This paper argues that the expansion of the share of economic activity taking place in sectors with low or no impact on ecological resources is a crucial component of the transition to a low-carbon society. A growth model is used with a ‘progressive’ manufacturing sector and a ‘stagnant’ service sector – named ‘green services’ in the paper. Because of the non-substitutability of human participation these activities exhibit no labour productivity growth, while productivity in the manufacturing grows as a result of the presence of a stock of public capital (infrastructure) in its production function. The two sectors are also different in their impact on an open-access asset representing environmental quality, which enters the households welfare function.