Investments in green economy not harming economic growth - report
A report by the Polish Economic Institute (PIE) reveals that the green transformation may accelerate economic growth by as much as 1.1 percentage points per year and does not have a negative impact on achieving sustainability targets.
According to PIE analyses published in the report "Green economy – the impact of the green economy on the climate and economic development," Poland, in 2011-2019, placed 18th among 27 countries included in the Green Growth Index, an indicator of a country's performance in achieving sustainability targets.
According to the report, Poland had recently increased its spending on green-economy related purposes. "Thirty-seven percent of the funds allocated, from April to the end-2021, towards the recovery of the Polish economy after the crisis, were allotted to investments that had a positive influence on the green transformation," the report reads.
Adam Juszczak, a PIE analyst, said that the main purpose of the study was to estimate the impact of green economy development on GDP and CO2 emissions.
"The results of our modeling… show that investments in a green transformation do not negatively influence GDP and, at the same time, have a significant impact on the level of emissions," pointed out Juszczak.
The report also added that an increased share of renewable energy in the energy mix allows for improvements in the quality of the environment, reduces pollution and increases the possibility of achieving climate goals. Moreover, it also strengthens long-term economic growth.