This course provides a comprehensive understanding of the principles and practices of creating an inclusive green economy (IGE). Students can gain insight into the economic principles of green economies, which strive for a balance of economic growth, environmental sustainability, and social equity, ultimately leading to long-term sustainable economic growth. The course explores ideas that examine the interconnected relationship between people and the environment in economic processes.
In the first part, we will delve into the macroeconomic perspective of the green economy and learn about the essential indicators governments should select and monitor to transition to a greener economy. This knowledge will lay the foundation for our exploration of green fiscal policies.
In the subsequent segment, students will gain insight into the pivotal functions of the financial market in delivering enduring financial products while also fostering eco-friendly investments. Emerging financial instruments such as green bonds, green loans, and other performance - based instruments are intertwined with environmental, social, and governance (ESG) benchmarks and principles. These serve as screening measures for investments based on organization policies and serve to prompt responsible conduct by corporations towards society and the environment.
In the third section, we will delve into the green initiatives across various sectors, encompassing natural capital such as agriculture, forestry, and fisheries, alongside those featuring built capital such as renewable energy, transportation, and manufacturing.
Our discussion will center on elucidating the rationale and fundamental principles underpinning the transition to a sustainable economy, emphasizing aspects such as low - carbon development, resource efficiency, and social inclusivity within these sectors.
Finally, students will be afforded the opportunity to examine the principles of comparative advantages in trade within the context of a green economy. The implementation of green initiatives is often perceived as financially burdensome, potentially eroding
cost advantages, particularly for developing countries that are pursuing export - oriented growth strategies. How can these challenges be addressed to ensure the fostering of synergies for global green trade?
In the context of the SMU - XO course, students will be afforded the opportunity to engage in hands-on projects facilitated by our project partners. These projects are centered on sustainable development and the green economy, necessitating students to rigorously analyze, deliberate, and contribute to the formulation of sustainable economic policies and strategies.
This course aims to help students:
- Justify and elucidate the core concepts behind establishing an inclusive green economy in contrast to conventional business practices.
- Recognize the essential conditions for transitioning national economies to greener models and outline the primary opportunities and challenges in crucial sectors.
- Elaborate on the significance, value, and structure of Green Economy indicator frameworks and their correlation with the Sustainable Development Goals (SDGs). Additionally, analyze the process of prioritizing and selecting indicators and their integration into a national Green Economy monitoring framework.
- Justify the need for greater utilization of green fiscal policy and outline the various fiscal instruments that can be used to promote positive economic, social, and environmental outcomes. Emphasize the main opportunities and challenges in the energy, transport, and waste management sectors.
- Comprehend the potential impact and fundamental principles of sustainable finance, and underscore the relevance of sustainability considerations for key actors in the financial system. Describe different sustainable finance products, such as bonds and loans, that could offer the necessary capital to support the achievement of the Sustainable Development Goals.
- Comprehend the evolution of legal and governance frameworks supporting the trade and green economy interface. Identify perceived challenges and potential opportunities related to trade in the transition to a green economy and highlight sectoral case studies of green trade in action.