Your green wire would be what the US calls a ground wire, and what is more accurately called a Equipment Grounding Conductor (EGC). It's purpose is to bond all normally non-current carrying conductive parts of a system together to provide a ground-fault current path back to the source so that the overcurrent protective device can operate properly to open the circuit in the case of a ground fault. It is 100% a safety measure, and will operate as intended to open a breaker whether or not it is connected to the Earth.
Your red and black wires are both ungrounded conductors, and are the conductors which actually create the circuit that allows current to flow to power whatever you connect to the circuit. The circuit will work to provide current without the green wire. However, without the green wire, if either the red or black shorts to something, the breaker will not open and you have an enormous potential to harm someone or burn your house down.
This is not true. First of all only the red is hot, if the black shorts to something nothing will happen.
Second if there is a short strong enough to "burn your house down", the breaker most definitely will open.
I am correct on the EGC, though. It works the same as the EGC in the US. If a ground fault causes a house to burn down, then the breaker will absolutely NOT open. That's how the fire starts: current flows through something it shouldn't long enough to heat it up to the point that something ignites. If the breaker opens, the fire wouldn't have started in the first place.
By having a separate ground, it's harder to mess that up, and devices can connect the body of the device to that.
Inside the electrical box (mains) the neutral and ground are connected together, and are at the same potential.
The only reason they run separate wires is in case of of mistakes.
Erm no.
1. In case the neutral gets disconnected, so the frame isn't at the potential of the hot (no voltage drop across the device)
2. So the return voltage drop in the white wire isn't on the body of the device. ~20 volts between adjacent high-current appliances on different phases probably wouldn't be terribly dangerous to most people, but it is sloppy.
3. For GFCI/RCD, it separates bona fide return currents from "accidental" return currents. With only two wires, dropping a toaster into a (PVC-drain) bathtub wouldn't trip. (Erm, I just realized most toasters are actually only two wires. Well uh, don't do that).
The geometry of the electric field in water should probably be similar to that in air (mostly contained to within the case), just don't drop both a toaster and a waffle maker in at separate ends.
It assumes that any dangerous shocking current will be taking a path that isn't just coming back on its own white wire, presumably from taking an unspecified path to ground. This seems a reasonable assumption for safety (and the NFPA surely has looked at the data), but it doesn't really inform the above isolated-bathtub situation.
If the green wire is connected between the receptacle and the outlet/switch then it’s “bonding” the two mental items. (Using the terminology from post). Most people refer to this as the ground wire or grounding the receptacle. The purpose, from my understanding, is to have a stable system. In the event the hot wire touches the receptacle.
If the red/blue/green are coming from the same cable (3 wires inside another sheath), then your green is the ground/neutral that connects to the electrical box itself, while the other two are hot/lead.
I posted a similar question above which may clarify things if the OP answers.