![Clean Technology is the Future](https://upload.wikimedia.org/wikipedia/commons/a/ad/Clean_Technology_is_the_Future.jpg)
Clean technology, in short cleantech, is any process, product, or service that reduces negative environmental impacts through significant
energy efficiency
Energy efficiency may refer to:
* Energy efficiency (physics), the ratio between the useful output and input of an energy conversion process
** Electrical efficiency, useful power output per electrical power consumed
** Mechanical efficiency, a ra ...
improvements, the sustainable use of resources, or environmental protection activities. Clean technology includes a broad range of technology related to
recycling
Recycling is the process of converting waste materials into new materials and objects. The recovery of energy from waste materials is often included in this concept. The recyclability of a material depends on its ability to reacquire the p ...
,
renewable energy
Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...
,
information technology
Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of data . and information. IT forms part of information and communications technology (ICT). An information technology system (I ...
,
green transport
Sustainable transport refers to ways of transportation that are sustainable in terms of their social and environmental impacts. Components for evaluating sustainability include the particular vehicles used for road, water or air transport; the ...
ation,
electric motor
An electric motor is an Electric machine, electrical machine that converts electrical energy into mechanical energy. Most electric motors operate through the interaction between the motor's magnetic field and electric current in a Electromagneti ...
s,
green chemistry
Green chemistry, also called sustainable chemistry, is an area of chemistry and chemical engineering focused on the design of products and processes that minimize or eliminate the use and generation of hazardous substances. While environmental che ...
,
lighting
Lighting or illumination is the deliberate use of light to achieve practical or aesthetic effects. Lighting includes the use of both artificial light sources like lamps and light fixtures, as well as natural illumination by capturing daylig ...
,
grey water
Greywater (or grey water, sullage, also spelled gray water in the United States) refers to domestic wastewater generated in households or office buildings from streams without fecal contamination, i.e., all streams except for the wastewater fro ...
, and more.
Environmental finance
Environmental finance is a field within finance that employs market-based environmental policy instruments to improve the ecological impact of investment strategies. The primary objective of environmental finance is to regress the negative impac ...
is a method by which new clean technology projects can obtain financing through the generation of
carbon credits
A carbon credit is a generic term for any tradable certificate or permit representing the right to emit a set amount of carbon dioxide or the equivalent amount of a different greenhouse gas (tCO2e).
Carbon credits and carbon markets are a compo ...
. A project that is developed with concern for
climate change mitigation
Climate change mitigation is action to limit climate change by reducing Greenhouse gas emissions, emissions of greenhouse gases or Carbon sink, removing those gases from the atmosphere. The recent rise in global average temperature is mostly caus ...
is also known as a
carbon project
Business action on climate change includes a range of activities relating to climate change, and to influencing political decisions on climate change-related regulation, such as the Kyoto Protocol. Major multinationals have played and to some ext ...
.
Clean Edge
Clean Edge, Inc., founded in 2000, is a U.S.-based developer and publisher of thematic stock indexes tracking clean energy, transportation, water, and the grid. The firm's first index, the Nasdaq Clean Edge Green Energy Index (CELS), was launched ...
, a clean technology research firm, describes clean technology "a diverse range of products, services, and processes that harness renewable materials and energy sources, dramatically reduce the use of natural resources, and cut or eliminate emissions and wastes." Clean Edge notes that, "Clean technologies are competitive with, if not superior to, their conventional counterparts. Many also offer significant additional benefits, notably their ability to improve the lives of those in both developed and developing countries."
![Wind turbines on the drive back to Madrid from Huesca](https://upload.wikimedia.org/wikipedia/commons/7/7a/Wind_turbines_on_the_drive_back_to_Madrid_from_Huesca.jpg)
Investments in clean technology have grown considerably since coming into the spotlight around 2000. According to the
United Nations Environment Program
The United Nations Environment Programme (UNEP) is responsible for coordinating responses to environmental issues within the United Nations system. It was established by Maurice Strong, its first director, after the United Nations Conference on th ...
, wind, solar, and biofuel companies received a record $148 billion in new funding in 2007 as rising oil prices and climate change policies encouraged investment in
renewable energy
Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...
. $50 billion of that funding went to
wind power
Wind power or wind energy is mostly the use of wind turbines to electricity generation, generate electricity. Wind power is a popular, sustainable energy, sustainable, renewable energy source that has a much smaller Environmental impact of wi ...
. Overall, investment in clean-energy and energy-efficiency industries rose 60 percent from 2006 to 2007. In 2009, Clean Edge forecasted that the three main clean technology sectors, solar
photovoltaics
Photovoltaics (PV) is the conversion of light into electricity using semiconducting materials that exhibit the photovoltaic effect, a phenomenon studied in physics, photochemistry, and electrochemistry. The photovoltaic effect is commercially us ...
, wind power, and biofuels, would have revenues of $325.1 billion by 2018.
According to an MIT Energy Initiative Working Paper published in July 2016, about a half of over $25 billion funding provided by
venture capital
Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which ha ...
to cleantech from 2006 to 2011 was never recovered. The report cited cleantech's dismal risk/return profiles and the inability of companies developing new materials, chemistries, or processes to achieve manufacturing scale as contributing factors to its flop.
Clean technology has also emerged as an essential topic among businesses and companies. It can reduce pollutants and dirty fuels for every company, regardless of which industry they are in, and using clean technology has become a competitive advantage. Through building their
Corporate Social Responsibility
Corporate social responsibility (CSR) is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethicall ...
(CSR) goals, they participate in using clean technology and other means by promoting Sustainability.
Fortune Global 500
The ''Fortune'' Global 500, also known as Global 500, is an annual ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by ''Fortune'' magazine.
Methodology
Until 1989, it listed onl ...
firms spend around $20 billion a year on CSR activities in 2018.
Definition
Cleantech products or services are those that improve operational performance,
productivity
Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production proces ...
, or efficiency while reducing costs, inputs,
energy consumption
Energy consumption is the amount of energy used.
Biology
In the body, energy consumption is part of energy homeostasis. It derived from food energy. Energy consumption in the body is a product of the basal metabolic rate and the physical activity ...
,
waste
Waste (or wastes) are unwanted or unusable materials. Waste is any substance discarded after primary use, or is worthless, defective and of no use. A by-product, by contrast is a joint product of relatively minor economic value. A waste prod ...
, or environmental
pollution
Pollution is the introduction of contaminants into the natural environment that cause adverse change. Pollution can take the form of any substance (solid, liquid, or gas) or energy (such as radioactivity, heat, sound, or light). Pollutants, the ...
. Its origin is the increased consumer, regulatory, and industry interest in clean forms of energy generation—specifically, perhaps, the rise in awareness of
global warming
In common usage, climate change describes global warming—the ongoing increase in global average temperature—and its effects on Earth's climate system. Climate change in a broader sense also includes previous long-term changes to E ...
,
climate change
In common usage, climate change describes global warming—the ongoing increase in global average temperature—and its effects on Earth's climate system. Climate change in a broader sense also includes previous long-term changes to E ...
, and the impact on the
natural environment
The natural environment or natural world encompasses all life, living and non-living things occurring nature, naturally, meaning in this case not Artificiality, artificial. The term is most often applied to the Earth or some parts of Earth. Th ...
from the burning of
fossil fuel
A fossil fuel is a hydrocarbon-containing material formed naturally in the Earth's crust from the remains of dead plants and animals that is extracted and burned as a fuel. The main fossil fuels are coal, oil, and natural gas. Fossil fuels m ...
s. Cleantech is often associated with
venture capital
Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which ha ...
funds and land use organizations. The term has historically been differentiated from various definitions of green business, sustainability, or triple bottom line industries by its origins in the venture capital investment community and has grown to define a business sector that includes significant and high growth industries such as solar, wind, water purification, and biofuels.
Nomenclature
While the expanding industry has grown rapidly in recent years and attracted billions of dollars of capital, the clean technology space has not settled on an agreed-upon term. ''Cleantech'', is used fairly widely, although variant spellings include and . In recent years, some clean technology companies have de-emphasized that aspect of their business to tap into broader trends, such as
smart cities
A smart city is a technologically modern urban area that uses different types of electronic methods and sensors to collect specific data. Information gained from that data is used to manage assets, resources and services efficiently; in retur ...
.
Origins of the concept
The idea of cleantech first emerged among a group of emerging technologies and industries, based on principles of
biology
Biology is the scientific study of life. It is a natural science with a broad scope but has several unifying themes that tie it together as a single, coherent field. For instance, all organisms are made up of cells that process hereditary i ...
,
resource efficiency Resource efficiency is the maximising of the supply of money, materials, staff, and other assets that can be drawn on by a person or organization in order to function effectively, with minimum wasted (natural) resource expenses. It means using the ...
, and second-generation production concepts in basic industries. Examples include:
energy efficiency
Energy efficiency may refer to:
* Energy efficiency (physics), the ratio between the useful output and input of an energy conversion process
** Electrical efficiency, useful power output per electrical power consumed
** Mechanical efficiency, a ra ...
,
selective catalytic reduction
Selective catalytic reduction (SCR) is a means of converting nitrogen oxides, also referred to as with the aid of a catalyst into diatomic nitrogen (), and water (). A reductant, typically anhydrous ammonia (), aqueous ammonia (), or a urea () s ...
,
non-toxic
Toxicity is the degree to which a chemical substance or a particular mixture of substances can damage an organism. Toxicity can refer to the effect on a whole organism, such as an animal, bacterium, or plant, as well as the effect on a subst ...
materials,
water purification
Water purification is the process of removing undesirable chemicals, biological contaminants, suspended solids, and gases from water. The goal is to produce water that is fit for specific purposes. Most water is purified and disinfected for hu ...
,
solar energy
Solar energy is radiant light and heat from the Sun that is harnessed using a range of technologies such as solar power to generate electricity, solar thermal energy (including solar water heating), and solar architecture. It is an essenti ...
,
wind energy
Wind power or wind energy is mostly the use of wind turbines to electricity generation, generate electricity. Wind power is a popular, sustainable energy, sustainable, renewable energy source that has a much smaller Environmental impact of wi ...
, and new paradigms in energy conservation. Since the 1990s, interest in these technologies has increased with two trends: a decline in the relative cost of these technologies and a growing understanding of the link between industrial design used in the 19th century and early 20th century, such as fossil fuel power plants, the
internal combustion engine
An internal combustion engine (ICE or IC engine) is a heat engine in which the combustion of a fuel occurs with an oxidizer (usually air) in a combustion chamber that is an integral part of the working fluid flow circuit. In an internal combus ...
, and
chemical manufacturing, and an emerging understanding of human-caused impact on earth systems resulting from their use (see articles:
ozone hole
Ozone depletion consists of two related events observed since the late 1970s: a steady lowering of about four percent in the total amount of ozone in Earth's atmosphere, and a much larger springtime decrease in stratospheric ozone (the ozone la ...
,
acid rain
Acid rain is rain or any other form of precipitation that is unusually acidic, meaning that it has elevated levels of hydrogen ions (low pH). Most water, including drinking water, has a neutral pH that exists between 6.5 and 8.5, but acid ...
,
desertification
Desertification is a type of land degradation in drylands in which biological productivity is lost due to natural processes or induced by human activities whereby fertile areas become increasingly arid. It is the spread of arid areas caused by ...
,
climate change
In common usage, climate change describes global warming—the ongoing increase in global average temperature—and its effects on Earth's climate system. Climate change in a broader sense also includes previous long-term changes to E ...
, and
global warming
In common usage, climate change describes global warming—the ongoing increase in global average temperature—and its effects on Earth's climate system. Climate change in a broader sense also includes previous long-term changes to E ...
).
Investment worldwide
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
MoreVC, formerly known as Israel Cleantech Ventures, is a venture capital firm founded in 2006 by Glen Schwaber, Jack Levy, and Meir Ukeles. It is a clean technology venture capital fund intent on providing growth capital to Israel's energy, wa ...
, and
Foundation Capital
Foundation Capital is a venture capital firm located in Silicon Valley. The firm was founded in 1995, and in 2012 managed more than $2.4 billion in investment capital.
History
Foundation Capital was founded in 1995.
The firm raised its sevent ...
. The preliminary 2008 total represents the seventh consecutive year of growth in venture investing, widely recognized as a leading indicator of overall investment patterns.
China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
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. 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.
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 .
The
2009 United Nations Climate Change Conference
The 2009 United Nations Climate Change Conference, commonly known as the Copenhagen Summit, was held at the Bella Center in Copenhagen, Denmark, between 7 and 18 December. The conference included the 15th session of the Conference of the Partie ...
in
Copenhagen
Copenhagen ( or .; da, København ) is the capital and most populous city of Denmark, with a proper population of around 815.000 in the last quarter of 2022; and some 1.370,000 in the urban area; and the wider Copenhagen metropolitan ar ...
,
Denmark
)
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...
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
The Kyoto Protocol was an international treaty which extended the 1992 United Nations Framework Convention on Climate Change (UNFCCC) that commits state parties to reduce greenhouse gas emissions, based on the scientific consensus that (part ...
. 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
The 2015 United Nations Climate Change Conference, COP 21 or CMP 11 was held in Paris, France, from 30 November to 12 December 2015. It was the 21st yearly session of the Conference of the Parties (COP) to the 1992 United Nations Framework Conve ...
in
Paris
Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. S ...
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.
Implementation worldwide
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
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%. 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
The International Labour Organization (ILO) is a United Nations agency whose mandate is to advance social and economic justice by setting international labour standards. Founded in October 1919 under the League of Nations, it is the first and o ...
in the renewable energy sector.
Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
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). 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
Africa is the world's second-largest and second-most populous continent, after Asia in both cases. At about 30.3 million km2 (11.7 million square miles) including adjacent islands, it covers 6% of Earth's total surface area ...
and the
Middle East
The Middle East ( ar, الشرق الأوسط, ISO 233: ) is a geopolitical region commonly encompassing Arabian Peninsula, Arabia (including the Arabian Peninsula and Bahrain), Anatolia, Asia Minor (Asian part of Turkey except Hatay Pro ...
has 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.
United Nations: Sustainable Development Goals
![Sustainable Development Goals](https://upload.wikimedia.org/wikipedia/commons/d/df/Sustainable_Development_Goals.png)
The
United Nations
The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and international security, security, develop friendly relations among nations, achieve international cooperation, and be ...
has set goals for the 2030 Agenda for Sustainable Development, which is called "
Sustainable Development Goals
The Sustainable Development Goals (SDGs) or Global Goals are a collection of 17 interlinked objectives designed to serve as a "shared blueprint for peace and prosperity for people and the planet, now and into the future".United Nations (2017) R ...
" composed of 17 goals and 232 indicators total. These goals are designed to build a sustainable future and to implement in the countries (member states) in the UN. Many parts of the 17 goals are related to the usage of clean technology since it is eventually an essential part of designing a sustainable future in various areas such as land, cities, industries, climate, etc.
* Goal 6: "Ensure availability and sustainable management of water and sanitation for all"
** Various kinds of clean water technology are used to fulfill this goal, such as filters, technology for desalination, filtered water fountains for communities, etc.
* Goal 7: "Ensure access to affordable, reliable, sustainable and modern energy for all"
** Promoting countries for implementing renewable energy is making remarkable progress, such as:
*** "From 2012 to 2014, three quarters of the world’s 20 largest energy-consuming countries had reduced their energy intensity — the ratio of energy used per unit of GDP. The reduction was driven mainly by greater efficiencies in the industry and transport sectors. However, that progress is still not sufficient to meet the target of doubling the global rate of improvement in energy efficiency."
* Goal 11: "Make cities and human settlements inclusive, safe, resilient and sustainable"
** By designing sustainable cities and communities, clean technology takes parts in the architectural aspect, transportation, and city environment. For example:
*** Global Fuel Economy Initiative (GFEI) - Relaunched to accelerate progress on decarbonizing road transport. Its main goal for passenger vehicles, in line with
SDG 7.3, is to double the energy efficiency of new vehicles by 2030. This will also help mitigate climate change by reducing harmful emissions.
* Goal 13: "Take urgent action to combat climate change and its impacts*"
** Greenhouse gas emissions have significantly impacted the climate, and this results in a rapid solution for consistently increasing emission levels. United Nations held the "
Paris Agreement
The Paris Agreement (french: Accord de Paris), often referred to as the Paris Accords or the Paris Climate Accords, is an international treaty on climate change. Adopted in 2015, the agreement covers climate change mitigation, Climate change a ...
" for dealing with greenhouse gas emissions mainly within countries and for finding solutions and setting goals.
See also
*
Environmental science
Environmental science is an interdisciplinary academic field that integrates physics, biology, and geography (including ecology, chemistry, plant science, zoology, mineralogy, oceanography, limnology, soil science, geology and physical geograp ...
*
Environmental technology
Environmental technology (envirotech) or green technology (greentech), also known as '' clean technology'' (''cleantech''), is the application of one or more of environmental science, green chemistry, environmental monitoring and electronic devi ...
*
Green chemistry
Green chemistry, also called sustainable chemistry, is an area of chemistry and chemical engineering focused on the design of products and processes that minimize or eliminate the use and generation of hazardous substances. While environmental che ...
*
Greentech
*
Renewable energy commercialization
Renewable energy commercialization involves the deployment of three generations of renewable energy technologies dating back more than 100 years. First-generation technologies, which are already mature and economically competitive, include b ...
*
Sustainable engineering
Sustainable engineering is the process of designing or operating systems such that they use energy and resources sustainably, in other words, at a rate that does not compromise the natural environment, or the ability of future generations to meet ...
*
WIPO GREEN
WIPO GREEN is a World Intellectual Property Organization program that supports global efforts to address climate change and food security through sharing of sustainable technology innovations . Established in 2013, WIPO GREEN is a free online ...
References
External links
Investing: Green technology has big growth potential ''
Los Angeles Times
The ''Los Angeles Times'' (abbreviated as ''LA Times'') is a daily newspaper that started publishing in Los Angeles in 1881. Based in the LA-adjacent suburb of El Segundo since 2018, it is the sixth-largest newspaper by circulation in the Un ...
'', 2011
The Global Cleantech Innovation Index 2014 by Cleantech Group and
WWF
{{DEFAULTSORT:Clean Technology
Economics of sustainability
Environmental technology