Climate Risk & ESG Risk

5 Pillars of The Green Future Index

Sunny Samanta

4th Feb'21
5 Pillars of The Green Future Index | OpenGrowth

"Empty Words, loopholes and greenwash” – Greta Thunberg

The Green Future Index is a ranking chart of the leading countries and territories which are committed to building a low carbon future. In this index, a total of 76 leading countries are ranked concerning their progress towards contributing low carbon future. In other words, the Green Future Index measures the degrees by which the economy of the ranked countries is pivoting towards clean energy, industry, agriculture, and society through their contributed invested in innovation, renewables, and a green future.

Overall Ranking

The overall ranking of the countries is based on the performance of the examined economies concerning each other after which the aggregate scores are generated across the following five distinct pillars namely (in order); Carbon Emissions, Energy Transition, Green Society, Clean Innovation, and Climate Policy.

Iceland and Denmark ranked 1st overall with a score of 6.5 and 6.4 respectively. Both of these countries belong to the high income group. Now, let us have a brief look at the five pillars of the Green Future Index.

1. Carbon Emissions

This is the 1st pillar and the most important pillar out of the five in the Green Future Index. In this pillar, every country is ranked in accordance with their Carbon Dioxide emission contribution with relation to their economy. Here, also the recent historical change of total emissions where the changes are reported in each of the three primary productivity drivers which are Industry, Agriculture, and Transportation.

Here, Ukraine from the low middle income group and Norway from the high income group are ranked 1st and 2nd with scores of 8.2 and 7.5 respectively, whereas Pakistan from the South Asian region, belonging to the low income group is ranked 76th with a score of 2.4.

2. Energy Transition

Energy Transition is the 2nd pillar of the Green Index Future measures the level of renewable energy used by each of the countries or territory as a proportion of the total energy consumption and the historical rate of change as well.

In the Energy Transition pillar, Ethiopia from the low income group and the Angola from lower middle income group are at the 1st and 2nd position with the score of 8.1 and 7.5 respectively, whereas Qatar from the high income group is at the bottom with the score of 1.8.


Future Green Index


3. Green Society

The third pillar of the Green Future Index is the Green Society which measures the efforts of each country’s society to work towards building a green society. This specifically includes the increase in bicycling, decrement in consumption of meat and dairy products, and the development of more energy efficient buildings. Besides this, Green Society also measures the average net change in planted and natural forestation done over the last five years.

Here, both countries (Singapore and Ireland) belonging to the high income are ranked 1st and 2nd with the same score of 6.9 while New Zealand belonging to the high income is ranked 76th with the score of 3.2.

4. Clean Innovation

The 4th pillar is Clean Innovation which measures the effort made by each of the countries to promoting decarbonization through innovations. Here the indicators which are used to rank each country include the relative numbers of green plants and investment in the sustainable food technology of each country or territory. This also includes the relative amount of capital deployed by each country both domestically and across the borders to develop clean energy.

Here, Singapore and Finland are ranked 1st and 2nd respectively with the score of 7.6 and 7.4. Also, both belong to the high income group.

5. Climate Policy

The 5th and the last pillar of the Green Future Index are dedicated to the Climate Policy. Here each of the nation’s state level activities and the overall policies that are aimed at reducing greenhouse gases is quantified as well as rank. There are several indicators included in this. They are the evaluation of the policies designed to help the states reach climate related goals, bonding and trading for carbon through participation in financial markets, and working towards developing sustainable agricultural programs.

These are followed by a graded assessment of the degree aimed at facilitating the pandemic recovery stimulus packages pivoted at decarbonization in various sectors such as energy, infrastructure, industry, and transportation.

In the Climate, New Zealand and France from the high income group are ranked 1st and 2nd respectively with the score of 7.8 and 7.3, whereas Russia belonging to the upper middle income group is at rank 76th with the score of 1.2.

Recommended: Climate change and how you can help reduce it

Highlights of the Green Future Index

While the efforts towards combatting the climate have been made for well over 10 years, it is only now that the moment has gained some momentum and the famous Climate Control activist Greta Thunberg deserves to be thanked for it.

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A lone wolf by definition, a writer by heart, and a lost star with ambitions to light up the dark both inside and around me, sometimes by immersing myself into books or video games or traveling with a backpack to an uncertain destination believing that life is all about the choices we make and we don't.