In this article, we will discuss the 25 best countries for green living. To skip the detailed analysis and recent updates about the countries involved in becoming green and the economic effects of climate change, go directly to the 5 Best Countries for Green Living.
The environment and the economy have a strange relationship. The industrial revolution was one of the major events of economic growth in the history of humankind and it is also one of the reasons we are having a climate crisis at present. The industrial revolution led to a high demand for fossil fuels such as coal and oil which increased the concentrations of greenhouse gas in the atmosphere quite drastically. According to NASA, the earth’s average surface temperature has increased by 2 degrees Fahrenheit since the late 1800s.
Climate change can cause sea levels to rise and cause extreme temperatures which could cause critical damage to our agriculture, tourism, and property sectors. On top of that, the diseases caused by climate change can also cause a labor shortage. Insurance company Swiss Re AG (OTC:SSREY) reports that climate change could cause the world to lose 10% of its total economic value if the Paris Agreement and 2050 net-zero emissions targets are not met. The Southeast Asia countries will be the ones suffering the most from it. According to a report, ten of 2021’s most destructive climate disasters caused $170 billion in damages. 2021 was the 6th year between 2011 and 2021 when the global economy lost over $100 billion to climate disasters in a single year.
One of the main steps the world is taking to curb climate change is moving to renewable sources of energy. We previously reported that by 2050, electricity generation through renewable energy sources is expected to account for 50% of the global power mix by 2035 and 85% by 2050. The annual supply and production investments are also expected to be almost $1.6 trillion by 2035.
In these times, consumers are also more attracted to ethically sustainable products. According to a 2020 survey by McKinsey, 60% of people were willing to pay more for products with sustainable packaging and 78% of US citizens believe that a sustainable lifestyle holds significance to them. In addition, between 2017 and 2022, the products that made environmental, social, and governance (ESG) related claims averaged 28 percent cumulative growth, compared to 20% for the products that did not.
Some of the companies that are keen on becoming green and sustainable are Unilever PLC (NYSE:UL), Starbucks Corporation (NASDAQ:SBUX), and The Walt Disney Company (NYSE:DIS).
For this article, the Environmental Performance Index (EPI) of 2022 from Yale, the Green Future Index (GFI) of 2023 from the Massachusetts Institute of Technology (MIT), and the UN’s Sustainability Development report were three of our most important criteria. We also took the rankings by US News into consideration as it was created based on people’s perceptions through a survey. We assigned score to each country based on its presence in the above four sources.
Best Countries for Green Living
25. Croatia
Croatia is a travel haven for tourists who prefer green tourism. Over 34% of the country is covered by forests and there are several national parks, botanical gardens, and animal habitats that support green living. In addition, the Radisson BLU hotel in Dubrovnik, which is owned by Choice Hotels International, Inc. (NYSE:CHH) has a green roof and its HVAC system is cooled by the ocean.
Croatia’s Ministry for Environmental Protection has been able to almost completely get rid of the glass and plastic litter, thanks to one of its policies launched in 2006. The policy allows citizens to return their plastic or glass bottles to be sold at any market bigger than 200 square meters.
24. Latvia
Latvia is one of the best countries for green living as 50% of the country is covered by forests. Between 1990 and 2016, Latvia was able to decrease its greenhouse gas emissions by 57%. Furthermore, in 2017, 40% of the country’s energy mix was from renewable sources.
23. Estonia
The Estonian capital, Tallinn, won the European Green Capital Award of 2023. The city is full of easy access to public transport that uses a paper-free ticketing system. In fact, most of the country uses paper-free alternatives to almost everything.
One of the biggest global green initiatives, World Cleanup Day, was also started by an Estonian organization, Let's Do It! World. It is held on the third Saturday of every September and was launched in 2018. Almost 18 million people joined the group in cleaning up waste produced in their respective countries.
22. Czech Republic
Although the Czech Republic has the third highest amount of greenhouse gas emissions per capita among EU countries, it is trying to make efforts toward sustainable living. In the last decade, the country has improved its EPI score by 5.20. Among the EU, the Czech Republic spends the third-highest proportion of GDP on conservation.
21. Portugal
Portugal is one of the greenest countries on earth. The country aims to reach zero carbon emissions by 2030. It is also one of the best places for eco-tourism. It is a little low on our list as the country has lost 1.60 points in the last 10 years on the Environmental Performance Index.
20. Slovakia
Slovakia is taking several measures to move up in the rankings of the best countries for green living. According to the International Energy Agency (IEA), the Slovakian government set a target “to reduce greenhouse gas emissions in the sectors of emissions trading by 43% and outside these sectors by at least 20%, compared to 2005.” The country also plans to increase its municipal waste recycling rate to 60% by 2030 and decrease the land-filling rate by 25% before 2035.
19. Italy
Italy is highly energy efficient and over a third of its energy needs are met by renewable energy sources. The country has also surpassed the EU’s goal to recycle 65% of urban waste by 2025. The Italian government also offers 110% of the cost of installation to residents to make their homes more eco-friendly.
18. Japan
In Japan, the Edo Period (1603-1868) was considered a time of peace and stability. The Japanese have a history of living a sustainable lifestyle since that time. The country, even at that time, had used paper recycling and umbrella repairs in order to avoid waste. In Japan, if someone puts the wrong material in the wrong waste bag, the authorities will put a “Red Sticker of Shame” on their bag for everyone to see.
17. Spain
In Spain, 70 million acres of land is protected, which means that the Spanish government takes sustainability quite seriously. According to the International Trade Administration, compared to 1990, Spain is aiming toward reducing its greenhouse gas emissions by at least 23% by 2030. The country also wants its final consumption of energy to be 42% through renewables. Spain also has set a deadline for 2040, according to which all the cars in the country must be emission free by that time.
16. Australia
In the last 10 years, Australia’s EPI score has gone up by 10.30. Australian people are also quite keen on turning their environment greener. According to research, 70% of the country's people want to live an eco-friendly life, and 55% believe that a change toward renewable energy sources is essential.
The Commonwealth Bank of Australia (ASX:CBA) has started a CommBank Green Loan up to $20,000 on a 1.99% fixed rate to allow Australian people to install green energy products in their homes.
15. Belgium
Belgium is not only making strides in climate action in its own country but also funds the United Nations Environment Programme. In its first National Energy & Climate Plan, the country revealed its plan to mitigate its CO2 emissions by 35% (compared to 2018) by 2030, and also increase its share of renewable energy by over 18%.
14. Costa Rica
Due to its efforts toward sustainability and green living, Costa Rica was awarded the United Nations Environment Programme’s Champions of the Earth award for policy leadership in 2019. 99% of the country’s electricity generation is through renewable sources and most of it is through hydropower.
13. Netherlands
Although the government of the Netherlands is transitioning the country toward a green environment, the people and environmental groups of the country still push the government to do more. In 2014, a case was brought to the supreme court which forced the country to reduce its emissions by 25% (compared to 1990) by 2020. In the same year, the Dutch government’s climate policies were aimed at reducing annual carbon emissions by 10 megatons.
12. Germany
Germany is taking its sustainability goals quite seriously. The German appliances manufacturing company, Miele, is also considered one of the greenest companies in the world. On March 21, the company announced that the entirety of its aluminum needed to manufacture ovens will be manufactured using electricity from hydropower, reducing 645 tons per year of its carbon footprint.
Germany is making its way toward moving to green and clean energy and by 2050, the country plans to generate 80% of its energy needs from renewables and also cut its greenhouse gas emissions by 80%.
11. Slovenia
Slovenia is one of the most biodiverse countries in the world. The country has the most animal and plant species per square kilometer compared to any other country. The country has 3,119 native plant species and 18 registered native animal species. The center of Slovenia’s capital, Ljubljana, is car-free.
10. Norway
Even though the EU wants to reach carbon neutrality by 2050, Norway pledged to become carbon neutral by 2030 in 2016. The country also aims to reduce its greenhouse gas emissions by 90%-95% (compared to 1990 levels) by 2050. Norway is one of the first countries that want to completely phase out fossil fuel-powered cars and it is the country with the highest number of electric cars per capita.
9. Iceland
Around 30% of Iceland’s electricity production is geothermal and the rest of it is generated through hydro-power. Compared to 1990, the country aims to reduce its greenhouse gas emissions by 55% and reach carbon neutrality by 2040. Additionally, Iceland is big on recycling and in 2019, aluminum recycling rates were 86%, followed by polyethylene terephthalate and glass at 85% and 83%, respectively.
8. France
France plans to increase its power generation from renewable energy by 32% by 2030. The French people are also quite invested in climate action. According to a survey by European Investment Bank (EIB), 80% of the French people believe climate change to be humanity’s biggest challenge and 70% of the people would welcome a tax on products that contribute to the climate crisis. However, only 40% of the French people think that the government will be able to succeed in reducing its carbon footprint by 2050.
7. Austria
Austria is one of the greenest countries in the European Union. The country’s waste management, quality of sewage systems, air pollution, and public transportation are remarkable. On top of that, Austria has one the highest share of organic farming in the world. In 2021, 26% of Austria’s agricultural land and 22% of its farms grew organic produce.
6. Luxembourg
With an EPI score of 72.30, Luxembourg ranks at number 6 on our list of best countries for green living. The country’s EPI score has increased by 13.50 in the last decade and it seems like it is planning to jump up the list. Luxembourg aims to reduce its greenhouse gas emissions by 55% by 2030, compared to 2005, and achieve net-zero emissions by 2050.
