No. 31




Cooperation will Decide the Future of Green Economy

10 June 2015


RiTo No. 31, 2015

  • Jaanus Uiga

    Estonian Development Fund, analyst of energy and green economy

  • Peep Siitam

    Estonian Development Fund, head of energy and green economy section

Green economy is an economic model that promotes sustainable use of resources for increasing wealth.

A look at the three common performance indicators of energy and green economy (carbon production, energy intensity, domestic material productivity) shows that Estonia did not make much progress in 2005–2013. Indeed, the indicators have deteriorated in comparison with other countries as well as with the earlier Estonian indicators. This does not mean, however, that the situation of the Estonian energy economy has worsened during this period, as these indicators are also linked to other macro-economic indicators.

An analysis of trends in recent history tells us that we will not be able to develop green economy in Estonia purely by continuing our earlier activities, which means that we are moving towards a reduced material productivity. With no social agreement on the effiient use of resources or the implementation of the principles of green economy, there are no grounds to claim irrefutably that it would lead to unwanted results for the Estonian economy.

In view of the global trend towards improved resource effiiency, Estonia should investigate the links between resource effiiency and economic wellbeing, and use these as the foundation for achieving a broader agreement on green economy objectives.

Implementation of green economy principles directed at increasing wealth and promoting resource efficient behaviour in energy economy through a closer cooperation between all market participants – businesses, public sector,researchers and consumers – could accelerate the development of the Estonian economy as a whole.

Full article in Estonian