The manufacturing sector’s value-added as a percentage of GDP is 16 per cent for the world average, 9 per cent for low-income countries, 22 per cent for middle-income countries and 15 per cent for high-income countries (World Bank 2014). More broadly defined, “industry” (excluding agriculture and services but including manufacturing, extractives and construction) accounts for 11.6 per cent of global employment (ILO 2015). The manufacturing sector imposes direct pressure on the environmental and health risks associated with air pollution, hazardous substances, and waste.
Green manufacturing aims to reduce the amount of natural resources needed to produce finished goods through more energy- and materials-efficient manufacturing processes. This will involve attention to the lifecycle of the product and involving, in particular, supply chain firms and small and medium-sized enterprises. Improved resource-efficiency and decoupling can lead to competitive advantages and sustainable growth.
Relevance to the SDGs
The Sustainable Development Goal (SDG) 12 calls for production processes to be more resource-efficient and for the reduction of waste generation through prevention, reduction, recycling and reuse. In addition, SDG 9, target 9.2 calls for increasing the share of employment and GDP from industry in least developed countries.