In this article, we will take a detailed look at the 20 Greenest Countries in the World with insights into the Environment Performance Index (EPI) score. For a quick overview of the 5 Greenest Countries, read our article 5 Greenest Countries in the World.
The world is progressing towards becoming green, especially for environmentally conscious nations working hard to develop their economies. This has led to significant health, education, energy, and transportation achievements, providing citizens with a better quality of life.
Green countries on the earth focus on renewable electricity. Hence, renewable electricity capacity additions broke records in 2021, increasing by 6% to almost 295 GW. The competitiveness of renewable electricity has improved, even as costs for new solar energy cells (PV) and wind installations have increased due to even faster-rising prices for natural gas, oil, and coal. Annual renewable capacity additions increased by 8% in 2022, reaching almost 320 GW.
Similarly, bio-fuel demand recovered in 2021 from COVID-19 lows to near 2019 levels, as it grew 5% in 2022 and is expected to grow 3% by the end of 2023. However, increasing feed-stock prices and policy reactions from multiple countries may slow growth in the short term. Russia’s invasion of Ukraine also puts upward pressure on already high bio-fuel feed-stock prices, particularly for vegetable oils.
What are Green Growth and Sustainable Development?
Green growth is a holistic approach to economic policy and sustainable development policy. It tackles the twin imperatives of inclusive economic growth and environmental management. Initially, countries promoted green growth through the 2008-9 economic stimulus packages, focusing on short-term job creation and income generation through investment in green technologies. Others have approached green growth from an environmental perspective by integrating sustainable development considerations into economic decision-making, such as resource pricing, land use, and infrastructure choices.
More recently, developing countries have expressed a third imperative: equity and inclusion. They argue that green growth should benefit those excluded by the current economic system, including the informal sector, which is significant in many developing countries. There is growing consensus that the current economic system is unsustainable, inefficient in resource use, and inequitable in its distribution of costs and benefits. Green technology (i.e., products, processes, and environmentally friendly systems) can overcome this problem by boosting green growth by an estimated 13.8% in the long run.
A Look Into Green and Clean Technology Industry
NextEra Energy (NYSE:NEE) is a major green and clean technology player. NextEra Energy has achieved a 58% reduction in carbon emissions since 2005. Florida Power & Light (FPL), a subsidiary of NEE, is the largest energy company in Florida and has made a remarkable change in making the country green by letting people save $12 billion in fuel costs and avoiding 175 million tons of CO2 emissions since 2001.
In NextEra Energy’s (NYSE:NEE) in Q2 reported a total revenue of $6.36 billion, showcasing a year-over-year increase of 4.8%. Notably, the Energy Resources segment generated approximately 3,916 MW of new renewable projects in Q2, further emphasizing its position as a leading player in the renewable energy industry. NextEra Energy’s (NYSE:NEE) earnings per share stood at $0.62, surpassing expectations and reflecting a consistent growth trajectory. The company also underlined its commitment to expanding renewable energy projects, particularly in wind and solar, indicating its dedication to sustainability.
Another big name in the green and clean technology industry is LyondellBasell Industries N.V. (NYSE:LYB). It is a global leader in sustainable materials and technologies, working towards a circular economy. According to the Q2 2023 earnings report, the company is raising its 2023 Value Enhancement Program (VEP) target for year-end annual recurring EBITDA run rate by $50 million to $200 million based on mid-cycle margins, reflecting its accelerated progress.
Additionally, the company expects to generate at least $0.5 billion of incremental EBITDA by 2027 and $1 billion of incremental EBITDA by 2030 by building a profitable circular and low-carbon solutions business.
LyondellBasell’s Green Financing Framework is a key part of the company’s transformational sustainability goals, which focus on ending plastic waste, taking climate action, and supporting a thriving society. One of the company’s goals is to procure at least 50% of its electricity from renewable sources by 2030. Moreover, LyondellBasell recently invested in a new Carbon Neutrality Fund led by Chrysalix Venture Capital. The fund will support emerging companies developing and deploying low-carbon technologies in hard-to-abate sectors, such as the chemicals industry.
Methodology
We have sourced data from the Environmental Performance Index (EPI) of Yale University to list the 20 most greenest countries in the world. Yale’s EPI is a global benchmark for environmental performance, measuring countries’ progress in protecting public health and the environment. This index has used 32 indicators in 10 categories: air quality, climate change, forest cover, agriculture, etc.
Below is our list of the 20 greenest countries in the world in ascending order of their EPI score.
Most Greenest Countries in the World
20. Norway
Environment Performance Index Score: 59.3
Norway has set ambitious targets to reduce greenhouse gas emissions and achieve a low-carbon society by 2050. As an energy-rich country, Norway is well-positioned to lead the energy transition. Abundant and affordable hydro-power has enabled the development of energy-intensive industries and a high level of electrification of homes and businesses with low GHG emissions. Norway is pursuing an ambitious EV policy in the transport sector, which accounts for 21% of total demand. Fossil fuel cars are subject to high taxes, while zero-emissions vehicles are heavily subsidized.
19. Czech Republic
Environment Performance Index Score: 59.9
The Czech Republic is a green country with a strong focus on renewable energy and environmental protection. Czechia’s Recovery and Resilience Plan (RRP) achieves a green spending share of 25% in the EU, allocating dedicated funding to essential parts of the green transition, such as residential energy efficiency measures, biodiversity measures, and climate adaptation. However, the ultimate contribution of these measures will also depend on the specific targets and milestones defined for their implementation, which must be aligned with clear standards to make a very positive contribution.
18. Slovakia
Environment Performance Index Score: 60
Slovakia is an open, small, and export-oriented economy with a population of 5.45 million people. The government has made significant progress in implementing its national Recovery and Resilience Plan, which outlines a road map for spending €6.3 billion in EU grants by 2026 on key reforms and investments in the green economy, research, education, and others. The government has also begun implementing the EU Structural and Investment Funds in the 2021-2027 programming period, with €13.6 billion in energy and environment investments.
17. Australia
Environment Performance Index Score: 60.1
Australia is taking positive steps to increase its climate and clean energy ambitions. Since the International Energy Agency’s last review in 2018, Australia has passed the Climate Change Act in 2022, which doubles its emissions reduction target by 2030 and sets a goal of net zero emissions by 2050. The Australian government also signed the Global Methane Pledge in 2022, joining 130 governments in targeting a 30% reduction in methane emissions by 2030.
16. Croatia
Environment Performance Index Score: 60.2
Croatia’s lush forests, pristine waters, and abundant renewable resources make it a beacon of environmental sustainability. Croatia aims to prevent water pollution and shut down landfills by 2024 by phasing modern waste-treatment facilities and investing EUR 4 to 6 billion in renewable energy by 2030.
15. Latvia
Environment Performance Index Score: 61.1
Agriculture, forestry, and fishing account for a larger share of value-added in Latvia, a green country with a 42% share of renewable energy, mostly from biomass and hydro-power, in Europe. Latvia is a green country with over 50% of its land covered in forests and a strong focus on renewable energy. Latvia’s commitment to environmental protection is evident in its ambitious climate goals and progress in reducing greenhouse gas emissions.
14. Estonia
Environment Performance Index Score: 61.4
Estonia, one of the greenest countries in the world, is renowned for its lush forests, which cover more than half (57.04 %) of the mainland. With abundant native tree species and a large proportion of naturally renewed forests, Estonia’s forests play a vital role in the carbon cycle, sequestering carbon from the atmosphere and preserving biodiversity.
13. Germany
Environment Performance Index Score: 62.4
Germany aims to become greenhouse gas neutral by 2045. It has set the preliminary targets of cutting emissions by at least 65% by 2030 compared to 1990 and 88% by 2040. The country’s first national climate law, passed in 2019 and amended in 2021, states annual reduction targets for individual sectors such as industry and transport until 2030.
12. France
Environment Performance Index Score: 62.5
France is a country at the forefront of the fight against climate change. It has set ambitious targets to reduce greenhouse gas emissions and increase renewable energy production. France is also a leader in sustainable transportation and energy efficiency. France is also working to reduce its reliance on fossil fuels. France will ban the sale of petrol and diesel cars by 2040, while electric vehicles are expected to account for 54% of new car sales by the same year. It is a country committed to protecting the environment and ensuring a sustainable future for its citizens.
11. Netherlands
Environment Performance Index Score: 62.6
The Netherlands is a global leader in green innovation and sustainability. The country has set ambitious targets to reduce greenhouse gas emissions, increase renewable energy production, and transition to a circular economy. The Netherlands is also working to reduce its reliance on fossil fuels. The country has committed to phasing out coal power by 2029 and has banned the sale of new gasoline and diesel cars starting in 2035.
10. Iceland
Environment Performance Index Score: 62.8
Iceland is a world leader in renewable energy, with over 85% of its electricity coming from hydroelectric and geothermal sources. The country is also a leader in sustainable transportation, with many of its electric or hybrid vehicles. In addition to its renewable energy commitment, Iceland is also working to reduce its greenhouse gas emissions. The country has set ambitious targets to reduce emissions by 65% by 2030 and 88% by 2040 compared to 1990. Iceland is also investing in sustainable transportation and energy efficiency measures.
9. Switzerland
Environment Performance Index Score: 65.9
With its pristine alpine landscapes, abundant renewable energy resources, and commitment to innovation, Switzerland is a model for other countries to follow. In addition to its efforts to reduce its own environmental impact, Switzerland is also a strong supporter of international climate action. The country is a party to the Paris Agreement and has committed to achieving net-zero greenhouse gas emissions by 2050. Switzerland’s signing of the Paris Agreement signaled its long-term goal of reducing carbon emissions by 70–85% by 2050.
8. Austria
Environment Performance Index Score: 66.5
In 2022, renewable energy accounted for more than 70% of Austria’s total electricity consumption. The country is also a leader in energy efficiency, with some of Europe’s lowest energy consumption rates. Austria is also working to reduce its transportation emissions. The country has a well-developed public transportation system and is investing heavily in electric vehicles and charging infrastructure. Austria has also set ambitious targets to reduce greenhouse gas emissions from its industry and agriculture sectors.
7. Slovenia
Environment Performance Index Score: 67.3
Slovenia is a small country in Central Europe but a leader in environmental protection. The country has set ambitious targets to reduce greenhouse gas emissions and increase renewable energy production. Slovenia is also a leader in sustainable transportation and energy efficiency. Forests cover nearly 60% of the country, and Slovenia is one of the most forested countries in Europe. Slovenia’s forests are essential in absorbing carbon dioxide and protecting the environment.
6. Luxembourg
Environment Performance Index Score: 72.3
Luxembourg has set ambitious targets to reduce greenhouse gas emissions and increase renewable energy production. Luxembourg is also a leader in sustainable transportation and energy efficiency. One of the most impressive things about Luxembourg’s green credentials is its commitment to renewable energy. Luxembourg aims to accelerate renewable energy development to reach 25% clean energy by 2030 and 100% long-term.
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Disclosure. None. 20 Greenest Countries in the World is originally published on Insider Monkey.