43 Eco-Friendly Business Ideas

Green businesses are getting more popular and are a great way to attract eco-minded customers. Plus, some companies may even benefit from tax incentives and government subsidies.

Before launching a green business, you’ll need to come up with a solid idea and plan for how to make it eco-friendly, like by sourcing local products, using efficient energy methods and researching any chemicals you use.

What is a green business?

A green business focuses on sustainable solutions to reduce the negative impact on the environment. Some green companies produce eco products to help others lead a more environmentally conscious lifestyle, such as making natural pest products or organic hand lotions. Other companies call themselves green because they prioritize eco-friendly materials, like using recycled plasticware or reusable containers for a food delivery business.

Having a green business model means you take the extra steps to identify and improve environmental concerns, even if it means a slightly lower profit. For example, it might cost a little extra to ship your products in recyclable packaging, but it could be worth it to help protect the environment. Plus, you will likely draw in customers who support the green movement.

Some eco-friendly companies also partner with local initiatives and nonprofits to work on environmental initiatives and projects. Donating your time or a percentage of your profits can help take your conservation efforts to the next level.

43 eco-friendly business ideas

Looking to launch a sustainability startup or make your business more green? Here are 43 sustainable business ideas to consider.

1. Composting services

While composting food waste can help reduce landfill waste, many consumers don’t have a way to use the result. Consider running a business that collects composted material from local homes, turning a profit by selling it to local gardeners and farmers.

2. Green dry cleaning

Traditional dry cleaning often contains harmful chemicals, potentially affecting both the body and environment. Machines that use the common dry cleaning solvent perchloroethylene (PERC) were banned in California in 2023.

Green dry cleaning uses safer alternatives, reducing the chemical overload for people and the planet.

3. Green junk removal

With growing awareness about waste and trash filling up landfills, it’s possible to start a business that collects and disposes of household and business trash sustainably. Green junk removal companies will donate, recycle and reuse items to keep them out of landfills.

4. Clothing resale shop

According to the Environmental Protection Agency (EPA), landfills received 11.3 million tons of municipal solid waste textiles in 2018 (the latest available data from the EPA). Why not save these clothes from landfills by opening a thrift or consignment shop?

Alternatively, you can sell clothes online at sites like Poshmark or thredUP, or even open an eBay shop.

5. Resale business

In addition to clothes, you could sell other used goods to keep them from ending up in the landfill. Some examples include:

• Secondhand books
• Gently used furniture
• Used electronics
• High-end antiques

6. Green building

As the trend for environmentally sustainable companies grows, so does the demand for sustainably focused builders and architects. You can explore various ways to get involved in this field, such as sourcing more sustainable construction materials or providing solar panels (more on this later).

Obtaining Leadership in Energy and Environmental Design (LEED) certification can demonstrate commitment and expertise on green building and remodeling.

7. Green beauty salon or spa

If you’re interested in the beauty industry, consider opening a hair salon, nail salon or spa that specializes in green practices, including:

• Using products without toxic chemicals
• Sourcing ingredients and supplies from local organic farms
• Having waterless pedicures

8. Eco-friendly consulting

While many businesses want to reduce their carbon footprint, many don’t know where to start. A green consultant can do energy audits to assess a company’s current energy usage. From there, you could brainstorm on various sustainability ideas in an effort to use energy more efficiently.

9. Upcycled goods and furniture

Creative and artistic types could create a business by transforming “junk” into sellable goods. One common example is turning used wine bottles into candles or lamps.

You can also create your own clothing line of funky designs made from old clothes or scraps of material. Sell your goods on sites like Etsy, at local craft or farmers markets or local shops.

10. Green cleaning services

Those wanting a more eco-friendly living or work space may opt for a green cleaner. You can use chemical-free and greener cleaning products to keep houses and business spaces sparkly clean while helping protect the environment.

Plus, using allergy- and asthma-friendly green cleaning products can help you find customers who may avoid traditional cleaning services — and potentially charge higher prices.

11. Green pest control

Some environmental businesses offer safer, earth-friendly pest control solutions for home or commercial spaces, including:

• Ant, termite and bedbug treatments
• Cockroach and rodent exterminations

12. Bike shop

With a spotlight on the carbon footprint of driving, consumer interest in transportation alternatives could increase. You could open a shop that repairs and sells bikes and scooters.

E-bikes are rising in popularity, especially for city commuters looking for a cost-efficient travel option that is also kind to the environment.

13. Refurbishing technology

When electronics age or break, it’s common for people to throw them out. You can reduce this nonbiodegradable waste and turn a profit by refurbishing electronics and other types of technology, such as cellphones, computers and vacuums.

14. Printer ink refilling

Rather than throwing ink cartridges into the trash, you could launch an ink refilling business. This could help consumers save money while reducing plastic waste.

15. Green landscaping

To start a green landscaping business, focus on techniques that reduce water usage and employ landscaping techniques that benefit the environment, such as:

• Hardscaping: Great in dry climates, hardscaping involves landscaping with nonliving elements, such as bricks, rocks, stone and wood. You could also include manufactured additions, such as patio covers, retention ponds and decks.
• Xeriscaping: Another option for dry climates, xeriscaping can include hardscaping, but may also use drought-tolerant plants. This option is easier to maintain than a traditional lawn or garden and significantly reduces water usage.
• Gardening: If you live in an area with heavy rainfall, you can focus on creating landscapes with plants that are native to the area. The right plants can remove carbon and create food and homes for local insects, birds and other wildlife. Your green business could build gardens for businesses and homeowners, including space-saving vertical gardens, which have become popular in urban environments.

16. Green gardening services

You could open a gardening store if you’d rather base your business in one place. In addition to selling gardening supplies and plants, you could teach eco-friendly gardening classes and workshops.

You’d also want to have information on what plants are native to the area and beneficial to local pollinators.

17. Farming

Growing food locally without harmful additives or chemicals has numerous benefits. You’re capturing carbon, reducing chemicals and growing fruits and veggies with higher nutrition content. Plus, selling locally reduces the amount of fossil fuels needed to transport it to its final destination.

You can sell your goods at local farmers markets, restaurants and grocery stores. You could also consider delivering the food directly to consumers in your area with a Community Supported Agriculture (CSA) program.

18. Solar panels

The solar power industry has grown rapidly over recent years. In fact, the Energy Information Administration, which provides statistical data to the Department of Energy, estimates that by 2050, 20% of U.S. electricity will come from solar power.

More homeowners and commercial building owners are seeking this form of renewable energy, especially as prices drop. Your business can focus on manufacturing solar panels or installation — or both if you want to be a one-stop resource for renewable energy.

19. Wind energy

Wind energy is the most common form of renewable electricity in the U.S., so creating a wind farm or another business in this field could be a smart move. Just be aware that starting a wind energy business can be long and complicated — think obtaining permits, wildlife and environmental impact considerations, etc. It could take several years to get a business off the ground.

20. Biofuel manufacturing

Biofuel is another form of renewable energy, made from either plants or waste. While it requires some scientific know-how, one idea is to start a green business that produces and sells biofuels, especially as many companies shift to using them.

21. Electric car charging

The market for electric cars (EVs) continues to rise rapidly and, by 2030, sales of electric vehicles could reach 40% or more of total U.S. car sales.

As a result, charging stations will likely be in high demand to allow EVs to travel longer distances. You could start a business that offers electric car charging stations.

22. Car sharing

People who want to reduce carbon emissions may skip vehicle ownership, especially if they live in a place with decent public transportation. However, a car-free individual might need a vehicle from time to time. A car-sharing business would allow these consumers to access a vehicle on a per-need basis.

23. Electric car service

Ride-share services can help reduce the number of cars on the road. But as long as they rely on fossil fuels, they still create a significant carbon footprint. You could start a taxi or ride-share service using a fleet of electric cars.

For example, eCab is a small electric car service offered in several cities in Texas.

24. Energy-efficient car sales

Drivers wanting to reduce reliance on fossil fuels will likely express interest in hybrid or electric cars. You could open a dealership that caters specifically to this need.

25. Green restaurants

The farm-to-table trend is popular for a reason: Local cuisine can be less processed and more nutritious. Plus, it supports local farms and uses minimal fossil fuels to be transported nearby.

Consider opening a restaurant that sources as many local ingredients as possible. A restaurant business loan could help cover some of your startup costs.

26. Green catering and food supplier

Similarly, you could start a catering company specializing in local, farm-to-table foods. This could appeal to event planners and clients who prefer to spend their money on eco-friendly businesses.

Add in a green meal-delivery service for busy families or professionals who want to eat healthy but don’t have the time for home cooking. Using recycled plasticware or reusable containers can make this service even more environmentally friendly.

27. Alternative materials creation

Many businesses want to manufacture more eco-friendly and biodegradable materials and packaging. For example, as some cities ban plastic straws, your business could make compostable straws or reusable metal or silicone straws.

28. Software and apps

You can create software programs or mobile apps to help businesses or individuals achieve a more eco-friendly lifestyle. For example, your app could list the most sustainably focused brands, where to locate recycling centers or daily tips for adopting a zero-waste lifestyle.

29. Environmental law

If you have a legal background, you can provide services to help protect the environment and help corporations follow the current environmental laws.

30. Fundraiser and grant writer

Environmental organizations and nonprofits typically rely on grant money and donations to keep their mission alive. You can become a freelance grant writer or find an organization needing an in-house fundraiser. Check out jobs on UpWork and Fiverr to get started.

31. Start a cooperative

A sustainable community allows everyone to share resources, such as pitching in with a community garden or sharing communal compost. You can focus on building eco-friendly or tiny houses to reduce the carbon footprints of the community’s residents.

32. Green gift shop

Inspire people to implement more green choices with an eco-friendly gift shop. You could start with an online store selling the latest eco-friendly products. If your store is turning a profit, a commercial real estate loan could help you open a brick-and-mortar location.

Some ideas for things to sell include metal straws, reusable shopping bags, shampoo bars, recycled plastic rugs and more.

33. Eco-travel planner

If you love to travel and take care of the environment, this one could be for you. You can help tourists find eco-friendly destinations and resorts worldwide that offer chemical-free accommodation and focus on protecting the environment.

For example, this ecosanctuary in New Zealand offers a place to stay while experiencing nature’s beauty up close. You can even view native birds while soaking in a chemical-free hot tub.

34. Environmental blog

Writing an eco blog can be a great way to share current information about climate change and how to live a greener life. Consider adding social media content to help boost your presence, such as YouTube videos, Instagram posts and more. With paid advertisers, this business could be quite profitable.

35. Eco-friendly kids’ products

Many kids toys and products contain plastic — both in the product and in the packaging. Help parents reduce microplastics and trash by producing sustainable toys, glass bottles, recycled clothing and cloth diapers.

36. Eco-friendly pet products

Like kids’ toys, pet products are often made with plastics or non-biodegradable materials that end up in the landfill. Americans spent $147 billion on their pets in 2023, so an eco-friendly pet store could end up being quite lucrative.

You can focus on making organic shampoos, treats and green toys made with recycled materials. This business model could work great in combination with a local dog walking business.

37. Handmade organic products

More people are making the switch to eco-friendly products like soap, shampoo, bodywash, lotions and creams. You can create your own unique recipe using local ingredients, print out a label and take your goods to the local farmers market. From there, see if any local shops want to carry your goods, or consider starting your own online shop.

38. Green venture capitalist

Help other green entrepreneurs launch their business ideas by investing in up-and-coming environmentally sustainable companies. While providing venture capital financing has pros and cons, it can be a great way to boost the presence of green companies.

39. Sustainable events planner

Events tend to generate a lot of trash, especially those relying on paper plates and plastic silverware. Help companies and families host a range of events — from weddings to family reunions to graduations — with an eco-friendly focus.

You can provide compostable tableware, cloth napkins and eco-friendly decorations. Or, you could start an event venue business to host parties, conferences and events at a venue focused exclusively on eco-conservation.

40. Plant delivery service

Help keep homes and offices fresh and full of clean air by delivering local plants and flowers right to their door.

41. Green financial planning

Green bonds can help address climate change through innovative financing and environmentally conscious investments. If you work in finance or plan to get a degree in that field, you can help others buy and sell these bonds to boost their eco-friendly portfolios.

42. Green car wash

Commercial car washes use around 150 liters of water for just one car, and about double that for larger vehicles like trucks and buses. The heavy water use is one issue, but the main problem is the gunk and grease that floats away in the wastewater.

The best way to turn a car wash green is to limit the water use and use a proper wastewater disposal system. You can also recycle your car wash’s used water and use eco-friendly products, such as cloth towels instead of paper.

43. Green franchise

If you don’t want to put in all the time and effort of starting a business from scratch, you could consider buying a franchise instead. With an eco-friendly franchise, the brand and environmentally conscious message have already been established. You can simply step in and help make a more significant impact across the nation (or globe).

Some examples include:

• freecoat nails: Open your own salon that uses more natural and safer ingredients for nail and beauty care.
• ecomaids: Make houses sparkle and shine without any nasty chemicals or toxins.
• Conserva Irrigation: Help conserve natural resources while promoting healthy lawns and landscapes.

Just make sure you keep up with your green ways, such as hiring local managers to oversee the business to minimize your own travel between locations.

Advantages of starting an eco-friendly business

As consumers become increasingly aware of the environmental impacts of their purchasing decisions, more are demanding green business options to help reduce their carbon footprint.

A recent study showed that 92% of shoppers believe sustainability is important when picking a brand. Another sign of growth in this space: Some colleges now offer “green majors,” or majors with classes focused on environmental impacts, to help students prepare to enter the field of environmentally friendly business.

Based on these growing trends, now might be the best time to start an environmentally friendly business.

What to consider when starting a sustainable business

Starting a business takes a certain amount of effort and planning, such as picking a business entity, coming up with a catchy name, building a website and marketing your brand.

With a green business, you need to consider all aspects of your company’s operation to ensure it keeps in line with your eco-friendly mission statement. Here are some details to consider:

• Transportation. Think about your business’s location and if employees and clients can easily get there via walking or public transportation. You can trim back on unnecessary travel, such as giving employees the option to work remotely. Some companies even give their employees discounts on bikes to encourage them to their carbon footprint.
• Water. Saving water is one way to make your company even greener. You can invest in a dishwasher for your staff break room to wash all the dishes at once instead of employees washing one dish at a time. Dual flush toilets are becoming more popular and can help cut back on water waste. If you have a car-washing you can invest in a specialized system that treats the wastewater to minimize its negative effect on the environment.
• Chemicals. Most businesses will use some types of chemicals, such as paint, resin, laundry detergents, cleaning supplies, carpet cleaners and more. While it might be impossible to get rid of all the chemicals in your business, you can opt for safer chemicals whenever available.
• Materials. You can reduce your paper use by using electronic documents and payroll services. If you still need paper for printing, there are plenty of affordable recycled options worth considering.
• Energy and lighting. Check to see if your office or retail shop is optimized with energy-efficient lights and appliances. You can redesign your office space so desks are near natural sources of light.
• Suppliers and services. As you grow your green business, you can help support other green companies and suppliers. For example, you can hire a green cleaning service that uses natural products when cleaning your office.
• Certification. Getting certified as a green business can show customers that your operation meets high standards of eco-friendliness. This can help you attract new customers focused on sustainability.

How to fund your green business

Green entrepreneurs can consider small business grants to get funds to start their eco-friendly business. Once your business has operated for at least six months with a decent cash flow, you might be eligible for traditional small business loans to grow and expand your business even more.

Here are several loan and grant programs specifically geared for sustainable companies:

• The Conservation Fund provides loans to land trusts and other organizations looking to increase green space and broaden conservation programs. If you’re looking to start a farming business, its Working Farms Fund helps farmers lease-to-own farmland. It’s currently a pilot program available only in select metro areas, but the organization hopes to scale it soon.
• The federal government offers various loans and grants for eco-friendly businesses, including options from the Department of Energy, the Environmental Protection Agency and the National Science Foundation.
• You can also consider crowdfunding to help raise funds for your green business. While it’s free to launch a campaign and collect donations from friends, family and the public, these platforms typically take a fee out of your earnings to pay for their service.