Page 27 - Ebook HTKH 2024

The majority (95%) of the green economy is composed of Tier 1 and Tier 2
activities, reflecting a strong commitment to sustainable practices. In contrast, Tier 3

activities represent only 5% of market capitalization, indicating a more limited role in
the green economy. This distribution emphasizes the importance of focusing on
high-impact sectors to drive green growth and achieve long-term sustainability.
The FTSE Russell's Green Revenue Classification System (GRCS) offers several
key advantages in assessing countries' green economic growth. First, it is a
comprehensive Measurement of the Green Economy: The GRCS provides a robust
framework for identifying and classifying companies that generate revenue from green
products and services. By focusing on actual revenue streams, the system offers a

tangible measure of economic activities directly linked to environmental sustainability.
This enables a more accurate assessment of the green economy's size and growth within
a country. Second, the method is Granularity and Precision: The GRCS divides green
revenues into multiple categories, such as renewable energy, energy efficiency, water
sustainability, and pollution control. This detailed categorization allows tracking of the
different sectors contributing to the green economy. Countries can therefore evaluate

specific areas of strength or identify sectors that require further development to enhance
green growth.
For governments, GRCS can serve as a policy development and assessment tool.
By understanding the composition and growth of their green economy, policymakers
can design targeted strategies to support green industries, foster innovation, and meet
environmental goals. In summary, the FTSE Russell's GRCS offers a rigorous, globally
consistent, and investment-aligned approach to measuring and fostering green economic

growth in countries.
3. Level of Green Growth in the Canadian and Vietnamese Economies
3.1. Canada: Progress and Challenge
Canada is a developed nation with a strong commitment to green economic
growth, but its progress is marked by both achievements and significant challenges. The
country has made strides in reducing its carbon footprint through various initiatives.
Canada is rich in renewable resources, particularly hydroelectric power, which accounts
for approximately 60% of its electricity generation. Additionally, Canada is actively

investing in wind and solar energy, which, although currently making up a smaller
percentage of the energy mix, have seen significant growth.
Tier 1: Renewable Energy: Canada has made substantial investments in renewable
energy, particularly in wind, solar, and hydropower. The country boasts vast natural
resources that are well-suited for renewable energy production, contributing
significantly to its green energy portfolio.

19