There is mounting recognition that the world will be transformed into a resource-efficient, low-carbon economy. Many argue this transition is not only compatible with growth, it is a prerequisite for it in the long run, and could positively drive it in the short run.
Harnessing innovation can allow management, use and re-use of fewer and fewer resources. This improves economic efficiency and opens up market opportunities in fast-growing green sectors. But because these markets require strategic policy direction, mixed policy signals will put off investors and raise project costs.