What is Green Technology and can Developing Countries Afford it?
In the face of escalating environmental crises like climate change, deforestation, and loss of biodiversity, green technology has emerged as a beacon of hope and a pivotal solution for the modern world. This clean technology is designed to minimize the negative impact of human activities on the environment by harnessing innovative methods and sustainable practices to reduce waste, curb emissions, and promote the efficient use of resources, thereby ensuring a healthier planet for future generations. The global green technology and sustainability market is a testament to its growing significance. A report published by Grand View Research anticipates the market to grow at a compound annual growth rate (CAGR) of 22.4% from 2022 to 2030, reaching $79.65 billion by 2030.
What is green technology?
Green technology, often called 'clean' or 'sustainable' technology, is designed to minimize the environmental impact of human activities and promote the efficient use of natural resources. These technologies are created by combining environmental science, chemistry, environmental monitoring, and electronic components to build new ways to conserve the environment.
The evolution of green technology traces its roots back to ancient civilizations that practiced rudimentary environmental management, such as the advanced sewage systems of the Indus Valley and the crop rotation techniques of ancient farmers. However, the Industrial Revolution in the 18th and 19th centuries, while heralding significant technological advancements, also led to widespread pollution and environmental degradation. This period underscored the urgent need for sustainable practices. By the 20th century, spurred by seminal events like the publication of prominent scientist Rachel Carson's ‘Silent Spring’ and the global oil crisis, there was a marked shift towards sustainable technologies, culminating in the environmental movements of the 1960s and 1970s. Today, the core areas of green technology encompass renewable energy sources such as solar, wind, and hydropower; waste management techniques like recycling and composting; and water purification methods, including desalination and wastewater treatment.
Green technology examples
Green innovation is underway, with new technologies emerging to drive solutions to the environment’s most pressing problems. Here are a few prominent green technology examples:
Hydrogen-based Energy Solutions: McKinsey predicts that in 2050, hydrogen could power 400 million cars and nearly 20 million buses as hydrogen-powered become efficient in storing more energy with less weight. These systems are more efficient for heavy cargo vehicles and can also help reduce carbon dioxide emissions by 60%.
Electric Vehicles (EVs): EVs operate on electricity and are more fuel efficient for general vehicles, eliminating direct carbon emissions by utilizing technological innovations like high-capacity rechargeable batteries and infrastructure to support vehicle charging. However, the source of the electricity, whether from coal or natural gas, can lead to indirect emissions. Integrating EVs with residential solar panels can help mitigate this issue.
Carbon Capture, Utilisation, and Storage: CCUS is a promising technology that directly captures carbon from the atmosphere or at the point of combustion to reuse or store it. While it offers a solution to reduce carbon emissions, it is also water and energy-intensive, making it a costly option, especially for developing countries. However, recaptured carbon can be utilized to create items like concrete or carbon fiber.
Intelligent Agriculture: With increasing strains on supply chains and rising food wastage, an innovative solution to agriculture production is underway. Intelligent farming systems are now being deployed, assisting in the streamlined production of produce based on supply and demand, global needs, and farming capacity.
What are the economic benefits of green technology?
Green and frontier technologies are estimated to create a market of over $9.5 trillion by 2030, as reported by UNCTAD. As the green technology market attracts greater public and private investment, nations will realize the macroeconomic benefits of growth in employment and income. The demand for investing in green technology is underway, as evident by the 210% year-on-year increase in investments in 2021, cited by PwC. Governments worldwide are offering tax incentives, grants, and subsidies to promote the adoption of sustainable technologies. Many private institutions and venture capitalists are also keen to invest in promising green tech startups. Expectations for the sector are high, with prominent figures like Blackrock’s CEO Larry Fink stating that the next 1000 unicorns will be green energy companies.
On a microeconomic scale, adopting green technology requires an upfront investment, whether installing solar panels, retrofitting buildings to make them more energy-efficient, or purchasing electric vehicles. While the initial costs of adopting sustainable technologies can be substantial, the long-term financial benefits are compelling. For instance, solar panels can reduce electricity bills significantly. The average household in the U.S. spends about $125 a month on an energy bill. If your solar system is robust enough to cover your energy usage, you could see savings of up to $1,500 annually. Solar panels usually last 25 to 30 years before losing efficiency, so homeowners could save between $25,500 and $33,000 on electricity during the system's lifespan. Moreover, energy-efficient appliances and buildings can reduce energy consumption, lowering utility bills.
Can developing countries afford green technology?
Besides reducing carbon footprint, green technology can transform developing nations' economic and technological landscape.
With advancements in artificial intelligence, the Internet of Things, and electric vehicles, these nations have a burgeoning potential to leapfrog traditional developmental stages. Developing countries stand at a crossroads as the world pivots towards a more sustainable future. They have the unique opportunity to harness the power of green tech to strengthen their economies, build resilience, and bridge socio-economic inequalities. This context sets the stage for understanding the evolving dynamics of green tech projects in these regions.
The initial investment required for green technologies, such as solar panels or wind turbines, can be prohibitively high for many developing nations. For instance, 25 to 50% of the average long-term cost of producing clean energy in developing markets like China is attributed to financing or expenses due to borrowing, as highlighted by the Finance for Development Lab. International trade laws and intellectual property regulations are complicated and inflexible, restricting technology transfer. Moreover, the lack of infrastructure, skilled workforce, and technological know-how can hinder the effective implementation of these solutions. The developing world shouldn’t have to miss this technological revolution due to a lack of policy attention or investments directed towards skill building.
Despite these constraints, some developing countries are pushing to capitalize on this wave. The renewable energy legislation introduced by Egypt in 2014 has facilitated collaborations between the private sector and the government to generate power from renewable sources. A notable instance in energy generation is the emerging global economy centered around green hydrogen. Countries in the developing world, including Chile, Panama, and South Africa, have already implemented comprehensive green hydrogen plans that align with sustainable development goals. Countries like China have capitalized on these opportunities through robust government policies, such as the 2006 renewable energy law, which catalyzed the initial growth of the biomass industry, backed by solar energy subsidies and private sector initiatives.
Solutions to making green tech affordable for developing countries
Localized solutions: Adapting green technologies to cater to local needs and resources can lead to significant cost savings. By utilizing local materials and expertise, projects can circumvent expensive imports and integrate more effectively with the local environment and culture.
Public-private partnerships (PPPs): Collaborative efforts between governments and private entities can amalgamate resources, distribute risks, and combine expertise. This synergy often culminates in more efficient project execution and substantial cost reductions.
International aid: International organizations and developed nations must extend financial and technical support to foster green technology in developing countries. Such aid can mitigate the initial expenses associated with green tech projects. Recent initiatives feature a worldwide electricity project initiated by the U.K. and India, receiving support from 80 countries. The Green Grids Initiative aims to galvanize political commitment and financial backing to establish global supergrids across every continent, connecting sun-rich deserts and wind-abundant coastlines to major population hubs.
Conclusion
Green technology, or sustainable technology, addresses today's environmental challenges by minimizing human environmental impact with intelligent solutions. While adoption can be costly initially, the long-term advantages, both environmentally and economically, are significant. Developing countries face financial and technical challenges to initiate the green transition, but despite this, nations are leveraging green technology for growth, aided by collaborative efforts and international support. As the world leans towards sustainability, green technology is a pivotal solution for a healthier future, and stakeholders must work together and innovate to make it accessible to all.
Are you looking to drive sustainable and green innovations? We can help build innovation programs that foster collaborations between academic institutions, governments, corporations, and startups to build new ideas. Get in touch with us at hello@futurize.studio!
