From New York – The potential of green technology as a critical factor in achieving climate goals while supporting economic growth is increasingly recognized globally. This concept posits that the objectives for people, planet, and profit are interrelated and achievable through sustainable investments, particularly in technology.
According to World Economic Forum, since 2020, energy transition targets have drawn an impressive $1.34 trillion in government funding. The first half of this year alone saw an additional $130 billion in new government spending worldwide.
Significant progress is evident from these investments. The US Inflation Reduction Act has catalyzed over $270 billion in clean energy project investments, aiming to reduce emissions by 50-52% from 2005 levels by 2030. In Europe, the REPowerEU Plan has contributed to a 20% reduction in energy consumption, with 39% of electricity now sourced from renewables. In the Asia Pacific region, renewable energy investments topped global charts in 2022, reaching $356 billion out of the sector’s $532 billion total value.
However, the urgency to accelerate efforts remains, as the Intergovernmental Panel on Climate Change highlights the need to remove 6 billion tonnes of carbon from the atmosphere. This urgency is compounded by the fact that the climate is already 1.1°C warmer, with July 2023 marking the highest ocean surface temperatures ever recorded.
Green technology is pivotal in this scenario. Innovations in this field are essential for decarbonization, resource efficiency, and carbon emission reduction. These technologies extend beyond industrial facilities, including greenfield facilities and sustainable design.
The US Inflation Reduction Act’s investments are particularly noteworthy for their multiplier effect. Research by the Rhodium Group indicates that for every ton of CO2 reduced in the US, an additional 2.4-2.9 tons are reduced globally.
Companies are leveraging technologies like energy and carbon digital twins, AI, and cloud-based models to enhance sustainability. These advancements foster a more agile, collaborative, and environmentally conscious workforce.
The interconnected nature of this technology, termed the connected industrial economy, is pivotal in combating climate change. For instance, Dominion Energy in Virginia uses digital insights to enhance sustainability across its value chain. Similarly, Aker Carbon Capture in Europe and Brilliant Planet in the UK are exploring digital engineering solutions for efficiency and carbon capture.
In China, Yinson’s use of digital engineering has expedited vessel design processes. These examples underscore the widespread impact of green technology in various sectors.
A study by Arup and Oxford Economics predicts that by 2050, green industries could contribute $10.3 trillion to the global GDP, accounting for about 5.2%. This growth underscores the potential of green technology not just for environmental sustainability but also for economic advancement.
In conclusion, as organizations increasingly adopt green technology, it is becoming integral to their core operations, fostering a sustainable future for people, the planet, and profit.