Green Technology and Its Role in Shaping a Sustainable Economy
JEC CANADA — We stand on the future of unpredictable environmental change, and the growing need for sustainable solutions has never been more urgent. Climate change, resource depletion, and environmental degradation are not false threats but current realities in our world. Green technology is our beacon of hope in this crisis and has emerged as a crucial tool for fostering a more sustainable economy. Global investments on clean energy technologies and infrastructure is projected to reach a staggering $2 trillion in 2024, and this figure is only expected to rise in the coming years (“Investment in Clean Energy”, 2024). This massive growth in investments showcases the growing recognition of green technology, and just how important it is to both our economy and environment. This leaves some questions; what is green technology, and how will it shape our economy in the coming years?
Also known as “cleantech,” green technology encompasses a large range of technologies and practices that are aimed at mitigating the effects of climate change. From electric vehicles to sustainable agriculture, green technology tries to form a balance between economic growth and environmental stewardship. Green technology is not just about carbon footprints but reimagining and redeveloping how we produce, consume, and grow.
The Roots
To understand the significance of green technology, it’s important to explore its roots. The concept of green technology is not new and has evolved over the past decades in response to the growing threat of environmental issues. The 1970s oil crisis encouraged energy conservation and efficiency to become a top priority, bringing the need for sustainable energy sources to the forefront (“From oil crisis to energy revolution”, 2019). Wind turbines and solar panels, once considered unconventional technology solutions, began to gain traction as alternatives for fossil fuels (Desrochers, 2019). In contrast to the 21st century, where green technology has rapidly expanded into various sectors of the economy, earlier innovations were focused primarily on addressing energy shortages and reducing the overall reliance on fossil fuels.
Today, the statistics are striking. Worldwide, the energy sector employment has reached over 67 million in 2022, with clean energy leading the growth by adding 4.7 million jobs since 2019. Clean energy sectors currently employ over 35 million workers, surpassing fossil fuels,which stand at 32 million jobs. This growth is largely driven by five sectors–solar PV, wind, electric vehicles (EV’s) and battery manufacturing heat pumps, and critical minerals mining–that all together employ over 9 million workers (“Energy Employment Report,” 2023).
The Economic Impact
The International Renewable Energy Association (IRENA) estimates that over 90% of electricity generation should come from renewable energy in 2050 (“Renewable energy-”, n.d.). This gradual shift and increase in renewable energy sources is not only crucial for the environment, it also presents an economic opportunity for growth. Countries like Iceland and Germany, which are investing in green technologies, are positioning themselves at the forefront of prioritizing sustainability over short-term goals.
In recent years the advocacy for green technology has rapidly gained momentum as the growing effects of climate change become more apparent. Rising sea levels, extreme weather, and biodiversity loss are some of the many effects of our reliance on fossil fuels and unsustainable practices. These environmental changes are undoubtedly impacting our economy. According to the World Bank Group, the effects of climate change can force an additional 132 million people into poverty by 2030. (“Health and Climate Change”, 2024).
Green technology across sectors
However, green technology offers a glimmer of hope. For example, the electric vehicle (EV) industry, which was initially a niche market, has grown to be a mainstream option, with global sales of nearly 14 million units in 2023 (“Trends in electric cars”, 2024). This sizeable shift is driven by technological advancements and policy support, as governments worldwide are implementing stricter regulations on emissions and offering more incentives to switch to EVs. Electric vehicle sales are projected to reach over 45 million units worldwide by 2040, creating millions of jobs and reducing dependency on oil. Additionally, widespread EV adoption is projected to significantly lower CO2 emissions through 2050 (Linder, 2024).
Beyond the automotive industry, green technology has been transforming agriculture, manufacturing, and even finance industries. Sustainable agriculture practices, like precision farming and vertical farming, are helping to reduce overall resource use and increase food security (Avgoustaki & Xydis, 2020). In manufacturing, the adoption of economic principles where products are designed to be reused, recycled, and hold a factor of longevity, is reducing waste and lowering costs. Meanwhile, the surge of green finance is generating billions of dollars into sustainable projects, speeding up the transition to a low-carbon economy.
Corporate Adoption
One of the most promising developments is a growing trend of sustainability in the corporate sector. Many companies are starting to realize that sustainable practices are not just good for the plant, but good for business as well. In 2020 a survey conducted by McKinsey & Company revealed that 83% of C-suite leaders and investment professionals expect that ESG (Environment, Social and Governance) programs can and will contribute more shareholder value within the next 5 years than they do now (“The ESG premium”, 2020). Therefore this shift in the corporate mindset will drive innovation in green technology, as many companies will continue to reduce their negative impact on the environment.
Advancements and Accessibility
Furthermore, these technological advancements are allowing green tech to be more accessible and affordable. This cost of solar power, for example, has reduced by 89% over the past decade making it one of the cheapest sources of electricity in many areas of the world (“The price of solar”, 2021). Similarly, the advancements in battery technology are also making renewable energy storage much more efficient, creating increasingly reliable access to clean energy during periods of low generation.
However, if we truly want to understand the potential of green tech, we need to address the social and economic inequalities that might be affected by this transition. For instance, workers in a lot of traditional industries like oil extraction and mining could face job losses due to the economic shift towards renewables. Estimates suggest that the shift to cleaner energy could displace 312,000 to 450,000 jobs as demand for fossil fuels declines by 40–50% over the coming decades (“Canada’s Energy Sector”, 2023). To allow the opportunity to mitigate these effects, many governments and businesses will have to create new job opportunities as well as invest in new skills education in green sectors. More efforts have to be made to allow the benefits of green tech to be accessible to everyone, particularly in many developing countries where the impacts of climate change are much more severe.
Shaping a Sustainable Future
Green technology is the very key to building a more sustainable economy that meets the needs of current issues in our world. This transition to a greener economy is within reach and not only is it important for our environment but it’s an opportunity for innovation and new job opportunities. However, this transition will come with its difficulties. It’ll require coordination from governments, businesses, and consumers to overcome these challenges and play a role in shaping our more sustainable future. The choices we make today, like investing in renewable energy, using sustainable technology, or supporting green innovation, will determine the status of the world we leave behind for future generations. Will we rise to the challenge of growing the potential of green technology, or continue down the path of environmental deterioration and economic instability? The choice lies in our hands.
References
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