Using image‐elicited, depth interviews, this qualitative study explores green consumption practices among 20 young environmentalists, aged between 18 and 25 years, in an Australian city with a view to examine how various identity formations reside in their narratives. The study's findings strongly support the applicability of Cherrier and Murray's four‐stage processual theory of identity (sensitization, separation, socialization, striving) to understand young environmentalist's formation of a green identity. The study also develops an emergent processual theory of green identity formation, which encompasses four main stages of control, create, compromise and customize. Each stage corresponds to how the young environmentalists position and negotiate their formative green identities, including first enacting control about their identity; creating their new identity in relation to existing green identity projects; compromising their new identity as it is practiced and socialized in their lives; and finally, customizing their identity as they frame, situate and align personal, social and cultural influences about consumption and their identity. The findings inform green policy makers and institutions working towards building a green consumer society involving young consumers.