Green tech needed to mitigate climate --- already seeing results now

Worldwide, energy transition targets alone have attracted a staggering $1.34 trillion in government allocations since 2020, according to the International Energy Agency. Some $130 billion in new government spending across the globe was announced in the first half of this year. The results of such investments are already becoming apparent. Over the past year, the US Inflation Reduction Act has prompted companies to invest more than $270 billion in clean energy projects, which should cut emissions by 50-52% below 2005 levels by 2030. Worldwide, energy transition targets alone have attracted a staggering $1.34 trillion in government allocations since 2020, according to the International Energy Agency.

Some $130 billion in new government spending across the globe was announced in the first half of this year. The results of such investments are already becoming apparent. Over the past year, the US Inflation Reduction Act has prompted companies to invest more than $270 billion in clean energy projects, which should cut emissions by 50-52% below 2005 levels by 2030.

In Europe, the REPowerEU Plan has saved almost 20% of the bloc’s energy consumption, with 39% of electricity coming from renewables, and Asia Pacific attracted the most new investment in global renewable energy during 2022, accounting for $356 billion of the sector’s $532 billion value. Yet, we need to work faster, together, to keep global warming to the 1.5°C threshold.

The Intergovernmental Panel on Climate Change estimates some 6 billion tonnes of carbon need to be removed from the atmosphere, a huge amount. And we don’t have time to lose: the climate is already 1.1°C warmer, with July 2023 reporting the highest-ever ocean surface temperatures. Ensuring we stay on track and realize a climate-neutral future hinges on a crucial catalyst: green technology. Advanced technologies unlock sustainable gains at every level. Innovations in green tech support the decarbonization, drive use of fewer resources, boost efficiency from existing industrial facilities and cut carbon emissions. This is before we consider greenfield facilities, sustainable design and enhanced circularity from resource sourcing to product disposal. Studies on the impact of the US Inflation Reduction Act suggest that the investments in new energy technologies have a knock-on ‘multiplier effect’ beyond immediate outcomes too. Preliminary analysis from the Rhodium Group, a research and analysis firm, shows that for every ton of CO2 reduced within the US, an additional 2.4-2.9 tons of emissions are reduced outside the US.