What is Green Trade?
Green trade is the exchange of goods and services that aim to improve environmental sustainability. This can include anything from exchanging environmentally friendly products to promoting sustainable practices.
As the world becomes more aware of the importance of environmental sustainability, green trade is becoming an increasingly important way for businesses to demonstrate their commitment to this cause. Not only does it help businesses reduce their environmental impact, but it also helps them connect with like-minded consumers who are looking to support sustainable brands. Some examples of green trade include exchanging recycled materials, investing in renewable energy, or promoting sustainable agriculture practices.
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How can it help UK’s Economy?
Adopting a consistent approach to climate-friendly trade policies might be harmful to poor nations and jeopardise future cooperation efforts. Green trade helps to diversify the country's export base and makes the UK economy less reliant on fossil fuels. It also creates jobs in the green sector and supports the growth of green industries. Green trade promotes sustainable development and helps to protect the environment.
The major highlights are the impact of climate change on various industries and trade before moving on to the prospects for the UK to become a leader in green trade and the long-term advantages that this may offer. The pressing need to address environmental issues is prompting a rethinking of our production and consumption networks. The United Kingdom hopes to "reap the benefits of global green growth" by capturing a piece of a worldwide market for low-carbon exports that is expected to reach about 2 trillion pounds ($2.5 trillion) (Bloomberg) per year by 2030.
With a four-part comprehensive plan, the UK is defining Green Trade and demonstrating its value. There will be visible growth in UK Economy in 2022. This involves investing in environmentally friendly goods and technologies, increasing green exports, liberalising carbon-friendly items, and cleverly connecting trade and environmental policies without causing new trade distortions that damage other nations.
Green trade presents major opportunities for the UK economy:
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The UK is a world leader in green trade - The United Kingdom is a world leader in green trade. In 2018, the UK exported £16.3 billion worth of green goods and services, making it the 5th largest exporter of such products in the world. The UK's green economy is expected to develop at an annual rate of 11% (Gov.uk) through 2030, with over 1.2 million people working directly in low-carbon goods and services by 2050.
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Green trade is crucial to meeting our climate goals - green trade is crucial to meeting our climate goals. By 2050, the UK will need to be carbon-neutral if we are to meet our commitments under the Paris Agreement. The UK has committed to reducing its emissions and increasing trade in green goods and services will help us meet this target.
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Low-Carbon Economy - By 2030, the worldwide market for low-carbon exports is expected to be worth about £2 trillion (Gov.uk). The UK must fulfil its shared promise to reduce global warming and building a low carbon economy. It will be crucial to follow through on the commitment.
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It diversifies the economy - A green economy is not just about environmental sustainability - it is also about economic stability and prosperity. By investing in green industries, we can create jobs and growth in sectors that are not as susceptible to economic shocks. The United Kingdom has also realised that environmental protection and combating climate change are not mutually exclusive. Combining the two creates an opportunity.
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It attracts investment - Investors are increasingly interested in sustainable and responsible investments. Foreign investors are looking to invest in countries with strong green economies. In 2017, the UK attracted a record £47.5 billion of foreign investment into its green economy. This shows that the UK is an attractive destination for companies looking to invest in the green sector.
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It promotes social equity - A green economy does not just benefit the environment - it also helps create a more equitable society. Sustainable development ensures that everyone has access to the resources they need to live a dignified life, now and in the future.
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It boosts the economy – The green trade boosts the economy. When businesses export goods and services, they generate income which can be reinvested back into the business or used to pay employees. This money then circulates through the economy, benefiting everyone.
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It boosts exports - According to the Office for National Statistics, the UK exported £23.9 billion worth of goods and services to other EU countries in 2016. The notion is that by increasing the export potential of our domestic green technology industry, the UK will be able to make a significant contribution to other nations' ability to function sustainably, in addition to our own.
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Stronger climate commitments - International trade helps propagate green technology and skills while also promoting economic efficiency. Greening the economy, on the other hand, necessitates investment and may raise expenses. Otherwise, climate challenges might move between nations if the green transition does not involve greening global trade regulations. Cheaper imports made to lower standards elsewhere might jeopardise high domestic standards. High requirements may drive investors and employment to nations with lower standards.
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It promotes sustainable development - Sustainable development is important for ensuring that our planet can support future generations. Green trade helps promote sustainable development by encouraging businesses to adopt practices that reduce their environmental impact.
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It supports/creates jobs - The UK Green Goods and Services Sector employed almost 450,000 people in 2015, according to figures from Green Alliance. This is a significant contribution to the UK economy and highlights the importance of the sector. Green trade also creates jobs. In 2018, the UK exported £26 billion worth of goods and services, and this is predicted to grow to £30 billion by 2020. This growth will create jobs in a variety of industries, from logistics to marketing. The UK green economy employs over 1 million people, and this number is only expected to grow. Green jobs span a range of sectors, from renewable energy to sustainable agriculture.
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It protects the environment - As well as being good for the economy, green trade is also good for the environment. By importing green goods and services, the UK can reduce its carbon footprint and help tackle climate change. Green trade is crucial to protecting our environment. The UK exports a huge amount of goods and services that have a low environmental impact, and this helps to offset the damage caused by other industries.
Green Trade Benefits -
Green and growth may go hand in hand with the help of international trade. The United Kingdom prioritises the environment by leading the world in efforts to decarbonise our economy. Climate change and environmental degradation are at the top of the world agenda, but they have mostly been debated on the periphery of the trade agenda until recently.
Taking action to combat climate change has become an important aspect of future-proofing business for companies. It is feasible to make a difference while gaining business rewards. There is a growing amount of assistance available, both locally and nationally, to help you cut through the "carbon language," lead you through the practical measures you can take to decrease your carbon footprint and demonstrate how this can help you develop your business.
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driving sustainable and business growth
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building the UK’s green industrial base
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securing more jobs.
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reducing long term costs of carbon emissions
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spearhead the global green transition
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become global hub for green finance.
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building trust with employees, customers and businesses
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risk management
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develop innovative green technologies
Also Read - How is Climate Change Impacting the UK Summer 2022
Conclusion
Green and growth may go hand in hand with the help of international trade leading to growth in UK Economy 2022. We must continue to promote green commerce since it benefits both our economy and the globe. Environmental protection and the ability of the global trading system to endure shocks and changes caused by environmental deterioration may both be achieved through trade.
The new study is a significant step forward in the evolution of the United Kingdom's approach to international trade because it recognises the fundamental importance of trade and trade policy in addressing today's major environmental concerns. It emphasises the need of trade policies that support a green industrial revolution, emphasising the economic benefits that green trade can bring, as well as the fact that certain commerce may be beneficial to the environment.
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