Sustainable development is about LIFE 
To sum up, sustainable development is about life: about “L” for limits, “I” for interdependence, “F” for fundamentals and “E” for equity. This set of issues reflects the importance of dealing with material concerns, acknowledging the relationship between humanity and nature, being committed to addressing fundamental causes, and considering ethical values .
The World’s Bank guiding principles for establishing green growth strategies are described hereinafter (see table 1.d):
- Increase the amount of natural, physical, and human capital available 
Better-managed soil is more productive. Well-managed natural risks result in lower capital losses from natural disasters . Healthier environments result in more productive workers: a recent California study shows a strong impact of air quality on the productivity of farm workers .
For instance, imposing environmental taxes (taxing “bads”) and removing distortionary subsidies creates fi scal space for governments to lower labor taxes or subsidize green public “goods” such as public transport or renewable energy. In London, congestion taxes, besides reducing traffic, helped to finance investments in the aging public transport system, thereby increasing effectiveness of the price signal by reducing the costs or “disutility” associated with switching from single-car use to public transport . And many firms — including large multinationals such as Hewlett Packard, Cisco, Clorox, and FedEx — are finding that embracing sustainability has improved the bottom line in part by promoting greater efficiency .
- Green policies stimulate innovation 
Study after study reports that well-designed environmental regulations stimulate innovation by firms, as measured by R&D spending or patents. Surveys of firms in the European Union identify existing or future environmental regulation as the main driver for the adoption of incremental innovations. Similarly, international sustainability standards can help local firms to upgrade their environmental practices, a form of catch-up innovation. In developing countries, green policies can also encourage the adaptation and adoption of greener technologies that have been developed elsewhere .
- Green policies also accrue non-growth gains to welfare 
They can reduce inequality through job creation and poverty alleviation, and they can reduce output volatility by increasing resilience to environmental and economic shocks, like natural disasters or spikes in commodity prices. A modeling exercise suggests that half of the cost of climate policies to limit greenhouse gas concentration at 550 ppm could be paid for by less vulnerability to oil scarcity .