Green Technologies - Barriers to Adoption

A sustainable planet needs a meteoric rise in thinking. It needs large reservoirs of funding in order to catalyze a major global transition to a climate-smart economy. The planet as of now is quite behind schedule for this to take place.

As per estimations done by the teams at McKinsey, about USD 9 trillion will have to be spent on new energy infrastructure and changes in land use and agriculture each year through 2050.

This staggering amount is equivalent to nearly half of the global corporate profits or a little over 7% of annual household spending in 2020. Something of such a magnitude of scale and speed is a very steep task.?

Winning general consumer acceptance for such climate-protecting tasks and handling them in a way that avoids a reaction may be as huge a task as raising new finance. One such demand to avoid an adverse reaction is that the renewable-energy sector keeps growing at a pace that is equal to the fossil-fuel sector to keep jobs and energy prices stable. Striking the balance is critical or else the chances of volatility, supply shortages, or price fluctuations can negatively affect the system.

The technologies for making the planet green and slowing the pace of environmental degradation might exist but there are economic and social pressures that can act as an impediment to the smooth transition and adaption of such green technologies. Some points that need to be considered:

Countering procrastination

Nearly the whole global economy has been covered by the multiple pledges organized by leading bodies to cut climate-changing emissions to net zero by 2050.

The eventuality of ensuring these pledges get fulfilled is a daunting task, however. It needs heightened global cooperation, stronger monitoring, and additional finance.

During an online WEF event about a year ago, it was quoted that the world was not moving fast enough, and picking up the pace was imperative. This calls for a behavioral shift across governments and industries.

As per suggestions by the International Energy Agency, the current USD 1 trillion invested annually in clean and efficient energy, carbon capture technology, and energy efficiency must increase at least threefold to make an impact.

Rapidly altering and revamping energy systems at a much faster pace is very difficult and challenging. It is not an impossible task, however. Moreover, given that the other alternative is erratic weather patterns or other climate impacts, the choice is not too friendly.

The role of the government and state

The creation and execution of appropriate framework guidelines for the economy is a key task for governments. Such policies and guidelines can cover legal frameworks such as licensing procedures, contract laws, etc. Such guidelines must be fair, friendly, and transparent.

Conventional policies with regard to environmental policy that regulate emissions and are woven around taxes or performance standards are vital as well as the cessation of environmentally damaging subsidies as well.

These guidelines and policies must ensure that the external costs of environmental pollution are factored internalized in the decision-making of businesses. Such decisions will also impact household budgets.

The role of the government and state must go beyond just framework guidelines and should ideally hinge on a broader mix?of conditions that steer progress toward a greener economy.

Dealing with the impact on the distribution

The evolution to a green economy, including technological challenges, affects industry and society. It is, hence, required to not just optimize the performance and benefits of fresh technologies and recognize efficient policies.

The most noteworthy distributional impacts of technological change need to be addressed. All changes brought about due to policy changes involve winners and losers. This fact needs to be acknowledged and dealt with appropriately to meet legitimacy across various sections of industry and society. It might also need attention across academic & scholarly research and policy domains.

Other factors

The shift to a clean and green energy economy could produce a gain and loss of jobs. This can be managed over the long term. However, many industries and sectors may need fundamental technological shifts, not mere increments in efficiency indicators.

There are hurdles to cross for some of these industries. Some hurdles include the risk that businesses will encounter when they invest in newer technologies. Also, private investors are usually not incentivized or motivated to seek investments in long-term green technologies. These technologies in the initial stages are also at a disadvantage from a feasibility perspective against incumbent technologies.

What must be noted is climate change is real and some action on the ground is needed to mitigate it. It needs to be noted that technologies to capture and utilize carbon emissions from power plants or from the air are costly and capacity is limited. An immediate dependence on such technologies to lower emissions is a tough task indeed.?

Greenscape Eco Management has established itself as a formidable player in the urban mining movement since 2007.