As global climate change becomes a pressing social issue, green business has moved to the forefront of the agendas of many legislators, business leaders, and community activists. A green business blends economic success with environmental benefits, creating an economically viable path toward remediation of environmental damages and toward long-term sustainability.

Community development financial institutions (CDFIs) are becoming involved.  CDFIs have always achieved social and economic returns on their investments. It is a natural fit to add the environment to the equation, with CDFIs deploying capital for green businesses and so promoting triple-bottom-line investing. For example, CDFIs are now financing green real estate development, green affordable housing projects, and green energy production. CDFIs are also financing recycling businesses, sustainable agriculture, and timber businesses. These transactions, occurring at the community level across the United States, allow socially conscious investors to receive a return on investment that includes economic, environmental, and social impact.

More than a buzzword, green has become the overarching term to describe environmentally conscious investment strategies. But these investments can also spur job growth, innovation, and revitalization of distressed communities across the country. Seeding and growing green business is vital to both the environment and to the continuation of our American economic system. Mass production of foods, goods, and services with little regard for the land, air, water, and people that produce them must become a part of the past.
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There is evidence that green business is producing growth in various sectors of the economy, and these new industries and businesses will be important sources of job growth in the coming years. For example, the Natural Marketing Institute reports that the growing market of purchasing decisions based on the environmental and social impact of products and manufacturers rose to $209 billion in the United States in 2005. This shift provides an opportunity for small businesses and entrepreneurs to create green products and technology as the green industry continues to grow.

This is an excerpt from The NEXT American Opportunity. The full text can be downloaded as an Adobe PDF Document.