On the 17th of November the delegates at COP 27 will all be discussing possible and potential solutions to some of the climate change challenges that the world currently faces. Innovators will gather alongside representatives from governmental and financial institutions, to share experiences and exchange ideas on how best to address the most pressing of issues.
One way that businesses across the globe can help with climate change challenges is by reducing the existing size of their carbon footprint by becoming a green business. Corporate agendas around the world have sustainable energy solutions and low carbon alternatives firmly at the top of their ‘to do’ lists. There has never been a better time for business to take action and finally make the shift towards ventures that are green and eco-friendly.
The Rise Of Green Businesses
Technologies that are carbon-heavy are still very much in use. But more and more businesses are adopting cleaner initiatives. Within the last three years, there has been a rise in:
- Green Unicorns: There are more than twenty five businesses in the global club for green unicorns. Their combined valuation exceeds US $70 billion.
- More investments in Green Startups: North America and Europe are currently leading the way when it comes to the size of investments. Asian countries are following suit and stepping up when it comes to making these kinds of future investments.
According to findings from McKinsey, it’s expected that there will be more activity in the Asia startup space, within the next ten years. There have already been significant advances in the fields of financing, regulation and policies, as well as technology. There are now more opportunities than ever for businesses to turn green. All Asian players will need to do now is to take the lessons learnt by previous players in the field, and forge ahead.
Importance Of Sustainable Energy
In 2019, nearly 2/3rds of all global emissions were contributed by end users of the power generation and transportation sectors. Since then technological developments have been made and government policies have been written regarding sustainability and the importance of its adoption/implementation. This has now started to change the way in which the worldworks.
The shift towards sustainability is further fuelled by governments aiming to attain carbon neutrality. End consumers have also started to pay attention to what they’re buying, choosing eco-friendly options where they can. This shift towards sustainability will affect some industries more than others. The industries that will be more affected include:
1. Power Generation
Coal consumption across the world has increased within the last ten years alone. It’s expected that the use of renewable energy sources will continue to grow going forward. By 2025, nearly half of all the power generation in the world will stem from renewable energy sources.
Fuel consumption in the shipping industry used to center around high-sulfur fuel oil. But now that there are international regulations that focus on reducing sulfur emissions, the marine industry is shifting towards fuel oil that has low sulfur content.
Alternative fuels, like hydrogen, ammonia, and liquefied natural gas are also being considered, as the shift towards decarbonisation increases.
3. Road Transport
The demand for oil is expected to peak within the coming decade. There is going to be a shift from ICEs, or internal combustion engines, to hybrid as well as electric vehicles.
In Asia, investments into green energy have risen. EV production has also significantly increased, with China and India taking the lead in EV production.
Solutions Day will see businesses and representatives from governmental and financial institutions coming together. The number of green businesses has been growing across the world, but this growth is particularly noticeable in Asia.