot water found a couple of miles or more below the Earth's surface.

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13. Solar panel manufacturer

Produce the energy-saving panels for homes and businesses.

14. Plant delivery service

Start an eco-friendly small business that sources and delivers plants to people or businesses that will help clean the air around them.

15. Open a used bookstore

Recycle old and gently books for a fraction of the price. You could do this either online or in-person with a brick-and-mortar location.

16. Green gift shop

As mentioned earlier, green products are a selling point. Why not open a store full of them?

17. Sell bicycles

One way to reduce carbon emissions is to reduce the number of people driving cars. One way to do that is by encouraging more people to ride bicycles.

18. Sell scooters

While scooters do emit carbon dioxide, they are much more energy-efficient than cars.

19. Energy-efficient car sales

Of course, people still want to drive cars. Why not sell more environmentally friendly car options?

20. Open a consignment or thrift store

How many clothes do you get rid of each year? Recycling old clothes is a great way to reduce the carbon footprint of each clothing item so they don’t go to waste.

21. Manufacture or sell eco-friendly fashion design

Many designers are making clothing from sustainable materials. You could be one of them, or you could sell them.

22. Environmental blog

Publish information and news about climate change and subjects of interest to the environment. Reap advertising payouts from your visitors while informing the public.

23. Advertising agency specializing in green business

With all the new green businesses and initiatives forming, they’re going to need someone to know how to bring all the good they're doing to a large audience, you could start a green business advertising agency.

24. Give bicycle tours

This is a great sustainable business idea for bicycle enthusiasts! Bike tours in your city are way more environmentally friendly than big ole bus tours or long joy rides.

25. Eco-travel planner

Plan eco-friendly travel destinations and activities for tourists.

26. Sustainable events planner

Offer event planning services that guarantee a reduced carbon footprint from the event.

27. Open an organic spa

Harsh chemicals are bad for your skin just as they are for the environment.

28. Recycled furniture and home goods

Use recycled materials to build furniture and home goods people use in their everyday lives. Or open an antique shop reselling older furniture or refurbishing it and reselling it.

29. Eco-friendly kids toys

A great eco-friendly small business idea for parents. Mainstream children’s toys use a ton of unsustainable materials. Why not give parents an environmentally conscious option for their kids.

30. Handmade clothing

If you've got a knack for sewing you can sell your handmade clothing online. A bonus if it’s from recycled materials.

31. Green remodeling

Green remodeling is the perfect green business idea for the handy entrepreneur. Take a worn down home and make it something new using sustainable materials and updated appliances that reduce carbon footprints.

32. Green architecture

Design new homes using sustainable methods.

33. Solar panel installation

Install solar panels for sustainable energy in homes or businesses.

34. Start a cooperative

Communal living easily reduces the carbon footprints of those living in them because everything is shared and the values of the building uphold sustainability.

35. Green venture capitalist

Invest in helping other people get their green business ideas off the ground.

36. Green financial planning

Sell “green bonds” to those looking to add environmentally conscious businesses to their portfolio.

37. Software

Build software programs made specifically to help businesses or individuals with environmental activities and initiatives.

Develop mobile apps designed to help people with environmentally friendly functions, like finding recycling centers or learning about the environmental practices of different brands.

39. Refurbish/recycle tech

Take people’s old and unused technology and recycle the parts or make something new.

Hopefully, these green business ideas have you excited about the possibilities — not only for profit but the pleasure of running a business that helps people lead greener lives and combining what you do with what you believe in. A value-led company is attractive to consumers — why not create one?

Benefits of starting a sustainable business

Green and sustainable business ideas deliver more than profits. Beyond the feel-good impact that comes with making the world a better place, environmentally conscious and green businesses cater to a rapidly growing market.

“Despite the fact that millennials are coming of age in one of the most difficult economic climates in the past 100 years,” according to a recent Nielsen global online study, “They continue to be most willing to pay extra for sustainable offerings — almost three-out-of-four respondents in the latest findings.”

Generation Z does not want to be left behind either: The rise in the percentage of respondents ages 15 to 20 who are willing to pay more for products and services that come from companies who are committed to positive social and environmental impact hovered around 72%.

LLC Formation

Businesses that establish sustainable or green values or practices have an opportunity to grow market share and build loyalty among consumers now and in the future.

Now is the time to pursue your sustainable business idea

There's never been a better time to launch a green or sustainable small business. We’ve undoubtedly seen a ton of change in the last year toward climate solutions and policy, especially as the implications of the Paris Agreement reverberated through businesses, industries, and investors.

“Companies continued to ratchet up their commitments and achievements on renewable energy, greenhouse gas emissions, sustainable supply chains, water and land stewardship, the circular economy, and other aspects of a sustainable enterprise,” according to GreenBiz . “Technology continued its inexorable march, accelerating sustainability solutions in energy, buildings, transportation, food, and just about everywhere else.”

However, global indicators continue to trend in troubling directions. Concentrations of carbon dioxide are unprecedented compared with the past 800,000 years according to the U.S. Environmental Protection Agency, even after accounting for natural fluctuations. Global temperatures continue to rise, and other metrics — on coastal flooding, heat-related deaths, wildfires, polar sea ice, biodiversity, and more — are just as harrowing.

Suffice it to say that we have a major challenge on our hands. Of course, no one is going to solve climate change on their own. But if you’re looking for green business ideas you can do your part and start an environmentally conscious business.

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23 Green Business Ideas for Eco-Minded Entrepreneurs

Do you want to start a business while protecting the environment? Check out these green business ideas.

Table of Contents

Today’s consumers are just as interested in a business’s corporate social responsibility practices as they are in its products and services. This is good news for eco-minded entrepreneurs. If you’re interested in starting a company that can make a lasting environmental impact, consider the following 23 eco-friendly business ideas. You can simultaneously make money and help save the planet.

Green business ideas for eco-minded entrepreneurs

Eco-friendly companies may include outdoor apparel brands, businesses that make reusable plastic bottles, eco-friendly cleaning companies, businesses that install solar panels, a local recycling business, and many other potential ventures. If you want to start a business with a green, eco-friendly focus, consider any of the 23 ideas below.

1. Ink refill business

Starting an ink refill business can be an environmentally conscious — and highly profitable — decision. You might question whether refilling ink cartridges truly helps the environment considering the amount of paper wasted annually. However, when people reuse old ink cartridges, less nonbiodegradable waste accumulates in landfills. Paper, printers and copiers are still necessary in the business world, but empty ink containers are not.

2. Environmental publications

If you love to write, start your own environmentally minded publication. Your actions can make a big difference in the world. By debunking popular myths and sharing the truth about the world we live in, you can help consumers rethink how their actions affect the planet. 

3. Green finance

Green finance focuses on supporting local, community-level projects with an emphasis on sustainable and ecologically friendly agriculture. Green finance is also typically concerned with educational opportunities, funding for artistic endeavors and projects that support local ecology. 

Green finance is preoccupied with social profitability. While actual profit margins remain crucial, green finance aims to support beneficial projects that provide value to the local community and ecology.

4. Eco-friendly retail

The online clothing brand For Days provides an interesting twist on customer loyalty programs . Customers can purchase a “take-back bag” and send the company clothes they no longer use. In doing so, they earn rewards to spend on future For Days clothing purchases. 

Besides incentivizing sustainable clothes shopping, For Days partners with other leading brands in the sustainable textiles space, such as ADIUM and CARIUMA. If you’re thinking about opening a retail store , consider partnering with a company that has values similar to you and your customers.

5. Sustainable construction materials

You might not think of construction as sustainable, but some companies now provide recycled materials for use in projects like infrastructure repair. 

For example, Axion hopes its eco-friendly products will change how companies think about rebuilding America’s infrastructure. Its railroad ties and pilings are made from recycled plastic from consumer and industrial uses instead of nonsustainable materials like steel and concrete. Axion has worked with major partners like Long Island Rail Road to improve infrastructure safely and sustainably in the United States.

6. Organic catering

As organic food sales skyrocket, eco-friendly foodies should consider starting an organic catering company to share their passion for food and the environment. You could work out of a food truck or a catering kitchen. If you cater local events and business luncheons with organic and locally grown ingredients, free-range meats, and vegan, gluten-free and paleo meal options, you’ll appeal to nature lovers and health and wellness enthusiasts alike. 

Be sure to minimize your venture’s environmental impact by avoiding plastic and paper goods as much as possible and by composting food waste.

7. Eco-friendly beauty salon

If cosmetology is your passion, start a beauty business that’s Mother Nature-approved. Open a salon that prioritizes organic and vegan hair and beauty products. Eco-friendly hair salons can stock all-natural shampoos and conditioners, while nail salons can use environmentally friendly and vegan polishes and spa treatments.

8. Eco-friendly landscaping

Professional landscaping may make your lawn and garden look nice, but all that maintenance isn’t necessarily great for the environment. With some eco-friendly advice and know-how, you can help homeowners make their yards literally and figuratively greener. Try using drought-resistant plants and strategically placed trees for a lawn that saves water, energy, and money.

9. Sustainable event planning

Whether big or small, meetings and events can generate large amounts of waste and consume valuable resources. Green event planners use their expertise and event-planning skills to find eco-friendly venues, materials and accommodations. 

Whether you’re planning a corporate event or a small party, sustainable event management benefits more than just the planet. There are financial advantages — plus it generates a positive image for event organizers, vendors and stakeholders while raising awareness and inspiring change in the community.

10. Bicycle repair and refurbishing

Biking short distances instead of driving is better for the environment and your health. Like most transportation modes, bicycles occasionally need a tune-up.

You could be the expert cyclists come to when their bikes need repairing or maintenance. If you have some extra space, you could purchase inexpensive older bikes, fix them up, and sell them for a profit.

11. Handmade, all-natural and organic products

Soaps, cosmetics and cleaning products are just a few of the household items that can be made using common organic materials.

Sure, anyone can find a recipe for a sugar scrub or vinegar-based cleaning solution and do it themselves. However, if you package and sell these items in sets, your customers conveniently have those all-natural products at their fingertips. Local markets and events are excellent places to sell your products, or you can sell them online . 

12. Eco-consulting

Are you an expert on green living? Start an eco-consulting service. Eco-consultants evaluate homes and offer solutions to make them more environmentally friendly. 

You could advise clients on switching their home appliances to more energy-efficient machines or implementing a recycling program. To further boost your credibility, become a certified eco-consultant.

13. Farmers market vendor

Thanks to the organic movement, those with a green thumb have a golden opportunity to earn money by selling non-GMO, pesticide-free produce at their local farmers market. 

Selling naturally grown fruits and vegetables gives you a distinct advantage over competing growers who use conventional farming methods, including pesticides. Note that you may have to be approved or certified by your local board of health before you can begin selling.

14. Green housekeeping services

For working parents, cleaning the house can be at the bottom of the to-do list. Market yourself as the green solution to their housekeeping woes by offering services that range from light dusting to heavy-duty chores like cleaning the kitchen and bathroom using only approved all-natural and eco-friendly cleaning products. 

Charge an hourly rate or create service packages for a flat fee. Remember, your clients are giving you access to their homes. Build a trustworthy reputation with people you know first before advertising to strangers.

15. Upcycled furniture

Don’t throw out your old, broken furniture. With basic templates and access to power tools, you can break down and reassemble chairs, tables and dressers into new pieces you can paint and sell. Shelving and storage units are easy to make from wood scraps. Depending on the item, you might even be able to fully restore a unique and valuable piece of furniture.

Alternatively, you could reupholster old chairs and couches to give them new life, and start an online resale business to market and sell your products

16. Green franchises

Want to run a business with a solid brand and customer base already in place? Opening a franchise might be the answer. While franchising might call to mind fast-food joints and hotel chains, there are many eco-friendly franchise businesses and franchises for every budget .

17. Secondhand store

New things are typically expensive, and pretty soon, those costs add up. For example, a new book could cost $15 to $30, while a used book usually costs only a few dollars.

Opening a secondhand store saves your customers money and is better for the environment. Encourage consumers to donate their gently used items to you instead of tossing them in the trash so another person can get value from them. You can sell used clothes, coats, books, kitchen appliances and furniture. 

18. Green consulting

Green consulting is similar to eco-consulting but has a business focus. Whether it means cutting energy costs or reducing their carbon footprint, the pressure for businesses to make sustainability part of their business model is enormous, and that pressure is only going to grow.

Business sustainability consultant Barbara Englehart said there are numerous benefits for companies that go green, including reduced costs, risks and liabilities as well as increased employee retention and productivity.

“This is all [relatively] new in the business world, and companies need help,” Englehart explained. “They weren’t teaching sustainability in business schools five or 10 years ago.” 

19. Solar panel installation

Many green-minded homeowners have installed solar panels on their homes, and many more would like to do so. If you know how to do this, offer this service in your area.

20. Eco-friendly office cleaning

Common industrial cleaning products contain chemicals that contribute to pollution and can harm people. Starting an eco-friendly office cleaning business counters this problem. Your eco-friendly business can exclusively use nontoxic products or brands that minimize their use of single-use plastics. You can further decrease your company’s environmental impact by reusing greywater whenever possible. As a bonus, your client businesses can feel good about contracting with your services.

21. Reusable plastic bottles

Single-use plastics are indisputably a leading cause for concern among environmentalists. Offer people a way to drink water on the go without contributing to plastic pollution by launching a green industry business that designs, produces and sells reusable bottles. Explore alternative materials like metal or glass, bottles made from recycled plastic, or renewable plastics from materials like cornstarch or sawdust.

22. Environmental impact and carbon emissions lessons

Many people aren’t aware of the carbon emissions their daily activities produce and the impact those activities have on the environment. Offer classes to educate the public about how driving, using air conditioning in the summer, leaving lights on unnecessarily, flying and other activities contribute to carbon emissions. You can also teach people how to reduce the environmental impact of these activities.

23. Local eco-friendly recycling business

Chances are that your town’s department of public works oversees a public recycling program. However, many experts say that what you put in your recycling bin doesn’t always get recycled. Some municipalities don’t accept all types of recyclable containers, while others may not thoroughly sort the collected recycling. Open an eco-friendly local recycling business to guarantee your community that their goods are recycled.

What are the benefits of starting a green business?

Great reasons to start a green business include the following:

• Green businesses have a built-in target audience. In 2020, 65 percent of people who responded to a Pew Research Center survey said the government wasn’t doing enough to combat climate change. Your business can target this vast consumer base and fill in the gap.
• Green businesses attract top talent. Many of the 65 percent of people who think climate change needs to be addressed more aren’t just customers — they’re workers too. These people might inherently be more inclined to work for a green business like yours. Your green business pedigree can help you attract and retain top talent and boost employee retention efforts.
• Green businesses have built-in marketing copy. Your eco-friendly offerings and environment-first mission statement are exactly what green shoppers are seeking. This makes writing marketing copy and devising campaigns uniquely intuitive.
• Investors may be interested in your green business. Venture capitalists and angel investors often seek out the most innovative, unprecedented businesses to fund. Given the scope of the climate crisis, innovative green businesses may attract their attention. This is why launching a green company goes hand in hand with accessing business funding.

What is a green industry business?

A green industry business uses sustainable materials to make its products. Green industry businesses aim to use as little water, energy and raw materials as possible while cutting carbon emissions, or they use these materials in renewable and eco-friendly ways. This business approach minimizes the company’s strain on natural resources and contributions to climate change. In some cases, if waste is generated, it is reused as energy or raw material.

What is a green business model?

With a traditional business model, a company outlines raw material budgets, design processes, and service delivery or product distribution methods. A green business model ensures ample revenue while prioritizing minimal environmental impact over maximum profit. It may involve the restricted use of fossil fuels while emphasizing power supplied by solar panels, as well as other approaches to drastically reduce energy consumption.

How do I start a green business?

As consumers have come to care about corporate social responsibility , a greater number of green businesses have emerged. However, the problems that climate change poses require many solutions. Thus, to start a green business, identify an eco-friendly service that no one in your market currently offers. Next, think of similarly eco-minded people who can join your team. 

As you launch your green business, change your lifestyle to reflect its values and services.

Get creative with your green business ideas 

Green business ideas can be great business ideas that merge sustainability and profit. This list is just a start. Get creative and even merge business ideas to create unique companies that provide one-of-a-kind green services. For example, you can offer recycling or donation alongside your professional organizing services. This way, once you’ve organized your clients’ homes, you ensure that whatever they’re not using anymore doesn’t go into a landfill. If you have a passion for protecting the environment, anything is possible.

Sammi Caramela contributed to this article.

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The business case for the Green Economy: sustainable return on investment

This report shows that business cannot afford to ignore the benefits that switching to a Green Economy will bring. Compelling economic and scientific data demonstrate the advantages for the financial bottom line, and a wide-ranging collection of case studies gives real-world examples of the Green Economy in action.

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25 Sustainable Business Ideas To Inspire Eco-Minded Entrepreneurs

Do you dream of starting a business that equally protects the environment? Practicing sustainability does not have to be restricted to your lifestyle choices outside work. As a sustainable business owner, you can contribute to change by offering your customers alternatives that help them live greener. In need of some sustainable business ideas to inspire you? Read on,

Green businesses or sustainable businesses focus on creating a positive impact on the environment and within their communities. They achieve this by sourcing sustainable raw materials from local markets, energy efficiency, recycling, and other green practices. 

Beyond saving the world, sustainable businesses can also prove very profitable. A survey taken in 2019 reveals that 68% of 1000 US consumers are willing to pay more for eco-friendly products 4 .  This is excellent news for eco-minded or social entrepreneurs. 

As more consumers choose to buy green, what kind of sustainable business can you start as more consumers choose to buy green? In this article, we are here to help you make that decision. Read on as we dive into green, eco-friendly, and sustainable business ideas that can help save our planet while providing profit opportunities.

What is a green business? 

A green business or a sustainable business prioritizes sustainability and seeks to conserve natural resources. Sustainable companies also work to reduce their carbon footprint and negative environmental impact. 

A green business aims to be energy-efficient, using less water, raw materials, and energy to produce eco-friendly products and services or support those that do. 

A green business seeks to achieve minimal strain on natural resources and impact on climate change. Some eco-friendly companies reuse waste generated from production to make new zero-waste products . For example, they are making eco-friendly flip-flops from old tires. 

A business with green ethics could be something as obvious as a solar panel installation that seeks to promote renewable energy and reduce our reliance on fossil fuels. It could also prioritize using sustainable materials to create sustainable products and reduce the negative environmental impact of drawing on finite resources throughout production and the supply chain.

As an eco-conscious entrepreneur, your business model will run differently from those pursuing a traditional business model. While the traditional business model will focus on budgets, design processes, product distribution, and so on, the green business model will balance environmental impact and profit.

Related read: What does it mean to go green?

Benefits of starting a green business

In today’s business world, consumers do not just want to purchase a product because of its price and quality but also because of its impact on the environment. Incredibly, research reveals that just 90 companies are responsible for two-thirds of historical greenhouse gas emissions 1 . By starting a green business, you can do your bit to make the world a more eco-friendly zone while contributing to a growing market and showing the big-ticket polluters that a better way is more than achievable. 

With minor lighting, water, heating, and energy consumption adjustments, a sustainable company seeks to save on previously wasted resources, which can translate directly into cost reduction - both cash and environmental costs. As such, a sustainable business increases productivity while reducing production costs. Furthermore, a sustainable business may access a broader range of funding options, including grants and loans available to boost green small businesses. 

Starting a sustainable business can also improve your employees’ physical and mental health. With little changes to the factories and offices, employees can enjoy better physical health both in and out of the workplace. Also, if employees feel like they are making an impact on the environment and the planet, it can provide a sense of purpose, improving morale and productivity. 

25 sustainable business ideas for eco-conscious entrepreneurs 

Green business is good for the environment and people. As you start a sustainable business, you can contribute to repairing and protecting the planet. Let's dive into a few handfuls of green business ideas you can start today. None of these are exhaustive; sometimes, the best ideas come from a walk in the park and conjuring up something entirely new!

1. Sell sustainable fashion

The world suffers from billions of tons of textile waste . The effects of fast fashion on the planet include climate change and harmful carbon emissions. Fast fashion is a business model that demands lots of cheap garments made of single-fiber materials that we cannot recycle. 

You can consider selling sustainable fashion if you love fashion and the planet. You can open a resale shop in-store or online and bring some old clothing to life. For more info, check out our guide on how to start an online thrift store business . Or perhaps you can go boots and all in and create your own sustainable clothing brand . 

If you have sewing skills, you can use recycled materials to make upcycled clothing that you can sell. 

2. Start a plant delivery service 

Do you have a green thumb? You could start a plant delivery business that sources plants and delivers them to individuals and businesses to improve indoor air quality. Or, you can open a nursery within your local community and specialize in flowers, ornamental house plants, and landscape plants. 

You may also partner with local businesses to sell your plants or even sell them to households in your community. 

It is essential to plan for shipping and delivery services. You need to package your plants and ensure they survive delivery without damage. 

You also need to think about the environmental cost of shipping. To do this, you can consider offsetting by planting trees or delivering by bike if you live in a built-up area with sufficient customers.  This eco-friendly business idea is a great way to improve the environment while connecting with your community.  

3. Grow and sell your own food 

Organic food isn't only good for human health but also good for the economy. Growing your own food is a sustainable business idea that can bring you good profit. Consumers are willing to support buying local food via farmers and producers. You could start a sustainable garden and sell the food products at the local farmers market. You can sell foods like spices and sauces to ensure you make a profit all year round. 

Selling local food reduces waste from grocery shopping, packaging, transportation, and overall large-scale production. 

4. Sell organic beauty products

Most beauty products contain harmful chemicals and harsh additives, including alcohol, sulfates, fragrances, etc., which can damage the skin in the long run. Also, the production process of these beauty products contributes to waste and damage to the environment . This is why many consumers have switched to more natural, organic, and zero-waste makeup and beauty products. 

You can contribute to making organic beauty products that provide healthy skin and a healthy environment. You can turn that DIY beauty care hobby into an eco-friendly business. This will remove the damaging effects of producing beauty products on the environment and boost sustainability. 

5. Start an Ink refill business

You can make printing on a piece of paper greener by offering ink-refill services. Ink refilling is not only environmentally conscious but is also a profitable business.

Using paper is necessary. However, you can reduce the number of ink containers in landfills by reusing old ink cartridges. This can save tonnes of non-biodegradable waste and prevent them from accumulating in landfills. 

You can start by investigating the competition to spot gaps in the market you can take advantage of. To win market share, offer excellent customer service and ensure your prices are competitive. 

6. Start a composting business

Food waste is a dominant environmental, social, and economic challenge. Approximately 1.3 billion tonnes of food produced worldwide is wasted annually. With so much food waste, we also waste resources used for production. 

When food waste ends up in landfills, it releases carbon dioxide and methane, which contributes significantly to harmful greenhouse gas emissions. 

Starting a composting business is a green idea that can reduce the effects of food waste on the planet and bring in some decent profit. 

A composting business can collect food waste from families and other local companies and compost them locally. You can provide a service to pick up compost materials . You can then resell the finished compost product to retailers and local gardeners within your community.  

7. Sell eco-friendly kids’ toys

Most toys are made from plastics and other unsustainable materials. Plastics are both harmful to the environment and human health. 

Making eco-friendly kid's gifts and toys from sustainable materials is an eco-friendly business that can also bring out your creative side. 

Inspiration for eco-friendly options includes returning to natural, sustainable wood, re-versioning nonsustainable favorites using sustainable materials, or getting creative and coming up with something new. 

You can start making toys using eco-conscious materials and non-toxic paint and sell them in a local store in your community or set up an online store. 

8. Become a green business consultant

Do you have some knowledge of eco-friendly living? Or sustainable living skills you can share? Perhaps you are a green living expert passionate about promoting sustainable ways of living. You can turn that knowledge into a business that charges for your expertise and helps spread broader eco-friendly living, values, and learning. 

You can offer consultancy services to homes, offices, and organizations, offering sustainable solutions on how they can become more environmentally friendly. 

For example, you can advise clients on reducing their carbon footprint and sustainable energy consumption during production. You can also help a company implement a recycling program to reduce waste, save electricity , or reduce paper waste in the office . Consider getting a certification to boost your credibility. 

9. Start a sustainable event planning business

Birthday parties, weddings, festivals, and other events generate significant waste. Most of these events use paper plates, beer cans, plastics, and other non-biodegradable materials that end up as waste in landfills. 

Starting a sustainable event planning business is one way to help reduce waste and create a business. You can offer customers a smaller carbon footprint for events and get in touch with eco-friendly suppliers to source greener materials. 

Your business can stock up with essentials like reusable cups and cutlery from a local or online zero-waste store and avoid the need for all the single-use stuff. You might even find a way to introduce an element of education to help grow awareness for zero waste or other environmental themes. 

10. Become a solar panel installer 

Consider starting a solar panel installation business when exploring eco-friendly business ideas in the trades. Solar energy is a type of renewable energy , and helping households swap to renewable energy sources reduces C02 emissions and our dependence on fossil fuels . 

If you are experienced with electrical installation, you can add the installation of solar panels to your portfolio. You can install solar panels in homes, offices, and environmental organizations.

Energy-saving panels can also help consumers save money on electricity bills . You can also go for certifications that will aid your credibility or consider joining an existing scheme as an apprentice or train up to get you on the way. 

11. Sell used books

Making, selling, and shipping new books contributes significantly to carbon emissions that are harmful to our environment. One of the simpler green business ideas you can start is to sell used books.

Not only will you be doing our planet a favor, but you will also be encouraging the growth of a reading and learning culture. You can open a used bookstore, whether physical or online, and sell used books. 

12. Sell eco-friendly pet products

One of the green business ideas that can bring you a decent amount of profit while protecting the environment is selling eco-friendly pet products . 

American consumers spend billions on their pets every year. This is coupled with a large amount of waste. You can contribute to environmental preservation by selling sustainable products made from upcycled fabrics, bamboo, natural homemade tears, and so on to eco-conscious consumers.

Another related idea is producing and selling your own organic pet food brand, naturally made from more sustainable ingredients than the mass-produced supermarket varieties.   

13. Open an environmentally friendly salon

Many hair salons use toxic chemicals and other disposables, including plastics and paper. 

With thousands of plastics thrown out from hair salons, setting up an environmentally friendly salon goes a long way to reducing waste. 

You can open a beauty salon that focuses on using refillable green products, eco-friendly hair treatment products, zero waste, all-natural shampoos , and spa treatments. You’ll also need to consider ways to use energy and water sustainably.

14. Install energy-efficient appliances 

Revenue in the Smart Home Appliances sector is expected to show an annual growth rate of 14.69% in 2026. Also, the number of active households is projected to grow to 339.6 million users in the same year 5 . With this success, it means that thousands of consumers will prioritize smart tech and will be in search of smart home technicians for proper advice and installation.

Knowing this, you can start a green business as a home technician and help consumers install energy-efficient home appliances, from smart lights, thermostats, sprinklers, etc. You can also sell energy-efficient lighting, such as LED bulbs, and help homes make the switch.

Simply helping households swap to energy-efficient lighting can help your customers save energy and money while creating a worthwhile, sustainable business at the same time.

15. Start an organic catering business

Today, consumers are moving towards sustainable living and are more interested in eating local organically grown foods. Consumers are also moving fast towards vegetarian and vegan meals and eating less meat to help the environment . 

Suppose you love to provide satisfaction to consumers through delicious meals or the idea of chemical-free healthy meals. In that case, one of the best green business ideas you can start is to provide organic catering services to consumers. You can start providing catering services at local events in your community and begin to expand to other locations.

16. Start an eco-friendly cleaning business

Many cleaning products contain toxic chemicals that can be hazardous to families. These cleaning products also come in plastic bottles, which end up as trash in landfills.

Another great eco-friendly business idea you can start is a green cleaning business. Many families are looking to provide a safe, clean, and eco-friendly environment.

You can start your own cleaning company, using only zero-waste cleaning products and implementing sustainable practices in your company. Sustainable cleaning products make a great option to sell to families within your local community. You can use a subscription-based model where your customers can order a refill - some innovators are even delivering refills by bicycles in built-up areas. 

17. Make reusable shopping bags 

Millions of plastic shopping bags are used for grocery shopping in the United States. We all know that plastics have a negative environmental impact, including climate change. 

You can save the planet while earning a profit by making reusable shopping bags made from recycled materials. To give your bags an edge, you want to add special features, including pockets and waterproof eco-friendly fabrics that are durable and stylish. You can sell them at local markets or online on Etsy or similar. 

18. Start repairing and selling bicycles 

Cycling is much more planet-friendly than driving. It has a smaller carbon footprint than driving and even walking. 

With this knowledge, you can repair old bicycles, give them a makeover and sell them on, or service existing ones to extend their life. This encourages more people to buy bikes, reduces carbon emissions, and promotes healthy living.  

19. Refurbish old furniture 

To create modern, stylish, and eco-friendly furniture for consumers, you may consider refurbishing some old furniture. Sadly, thousands of tons of furniture end up in landfills, contributing to waste. 

You can start up a furniture refurbishing business to keep old furniture out of landfills. You will need to set up a workshop, get some tools, and even buy some old pieces of furniture to do up. However, in the long run, an in-demand sustainable furniture brand could do really quite nicely in the long run. 

20. Publish green content  

Do you love creating content on eco-friendly living? This could be a great business opportunity for you. To promote a green lifestyle, we need to create awareness of how people can start the journey constantly. 

You can set up a publishing company with a group of sustainability experts and create and publish content. You can create e-books and magazines on eco-friendly practices and sell them. Check out our list of zero-waste influencers for some inspiration about what others are doing in this space. 

21. Invest in green projects 

Perhaps you're not exactly interested in starting your own green business, but you want to make some impact - and money. You can start investing in green projects. You can turn to green finance. This focuses on supporting local community projects that benefit the community and environment. Green finance also provides educational opportunities and funding projects supporting local ecology. 

You can invest in various environmental causes like climate change and plastic pollution. You are sure to have lots of businesses interested in partnering with you. Furthermore, depending on available funds, you could even partner up and become a green venture capitalist.

22. Sell sustainable construction materials 

Construction can be sustainable. You can run a construction company that makes all the difference on the planet. You can use recyclable materials and employ sustainable methods or champion natural building , both of which reduce waste. Use energy-efficient materials and ensure your construction company has an eco-friendly structure from top to bottom. 

Related: Environmental Impact Of Construction And The Built Environment .

23. Offer green housekeeping services 

Many working-class parents and even individuals may be too busy to clean their homes. You can market yourself as a green housekeeper offering services like cleaning the bathroom and kitchen, sweeping, and dusting. 

We know that many cleaning products contain toxic chemicals that are hazardous to humans and the environment. You can market yourself as a housekeeper using eco-friendly alternatives. Since you will need to go to your client’s homes, you also want to build a trustworthy reputation. 

24. Start a tech recycling business

Many companies use technological hardware for the day-to-day running of their business. With constant use, they get worn out and thrown in landfills. E-waste can take many years to decompose and releases toxic chemicals into the environment. 

Manufacturers produce a massive 50 million tons of electronic waste every year 3 , and sadly, only 20% is recycled. 

You can help reduce electronic waste by giving them a second life. The Environmental Protection Agency (EPA) advises electrical recyclers to get a certification to stand out. 

25. Create a green app

In today's world of technological advancement, creating apps has become much easier. Our final green business idea is designing an app that helps individuals and environmentally conscious businesses adopt a greener lifestyle. What's great is that the green tech and sustainability market is expanding and is projected to grow to $51.09 billion by 2029 2 . 

You can create apps that help reduce food waste , offer tips on the best environmental practices, or design apps that signpost recycling services and options for composting food waste. Whatever your preferred niche, get creative with your app and provide valuable services that help you stand out and your customers achieve a more sustainable lifestyle.  

5 simple steps to starting a sustainable business 

Now that you have more ideas about the different types of eco-friendly businesses you can start, let’s go through a few simple steps to help you get started:

1. Determine your products or services

As with starting any business, the first thing you need to do is determine what your product or service will be. Research the market and look for existing gaps that you can fill. Investigate the competition and find out how to make your product or service. Finding a unique selling point will generate more demand for your eco-friendly product or service and help you differentiate yourself from the competition. 

2. Design a business plan

Once you know what your product or service will be, the next step is to put it into writing. A business plan typically outlines the objectives of a business and how it plans to achieve them. A plan outlining various business aspects will help you gather and structure your thoughts and clarify a roadmap to push forward.

The plan should include details like your company’s analysis, competitor analysis, marketing plan, financial plan, and so on. Further, it should include your plans for environmental sustainability.

3. Register your business

The next step is to register your business. Determine what type of legal structure your business will operate on. Will you be running a non-profit organization? Will it be a partnership or a limited liability company? You also need to figure out how you want to finance your business. Will you be using your savings? Will you need to take out a small business loan or apply for a grant?

4. Acquire your needs

Before launching your business, consider what you need to achieve to prepare. You may need to acquire certified green raw materials/products, hire employees, or partner with experts in your field. You may also need to create a working model or initial prototypes to sell your products or services to customers. Create a marketing and advertising plan, start selling your products, and reach out to potential customers. 

5. Get certified if applicable

Consumers want to be sure you are credible and legitimately green. Consider getting as many certifications as you can. Some of these certifications include:

• Leadership in Energy and Environmental Design (LEED): The LEED certification is mainly for buildings. If your business location comes with sustainable features, you can attain various levels of this certification, including Certified Gold, Silver, and Platinum. 
• USDA Organic Certification: If you grow or process organic food products, you can get a USDA organic certification to boost your credibility. 
• Energy Star: Energy Star is a credible certification for appliances, lightbulbs, and other electronics.

You can look out for as many certification programs that match your products or services.

Kickstart your sustainable business

Now more than ever, our planet needs environment-conscious business owners and consumers. Starting or becoming a sustainable business will not only protect the earth but will also increase your revenue. You can go through our list of eco-friendly companies above for ideas that can make a difference in the business world.

Jen’s a passionate environmentalist and sustainability expert. With a science degree from Babcock University Jen loves applying her research skills to craft editorial that connects with our global changemaker and readership audiences centered around topics including zero waste, sustainability, climate change, and biodiversity.

Elsewhere Jen’s interests include the role that future technology and data have in helping us solve some of the planet’s biggest challenges.

45 Green Business Ideas for Aspiring Entrepreneurs

A green business' commitment to sustainability creates a positive impact in your community while targeting a valuable market gap that allows you to grow.

Ready to start your business? Plans start at $0 + filing fees.

by   LegalZoom staff

Read more...

Updated on: February 12, 2024 · 25 min read

What is a green business?

Green business ideas, first steps to starting a green business.

The entrepreneurial dream is alive and well for many Americans, and more entrepreneurs are embracing the social responsibility of building a business with a desire to make the world a better place. Green businesses are seeing significant market growth and success as 65 percent of Americans want to buy from sustainable brands.

In fact, 61 percent of Millennials say they're even willing to pay more for eco-friendly products. Gen Z follows at 58 percent, indicating that this trend is here to stay. While consumers take responsibility for their own environmental impacts, 52 percent still believe it's manufacturers and businesses who are most responsible for the future of our environment.

With more consumers consciously choosing eco-friendly businesses, let's dive into what makes a business “green" and what steps you can take to start your own sustainable business.

A green business prioritizes sustainability and conservation in their business model. They work to reduce their negative environmental impact as a company and may also support green initiatives through local partnerships and philanthropy.

Some green business options seem obvious, like solar panel installation, which promotes renewable energy and provides a green product. These green products are easy to identify as environmentally-friendly and meet a clear need for sustainability. It's a product that mindful consumers would specifically look to buy to meet their personal sustainability goals.

Other green businesses may not seem inherently eco-friendly, but they choose to prioritize sustainable materials and procedures. For example, a printing company may use recycled paper and solar energy to reduce any negative environmental impacts. Businesses like these can set an intentional standard of sustainability that serves as a key marketing tool when advertising to the majority of consumers who are looking to support sustainability.

Green businesses are vital to repairing and protecting our environment, and they align with a cause consumers care about and want to support. If you're looking to leave your office job and pursue your passion for climate action, we have 40 green business ideas for you to explore.

Support sustainable fashion

Fast fashion is everywhere and generates billions of pounds in textile waste in the U.S. alone. What's worse, only 15% of recyclable textiles are reused. It's an issue that's been gaining attention and consumers have a growing interest in second-hand clothes.

If you have an eye for style, consider opening your own resale shop online or in-store to revive once-loved clothing. There are online services like Shopify that can help you get started. Of course, you can build and market your own site, and some people have found success simply selling on Instagram or other social media marketplaces.

Become a tailor

With the rise of fast fashion, consumers are buying significantly more clothes and keeping them half as long. Custom-made, quality clothing lasts longer and fits correctly, allowing the wearer to get more use out of each garment and increasing the lifecycle of our wardrobes.

Correct fits also mean fewer garments are being returned to retailers to either be re-sold and shipped or disposed of entirely. As a tailor, you can also reduce waste by prioritizing sustainable and ethical fabrics, educating consumers on sustainable fashion, and reducing the waste of ecommerce shipping.

Repair bicycles

Cycling will likely never go out of style, and it's a great way to reduce your carbon footprint and improve your health at the same time. Bicycles can be expensive, like any mode of transportation, and require care and maintenance to stay on the road.

Repairing bicycles is something you can easily start in your garage and build up with an online presence. Once you get started, you may even start collecting vintage bikes to refurbish and resell. While the bicycle dealership industry took a hit during COVID-19, it was growing steadily before the pandemic and will likely continue to grow after the economy stabilizes.

Grow your own food

Direct, local food sales are growing in the U.S. as consumers are looking to support their local producers. Local goods and organic food aren't just great for the economy, but produce much less waste than grocery producers do from packaging, large-scale production, and transportation.

If you have a green thumb, then you can get started with a small garden and a booth at the local farmers market for a couple of hundred dollars. You'll do best if you find a market gap beyond raw produce, like homemade spices and sauces, or canned goods like pickles and jams. These products will also allow you to sell year-round well after the harvest ends.

Launch a native landscaping business

Meticulously manicured grass lawns are a thing of the past and more homeowners are switching to native landscaping. Become an expert on the native plants in your area and their care, then launch an eco-friendly landscaping business to help convert lawns to support biodiversity and protect native habitats.

Additionally, you can help homeowners learn how to care for their lawns efficiently to save water and energy. Some trees and plants may even grow to help them save on their utilities.

Learn local floristry

Similar to catering, you'd be surprised to know how far flowers can travel to wind up in a bouquet! Some plants grow best in tropical environments, or maybe you want summer blooms in March. Either way, these plants require a lot of care to grow around the world and in greenhouses, then require a lot of specialized packaging to ship to your local florist.

Green florists specialize instead in using local and seasonal flowers in their arrangements. This way your flowers are always guaranteed to be available and fresh. Native flowers also support the local ecosystem, as well as supporting local growers. Finally, you'll save a lot of money and reduce carbon emissions with local shipping.

Grow healing tea and herbs

If you don't have the space for a huge garden of fresh produce, you can still grow your own products to sell. Herbs and flowers can grow well in pots, indoors and outdoors. These can be used to create holistic healing products like teas, spices, herbs, and potpourri.

If you're interested in beauty and wellness items, you can also use your homegrown herbs to add holistic properties to your bath salts, soaps, and the like. Not only can you guarantee organic and safe products, but you'll save cash and carbon by growing at home.

Design small-space gardening tools

Plant parenthood is thriving as people are looking to refresh and enliven their homes. This is especially true for renters who want to make their small spaces feel more inviting. The problem is that gardening traditionally takes a lot of space, creating a new market for clever gardening hacks.

You can design the systems and tools people need for their urban jungle relatively easily. Something as simple as a hanging shelf in a window or a modern and chic self-watering pot can maximize on space and decor while meeting the needs of plant parents everywhere.

Open a nursery and deliver plants

If you have a green thumb, you may enjoy opening a local nursery. Here you can specialize in native landscaping plants, flowers, ornamental house plants, or whatever greenery you enjoy most.

You can partner with other local businesses, like florists or landscapers, to sell your plants, or consider selling directly to households. Plants are a booming business right now, and selling gardening supplies with houseplants is a great way to connect with the community.

Keep bees for local honey and home goods

Bees are vital for healthy ecosystems and agriculture, and the best way for you to save the bees is to get your hands dirty. The huge benefit of keeping your own bees isn't just a fresh supply of honey, but the brand new and well-loved business opportunities that come with it.

Keeping bees will produce raw honey and honeycomb, both of which are sellable as is. The plants you grow around your hive may also create specialty honey that can fetch a higher price or stand out in the market. Otherwise, consider using your honey and wax to create moisturizing beauty products and bath bombs.

Create and sell organic beauty products

Organic beauty products are another DIY hobby you can turn into a green business from home to build over time. Brand name products can actually damage your skin and hair with harsh additives including fragrances, alcohol, sulfates, and more. It's why many consumers are making the switch to organic products they can trust.

Not only can removing damaging ingredients benefit the environment, but small-scale production, local sales, and purchasing packaging from ethical printers can boost your sustainability—making organic beauty a great green business.

Start green cleaning

Similar to our beauty products, many of our home cleaners have toxic chemicals that can irritate our families and may be hazardous to store or dispose of. Additionally, cleaning products create a ton of plastic waste as many consumers dispose of the whole bottle after use instead of just replacing the cleaning agent.

Families are looking to keep their homes clean and safe, so producing natural green cleaning products without plastic waste can be a great business opportunity. You can get started as a cleaning company dedicated to using environmentally safe products with minimal waste as a side hustle you can develop over time. You may also want to make your own cleaning products, which you can sell locally or with a subscription-based model.

Upgrade a dry cleaning business

Dry cleaning services have come a long way from what they once were, but still use harmful chemicals and chlorinated solvents . Leaking sewage or improper disposal of these chemicals can pollute the surrounding environment, and poor handling safety can also be harmful to employee health.

Many of these chemicals have safer alternatives available to protect both the environment and employees. A modern and eco-responsible dry cleaning business would prioritize non-toxic chemicals as well as responsible handling and disposal of chemicals and waste. Other green practices may include using recyclable garment bags and exclusively in-house dry cleaning.

Launch a new car wash

A commercial car wash uses about 150 liters of water to wash one car, and that number more than doubles for trucks and buses. The major environmental impact isn't just with the heavy water use, but that the waste water is filled with soaps, oils, and grease that can be harmful to the environment and wildlife when disposed of improperly.

The two best ways a car wash can limit this impact is through controlled water use and proper wastewater disposal. WaterSavers has requirements for eco-friendly partners including backflow prevention, equipment efficiency, and water discharge guidelines. Green car washes can also recycle their used water, reduce their waste of products like paper towels, and maintain restrictions on cars idling in line or in the lot.

Design sustainable household alternatives

Have you ever really considered how much waste is produced in your home? Everyday items like cotton rounds, paper towels, and produce bags can't be recycled and are easily replaced with sustainable alternatives.

Take note of the items around your house and find alternatives you can create and sell. Wax cloth wraps can replace plastic wrap, flannel cotton rounds can be washed, and produce bags can be sewn or woven for reuse. Packaging these sustainable items together is a great way to build your brand and generate sales as gift baskets or starter packs.

Open a second-hand store

Second-hand shops are a great way to reduce waste of everything from furniture to children's toys. You can easily open a store online to start generating revenue and save to open a brick and mortar store, should you prefer. You may also want to specialize in something like refurbished appliances or open a general shop with anything of value.

The big hurdle here is having the means up-front to store and buy products to resell. You could accept donations, but then you have to find sustainable ways to clear out products that aren't of any value to resell.

Refurbish furniture

Nearly 10,000 tons of furniture end up in landfills each year, while another 12 million tons of furniture are created to take its place. Refurbishing old furniture is an ideal way to keep once-loved pieces out of the landfill while giving consumers unique, trendy, and sturdy pieces for their home.

You'll definitely need to invest a bit upfront for this business idea, as you'll need a workshop to store and mend furniture, as well as the revenue to purchase new pieces and tools. However, once you get going, you may find that refurbished furniture can have a much larger return than smaller products.

Plan sustainable events

Event design relies heavily on disposable decor, transportation, and food—all of which can come with heavy environmental costs. Learn the ins and outs of event planning, then study up on how it can be made more sustainable.

Most event planners have a specialty, so figure out if you'd love to design weddings, enjoy lifestyle parties like baby showers, or if you'd rather plan corporate engagements. Each comes with its own specialties to learn and requires different levels of experience to get started.

Build a green catering business

Catering is a go-to for weddings, events, and business meetings, but these events can generate significant food waste and pollution through transportation. Green caterers work to reduce their environmental impact by composting leftovers, serving local and seasonal food, and using reusable linens and dishware.

Provide eco-friendly meal delivery

Similarly, eco-friendly meal delivery services deliver locally produced meals to your doorstep—reducing packaging, cross-country (and sometimes global) shipments, and the waste that comes from unsold produce at the grocery.

Meal kit services are a growing market that's expected to reach $20 billion by 2027. Partnering with local producers and building your brand now may offer huge returns for you in the coming years.

Sell sustainable food

Food production has a massive impact on climate change every step of its production, from the farm to our trash. In fact, animal agriculture alone produces 65 percent of nitrous oxide emissions a year, which has 300 times the global warming potential as carbon dioxide. Once the product is produced, it's then shipped from the farm to distributors, sometimes taking a global journey to finally reach your table.

As an environmentally responsible restaurateur, there's a number of things you can do to reduce your harm. Serving exclusively vegan food can help reduce the environmental harm of raising livestock, and local, organic food can reduce the impact of harmful pesticides and fertilizers . Additionally, proper portions and food inventory management can reduce food waste, while natural lighting and limited hours can reduce your energy consumption.

Compost food waste

Did you know that 80 billion pounds of food are thrown away each year in the U.S.? Grocery stores and restaurants are huge contributors to food waste, throwing away “ugly," old, and unfinished food every day. While much of this food isn't safe for consumption, it can still be used in compost.

Nutrient-rich compost is ideal for gardens and can be produced and used in a variety of ways. As a local composter, you can collect food waste from local businesses and even families to produce different kinds of compost. Not only can you earn cash for pick up and disposal of the food waste, but you can resell your compost to local gardeners and retailers.

Install smart and energy-efficient appliances

The smart home appliances market is anticipated to grow by 14% by 2027, meaning thousands of households will be looking for recommendations and installation for their new tech. While smart tech isn't inherently eco-friendly, most new appliances prioritize energy-efficiency—as do homeowners looking to save on utility costs

As a smart home technician, you can help consumers make smart decisions for their upgraded homes, including installing smart thermostats, lights, and sprinkler systems that can help reduce energy and water costs.

Support renewable energy

Homeowners and businesses are beginning to take matters into their own hands and install renewable energy sources themselves. If you know a thing or two about the industry, then you can get started as a solar panel or wind installer.

In addition to installation, you can offer maintenance, cleaning, and inspection on privately owned renewable energy sources. You may also want to sell the products yourself, or if you have the means, even produce them.

Offer sustainable consulting services

Of course, you don't have to produce your own green products to be a green business. If you're passionate about sustainability best practices, consider instead becoming a green business consultant . This way, you can help a variety of businesses convert their practices to be more eco-conscious and help build the green business boom.

Consider your current experiences and contacts to get started in a niche you know well. Once you build a reputation and more knowledge, you can expand to other local markets that you believe have the potential to go green.

Become a green infopreneur

For those who already have some expertise in sustainability, you may consider becoming an infopreneur. In this case, the product is yourself and the content you create. You can launch a blog, podcast, or YouTube channel to discuss sustainability trends and practices in business.

As long as you have the knowledge, this may be the easiest business to start. Still, it will take a lot of promotion and networking to start generating a profit. Consider starting your business as a side hustle, write an ebook, and start taking up speaking engagements to build your reputation.

Publish green news

If you have a network of sustainability heroes, then you may instead consider becoming a green publisher. This way you can leave a lot of the content creation to others and focus on building your publication's brand.

Your publishing business can go in several directions, from publishing a magazine with subscriptions to e-books that rely on sales. Start by taking into account your connections and personal experiences. Are you best with long-form content? Or maybe you know several working professionals who could produce 1,500-word articles for you. It will be easiest to work with what you have, then grow from there.

Try grant writing and fundraising

If you have nonprofit experience or other knowledge on earning grants and fundraising, then you can become a professional grant writer to help organizations receive funds for sustainability. There are several grants for sustainability research as well as sustainable practices and philanthropy that can help other green businesses excel. The trick is knowing how to write effective proposals, which many small businesses struggle with.

Start sustainable travel planning

Travel comes with huge environmental costs, including fuel used for jets, disposable travel products, pollution from car rentals and rideshares, and more. In fact, one flight across the Atlantic can generate as much Co2 as the average person emits in a year.

If you're a nomad at heart and know a thing or two about responsible travel, help others vacation with little environmental harm by becoming a sustainable travel agent. Here you can advocate for public transportation passes, promote eco-friendly hotels and destinations, and enjoy helping others enjoy a wonderful experience.

Become a green builder

Buildings are known to use a lot of resources during construction and well after they're built. They can also generate a lot of waste through construction and demolition, and they have a direct impact on the surrounding land and environment. In October 2020 alone, construction began on 1.5 million new residential homes, so it's no wonder that sustainable building is in the spotlight.

Nearly every facet of construction can be improved to be more sustainable, from installing Energy Star-rated windows to sourcing the raw building materials. If you're looking to become an independent contractor or a green building consultant, you'll want to get started with green construction certifications . LEED certification is the most well-known, but there are several programs to choose from.

Design eco-friendly kids' toys

It seems that half of the toy aisle is made of brightly colored plastic designed to be thrown away and replaced after a few years. The rules of play are changing, as major toy manufacturers are shifting to reduce packaging and use sustainable plastics.

If you have a passion for play then you may be the perfect candidate to get into the toy business. You can create your own toys with skills like sewing and woodworking. You may even want to invest in a 3D printer to get started. If you're not interested in designing your own toys, consider toy repairs and resale to help old toys spread joy a little further.

Invest in green businesses

If you're not necessarily interested in running the show you may find success as an investor. Every great idea needs financial support and with all of the directions climate activism can go, you'll have plenty of entrepreneurs knocking on your door.

Build green apps and software

There really is an app for everything, but that doesn't mean they're all good. They are easier to build than ever, so consider what needs you can fill with an app. Some apps check the ingredients and ethics of products with just a barcode scan. Others can tell you if your waste belongs in the trash, recycling, or compost. Get creative and consider what aspects of the eco-revolution matter most to you and how you can help

Open a local gift shop

Gift shops may be most well-known for their cheap novelties that will collect dust for a few years before being re-gifted, donated, or even thrown out. You don't have to use this cookie-cutter business model, though. In fact, you shouldn't!

Set out to create a gift shop filled with locally crafted goods people will actually enjoy. Showcase some of your city's best artists, sell locally printed and recycled postcards, and serve snacks from the bakery down the street. Staying local is a great way to build partnerships, promote the authenticity of your gift shop, and keep things green.

Dispose of community trash

Trash needs to go somewhere, and large items like furniture and appliances can be particularly difficult to dispose of. If you have a truck and don't mind a little dirty work, then you can be the person who makes sure community trash is disposed of properly.

While a lot of these items may end up in the landfill, that's much better than being left on the side of the road or in a body of water. Additionally, you'll make connections with local scrappers and recyclers—you can even earn a little extra money taking what is recyclable and repairable to anyone who wants it.

Recycle e-waste

New phones and better TVs debuting every year create a lot of e-waste in the U.S., which isn't just slow to decompose but can also leak toxic chemicals into ecosystems. Many of the raw materials used, like cobalt, also have human rights concerns associated with dangerous mining conditions .

Electronic recycling is vital to protecting our ecosystem and slowing the exhaustion of precious metals used in modern electronics. The toxic nature of some electronics means that it takes special care to be recycled properly, and the EPA has certification recommendations you can complete to build trust and become an electronic recycler.

Fund a co-op

Cooperatives primarily exist in agriculture and real estate, but they can really be applied to most business ventures. Co-ops are businesses that are partially owned by any workers who pay into them or contribute to the labor of maintaining them. They're community-oriented structures designed for equality and sustainability.

While it may not seem like an impressive investment at first, co-ops employ 10% of the world's working population. Additionally, the largest 300 co-ops reported a $2 billion turnover in 2019. Investing in your community cooperatives is a great way to improve the economic and environmental sustainability of your city.

Plan community trails for hiking and more

Someone has to build the thousands of miles of hiking, biking, and recreational trails in the U.S. and it could be you. Parks and recreation departments are always looking for new trails or ways to make current trails more accessible. With some experience in planning and resource management, you can get started building a reputation and earning contracts.

While it may seem destructive, trails help conserve woods and wildlands by giving hikers a safe place to explore without disrupting the local wildlife. Additionally, it makes these lands public green spaces, so they'll be protected and invested in for generations to come.

Produce recycled paper products

Paper cards, posters, RSVPs, and flyers aren't going anywhere soon, and the paper, shipping, and ink used in producing these products can generate a lot of waste. While many printers may use recycled paper, you can take it a step further by prioritizing all sustainable processes.

A huge factor in paper production is tree loss, so consider how you can partner with local organizations like a parks and recreation department to continue planting trees. Additionally, shipping has a huge carbon footprint, so it offers discounts for local consumers who can pick up their products. You can also get creative with your products by reducing any use of plastics and adhesives and even offer seed-bomb printing that is plantable after use.

Open an environmentally conscious salon

Salons use a lot of chemicals and disposable products like paper, foil, and plastics. Open a local salon or spa that prioritizes organic, local, and cruelty-free products, as well as sustainable water use and practices. Even if you're not a cosmetologist, you can partner with passionate professionals to fund and manage the business side of the salon.

Recycle waste into art

One person's trash is another's treasure, especially if you take the time to make something beautiful out of it. If you have a creative side, think of how you can use second-hand goods and waste to create something people will adore.

If you're a painter, try getting used frames and canvases at thrift stores that you can restore and reuse for something brand new. You can also find old vases, furniture, and fabrics you can use to create stunning and unique home decor.

Make your interior design services green

Interior design can be a green business, too. Some fabrics are more sustainably sourced than others, as are types of furniture, electronics, and appliances. Even the color you paint your walls can affect your energy costs by changing how well a room is lit.

Most people aren't experts on ethical companies and how different fabrics are sourced, which is why they hire responsible interior designers they can trust. Get to know the big brands in your space, as well as the local retailers and producers you can trust, and enjoy designing!

Keep your photography sustainable

Photographers sometimes have to travel huge distances for events, weddings, and scenic shots that can add up to a large carbon footprint. Additionally, studios can use a lot of energy to maintain their lighting, and staged photos may require crew travel, wardrobe purchases, and shipping, as well as decor, plastic, and paper waste in setting the scene.

Keeping your photography local is the best way to reduce the impact of travel in your photography. If you still travel, prioritize public transportation like trains and buses where possible. In planning your sets, try to take advantage of natural or low-energy lighting, and stay mindful of your printing processes to reduce waste and improper chemical disposal when applicable.

Create eco-friendly pet products

Pet products are filled with plastics that can wind up in our landfills and water systems. Consider how many plastic doggy bags, chew toys, balls, and treat bags our furry friends go through, then compare that with the thousands of dogs, cats, and other pet pals that live in the U.S. alone.

Americans spent $95 billion on their pets in 2019, so it's a good investment when done well. Your eco-friendly pet products can be anything from organic and safe shampoos and colognes, to natural and waste-free chews and treats.

Refurbish electronics

While some electronics are beyond repair and should be recycled, many others can be refurbished and resold. Household appliances may get fancier, but they don't often get better, so used appliances are a great deal for many households.

Other items like computers and video game systems may get upgrades every couple of years, but they're also mobile and more prone to damage than a lot of electronics. This creates a great market for repairs. Even when the next generation comes out, some people will still be looking for a good deal on an older device.

Define your product or service

As with any business venture, your first step is to find a clear market gap that you can fill. Even if there are other local businesses that meet these needs, brainstorm ways that you can do it better or differently. The more unique your product or service, the more demand you can generate.

Build a business plan

Once you have a vision for your business, you'll need to start putting it all together in a business plan . The business plan includes details like your own company analysis, a competitor analysis, and specifics on how you'll get started funding and promoting your business.

Register and fund your business

Next, you'll begin laying the foundation that will help you actualize your business. This includes obtaining any business licenses or certifications you need, establishing an LLC , and pitching your idea to investors.

While this is a general outline of how to get started, building a business requires a lot of paperwork, planning, and time to succeed. Registering your business, drafting contracts, and securing funding are all legal processes that can become costly quickly. Once you know you want to start a business, we can help you figure out what you need to start your business journey. Then, we'll continue to offer business and legal services every step of the way.

Sources: CGS | EPA | BLS | The Atlantic | Lumi

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• Entrepreneurs

10 green business models: innovative ways to go green

• Green business

Did you know that? According to the 2022 edition of the National Footprint and Biocapacity Accounts the mother Earth now requires one year and eight months to regenerate what humans consume in a year. This means that humans are consuming Earth’s resources faster than they are being reproduced. Excessive unsustainable consumption and production effects planet Earth’s carrying capacity, resulting in resource scarcity, environmental degradation, and economic loss. 

As per report total annual demand for human consumption of raw materials have surpassed 100 billion tons in 2021. If unsustainable business continues constantly by 2060 then the global extraction of natural resources will increase 110 percent . The unsustainable businesses are constantly keeping pressure on the limited resources of Earth. 

It becomes now essential for businesses to replace their conventional business models with green business models to maintain sustainable production and a healthy environment. To build a green economy, produce green, and save green, businesses must have to adopt sustainable development and green production innovations like green business models or sustainable business models. 

Green business models are sustainable enough to maintain equilibrium between resource availability and demand of the current and future market and to regenerate what the Earth has lost from unsustainable business practices. Therefore, being mindful of the importance of green business models to the economy, environment, and society businesses now have to think and understand how these sustainable business models work and benefit their companies.

A green business model is a key to sustainable development

Governments, businesses, and development agencies all over the world are now recognizing that businesses that operate on the principles of green business models compete more in the market, attract investors and have the potential to meet sustainable developmental goals while developing a green economy.  

Green business models are sustainable business models that aim to achieve environmental stewardship. Green business models concentrate on the stages of product development, design, and distribution because they have a direct impact on the environment. During manufacturing processes, raw materials, power, fuel, water , and various chemicals are utilized. As a result, greenhouse gases, wastewater, and other wastes are released into the environment. These business activities cause environmental impacts such as global warming, climate change, and natural resource depletion. Therefore, the Green business model ensures environmental pollution control by reusing and recycling post-consumption products. 

Companies and the private sector is recognizing that green business models can be a source of innovation that can assist businesses to become more competitive by either developing sustainable products or providing services based on green and clean technology. These sustainable business models provide green services and various benefits for the companies and hence becoming the essential principles of modern-day businesses. 

Ten Green business models essential for green businesses

A study revealed that 70 percent of global emissions are emitted by 100 business companies . Now is the time for businesses to adopt green business models to limit global greenhouse gas emissions and reduce their carbon footprint. Green business models provide sustainable steps for companies to reduce carbon in their supply chains. 

Naturalist and ecologist ‘Sir- David Attenborough’ said in his speech at Cop 26 that, “No nation has completed its development because no advanced nation is yet sustainable.” There are no specific or clearly defined green business models; however, no business can be declared as green business or sustainable unless it adheres to the green business models. 

It becomes now essential that to run a green business , companies must practice the following main green business models or sustainable business models. 

Green businesses must ensure the presence of these main green business models:

• Green product design.
• Green efficient and localized production.
• Product service systems.
• Prosumers and co-creation. 
• Consumer choice influencing.
• Collaborative consumption.
• Waste as a resource.
• Green supply chain management.
• Closed-loop.
• Organic and Biodegradable production.

1 – Green product design

The materials that are used to design the product can cause a direct impact on the environment, and eco-conscious consumers. Green product design is an eco-friendly approach of the green business model to address the environmental impacts of the product in the early stages of development to reduce the adverse environmental impacts throughout the product’s life cycle. 

Designing and delivering products while utilizing sustainability, and fewer resources are more resource-efficient during the consumption phase and recycling phase at the end. 

2 – Green efficient and localized production

Green efficient, eco-friendly, and production from local resources is a sustainable way to development. This green business model emphasized green efficiency and localized production and aims to promote green businesses in the local communities while adding value to the local resources. 

The utilization of local resources in the production cycle means that products are produced in a high resource-efficient manner with minimum negative environmental and social impacts. 

3 – Product service systems

A product with quality service can satisfy customers’ needs and demands, increase customer loyalty, and mitigate the risk and cost of overhauling faulty products. Such product plus service and/or warranty bundle is a customer-centric and eco-friendly model which aims to provide efficient and quality product services leading to the happier clients, less waste, and less adverse environmental impacts. 

Product service systems focus more on the efficient function of a product rather than the physical product itself, that’s why it’s attracting more customers. 

 4 – Prosumers and co-creation 

This green business model work on two different concepts. Prosumers are individuals who not only consume resources but produce as well. Co-creation in business is a symbiotic relationship where stakeholders, customers, and experts share innovative business ideas to value each other. 

When a large number of prosumers collaboratively create in the market then sustainable and innovative services arrive at the market. These sustainable business models also tend to utilize local resources to contribute to the green economy. 

5 – Consumer choice influencing

Eco-conscious consumers don’t prefer products that cause adverse impacts on the environment. This business model analyses consumer behavior and consumer choices of products, utilizing this model, green companies determine which green products and services are in demand. 

Companies interact with customers to raise the importance of sustainable production and consumption to boost the green economy and meet the supply and demand for green products.

6 – Collaborative consumption

Green business models strive for collaborative consumption to achieve the common goal of sustainable development and emit fewer greenhouse gases. The shared use of green products and services provides various benefits to both the environment and a large number of green consumers. It lowers the cost of purchasing new goods. 

Customers in collaborative consumption do not have to spend money on buying new products. Sharing more and buying less contribute to a sustainable lifestyle and reduce waste. 

 7 – Waste as a resource

A conventional business model is based on ‘open loop systems’ that extract raw materials to produce products, then use them and discard them as waste, as a result, produce waste and affect the environment. This green business model utilizes waste as a resource to make new products rather than disposing of it as waste. 

The concept of this business model encourages companies to use waste as a valuable resource to contribute to the green economy. Companies can achieve their zero waste target by applying this model. 

8 – Green supply chain management

The concept of this green business model refers to the integration of sustainable production processes into conventional supply chain management. This model ensures the utilization of clean and green raw materials in product development, product design, and product delivery. 

The objective of green supply chain management is to reduce the environmental impacts of waste by incorporating green processes into product design. 

9 – Closed-loop 

Under this green business model circular economy is generated through closed-loop systems. Companies focus more on their supply chain to reduce waste in the production processes. Companies reuse the disposed of products over and over again to make new products and ensure that no material is wasted. 

This model reduces the extraction of new resources and shows sustainable processes for companies to conserve nature and reduce their carbon footprint. More companies are working now on this model. 

 10 – Organic and biodegradable production

Demand for organic food and biodegradable products is increasing in the global market because consumers are now more conscious about their health and the environment. Consumers prefer food and products which has no health and environmental impacts.

This green business model fulfills the demand and supply of organic and biodegradable products and services by growing more green businesses and thus contributing to in green economy and sustainable development. 

Green business models are ethical business models

Ethical considerations are very important both in linear and sustainable business models. Traditional business models merely focus on the benefit of business owners while drawing adverse environmental and societal impacts. However, green or sustainable business models are ethical business models which do not compromise on the environment, and through their sustainable practices provide value to companies, shareholders, and society. 

Business activities can cause direct and indirect negative impacts on the environment. Ethical requirements for the green businesses are the principles on which green businesses work, such as green supply chain, reusing, recycling, emergency plan, health and safety of employees, net-zero waste, and eco-friendly production.

Further reading:

Latest  tips and advice for green businesses

Our fresh list of 100+  green business ideas

Interviews  with green business owners.

Check out our  resources library .

Author : Saqib Ali holds a BS in Environmental Science from Bahria University, Islamabad. He is an Environmentalist, Naturalist, and freelance content writer passionate about Environmental management systems, Sustainable development, Climate change, Natural resource management, Eco-tourism, Green building, Wildlife and conservation, and Disaster risk management.

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How To Write a Green Business Plan That Stands Out

Having a green business plan is mission-critical to your company's success in the global green economic revolution that has leaped in less than a decade to trillions of dollars in annual revenues. Business success is now being determined by  a company's ability to sell solutions that align value with values .

This article begins a two-part series on how to write a green business plan that will win customers, successfully recruit millennial generation work associates and attract investors.

The green business plan

Addressing the issue of sustainability is a mega-trend change in business plan writing. Oil is just the most current example of commodity price "unsustainability" that is disrupting stock prices and business success. Supply chain disruption is now a business norm caused by weather events made more intense by global warming. Every business plan must outline the sustainability of its supply chain and the company's best practices.

Your business plan must address the millennial generation's use of social media postings  in deciding what to buy and where to work based on a company's social responsibility. Never forget while writing your business plan that "we are all naked." A company's business plan must be authentic in its representation of its facts. It must be genuine in outlining the company's social responsibility (CSR) positions on issues important to the millennial generation like climate change, product safety and labor practices.

If your business sells to other businesses, then your business plan must articulate how it will operate within corporate America’s greening of their supply chain. Corporate America has embraced net-zero waste management . Corporate America is not only measuring its emissions but also the emissions of its supply chain.

Today's successful business plans define a strategy for winning competitive bids not only on price but also on a company's ability to align with corporate America's green supply chain bid criteria.

The elevator speech

The requirement to be both succinct and engaging also applies to the design of a business plan. An elevator speech is the time-condensed messaging of your business plan. It is what you would tell an investor, a potential key human resources candidate or a customer to spark them to say yes to a next meeting. It should be one to three sentences in length, take 15 to 30 seconds to say and generate an interested response.

But an elevator speech should be more than short. It should be compelling. It should paint an engaging vision. That is why I approach writing a business plan by first writing the elevator speech. If I can identify the engaging passion of the business, then writing a business plan becomes the process of validating the vision's authenticity and business potential.

Crafting a compelling elevator speech is the hardest part of drafting a business plan. The challenge is how to say in just three sentences or less all the things about your business that you think are critical to engaging an investor, work associate or potential customer. The answer is: You cannot.

The mission of the elevator speech is to create an interested response. Active venture capitalists, angel investors and bankers see ten or more deal proposals per day. Talented work associates have multiple job opportunities. Today’s customers are jaundiced from all the product pitches they receive. The challenge is to get their attention on your opportunity.

Here are a couple of one-sentence statements that are recognized by financial professionals as being effective in succinctly stating a business opportunity :

For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that provides instant access to over 1.1 million books . For upscale American families, Volvo is the family automobile that offers maximum safety.

Five steps to writing an elevator speech

With your sizzle defined, then the format for writing your elevator speech should include these five steps:

• Begin by identifying the target customer
• State the opportunity
• Provide the company’s name
• Identify the product category
• Conclude with a statement of benefit

Tomorrow: How to format a green business plan

Bill Roth is an economist and the Founder of Earth 2017 . He coaches business owners and leaders on proven best practices in pricing, marketing and operations that make money and create a positive difference. His book, The Secret Green Sauce , profiles business case studies of pioneering best practices that are proven to win customers and grow product revenues. Follow him on Twitter: @earth2017

Bill Roth is a cleantech business pioneer having led teams that developed the first hydrogen fueled Prius and a utility scale, non-thermal solar power plant. Using his CEO and senior officer experiences, Roth has coached hundreds of CEOs and business owners on how to develop and implement projects that win customers and cut costs while reducing environmental impacts. As a professional economist, Roth has written numerous books including his best selling The Secret Green Sauce (available on Amazon) that profiles proven sustainable best practices in pricing, marketing and operations. His most recent book, The Boomer Generation Diet (available on Amazon) profiles his humorous personal story on how he used sustainable best practices to lose 40 pounds and still enjoy Happy Hour!

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Transition to a green economy: key benefits & risks for businesses

The transition to a green economy signifies a shift towards sustainable practices that prioritize environmental preservation and resource efficiency. In this blog, we will explore the concept of transitioning to a green economy, its benefits, risks, and the specific considerations involved in company transition. Additionally, we will delve into the progress and advantages of the green economy in the EU, highlighting the region's proactive approach to sustainable development. 

Read this blog to understand the green economy transition approach and its implications for businesses.

What is transition to a green economy?

The transition to a green economy entails redefining economic models and policies to ensure environmental sustainability while fostering economic growth and social well-being. It involves adopting practices that minimize carbon emissions, promote resource conservation, and encourage renewable energy sources. The green economy transition approach aims to create a harmonious balance between economic development and ecological preservation.

Benefits of the transition to a green economy

The benefits of a green economy are compelling and far-reaching. Firstly, it offers environmental benefits by mitigating climate change, preserving ecosystems, and safeguarding biodiversity. By reducing reliance on fossil fuels and embracing renewable energy sources, we can reduce carbon emissions and minimize the ecological footprint, creating a healthier planet for future generations.

From an economic perspective, the transition to a green economy presents significant advantages. It drives innovation and fosters the development of sustainable technologies and practices, which in turn creates new employment opportunities. Green sectors such as renewable energy, eco-friendly construction, and waste management contribute to job creation, economic growth, and long-term prosperity.

Moreover, transitioning to a green economy promotes resource efficiency and cost savings for businesses. Implementing energy-efficient technologies, adopting sustainable supply chain practices, and optimizing resource utilization can lead to reduced operational expenses. By minimizing waste, optimizing energy consumption, and embracing circular economy principles, companies can achieve substantial cost savings while also enhancing their competitiveness.

Risks in transitioning to a green economy

While the benefits of transitioning to a green economy are significant, it is essential to acknowledge and manage the associated risks. There are some risks for a company transitioning to a green economy, such as high upfront costs for adopting sustainable technologies, retraining employees, or retrofitting existing infrastructure. It requires careful planning, strategic decision-making, and financial investments to overcome these initial barriers. Additionally, transitioning towards a green economy is a long term solution and thus it is important to recognize that sustainable policies and investments often require time before they yield profitable returns. A prime example is the development of renewable energy infrastructure. Constructing wind farms, solar power plants, and hydroelectric facilities demands significant upfront investments and planning. However, over time, as these projects become operational and start generating clean energy, they gradually become financially viable and provide substantial returns on investment. 

Additionally, businesses must navigate potential regulatory risks. As governments implement policies and regulations to drive the green transition, companies must stay abreast of changing compliance requirements. Non-compliance can lead to penalties, fines, and reputational damage. By proactively aligning with environmental regulations and actively participating in sustainability initiatives, companies can mitigate regulatory risks and demonstrate their commitment to responsible business practices.

Company transition to a green economy: the path to success

It is critical to understand what is a company’s transition to a green economy really like. The transition to a green economy is not only a global necessity but also a strategic opportunity for businesses. Company transition involves incorporating sustainability into core strategies, supply chains, and operations. By integrating green practices, companies can enhance their brand image, attract environmentally conscious customers, and differentiate themselves in the market.

Furthermore, transitioning to a green economy improves operational efficiency by optimizing resource usage, reducing waste, and embracing renewable energy. These efforts lead to cost savings, enhanced profitability, and increased resilience to fluctuating resource prices.

Green economy in the EU: a model of progress and benefits

The European Union has been at the forefront of the green economy transition approach, with a strong commitment to sustainable development. The region has made significant progress in renewable energy adoption, energy efficiency measures, and circular economy practices. The green economy in the EU has not only limited environmental impacts but has also enhanced energy security by reducing dependence on fossil fuel imports. This transition has led to improved air quality, public health, and overall well-being of the people.

Moreover, when thinking about the benefits of a green economy in the EU, we can see that the region has been positioned as a global leader in sustainable innovation and technology. European companies have developed groundbreaking solutions in renewable energy, energy storage, sustainable mobility, and circular economy practices. By fostering a supportive ecosystem for green businesses, the EU has created opportunities for collaboration, research, and development, driving economic growth and competitiveness.

To fully harness the benefits of the green economy transition, businesses and policymakers need to work hand in hand. Governments can provide supportive policies, incentives, and funding to facilitate the transition and reduce risks for companies. This can include tax incentives, grants, and subsidies for green investments, as well as regulatory frameworks that promote sustainable practices.

For businesses, a successful transition to a green economy requires a comprehensive strategy that encompasses sustainable practices, stakeholder engagement, and continuous innovation. This involves conducting thorough assessments of current operations, setting ambitious sustainability goals, and investing in research and development of green technologies. Collaboration with suppliers, customers, and industry peers is essential to drive collective action and create a sustainable value chain.

Furthermore, businesses should consider the integration of sustainable principles throughout their operations. This includes sustainable sourcing of materials, energy-efficient manufacturing processes, waste reduction and recycling, and responsible supply chain management. By adopting a holistic approach to sustainability, companies can achieve long-term viability and resilience in an evolving green economy.

The role of sustainability reporting in the transition to a green economy 

In addition to the strategies and considerations mentioned above, sustainability reporting plays a vital role in facilitating a successful green transition for companies. Sustainability reporting provides a framework for businesses to measure, monitor, and communicate their environmental, social, and governance (ESG) performance to stakeholders.

By implementing robust sustainability reporting practices, companies can gain a comprehensive understanding of their current environmental impacts, resource consumption, and social responsibilities. This insight enables them to identify areas for improvement, set ambitious targets, and track progress over time. Transparency in reporting allows stakeholders, including investors, customers, employees, and communities, to assess a company's commitment to sustainability and make informed decisions.

Sustainability reporting also promotes accountability and drives continuous improvement. By disclosing ESG information, companies can demonstrate their commitment to responsible practices and showcase their efforts in reducing environmental footprints, promoting social equity, and ensuring good governance. This not only enhances trust and credibility but also attracts socially responsible investors and environmentally conscious customers.

Furthermore, sustainability reporting provides a platform for companies to share best practices, lessons learned, and innovative solutions. It fosters collaboration among industry peers and encourages knowledge-sharing to accelerate the green transition collectively. By openly sharing successes and challenges, companies can inspire others, drive sector-wide improvements, and contribute to the broader goal of a sustainable future.

In the context of transitioning to a green economy, sustainability reporting becomes a valuable tool for companies to communicate their efforts in aligning with sustainability goals, reducing environmental impacts, and embracing sustainable business practices. It helps businesses showcase their contributions to the green economy and their commitment to long-term environmental stewardship. Additionally, sustainability reporting enables companies to respond to increasing demands for transparency and accountability from investors, regulators, and consumers who prioritize sustainable practices.

Thus, sustainability reporting serves as a crucial component of a company's green transition journey. It provides a structured framework to measure and communicate environmental, social, and governance performance, driving accountability, transparency, and continuous improvement. By incorporating sustainability reporting practices, businesses can effectively navigate the complexities of the green economy transition, gain stakeholder trust, and contribute to a sustainable future.

In conclusion, the transition to a green economy brings numerous benefits for businesses, society, and the environment. The shift towards sustainable practices not only mitigates environmental impacts but also drives economic growth, job creation, and innovation. While there are risks and challenges associated with the transition, proactive companies can mitigate these risks through strategic planning, regulatory compliance, and stakeholder engagement. At the same time, it is essential for policy makers to work substantially to create frameworks that encourage businesses to work towards a more sustainable future.

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How To Start Green and Eco-friendly Business [PLAN]

Green business startup guide.

A green business has to do with the environment; a business that is environmentally friendly and useful.

In writing a green business plan , not knowing how to go about it or not having a sample to use as a guide can be a waste of time and effort. Therefore, this post will be focusing on a typical green and eco-friendly business and the business plan of the business will be written for people to use as a sample and guide in writing theirs.

Having a business plan is very important for businesses that wants to make impact in its industry. Therefore, you as a business owner should be ready to spend time and resources on writing a business plan.

Since, it is expected that you already have knowledge of the business you are going into then I will start directly with the business plan.

• HAZARDOUS WASTE DISPOSAL BUSINESS PLAN
• E-WASTE RECYCLING BUSINESS PLAN
• WASTE MANAGEMENT BUSINESS PLAN
• SOLAR FARM BUSINESS PLAN
• SOLAR PANEL BUSINESS BUSINESS PLAN

BUSINESS TYPE: Tyre Recycling Plant BUSINESS NAME: Caddy and Paddy Tyre Recycling

TABLE OF CONTENT

• Business Overview

Executive Summary

Vision Statement

Mission Statement

Business Structure

Target Market

Tyre recycling business includes companies that deal with recycling tyres and rubbers which has become an integral and important part of the society due to its social and economic impact on the society and has also the role it plays in preserving the future of our world. Not recycling used tyres for use as raw materials in making new tyres or other products can constitute nuisance in the society hence the importance of this business.

Basically, this business has to do with collecting, separating, sorting, and processing used tyres to make raw materials which are sold to make money.

The tyre recycling business also include transfer stations where waste are transferred from local vehicles to long distance automobiles that transfer the tyres to the facilities where they are recycled.

Several studies have shown that the United States generate lots of income from recycling used tyres every year and this constitutes the largest source of rubber waste in the country.

This is a type of business that will continue to benefit from the growing interest of the public in the recycling industry and also the demand for this industry will be driven by business creation, privatization and population growth. The business will continue to grow in all parts of the world even though it will be higher in some countries than others.

Caddy and Paddy Tyre Recycling is a standardized and licensed recycling company based in the United States which deals majorly with recycling used tyres and rubber waste. A well located and positioned facility in the outskirts of Atlanta, Georgia has been secured for this business.

Caddy and Paddy Tyre Recycling is in this business to contribute its quota in saving the world and also to compete highly with other recycling companies in the whole of United States and not only in Georgia. Our goal is to become the best tyre recycling company in the United States.

The business might engage in recycling other used materials apart from used tyres in the nearest future but for now will be focusing on recycling used tyres. The company has secured all permits and licenses required to be a waste collection company in the United States.

The company is determined to obey all rules and regulations guiding the tyre recycling industry, hire well trained and competent drivers with their commercial drivers’ license to drive the waste trucks.

In this business, the interest of the clients will always come first and everything the company does will be guided by professional values and ethics.

Caddy and Paddy Tyre Recycling is a private business owned by Engineer Ben Williams and his friend and business partner, Sean Lee. and his immediate family.

The vision of Caddy and Paddy Tyre Recycling is to become a tyre recycling company that is one of the preferred choices of customers whether individuals or organizations when demanding for one in Atlanta, Georgia and in the whole of the United States.

Caddy and Paddy Tyre Recycling’s mission is to provide the best and most excellent service to our clients and also to ensure competence from our employees and the company as a whole. Also, Caddy and Paddy Tyre Recycling is passionate in pursuing excellence and financial success and also to make a positive mark.

Business Services

This company is mainly established with the aim of making profits in the tyre recycling industry. The company has put in place a competent and reliable team to compete favorably with the leading tyre recycling business in the United States. Below are the services that will be offered by Caddy and Paddy Tyre Recycling:

• Operating facilities for separating and sorting used and condemned tires for recycling
• Operating facilities for separating and sorting rubber waste for recycling
• Sale of raw materials to shoe manufacturers, artists, builders and parks et al
• Sale of recycled and refurbished used tires and other related products

The company’s business structure will be designed in a way that both full time and part time employees will be accommodated. The business will be started with several full time employees including waste truck drivers, office staff, professional cleaners and so on.

We will ensure that competent, qualified, hardworking, customer centric and creative employees are hired that will help build a successful business that will benefit all stakeholders. Also, we will ensure that our employees are chosen from a group of certified, professional and highly experienced recycling engineers in and around Georgia.

All employees will be taken through trainings that will make them meet the expectations of the business and also contribute toward its success.

The business structure of the company is as follows:

• Chief Executive Officer
• Head, Technical Services
• Human Resources and Admin Manager
• Sales and Marketing Executive
• Plant Engineers / Technicians and Operators
• Client Service Executive
• Truck Drivers

Research has shown that there are a wide range of people and organizations that cannot dispose or recycle their tyres without hiring the services of tyre recycling companies like this. Therefore, we will ensure that we develop strong and strategic pacts with household, corporate organizations, etc. so we can have several options to generate income for the company.

Therefore, the company will mainly focus on the following as their target market:

• Tires manufacturing companies
• Automobile manufacturing companies
• Shoes and flip flops manufacturers
• Roofing and construction companies
• Chemical manufacturing companies
• Manufacturers and Distributors
• Entrepreneurs and Start – Ups who would need recycled raw materials from us.

Looking at the business plan written above and using it as a sample in writing a business plan for your green and eco-friendly business will give you a very good outcome.

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Editor's note: We will soon be updating our policy comparisons and case studies to include our 12 newest countries: Germany , Serbia , South Korea , USA , Ethiopia , Australia , Spain , Italy , Nigeria , Turkey , Indonesia , Japan .

Any sustainable economy needs every business to be engaged on green issues. There are many policies that can support more sustainable business, but one of the most promising globally is linking business performance with the UN Sustainable Development Goals (SDGs) through an SDG business strategy .

Integrating SDGs into business policy is an area of real weakness for most of the 20 countries surveyed, with 3-in-4 having very limited or no initiatives to speak of. Despite broad acceptance and awareness of the SDGs and growing private sector engagement at a voluntary level, a handful of countries are doing more than basic awareness raising.

Even countries that championed the SDGs through their creation and ratification, such as the UK and Canada , have done little to encourage domestic businesses to help achieve them. Some, including Mongolia and China , have produced frameworks for business sustainability, but specific links with the SDGs are relatively weak. Only Sweden has taken the assertive step of requiring corporations to make annual sustainability reporting consistent with the SDG framework.

It is important that business identifies what the SDG opportunities are, mobilises the required capital and invests in the innovations that are necessary for sustained and more inclusive growth.

Joanne Yawitch National Business Initiative - South Africa; speaking at the Responsible Business Forum on Sustainable Development in 2017

About this policy

The SDGs are a roadmap of 17 targets towards a fairer, greener future – for example, ‘ Zero Hunger ’, ‘ Gender Equality ’, and ‘ Clean Water and Sanitation ’. Although the goals were agreed at the government level, achieving them will require real engagement and ambition from the private sector and individual businesses. Many multinational businesses are already report voluntarily on their contributions to the SDGs, but governments can provide guidance via a clear strategy that provides a common framework for businesses to define, and be rewarded for, how they contribute to the goals.

Through the SDGs were signed in 2015, polices for engaging the private sector have been slow to emerge. The weakest approaches give no clear SDG guidance to businesses at all. Basic policies include government programmes to raise awareness of how businesses can play a role in meeting the goals, while more robust policies encourage or require businesses to report on how their activities contribute towards the different SDGs. The strongest approaches integrate the SDGs into mandatory corporate reporting and provide incentives for businesses to take more ambitious action to achieve the goals

Policy Description

Promote a national strategy that rewards businesses and organisations who are taking action to achieve the UN Sustainable Development Goals.

Scoring Criteria

• An effective national SDG strategy including strong incentives for businesses who report contributions to delivering the SDGs.
• National SDG reporting tools for businesses; high-quality guidance or support for private sector SDG delivery.
• Some tools for voluntary business engagement with SDGs, e.g. best practice guides or web platforms.
• Limited national initiatives promoting private sector involvement with SDG implementation.
• No national initiatives, or very weak initiatives, for businesses to engage with SDGs.

More ambitious?

SDG stress testing & environmental solvency review as part of mandatory corporate reporting.

Case Study: China

China’s domestic industries have a large environmental footprint, spurring government interest in greener manufacturing and energy efficiency. Within China these regulatory and policy changes have not been aligned clearly with an SDG framework, but internationally there is more progress. Working with UN Development Programme, in 2017 Chinese authorities reviewed how Chinese enterprises involved in the Belt and Road Initiative (BRI) can mainstream SDG delivery into investment and infrastructure programmes.

Case Study: Sweden

The Swedish approach to sustainable business has updated existing corporate social responsibility policies to align with the SDGs. Large companies (250+) employees are required to report on their environmental performance, strengthening requirements at European Union level. With the launch of the SDGs, Sweden also developed guidance on a clearer ‘industrial policy for sustainable business’ covering eighty different measures, impacting all sectors, and integrating additional metrics such as the UN Guiding Principles on Business and Human Rights .

• Asia Pacific
• Latin America
• Middle East & Africa
• North America
• Australia & New Zealand

Mainland China

• Hong Kong SAR, China
• Philippines
• Taiwan, China
• Channel Islands
• Netherlands
• Switzerland
• United Kingdom
• Saudi Arabia
• South Africa
• United Arab Emirates
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From startups to legacy brands, you're making your mark. We're here to help.

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• Institutional Investors We put our long-tenured investment teams on the line to earn the trust of institutional investors.
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Where is sustainability headed in 2024?

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Renewable Energy

Sustainable Financing

Learn more about our Green Economy Banking team

Efforts to advance decarbonization across the globe remain in the early stages—providing an enormous opportunity for green-minded companies to innovate and make a difference. We expect sustainability to remain a priority for business leaders and policymakers in 2024. As we work with the companies navigating this transition, we’re excited to share some of the key renewable energy, sustainable finance and climate tech trends we anticipate for the year ahead.

This first edition of our new quarterly roundup also celebrates four of the companies that closed meaningful transactions in 2023 supporting continued energy transition. In addition, we want to be sure you’ve seen the valuable thought leadership our experts have produced to educate, inspire and advance the energy transition.

Visit our homepage to learn more about our Green Economy Banking team and how we can help support your business. We look forward to working with you.

Head of Green Economy Banking, JPMorgan Chase Commercial Banking, North America

Outlook 2024: What trends to watch

We asked leaders across the firm to share what’s top of mind for the green economy in 2024.

Climate technologies 

We could see efforts toward the energy transition accelerate again in 2024—and some major new technology projects come online. 

• We’re watching to see how much progress technologies such as carbon capture, hydrogen and sustainable aviation fuel will make toward commercialization or large-scale deployment, and whether private capital will be available to support the subsequent raises necessary to support growth plans. 
• Green shoots in infrastructure, such as charging networks and hydrogen hubs, could enable widespread adoption of novel technologies. 
• Watch for a utility-scale pilot of liquid metal batteries, one of several emerging battery storage technologies supporting the decarbonization of the electricity grid.
• Consumer-oriented businesses may face continued challenges. Sectors that rely on consumer spending, including food tech, ag tech (farming) and mobility, could see valuations slip as they go back to the capital markets.
• Capital expenditure intensity will likely increase year over year as more companies receive access to Department of Energy Loan Programs Office capital for manufacturing and demonstration projects. This could present opportunities for commercial banks to lend alongside non-dilutive financing.
• Venture debt will likely rally as founders look to bolster their balance sheets on the back of capital raises to brace for potentially longer runways, a result of capital constraints.

Project finance and tax equity 

In 2024, U.S. tax equity could be the single most important financing market for the energy transition in the world. J.P. Morgan teams will be watching developments around tax credit transfers, technological eligibility and tax equity bridge loans very closely. 

• Demand for traditional tax equity from renewable energy projects will likely continue to outstrip supply, creating opportunities for corporates to purchase tax credits either directly from the developers or from tax equity partnerships.
• We’re watching corporates’ participation in the tax credit transfer market. We expect more will participate and the demand for tax credits from investment-grade sponsors will be robust. 
• The development of the tax credit transfer market is likely to encourage project finance banks to provide bridge loans without committed tax equity to help ease the funding gap in project development.
• Renewables growth continues to be concentrated in utility-scale solar and battery-storage projects.
• Expect some large-scale energy manufacturing projects, such as battery and solar component production, and green hydrogen projects to reach financial close and start construction.
• We will closely track the formation of green and blue ammonia demand centers in East Asia and Europe—and what it means for production in the U.S., Middle East, India and Australia. 
• The convergence of decarbonization and deglobalization trends will likely accelerate the formation of joint ventures and mega projects in the U.S.—not only in renewable energy generation, but also across energy transition manufacturing, carbon capture and hydrogen technologies.
• We’re watching the lender market appetite, which has historically been robust. Given U.S. banking conditions and the volume of capital overseas lenders have already deployed, there’s potential for a tighter senior debt market.

Capital raising and markets

We continue to monitor the evolution of the broader macroeconomic and equity capital markets environment, which provides a relatively challenging backdrop for the sector with a resetting of investor expectations and market valuations.

• Despite the challenges associated with transitioning the world to carbon neutrality, we continue to see lots of opportunities in the space, with a growing volume of private capital pouring in and increasing government support.
• We’re curious how fallen SPACs and smaller public companies will trade in 2024. Time will tell whether they can find an avenue to demonstrate access to capital or if they’ll be acquired by larger strategics. 
• We’re projecting a continuation of flight to quality for venture capital equity deployment in 2024, where top-tier portfolio companies could attract the lion’s share of dry powder remaining in VC funds. Reserves are increasing for top portfolio companies.
• IB activity likely will be highly centered around equity premium puzzles as Series B companies and beyond rely less on their board of directors to lead rounds of equity.
• The 2024 election cycle could impact renewable investments. Depending on campaign trail rhetoric and poll results, investors may start to fear potential changes to the Inflation Reduction Act.

ESG and operational sustainability 

We’re closely monitoring how public policy may impact low-carbon investment, either directly, like the Basel III Endgame, or indirectly, like the climate disclosure rules expected from the SEC and the European Union’s Corporate Sustainability Due Diligence Directive.

• As concerns grow around greenwashing, ESG litigation and regulatory scrutiny, the quality and transparency of ESG data continues to be a focus area for lenders and their clients.
• There is enhanced focus on sustainability reporting requirements with the introduction of the EU Corporate Sustainability Reporting Directive (CSRD) . It took effect in 2023 and will create more reporting requirements for U.S.-based companies with European operations.
• We’re following public sector support in creating industry standards within the voluntary carbon market (VCM) and consolidating protocol and methodology, such as U.S. Department of Energy procurement principles on carbon dioxide removal (CDR).
• Momentum will build toward both mandatory and voluntary emissions reporting, increasing data transparency and helping the firm to better engage with clients and vendors.
• We are closely following initiatives to define transition finance, which should support scaling up financing for the low-carbon energy transition, especially in hard-to-abate sectors.

We’re also increasingly finding ways to use our entire platform to help remove bottlenecks to real economy transition.

• Scaling low-carbon finance for emerging markets and developing economies is a growing focus area. In 2024, we hope to stay close to any developments in that area, particularly with regard to multilateral development bank reform and blended finance, and workforce development—helping to make sure we have enough trained workers to build and maintain the low-carbon infrastructure needed.
• We’re tracking the evolution of the VCM and growth of climate-related technologies, including momentum in all carbon removal pathways, such as  DAC, BECCS, BiCRS, ERW and ocean removals. We anticipate an increase in innovative finance structure for CDR projects, both engineered and nature-based.
• We expect increased viability of sustainable aviation fuel (SAF) credits and potentially other book and claim credits for Scope 1 and 3 emissions.
• Technology solutions will continue to advance, improving data availability and resolution and the ability to measure and forecast carbon reduction strategies. 

Client highlights

While 2024 holds exciting potential, the future is here for many of our clients, who are already making a difference.

First Solar

J.P. Morgan is proud to support First Solar’s efforts to accelerate the transition to a low-carbon economy and advance long-term clean energy solutions.

Leading the world’s sustainable energy future

First Solar is a leading American solar technology company and global provider of responsibly produced eco-efficient solar modules advancing the fight against climate change.

J.P. Morgan is proud to serve as Lead Arranger and Administrative Agent on First Solar’s new $1 billion Revolving Credit Facility.

We are proud to support OPAL Fuels’ efforts to advance the clean energy transition in support of renewable energy for transportation, utilities, EV charging, and hydrogen fuel solutions.

Investing in solutions for a low-carbon future

OPAL Fuels is a fully integrated, nationwide leader in the production and distribution of low-carbon-intensity renewable natural gas (RNG), delivering a scalable, low-cost solution to decarbonize heavy-duty transportation and other industrial markets.

J.P. Morgan is proud to be OPAL Fuels’ joint lead arranger.

Our team supports WAEV’s mission to develop more sustainable, future-focused solutions and commitment to overcoming barriers in EV adoption.

Energizing forward motion

WAEV is an electric mobility provider dedicated to solving the mobility market’s challenges with nimble innovation and comprehensive solutions.

J.P. Morgan is proud to provide capital to advance decarbonization and grow local economies.

Enlight Renewable Energy Ltd (ENLT) , and its U.S. subsidiary Clēnera , are leading the way in developing large, high-performing solar and battery projects across the Western United States. Our team is proud to serve companies that are advancing decarbonization across the globe through innovative business and technology solutions.

Supporting a new era of clean energy

Clēnera is a leading utility-scale solar and storage developer using breakthrough technologies to connect and shape the future of communities.

J.P. Morgan is proud to serve as a joint lead arranger on Clēnera’s 360MWdc Atrisco Solar project financing.

Scaling sustainability starts with facts, fresh ways of thinking and new frameworks. Explore our latest reports, videos, podcasts and more for valuable perspectives that affect your business.

• 2023 JPMorgan Chase Climate Report
• 2023 Carbon Compass SM Methodology
• Eye on the Market 13th Annual Energy Paper
• 2022 JPMorgan Chase Environmental Social Governance Report
• Unpacked: ESG investing
• Unpacked: Energy transition
• Unpacked: Green bonds
• What’s the Deal? | How can sustainable finance make a global impact?
• What’s the Deal? | The power of clean technology: A conversation with Marc Borrett
• What’s the Deal? | U.S. Inflation Reduction Act: Mobilizing for an opportunity of a lifetime
• Research Recap | Why is China’s electric vehicle industry on the rise?

Other resources

• 7 essentials of ESG
• It’s time to solve the energy transition’s project development problem
• Reflecting on our approach to sustainability with JPMorgan Chase’s Jackie Lyons and GreenBiz’s Katie Ryan
• Green financing with Fannie Mae and Freddie Mac
• Building sustainability into our new headquarters

Contact the Green Economy Banking team to learn more about the ways we can help your company achieve its goals. 

Contributors

• Heather Zichal , Global Head of Sustainability , JPMorgan Chase
• Brian DiMarino , Deputy Director of Global Sustainability, J.P. Morgan Chase
• Rubiao Song , Head of Energy Tax Equity Investments, J.P. Morgan
• Zachary Gross , Managing Director, Climate Tech Investment Banking, J.P. Morgan
• Eric Cohen , Head of Green Economy Banking , JPMorgan Chase Commercial Banking, North America
• Thibaud De Maria , Head of Green Economy Banking, JPMorgan Commercial Banking, EMEA
• Kelly Belcher , Head of Climate Tech, JPMorgan Chase Commercial Banking, North America
• Fuat Savas , Co-Head of Infrastructure Finance and Advisory, J.P. Morgan
• André Abadie , Managing Director, Center for Carbon Transition , J.P. Morgan

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Green economy

Related sdgs, promote sustained, inclusive and sustainable ....

Description

Publications.

Sustainable development has been the overarching goal of the international community since the UN Conference on Environment and Development (UNCED) in 1992. Amongst numerous commitments, the Conference called upon governments to develop national strategies for sustainable development, incorporating policy measures outlined in the Rio Declaration and Agenda 21. Despite the efforts of many governments around the world to implement such strategies as well as international cooperation to support national governments, there are continuing concerns over global economic and environmental developments in many countries. These have been intensified by recent prolonged global energy, food and financial crises, and underscored by continued warnings from global scientists that society is transgressing a number of planetary boundaries or ecological limits.

With governments today seeking effective ways to lead their nations out of these related crises whilst also taking into account these planetary boundaries, green economy (in its various forms) has been proposed as a means for catalysing renewed national policy development and international cooperation and support for sustainable development. The concept has received significant international attention over the past few years as a tool to address the 2008 financial crisis as well as one of two themes for the 2012 UN Conference on Sustainable Development (Rio+20). This has resulted in a rapidly expanding literature including new publications on green economy from a variety of influential international organisations, national governments, think tanks, experts, non-government organisations and others.

Governments agreed at Rio+20 to frame the green economy as an important tool for sustainable development; one that is inclusive and can drive economic growth, employment, and poverty eradication, whilst maintaining the healthy functioning of the Earth’s ecosystems. Importantly, the outcome document also recognises that capacity building, information exchange and experience sharing will be critical for implementing green economy policies.

Recent initiatives on green economy or green growth by the United Nations Environment Program (UNEP) , the UN Department of Economic and Social Affairs (UNDESA), the United Nations Conference on Trade and Development (UNCTAD), the International Labour Organisation (ILO), the World Bank, the Organisation for Economic Cooperation and Development (OECD), the Global Green Growth Institute (GGGI), the Partnership for Action on Green Economy (PAGE) , the Green Growth Knowledge Platform (GGKP) the Green Economy Coalition https://www.greeneconomycoalition.org, Stakeholder Forum, the Green Growth Leaders and many others have begun to address these knowledge gaps and demystify these concepts.

Importantly, there is also emerging practice in the design and implementation of national green economy strategies by both developed and developing countries across most regions, including Africa, Latin America, the Asia-Pacific and Europe. This emerging practice can help to provide some important insights and much-needed clarity regarding the types of green economy policy measures, their scope with regard to various sectors and national priorities, and their institutional barriers, risks and implementation costs. This international experience (https://sustainabledevelopment.un.org/index.php?menu=1501) may serve to alleviate concerns regarding the effective integration of green economy policies with national economic and social priorities and objectives, that a transition to a greener and more inclusive economy offers for advancing the 2030 Agenda for Sustainable Development and its Sustainable Development Goals SDGs.

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The Global Green Economy Index: GGEI 2014 - Measuring National Performance in the Green Economy

This 4th edition of the GGEI is an in-depth look at how 60 countries perform in the global green economy, as well as how expert practitioners rank this performance. Like many indices, the GGEI is a communications tool, signaling to policy makers, international organizations, the private sector and c...

Green Productivity Commitment

Over 320 policymakers, senior officials from relevant ministries and government agencies, and consultants involved in Green Productivity (GP) convened in Taipei, 4–6 November 2014. Seventy-five Asian Productivity Organization (APO) members representing 19 countries from across the Asia-Pacific regio...

SIDS Partnerships Briefs - Sustainable Economic Development

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Energy For People - Centered Sustainable Development

Whether viewed from a social, environmental or economic perspective, the energy sector presents a fundamental challenge standing in the way of sustainable development. Both within and among countries, high levels of inequality persist in access to, and consumption of, energy. Environmentally, expand...

Voluntary Commitments and Partnerships for Sustainable Development - a special edition of the SD in Action Newsletter

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A Guidebook to the Green Economy Issue 4: A guide to international green economy initiatives

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Indonesia: Low Carbon Development Options for Indonesia

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58th Session of the Commission for Social Development – CSocD58

Bridging the implementation gap for rio+20 workshop and open side event to the high-level political forum on sustainable development.

The overall theme/question addressed by the session is “How can green economy approaches help reduce poverty, inequality, and vulnerabilities while ensuring environmental sustainability?” The sessions are highlighting multi-benefit opportunities across the energy, food and water nexus. Drawing from

Blue Economy Summit

The goal of the meeting is to discuss how to utilise the Blue Economy as a tool to shift development in small island development states (SIDS) and coastal states towards a sustainable development trajectory building on the Rio+20 consensus. Noting that the Blue Economy, founded in line with the con

Rio+20: From Outcome to Action: Partnering for Action on Green Economy

This event, organized in conjunction with the EMG Senior Officials meeting, is intended to provide an informal platform for governments, UN agencies, donors and other stakeholders to share national experiences on recent initiatives and developments towards green economy promotion in the context of s

United Nations Conference on Sustainable Development, Rio+20

The United Nations Conference on Sustainable Development (UNCSD) was organized in pursuance of General Assembly resolution 64/236 (A/RES/64/236). The Conference took place in Brazil from 20 to 22 June 2012 to mark the 20th anniversary of the 1992 United Nations Conference on Environment and Developm

MSI+5 (2010): Five-year review of the Mauritius Strategy of Implementation

• January 2012 Future We Want (Chap. 3) Member States acknowledge, in the Future We Want, the different approaches, visions, models and tools available to each country, in accordance with their national circumstances and priorities, to achieve sustainable development in its three dimensions. Green economy is considered as one of the important tools available for achieving sustainable development.
• January 1992 Agenda 21 "As main outcome of the UN Earth Summit held in Rio in 1992, Agenda 21 calls for a global partnership able to address the problems of the present and prepare the International Community for the challenges of the upcoming century. Bearing in mind the perpetuation of disparities laying between and within nations, the worsening of poverty, hunger, ill health and illiteracy, and the continuing deterioration of the ecosystems on which humanity depends for their well-being, Agenda 21 identifies integration of environment and development concerns and greater attention to them as leading factors for the fulfilment of basic needs, improved living standards for all, better protected and managed ecosystems."

Green Action Plan for SMEs – Turning environmental challenges into business opportunities

The Green Action Plan (GAP), adopted in July 2014, aims to help small and medium-sized enterprises (SMEs) take advantage of the opportunities offered by the transition to a green economy.

The GAP is expected to:

• Resource Efficiency improvements; and
• circular economy’s potential for Productivity, Competitiveness and Business opportunities.
• the COSME, Horizon 2020 and LIFE programmes
• the European Structural and Investment Funds.

GAP sets out a series of objectives and corresponding actions which can be grouped in five thematic areas:

• Greening SMEs for more competitiveness and sustainability

GAP aims at improving resource efficiency in SMEs with a view to both reducing production costs and increasing productivity gains. Better use of resources within the EU industry is expected to lead to an estimated overall savings of €630 billion per year. Relevant GAP activities focus on the provision of information, advice and support to SMEs, the facilitation of access to finance and the improvement of technology transfer mechanisms.

• Green entrepreneurship for the companies of the future

The green economy transition process, including (among others) actions promoting resource efficient solutions and preventing environmental damage, offers a range of new business opportunities for enterprises opting to enter the environmental goods and services market. GAP strives to provide SMEs with an enabling business environment in which green ideas can be easily developed, financed and brought to the market. Relevant activities focus on the promotion of eco-innovation, including through eco-innovation clusters, and the facilitation of business partnering and of skills and knowledge exchange.

• Opportunities for SMEs in a greener value chain

Circular economy activities like re-manufacturing, repair, maintenance, recycling and eco-design, may become the new drivers of economic growth and job creation, alongside their key role in addressing environmental challenges. An enabling environment is once again crucial for SMEs and entrepreneurs to successfully engage in greener value chains. Relevant GAP activities focus on addressing barriers to green value chain collaboration, promoting new green business models, e.g. based on resource efficiency, the reuse of materials and/or waste, and supporting cross-sector cooperation for circular economy.

• Access to the markets for green SMEs

Opportunities for European SMEs with green expertise to gain access to new markets have great potential to be further materialised, in line with the EU’s international commitments in areas such as climate change cooperation and neighbourhood policies. The fact that almost 9 out of 10 SMEs sell their green technologies, products or services in national markets only, is a clear indication of the need for a more supportive framework and more international cooperation, if EU SMEs are to be successfully integrated into global value chains. Relevant GAP activities focus on promoting a greener internal market, facilitating the uptake of green technology in partner countries, and enabling access to international markets.

GAP has earned wide support by EU Member State administrations and SME stakeholders, including in consultations on the future of SME policy and in meetings with the Network of SME Envoys and business organisations. Governance ensures monitoring and updating of the actions supporting SMEs, as well as coordination, cooperation and best practices exchange at European, national and regional level. It involves a GAP Task Force, an Inter-Service Group, the Network of SME envoys, and the EcoAP High Level Working Group, with relevant activities being documented in the GAP implementation report .

The Green Action Plan complements the Green Employment Initiative, which proposes a roadmap for supporting green jobs creation across the EU, and the Circular Economy Action Plan .

“1 in 8 employees in SME’s were found to have a ‘green job’, i.e. 13% of all SME jobs in Europe, when in large EU businesses, only 1 in 33 jobs were classified as ‘green’”

Flash Eurobarometer 426 (2015)

INTERNATIONAL DIMENSION

Links with EU partner countries

• GAP promotes a greener European internal market , setting relevant standards for products and services:

European Standardization Organizations are encouraged to consider circular economy objectives in the creation of standards, thus continuing the European Commission’s previous efforts to integrate environmental aspects into European standardization.

• the establishment of European Strategic Cluster Partnerships (through the European Cluster Collaboration Platform ) encouraging alliances between clusters from different sectors, including green technologies and eco-innovation, with a view to developing a joint strategy for internationalisation.
• the financial instruments under COSME, which support SMEs’ internationalisation by promoting their cross-border development.
• GAP also facilitates the uptake of resource efficiency technology in partner countries through cooperation with European SMEs:

The Low Carbon Business Action provides technical assistance for the establishment of Cooperation Partnerships between EU businesses, clusters, businesses and other counterparts in middle income countries (match-making), and for the elaboration of joint bankable proposals.

Implementing the EU Green Action Plan for SMEs

Key implementation achievements include:

• A new guidebook on  “Improving Resource Efficiency in SMEs” (Volume 10 – Guidebook Series – How to support SME Policy from Structural Funds)  has been published (September 2016).
• A Staff Working Document on “ Best practices on Renewable Energy Self-consumption ” has been presented (July 2015). The document examines saving potentials from self-consumption for residential and commercial users; underlines the role of self-consumption as a driver for flexibility in the electricity markets including storage; and identifies best practices concerning grid tariffs and support schemes.
• The internal  technology transfer database  of the  Enterprise Europe Network  has been revised in cooperation with EEN sector groups.
• The  Access to finance portal  has been updated and improved with information on how businesses can access the new EU financial instruments (2014-2020). The Portal includes direct links to the NCFF facility in each country.
• A Network of eco-innovation investment, called  INNEON , has been established (June 2014), aiming to extend public and private funding sources available for eco-innovation and social innovation in Europe and provide a forum dedicated to the interaction between a select cohort of innovators and relevant investors. It has successfully attracted a considerable number of innovators/entrepreneurs and investors as active members and already closed successful deals.
• A new tool, the  Environmental Technology Verification  (ETV), has been established to help innovative environmental technologies reach the market, providing verification by qualified third parties (Verification Bodies) to claims about the performance of innovative environmental technologies.
• The  European Environmental Citizen’s Organisation for Standardisation  (ECOS) has been supported by the EC to represent environmental interest in standardisation activities of the European standardisation bodies.
• A  European Cluster Collaboration Platform  has been created, offering both virtual facilities (dynamic mapping of profiled cluster organisations worldwide; information on the European Strategic Cluster Partnerships; “marketplace” for exchange of offers and demands; “gateways” as organizations supporting SMEs internationalisation processes; profiled cluster-related projects developed under various European programmes) and live activities, like cluster matchmaking events to be organized in Europe and beyond.

The EU Green Action Plan for SMEs in practice

• Enterprise Europe Network: Hunting Hazardous Waste in Bulgaria
• Enterprise Europe Network: German Eco-friendly water treatment thrives in Austria
• Low Carbon Business Action Brazil

More information

Factsheets:

• SBA country factsheets
• SBA EU28 factsheet

Disclaimer:

This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of the consortium implementing the SWITCH to Green facility (led by sequa gGmbH with GFA Consulting and Pracsis) and can in no way be taken to reflect the views of the European Union.

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Economic Benefits of Green Infrastructure

• Environmental Benefits
• Social Benefits

Reduce Wastewater Infrastructure Costs. Green infrastructure that increases infiltration or reuses captured water on site can lead to cost savings in communities with combined sewer systems . Reducing the amount of stormwater entering combined sewer systems decreases the volume of stormwater that must be treated at a wastewater treatment facility. Reducing runoff volumes with green infrastructure can also reduce the amount and size of piped infrastructure needed to convey stormwater to a wastewater treatment facility in a combined sewer system.

Improves Neighborhood Values. Open green space, parks, vegetation, and landscaping provide environmental and social benefits to residents and help create neighborhoods that are desirable places to live. Using green infrastructure creates attractive and resilient neighborhoods, which in turn can increase nearby property values. A study by the University of Wisconsin–Milwaukee Center for Economic Development indicates that “a recreational rooftop garden increased property values by about 11 percent.” 1 Other studies have shown that green infrastructure did not directly increase property values. 2

Visit EPA’s Equitable Green Infrastructure page to learn more about strategies that prevent green gentrification and displacement of residents who live in rental properties.

EPA resources:

• Ecosystem Services at Superfund Sites: Reuse and Benefit to the Community (pdf)

Other resources:

• The Center for Neighborhood Technology, Green Stormwater Infrastructure: Impact on Property Values (pdf)
• Natural Resources Defense Council, The Green Edge: How Commercial Property Investment in Green Infrastructure Creates Value (pdf)
• EPA Study on Property Values in Omaha, NE

More Green Jobs. Green infrastructure design, installation, and maintenance activities support jobs and career opportunities for people with all levels of education and work experience. For example, 52 percent of green infrastructure workers in Pennsylvania earn more than $31,200 annually (i.e., $15 per hour), even without a high school diploma or equivalent. 3 The potential for green infrastructure job growth is substantial, especially when stormwater requirements and funding sources are in place. From 2011 to 2019, Pennsylvania’s green infrastructure jobs grew by 9.2 percent, and during that same time, Pennsylvania had 6.3 percent growth across all occupations statewide. 4

• Growing New Jobs with Green Infrastructure Webcast
• Green for All, American Rivers, Staying Green and Growing Jobs: Green Infrastructure Operations and Maintenance as Career Pathway Stepping Stones (pdf)

Reduce Flood Damage Costs. Green infrastructure can lessen the impacts of flood damage to properties and infrastructure. Localized flooding (due to overwhelmed drainage systems during heavy rainfall) and riverine flooding (river flows exceeding the capacity of the river channel) could both become more frequent and intense from climate change and severe weather. In areas impacted by localized flooding, green infrastructure can be used to absorb stormwater and reduce surface flow, pooling, and seepage, all of which can cause property damage. In areas impacted by riverine flooding, green infrastructure, open space preservation, and floodplain management can complement gray infrastructure approaches and reduce the extent of flood damage from channel overflows.

• Flood Loss Avoidance Benefits of Green Infrastructure for Stormwater Management (pdf)
• ECONorthwest, The Economics of Low-Impact Development: A Literature Review
• NOAA, A Guide to Assessing Green Infrastructure Costs and Benefits for Flood Reduction

1 Madison, C. (2013). Impact of green infrastructure on property values within the Milwaukee Metropolitan Sewerage District Planning Area. Center for Economic Development Publications , 16. 2 Hoover, F.A., J.I. Price, M.E. Hopton (2020). Examining the effects of green infrastructure on residential sales prices in Omaha, Nebraska . 3 Sustainable Business Network (2021). Green Stormwater Infrastructure (GSI): A Tool for Economic Recovery and Growth in Pennsylvania (pdf) . 4 Sustainable Business Network (2021). Green Stormwater Infrastructure (GSI): A Tool for Economic Recovery and Growth in Pennsylvania (pdf) .

• Green Infrastructure Home
• Types of Green Infrastructure
• Economic Benefits
• Green Infrastructure Planning, Design, & Implementation
• Using Green Infrastructure to Address Clean Water Act Requirements
• EPA Green Infrastructure Resources
• Climate Resiliency & Green Infrastructure
• Collaborate for Green Infrastructure

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Soaring sausage sales could indicate economic turmoil as consumers turn away from costlier meats

Sausage is approximately $6 cheaper than beefsteak, according to the bureau of labor statistics.

More Americans buying sausage as a cheaper meat alternative

Policy analyst at John Locke Foundation's Center for Food, Power, and Life Kelly Lester on how an increase in sausage purchases indicates a struggling economy as the pork product emerges as a cheaper meat alternative.

As American families battle the impact of rampant inflation, more are resorting to buying sausage as a meat alternative to cut back on consumer spending. 

This, however, has some experts worried that the modest growth of sausage sales is indicative of deeper-rooted economic turmoil as the price of necessities continues to climb. 

"People at the end of the day are trading down right now," Kelly Lester, a policy analyst for the Center for Food, Power & Life at the John Locke Foundation told "Fox & Friends" on Thursday. "Budgets are strained and people are really feeling the effects of the last few years of inflation when it comes to the grocery store."

HARRIS BLAMES CORPORATE GREED FOR HIGH PRICES, BUT SOME ECONOMISTS DISAGREE

A meat counter shows a variety of sausage at a Fred Meyer grocery store, a sub of Kroger, in Palmer, Alaska. (Michael Siluk/UCG/Universal Images Group via Getty Images / Getty Images)

The Texas Manufacturing Outlet Survey released a report this week indicating the climb in sausage sales can be considered an indication that the economy is struggling more than consumers realize. 

"We are seeing modest growth in our category of dinner sausage, as sausage is a good protein substitute for higher-priced proteins and can 'stretch' consumers' food budgets ," the report read. 

According to the Bureau of Labor Statistics, sausage is approximately $6 cheaper than beefsteak, providing struggling consumers with a cheaper option. The average price of both sausage and beefsteak has climbed consistently since 2020. 

Lester argued that because costs continue to climb, consumers have to make trade-offs to stretch their budgets further. But because they are making those trade-offs, companies and the agricultural industry have and will continue to suffer. 

US PRODUCER PRICES RISE LESS THAN EXPECTED IN JULY  

Kamala Harris' economic plan will create housing and food shortages: Jeff Sica

Circle Squared Alternative Investments founder Jeff Sica explains the risks of rent control and price caps on 'Varney & Co.'

"The reality right now is that everything is up across the board: housing prices, energy prices and food prices," Lester said. "The basic necessities are up, and they've been up cumulatively for years now. And even though the Biden administration will tell you inflation is going down, that doesn't mean that we're still not feeling the effects of the last few years."

"So this means that... companies aren't going to be receiving as much revenue, which could lead to a downward spiral that could lead to more layoffs and higher prices," she continued. 

Lester also sounded the alarm on how government regulation, supply chain issues and soaring input costs are prompting panic for many farmers nationwide. Those issues are causing food prices to rise and farmers are struggling to make ends meet. 

This will devastate hundreds of farmers and the entire economic system: Frank Vandersloot

Melaleuca founder and executive chairman Frank Vandersloot discusses how Idaho temporarily paused water use compliance inspections for farmers on ‘The Bottom Line.’

"At the end of the day, farmers… it's really one of the main industries in which you have to put up collateral in order to get a loan and hope that you get yield that can make up for that loan and hopefully turn a profit," Lester said. 

"And right now, small [and] mid-size farmers aren't turning any type of profit… they're having a really hard time, and they're struggling." 

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Scaling green businesses: Next moves for leaders

The transition to net zero is well underway, but it is not happening fast enough. Growth in key climate technologies, including wind and solar power and electric vehicles (EVs), has helped accelerate decarbonization efforts worldwide. Solutions such as green hydrogen and long-duration energy storage (LDES) are becoming available and, if scaled, could reduce global emissions even further. But the pace of scaling these technologies has not kept up with projections for a warming planet. Governments and companies have done an admirable job developing and deploying climate technologies to date, but a significant acceleration is required to meet net-zero targets—and stave off the most dire effects of climate change.

About the authors

This article is a collaborative effort by Rob Bland , Laura Corb , Anna Granskog , Tomas Nauclér , and Giulia Siccardo , representing views from McKinsey’s Sustainability Practice.

Last year, we released a framework  for launching and scaling green businesses, based on our work with both incumbents and start-ups. 1 See Rob Bland, Anna Granskog, and Tomas Nauclér, “ Accelerating toward net zero: The green business building opportunity ,” McKinsey, June 14, 2022. A few of the key actions include leading with game-changing ambition, signing up captive demand before scaling, and building capacity with parallel scaling. In the interim, as the economic and geopolitical backdrop has changed, market dynamics for green business builders have shifted in both nuanced and fundamental ways. On the one hand, capital markets and public-sector institutions have started to galvanize behind green investments. Policy, including the Green Deal Industrial Plan in Europe and the Inflation Reduction Act (IRA) in the United States, promises to support companies looking to scale climate technologies. At the same time, inflation, economic uncertainty, and the invasion of Ukraine have all complicated the path to net zero .

Three areas have emerged that should now be priorities for those navigating the challenges and seeking opportunities: building up supply chains (often through cross-sector partnerships), proactively addressing an emerging skills gap, and exploring different avenues for financing and investments. 

Many of the unique challenges to scaling green businesses remain—high capital expenditures on physical assets (compared with building digital businesses), higher short-term costs, and customer education and adoption barriers for many sustainable products. However, the urgency to reach net-zero targets has only grown in many markets, and the industrial economy is now being reinvented around a lower-carbon energy system , circular-economy practices , and other emerging models. Companies that can innovate and scale during these fast-moving, uncertain times could set themselves up for exponential growth. Our analysis shows that growing demand for net-zero offerings could generate $9 trillion to $12 trillion of annual sales by 2030 across 11 value pools, including transport, power, and consumer goods.

In this article, we lay out the evolving landscape for scaling climate technologies and explore three areas of potential action for green business builders.

A significant scaling gap

More than 4,000 companies have set or are in the process of committing to emissions reductions 2 “Companies taking action,” Science Based Targets, accessed February 22, 2023. and 70-plus countries have set net-zero targets. 3 “For a livable climate: Net-zero commitments must be backed by credible action,” United Nations, accessed February 22, 2023. How quickly would key climate technologies need to scale to help meet such goals?

To arrive at projections, we conducted an analysis of the current growth trajectory for climate tech relative to current net-zero commitments. Based on our analysis, even mature technologies—including wind and solar power—would need to scale by a factor of six to 14 times faster to remain on track for a 1.5° pathway by 2030 (exhibit). 4 Based on the McKinsey 1.5°C achieved commitments scenario, which represents existing commitments from companies and policies from countries. To conduct this analysis, we estimated the current trajectory of supply of key climate technologies (based on current activity) across four categories of maturity: mature, early adoption, demonstrated at industrial scale, precommercial; factored in current emissions-reductions commitments from countries and governments; and assessed the supply of these technologies that would be required by 2030 to stay on track for a 1.5° pathway.

Historically, growth in solar and wind has often outpaced projections, and new players entering the market (oil and gas companies, private equity players, and institutional investors, for example) show signs that the current pace of deployment could speed up. 5 “ Renewable-energy development in a net-zero world ,” McKinsey, October 28, 2022. Nevertheless, the potential gap for renewables to meet net-zero targets looks steep.

Climate technologies that are high-potential but relatively less advanced in their commercialization (compared with renewables) would need to scale at an even greater rate. Consider hydrogen. Our analysis indicates that supply of green hydrogen, which is produced with renewables, would need to grow by a factor of 200 times.

Next moves for green business builders

Seven actions for scaling green businesses.

Through our work with organizations that have built and scaled green businesses successfully, we have identified seven key principles . This framework is a way for leaders to navigate both the opportunities and risks involved in scaling climate technologies—and potentially set their companies up for significant growth. There is no one right combination of these factors, and most existing players have combined several of these elements.

Lead with game-changing ambition. Effective green business builders tend to set their sights on creating something significant from the start. Game-changing ambition may mean aspiring to produce a zero-carbon product at a competitive cost (which enables a competitive price), compared with a less sustainable alternative, and scaling new capacity fast.

Accelerate to the point of cost advantage. Building a business around a clean technology may require analyzing different technological pathways, including some technology options that are not yet commercialized. When analyzing a new technology, leaders must understand the scale break point for cost competitiveness, to reach lower unit costs faster and potentially be competitive on price from the start.

Sign up captive demand before scaling. Successful green business builders often set up demand with a strong commercial plan prior to expanding, to reduce risk. One way of accomplishing this is through purchase agreements. For example, Swedish battery manufacturer Northvolt signed a supply agreement with BMW. 1 “BMW Group signs long-term supply agreement for battery cells with Northvolt,” Northvolt, July 13, 2020.

Build capacity with parallel scaling. To reach scale-up goals, the ability to drive several investments or market introductions in a limited time frame is key. We’ve seen leaders “parallelize the scaling” from the start—that is, initiate additional growth waves before they complete the first one. One approach is scaling through partnerships in the value chain. For example, investing in production capacity in a company’s home region while finding a partner to deploy the same technology in another. Or coinvesting in expanding manufacturing capacity with suppliers.

Proactively create business ecosystems. As we explore in the accompanying article, scaling most climate technologies won’t happen by companies “going it alone.” Achieving scale requires coordination among governments and regulatory bodies, investment and financing institutions, incumbent players, and disruptive innovators. Finding the right scaling partners along the value chain—partners that have a similar strategic interest—is key. And coalitions dedicated to scaling access, cost-effectiveness, and supply across green ecosystems are a must for transitioning to a green future.

Lead on sustainable operations, through ambitious targets, innovation, and partnerships. Successful green business builders are leaders in how their operations minimize carbon emissions and other environmental impacts. Sustainable operations start from the beginning—designing with low-carbon inputs (green materials), implementing low-emissions processes (circularity), and controlling for emissions through the value chain. Supply chains for some key materials (lithium, for example) could be in high demand. Solidifying a sustainable, resilient, and cost-effective supply chain is therefore important.

Dedicate recruiting resources early in the process. As we cover in the accompanying article, the range of skills required to scale successful green businesses can be wide—and in an especially tight labor market, scarce. Green business builders can invest early in building their talent base, project the needed skill sets for the future workforce, dedicate resources to upskilling and new capabilities, and create the technical infrastructure to enable superior talent performance.

Scaling climate technologies often requires companies to think and act in bold and innovative ways. While our seven actions for scaling green businesses hold true, they continue to evolve (for a summary of the original framework, see sidebar, “Seven actions for scaling green businesses”). Economic uncertainty, inflation, new public funding, technological risks, and supply chain considerations have altered the landscape for green business building.

Actions that have become particularly important for organizations during these volatile times include creatively developing supply chains (including through partnerships), proactively addressing emerging skills gaps in the workforce, and exploring new avenues for financing and investment.

Build up the supply chain through cross-sector partnerships

Green business building efforts are often supply chain building efforts. For hydrogen-powered vehicles to scale and help decarbonize long-haul freight transport , for example, a supply of hydrogen and hydrogen infrastructure also needs to scale. We are increasingly seeing green business builders develop their supply chains by forging partnerships across sectors and, in some cases, creating a growth strategy with complementary players as collaborators. These partnerships are getting a boost from major climate legislation packages in the United States and the European Union. For example, the IRA in the United States allocates $369 billion for climate and energy spending, 6 Inflation Reduction Act of 2022, H.R. 5376, 117th Congr. (2022). with a focus on ventures that address critical gaps in the North American supply chain. These collaborations happen upstream, downstream, or horizontally in the value chain.

Upstream partnerships are operational partnerships that propel vertical integration. They occur when a company partners far upstream to secure critical supply of a product or service. In one example, the Volkswagen Group announced a joint venture with Umicore, 7 “PowerCo and Umicore establish joint venture for European battery materials production,” Volkswagen Group, September 26, 2022. a circular-materials technology company, to boost the supply of low-carbon battery materials. The collaborators aim to scale capacity to meet demand for 2.2 million EVs per year. Such a partnership could not only help fortify the supply chain for battery recycling, it could also help solidify demand for players across the EV and energy storage value chains (charging infrastructure, grid storage markets) and help reduce commercial risk for investors. In another example of a large-scale upstream partnership, Dow Chemical and Mura Technology, an advanced-recycling company, announced they will pair up to construct multiple recycling facilities for plastics that could add up to 600 kilotons of capacity by 2030. 8 “Dow and Mura Technology announce largest commitment of its kind to scale advanced recycling of plastics,” Dow Chemical, July 21, 2022.

Downstream partnerships are demand-based partnerships that drive vertical integration. They occur when a company uses a demand commitment from a purchaser to help stabilize or enable their financing. As an example, advanced-market commitments are one tool for helping to guarantee future demand for technologies. Take Frontier , a joint effort among organizations including Alphabet, Meta, Shopify, and Stripe. 9 McKinsey Sustainability is a partner in Frontier. For more, see New at McKinsey Blog , “ McKinsey partners with Stripe, Alphabet, Shopify, and Meta on $925 million carbon removal commitment ,” blog post, April 13, 2022. These organizations have collectively made a $925 million commitment to purchase carbon removal, enabling carbon removal suppliers to have a line of sight to their end customers while they are still scaling operations.

Horizontal partnerships are ecosystem partnerships that bring together a cross-section of organizations along the value chain. For example, the Center for Houston’s Future and the Greater Houston Partnership have laid the groundwork for a clean-hydrogen hub  in the Gulf Coast region by bringing together both public and private entities that span production, infrastructure, and electrolyzer capacity. 10 McKinsey’s Houston office has been working in collaboration with the Greater Houston Partnership’s Houston Energy Transition Initiative and Center for Houston’s Future. Over the past two years, McKinsey has supported these initiatives through a variety of efforts, including a pro bono study , Houston leading the energy transition - strategy report , Greater Houston Partnership, June 2021, and a report , Houston as the epicenter of a global clean hydrogen hub , Center for Houston’s Future and the Greater Houston Partnership, May 2022. Another example is the LDES Council, a group of more than 60 member institutions that has committed to accelerating the scale of LDES technologies. 11 McKinsey has collaborated with the LDES Council as a knowledge partner, including on the reports Net-zero power: Long duration energy storage for a renewable grid , LDES Council and McKinsey, November 22, 2021; A path towards full grid decarbonization with 24/7 clean Power Purchase Agreements , LDES Council and McKinsey, May 2022; and Net-zero heat: Long Duration Energy Storage to accelerate energy system decarbonization , LDES Council and McKinsey, November 2022. Members include technology providers, customers, and investors.

Get ahead on the skills gap

The net-zero transition has created a shift in needed job skills , as markets are reshaped and organizations institute new operational practices and processes. The range of skills is broad: from honing technical skills in manufacturing EVs, solar panels, and wind turbines to engaging with low-emissions suppliers to having executive expertise in carbon accounting and project finance. Green business building opportunities have encouraged many entrepreneurs, but the available talent to scale operations—in infrastructure, engineering for capital projects, and in process engineering, for example—has not quite caught up.

Looking into the next decade, skills shortages 12 Christopher Boone and Karen C. Seto, “With green jobs booming, here’s how to plug the sustainability skills gap,” World Economic Forum, January 9, 2023. could loom for certain sectors, particularly as more companies concurrently scale up manufacturing and operations in the United States to access the incentives offered by the IRA and the Bipartisan Infrastructure Law. For example, McKinsey analysis shows that bursts of factory building in Michigan could strain labor supply by close to 200 percent and manifest differently across skill categories of workers, with growing needs for architectural, equipment, and electrical work. To address these potential shortages, companies must not only acquire the right talent, they also need to figure out how to upskill and reskill labor for future opportunities. In the United Kingdom, for example, Octopus Energy has opened a heat pump  R&D and training facility to help accelerate adoption of the technology. 13 Octopus Energy Blog , “How Octopus Energy is revolutionising heat pumps,” blog entry by Aimee Clark, October 29, 2021.

Building up the talent pipeline at academic institutions is another way for companies to fill the skills gap. For example, Shell is a founding partner of the Energy Transition Institute at the University of Houston, where students work with Shell scientists across three core areas: hydrogen, carbon management, and circular plastics. 14 Chris Stipes, “Leading energy,” University of Houston, accessed February 22, 2023. Governments can support such talent-building efforts at universities. The US Department of Energy, for example, has funded a new research center at the University of Michigan for EV battery technology. 15 “$11M DOE center for next-gen battery technology,” University of Michigan, August 30, 2022. Private and public entities will both need to contribute to workforce development going forward.

Explore different avenues for financing and investments

Financing the scale-up of climate technologies can come with challenges, as many technologies rely on significant up-front investments in physical assets, including large-scale facilities and infrastructure. Technologies that haven’t yet reached technical maturity or commercialization can come with a higher risk profile for investors. As we have written about before, securing purchase agreements and inviting customers to invest in the business up front are some ways that green business builders have successfully addressed these challenges.

Project finance is an increasingly common approach for green business builders that can help mitigate the risks for capital-intensive infrastructure projects. Project finance is a nonrecourse or limited-recourse structure in which the project company shareholders’ liability is limited to their equity investment and the project lenders rely primarily on the project’s cash flow for repayment—meaning principal repayment usually begins after the project is operational. Northvolt, a Swedish battery maker, quickly turned to project financing and has plans for at least a third gigafactory manufacturing plant. 16 “Northvolt announces its third gigafactory will be established in Germany’s clean energy valley,” Northvolt, March 15, 2022.

Many green business builders look to blended finance models, which rely on a mix of private capital and public or philanthropic funding. Public-funding pools utilize grants as a means of reducing debt and mitigating risk, for example, and multilateral climate funds, such as the Green Climate Fund, have factored into these blended finance models.

Financing partnerships are also playing a larger role, from joint ventures between local start-ups and global technology companies to multistakeholder-funded research, development, and demonstration (RD&D) programs that provide early-stage and growth-stage equity capital for high-risk first deployment projects. These RD&D programs are particularly showing up in developing countries, to help increase private investments into businesses that serve underrepresented communities most affected by climate change.

When it comes to purchase agreements, inflation could be a top concern for suppliers and buyers. In response, we’re seeing green business builders offer agreements to customers that have inflation-adjustable price formulas.

Scaling new, green businesses may seem more challenging than it did a year ago, but we see many companies addressing the complications with determination and foresight. Organizations that evolve with the times and embrace a new set of actions could set themselves up for significant growth opportunities—and help the climate get back on track.

The authors wish to thank Sarah Abebe, Jennifer Barnes, Francesco Cuomo, Fredrik Dahlqvist, Jonas DeMuri-Siliunas, Dani Ebersole, Lisa Leinert, Mark Patel, Anastasia Perez Ternent, and Megan Routbort for their contributions to this article.

This article was edited by Andrew Simon, a senior editor in the Seattle office.

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Harris plans to tax unrealized stock gains — but only for people worth $100 million

Vice President Kamala Harris' endorsement of a Biden administration plan that includes a tax on stock holdings that have grown in value has emerged in recent weeks as a talking point among conservative pundits and Trump supporters who argue it amounts to socialism or even communism.

Under the current system, the federal government only taxes profits from stock investments — commonly known as capital gains — once a stock is sold. The plan backed by Harris would impose a levy on stock holdings as their value increases, whether they’re cashed in or not.

There is, however, a catch. The proposal backed by Harris would only apply to a narrow — and very wealthy — slice of the population: people whose net worth is at least $100 million. That's about 10,660 people in the U.S., according to one estimate .

Currently, no such tax exists — something that many advocates across the political spectrum, though mostly progressive-leaning ones, believe should be rectified. By most estimates, the top 1% has approximately 40% of their wealth tied up in unrealized capital gains.

The lack of taxes on capital gains has been considered by some economists and tax experts as a loophole for the wealthy.

Because taxes are imposed only when stocks are sold, the wealthy have deployed a strategy popularly called " buy, borrow, die ," which involves buying assets and borrowing against the value of those assets to buy even more assets. This a tax-free action, which allows for the assets to be passed on to heirs, who end up paying no taxes on the assets. Ultimately, over the lifetime of the ownership of a given asset, no tax is paid.

That the tax would be applied only to the ultra-wealthy — and only to "tradable" assets, thus excluding real estate or shares in private startups — has done little to stymie conservative opposition to the plan, and some on the right have seized on it to argue that Harris would be bad for business.

The right-leaning CATO Institute has said such a plan "raises deeper questions about individual property rights, financial privacy, and due process."

Former presidential candidate and venture capitalist Vivek Ramaswamy posted a video to X on Wednesday from a recent appearance on CNBC in which he railed against the plan.

" A few weeks ago, I started pointing out that Kamala Harris wants to tax *unrealized* capital gains," he wrote in the post on X. "The main objection I heard was 'she’ll never actually do this.' Now, we’re seeing it’s one of her signature economic policy proposals."

Ramaswamy's post was reposted by Elon Musk, one of the wealthiest people in the world. Notably, Musk at one point planned to purchase X by borrowing against the value of his Tesla holdings before turning to a slightly more conventional loan from Wall Street banks to make the acquisition.

Other objections to the Biden and Harris proposal include that the value on unrealized assets can decline by as much, or just as soon, as they've increased — meaning someone will have paid a tax on value it never even took advantage of if the stock market tanks.

However, Biden's proposal addresses this in part by assessing the tax over five years.

Jeff Huggett, a member of the Patriotic Millionaires group, wrote that average American workers experience the same kind of fluctuation in their financial lives, yet are still expected to pay tax each year on their earnings.

"The same should be expected of anyone who makes a killing on Wall Street," Huggett wrote in a blog post in July .

A new series of legal roadblocks have also been thrown up in a recent Supreme Court's decision that revolved around the government's taxing power. While the majority opinion in Moore v. United States, written by Justice Brett Kavanaugh and joined by the court's three Democratic appointees plus Chief Justice John Roberts, did not explicitly bar a wealth tax, many read the decision — as well as a concurring opinion by Justice Amy Coney Barrett and a dissent by Justice Clarence Thomas — as teeing up a way for future opponents of such a tax to bar its implementation.

Harris' plan would most likely face difficulty passing Congress: Biden couldn't get the proposal passed even when he enjoyed slim majorities in the House and Senate in the first part of his term.

Yet as a matter of fiscal prudence, Harris' proponents also point out that GOP nominee Donald Trump's budget plan, which revolves around extending his 2017 tax cuts, has been projected by the University of Pennsylvania's Wharton School of Business to add $5.8 trillion to the deficit over the next decade — nearly five times more than the $1.2 trillion increase estimated for Harris.

Biden has called his administration's proposal a “billionaire minimum income tax” and has sought a rate of 25%. The Committee for a Responsible Federal Budget has estimated it would raise as much as $503 billion over 10 years. While that would be just a fraction of the $5 trillion in tax increases Biden has proposed, his administration has described it as not only financially prudent but morally necessary.

“Preferential treatment for unrealized gains disproportionately benefits high-wealth taxpayers and provides many high-wealth taxpayers with a lower effective tax rate than many low- and middle-income taxpayers,” a Treasury Department document on the proposal stated. “Preferential treatment for unrealized gains also exacerbates income and wealth disparities, including by gender, geography, race, and ethnicity.”

Rob Wile is a Pulitzer Prize-winning journalist covering breaking business stories for NBCNews.com.

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Ashley Curnow Divisional Port Manager for Wales & the South West ABP (Associated British Ports)

As Divisional Port Manager for Wales and the South West at Associated British Ports (ABP), I am thrilled to share our ambitious new masterplan for the port at Newport.

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