Issues around economic growth[edit]

Further information: Eco-economic decoupling, Degrowth, and Steady-state economy

Eco-economic decoupling is an idea to resolve tradeoffs between economic growth and environmental conservation. The idea is
to "decouple environmental bads from economic goods as a path towards sustainability".[11] This would mean "using less re-
sources per unit of economic output and reducing the environmental impact of any resources that are used or economic activi-
ties that are undertaken".[10]: 8 The intensity of pollutants emitted makes it possible to measure pressure on the environment. This
in turn makes it possible to measure decoupling. This involves following changes in the emission intensity associated with eco-
nomic output.[10] Examples of absolute long-term decoupling are rare. But some industrialized countries have decoupled GDP
growth from production- and consumption-based CO2 emissions.[100] Yet, even in this example, decoupling alone is not enough. It
is necessary to accompany it with "sufficiency-oriented strategies and strict enforcement of absolute reduction targets".[100]: 1
One study in 2020 found no evidence of necessary decoupling. This was a meta-analysis of 180 scientific studies. It found that
there is "no evidence of the kind of decoupling needed for ecological sustainability" and that "in the absence of robust evidence,
the goal of decoupling rests partly on faith".[11] Some experts have questioned the possibilities for decoupling and thus the feasi-
bility of green growth.[12] Some have argued that decoupling on its own will not be enough to reduce environmental pressures.
They say it would need to include the issue of economic growth.[12] There are several reasons why adequate decoupling is cur-
rently not taking place. These are rising energy expenditure, rebound effects, problem shifting, the underestimated impact of
services, the limited potential of recycling, insufficient and inappropriate technological change, and cost-shifting.[12]
The decoupling of economic growth from environmental deterioration is difficult. This is because the entity that causes environ-
mental and social costs does not generally pay for them. So the market price does not express such costs.[90] For example, the
cost of packaging into the price of a product. may factor in the cost of packaging. But it may omit the cost of disposing of that
packaging. Economics describes such factors as externalities, in this case a negative externality.[101] Usually, it is up to govern-
ment action or local governance to deal with externalities.[102]
There are various ways to incorporate environmental and social costs and benefits into economic activities. Examples include:
taxing the activity (the polluter pays); subsidizing activities with positive effects (rewarding stewardship); and outlawing particular
levels of damaging practices (legal limits on pollution).[90]

Government action and local governance[edit]

A textbook on natural resources and environmental economics stated in 2011: "Nobody who has seriously studied the issues
believes that the economy's relationship to the natural environment can be left entirely to market forces."[103]: 15 This means natural
resources will be over-exploited and destroyed in the long run without government action.
Elinor Ostrom (winner of the 2009Nobel economics prize) expanded on this. She stated that local governance (or self-gover-
nance) can be a third option besides the market or the national government.[104] She studied how people in small, local communi-
ties manage shared natural resources.[105] She showed that communities using natural resources can establish rules their for use
and maintenance. These are resources such as pastures, fishing waters, and forests. This leads to both economic and ecologi-
cal sustainability.[104] Successful self-governance needs groups with frequent communication among participants. In this case,
groups can manage the usage of common goods without overexploitation.[5]: 117 Based on Ostrom's work, some have argued that:
"Common-pool resources today are overcultivated because the different agents do not know each other and cannot directly
communicate with one another."[5]: 117

Global governance[edit]
Launch of the UN Sustainable Development Solutions Network (SDSN) Chapter Indonesia
Questions of global concern are difficult to tackle. That is because global issues need global solutions. But existing global orga-
nizations (UN, WTO, and others) do not have sufficient means.[5]: 135 For example, they lack sanctioning mechanisms to enforce
existing global regulations.[5]: 136 Some institutions do not enjoy universal acceptance. An example is the International Criminal
Court. Their agendas are not aligned (for example UNEP, UNDP, and WTO) And some accuse them of nepotism and misman-
agement.[5]: 135–145
Multilateral international agreements, treaties, and intergovernmental organizations (IGOs) face further challenges. These result
in barriers to sustainability. Often these arrangements rely on voluntary commitments. An example is Nationally Determined
Contributions for climate action. There can be a lack of enforcement of existing national or international regulation. And there
can be gaps in regulation for international actors such as multi-national enterprises.Critics of some global organizations say they
lack legitimacy and democracy. Institutions facing such criticism include the WTO, IMF, World
Bank, UNFCCC, G7, G8 and OECD.[5]: 135

Responses by nongovernmental stakeholders[edit]

Businesses[edit]
See also: Environmental, social, and corporate governance
 The Forest Stewardship Council (FSC) seal for wood products is
meant to indicate sustainable production of wood (in a forest in Germany).
Sustainable business practices integrate ecological concerns with social and economic ones.[17][18] One accounting framework for
this approach uses the phrase "people, planet, and profit". The name of this approach is the triple bottom line. The circular
economy is a related concept. Its goal is to decouple environmental pressure from economic growth.[106][107]
Growing attention towards sustainability has led to the formation of many organizations. These include the Sustainability Con-
sortium of the Society for Organizational Learning,[108] the Sustainable Business Institute,[109] and the World Business Council for
Sustainable Develo