Much of green growth is about good policies—addressing market failure and “getting the price right” by introducing environmental taxation, pricing the use of scarce natural resources and pollution (such as carbon pricing), defining and enforcing property rights, and reforming inefficient subsidies. Integrated policy approaches to growth are critical for enabling the private sector to undertake needed investments and innovations and for getting both consumers and businesses to internalize the true costs of their behavior.
This toolkit focuses on inclusive green growth—growth that not only helps green economies, but also helps move towards sustainable development by ensuring environmental sustainability contributes to, or at least does not come at the expense of, social progress.