The world is on the cusp of a critical shift in its approach to climate, nature and energy strategies. It has become necessary to balance these goals, implement comprehensive solutions, build global trust, and harness the power of technology, policy and people. The convergence of technological progress and environmental awareness has given rise to a promising field called green technology. The UN Sustainable Development Goals are a valuable reminder of the challenges we face and provide a solid foundation for reducing our carbon footprint and moving towards a carbon-neutral, nature-positive economy.
Achieving net-zero carbon emissions by 2050 is an ambitious goal but necessary to effectively combat the climate crisis. The good news is that most new-age companies and executives believe that investing in green technology represents a compelling opportunity to increase stakeholder value in any business. Besides being a forward-looking choice, investing in green technology can also be a financially sound decision. According to a recent report, the green technology and sustainability market is expected to grow at an impressive CAGR of 27.71% during the forecast period 2023-2030, reaching a value of $118.45 billion.
India is among the top five performing countries in combating the climate crisis, according to the Climate Change Performance Index (CCPI, 2023). A survey reveals that 57% of CEOs are actively working to reduce their company's emissions, while 15% have already achieved this goal. Likewise, Budget 2023 prioritized the development of green technology to achieve the country's net-zero emissions targets by 2070. To encourage the growth of green technology startups, the government has implemented several initiatives, including the LIFE Movement, the Green Credit Program, and the Green Credit Program. Green hydrogen mission.
It is clear that we have a great opportunity to establish a sustainable future by adopting green technology, which can be seen as an embodiment of the Japanese concept of “reason for being,” known as ikigai. By integrating sustainability into every aspect of our lives, we can unleash potential and create a better world for ourselves and future generations.
The future looks promising, and many developments in green technology are expected to enhance our interaction with the environment. Innovations in green architecture, solar and wind energy, electric vehicles, carbon capture and storage technology, fuel energy, and recycling will gain momentum and accelerate the wider adoption of renewable energy resources, paving the way for a more sustainable future. The green technology industry is growing rapidly and offers many benefits, including those listed below.
- Economic Viability: As the world shifts towards sustainable development, companies are increasingly investing in energy-efficient technologies to reduce operating costs and increase profitability. In addition to contributing to a cleaner environment, using renewable energy sources such as solar and wind energy can significantly reduce electricity costs, making it a financially sound decision. Moreover, with the new normal of hybrid working, many organizations have embraced the trend of reducing daily energy and transportation consumption, which has become a mandatory requirement for smooth operations. According to a report, nearly two-thirds of Fortune 500 companies have set ambitious carbon reduction goals by 2050. Thus, investing in energy-efficient technologies is an environmentally responsible choice and a smart business decision that can lead to long-term cost savings and increased profitability.
- Impact on the environment: Green technology involves the use of alternative fuels and solutions that have less negative impact on the environment than traditional fossil fuels. One example of this is electric cars, which have gained popularity as a means of green transportation, contributing to the reduction of greenhouse gas emissions. Green hydrogen is also being evaluated as a potential energy source despite the high production costs and associated risks. Another approach to sustainability is to use energy-efficient and smart appliances in our homes, improving energy consumption and reducing pressure on the environment.
- Huge growth potential: With an expected market size of $45-55 billion and an estimated annual growth rate of 25-30%, the sector presents an opportunity for companies to be at the forefront of innovative and sustainable practices. Not only does it help reduce an organization's environmental impact, but it can also enhance its brand reputation and competitiveness in the market. According to one research, investment in low-carbon technologies reached $755 billion in 2021, representing a 27% increase over the previous year. However, to eliminate net carbon emissions by 2050, we would need to invest three times the current amount. This shows that there is still a long way to go, but it also represents an opportunity to intensify our efforts and work towards a cleaner and safer future for all. This is not a task that can be achieved in isolation; It requires concerted efforts from government, businesses, investors and stakeholders. Organizations investing in green technology must be transparent about their investments in renewable energy and the impact on their emissions. This will help investors and stakeholders assess their environmental commitment and support their efforts to reduce their carbon footprint. In addition, financing green technology projects should be prioritized as they will be an excellent investment for our future.
Investing in green technology not only represents an attractive economic opportunity, especially since the market size is expected to grow to $45 to $55 billion in India over the next five years, but it also represents an opportunity to encourage innovation and progress. By collaborating and working towards this common goal, we can positively impact and create a sustainable world for ourselves and future generations. It is a scary picture indeed, but with a problem-solving approach supported by technological innovations and a collaborative approach, we have the right armor to build a sustainable future.
This article was written by Lakshmanan Chidambaram, President – Americas (Business), Tech Mahindra, New Delhi.
