User:Fabulous-Fishy/Clean technology

Clean technology (final draft)

Investment worldwide

During the last twenty years, regulatory schemes and international treaties have been the main factors that defined the investment environment of clean technologies. Investments in renewable sources as well as the technologies for energy efficiency represent a determining factor in the investments made under the context of the Paris Agreement and the fight against climate change and air pollution. Among financing of the public sector, the government has been using financial incentives and regulations that are targeted at the private sector. This collectively move is the cause of the continued increase in the clean energy capacity. The investments in renewable electricity generation technologies in 2015 were over $308 billion USD and in 2019 this figure rose to $311 billion USD.

Startups with new technology based innovation are considered to be an attractive investment in a clean technology sector. Venture capital and crowdfunding platforms are crucial sources for developing ventures that lead to the introduction of new technologies. In the last decade, startups have significantly contributed to the increase in installed capacity for solar and wind power. The trendsetting firms that design new technologies and devise strategies for the industry to excel and to be more resilient in the face of threats.

In 2008, clean technology venture investments in North America, Europe, China, and India totaled a record $8.4 billion. Cleantech Venture Capital firms include NTEC, Cleantech Ventures, and Foundation Capital. The preliminary 2008 total represents the seventh consecutive year of growth in venture investing, widely recognized as a leading indicator of overall investment patterns. Investment in clean technology has grown significantly, with a considerable impact on production costs and productivity, especially, within energy intensive industries. The World Bank notes that these investments are enhancing economic efficiency, supporting sustainable development objectives, and promoting energy security by decreasing dependence on fossil fuel. China is seen as a major growth market for cleantech investments currently, with a focus on renewable energy technologies. In 2014, Israel, Finland and the US were leading the Global Cleantech Innovation Index, out of 40 countries assessed, while Russia and Greece were last. Renewable energy investment has achieved substantial scale with annual investments around $300 billion. This volume of investment is fundamental to the global energy transition and remains in spite of an R&D funding plateau, representing the sector’s healthy expansion and appreciation of renewable technology’s promise. Several journals offer in-depth analyses and forecasts of this investment trend, stressing its significant role in attainment of the world energy and climate targets. With regards to private investments, the investment group Element 8 has received the 2014 CleanTech Achievement award from the CleanTech Alliance, a trade association focused on clean tech in the State of Washington, for its contribution in Washington State's cleantech industry. Strategic investments in clean technologies within supply chains are increasingly influenced by sustainable market forces. These investments are vital for manufacturers, enhancing not only the sustainability of production processes, but, also encouraging a comprehensive transition towards sustainability across the entire supply chain. Detailed case studies and industry analyses highlight the economic and environmental benefits of such strategic investments.

According to the published research, the top clean technology sectors in 2008 were solar, biofuels, transportation, and wind. Solar accounted for almost 40% of total clean technology investment dollars in 2008, followed by biofuels at 11%. In 2019, sovereign wealth funds directly invested just under US$3 billion in renewable energy .

Comparative Growth in Energy Capacity by Source from 2000 to 2020: A Surge in Renewable Energy Investments

The 2009 United Nations Climate Change Conference in Copenhagen, Denmark was expected to create a framework whereby limits would eventually be placed on greenhouse gas emissions. Many proponents of the cleantech industry hoped for an agreement to be established there to replace the Kyoto Protocol. As this treaty was expected, scholars had suggested a profound and inevitable shift from "business as usual." However, the participating States failed to provide a global framework for clean technologies. The outburst of the 2008 economic crisis then hampered private investments in clean technologies, which were back at their 2007 level only in 2014. The 2015 United Nations Climate Change Conference in Paris is expected to achieve a universal agreement on climate, which would foster clean technologies development. On 23 September 2019, the Secretary-General of the United Nations hosted a Climate Action Summit in New York.

In 2022 the investment in cleantech (also called climatetech) boomed. "In fact, climate tech investment in the 12 months to Q3 2022 represented more than a quarter of every venture dollar invested, a greater proportion than 12 of the prior 16 quarters."

Implementation worldwide

India is one of the countries that have achieved remarkable success in sustainable development by implementing clean technology, and it became a global clean energy powerhouse. India, who was the third-largest emitter of greenhouse gases, advanced a scheme of converting to renewable energy with sun and wind from fossil fuels. This continuous effort has created an increase in the country's renewable energy capacity (around 80 gigawatts of installed renewable energy capacity, 2019), with a compound annual growth rate of over 20%. India’s ambitious renewable energy targets have become the model for a swift clean energy shift. The government aimed to reach a 175 GW capacity of renewable energy up to 2022. Thus, included a big contribution from wind (60 GW) and solar energy (100 GW). By steadily increasing India's renewable capacity, India is achieving the Paris Agreement with a significant reduction in producing carbon emissions. Adopting renewable energy not only brought technological advances to India, but it also impacted employment by creating around 330,000 new jobs by 2022 and more than 24 million new jobs by 2030, according to the International Labour Organization in the renewable energy sector.

In spite of the global successes, the introduction of renewable energy is confronted with hurdles specific to the country or the region. These challenges encompass social, economic, technological, and regulatory. Research shows that social and regulatory barriers are direct factors affecting the deployment of renewable energy, economic barriers however have a more indirect, yet substantial effect. The study emphasizes the need for removing these obstacles for renewable energy to become more available and attractive thus benefiting all parties such as local communities and producers.

Despite the prevalence of obstacles, emerging economy countries have formulated creative approaches to deal with the challenges. For example, India, has shown significant progress in the sector of renewable energy, a trend showing the adoption of clean technologies from other countries. The special approaches and problems that every country experiences in the course of the sustainable growth promote useful ideas for further development.

The creation of clean technologies such as battery storage, CCS, and advanced biofuels is important for the achievement of sustainable energy systems. Uninterrupted research and development is critical in improving the productivity of renewable energy sources and in making them more attractive for investment. These developments are a part of the wider goals related to sustainability and addressing climate change.

A further factor that determine the success of clean technology is how it is perceived by public and its social impact. Community involvement and observable benefits of these technologies can influence their adoption and popularity. The idea of shared benefits is created by making the renewable energy solutions environmentally friendly, cost-effective, and beneficial to producers.

Germany has been one of the renewable energy leaders in the world, and their efforts have expedited the progress after the nuclear power plant meltdown in Japan in 2011, by deciding to switch off all 17 reactors by 2022. Still, this is just one of Germany's ultimate goals; and Germany is aiming to set the usage of renewable energy at 80% by 2050, which is currently 47% (2020). Energiewende in Germany is a model of a devoted effort to renewable energy aimed at decreasing the greenhouse gas (GHG) emissions by 80% by 2050 through the rushed adoption of renewable resources. This policy, aimed at addressing the environmental issues and the nationwide agreement on nuclear power abolition, illustrates the essential role of government policy and investment in directing technological adoption and providing a pathway towards the usage of sustainable energy. Obstacles to making the Energiewende a model for the transportation and heating sectors include the integration of renewable energies into existing infrastructure, the economic costs associated with transitioning technologies, and the need for widespread consumer adoption of new energy solutions. Also, Germany is investing in renewable energy from offshore wind and anticipating its investment to result in one-third of total wind energy in Germany. The importance of clean technology also impacted the transportation sector of Germany, which produces 17 percent of its emission. The famous car-producing companies, Mercedes-Benz, BMW, Volkswagen, and Audi, in Germany, are also providing new electric cars to meet Germany's energy transition movement.

Africa and the Middle East have drawn worldwide attention for its potential share and new market of solar electricity. Notably, the countries in the Middle East have been utilizing their natural resources, an abundant amount of oil and gas, to develop solar electricity. Also, to practice the renewable energy, the energy ministers from 14 Arab countries signed a Memorandum of Understanding for an Arab Common Market for electricity by committing to the development of the electricity supply system with renewable energy. Sustainability when combined with clean technology focuses on the central environmental issues of learning how to fulfill the need of Earth’s resources and the requirement for fast industrialization and consuming of the energy. The role of the technological innovations in the development of sustainable development across different fields, such as energy, agriculture, and infrastructure is paramount. The sustainability initiatives utilize contemporary science as well as green technologies of renewable energy sources and efficient energy conversion systems to minimize the environmental effects and promote economic and social welfare. This approach is consistent with sustainable development objectives since it offers measures that do not deplete natural resources but, instead, supply low-emission forms of energy.