Building bridges for the future with Green Technology

Achieving net-zero carbon emissions by 2050 is an ambitious but necessary goal to combat the climate crisis effectively. The good news is that most new-age businesses and C-Suite executives believe that investing in greentech is an opportunity in disguise to elevate the stakeholder value of any business. Besides being a forward-looking choice, investing in greentech could also be a financially sound decision. According to a recent report, the greentech and sustainability market is projected to grow at an impressive compounded annual growth rate (CAGR) of 27.71% during the forecast period of 2023-2030, reaching a value of $118.45 billion.

India is amongst the top five best-performing countries fighting against the climate crisis, as per the Climate Change Performance Index (CCPI, 2023). A survey reveals that 57% of CEOs are actively working towards reducing their company's emissions, while 15% have already achieved this goal. Likewise, the 2023 Budget has prioritised the development of greentech to meet the country's net-zero targets by 2070. To encourage the growth of green tech startups, the government has implemented several initiatives, including the LiFE movement, the Green Credit programme, and the Green Hydrogen Mission.

It is evident that we have a great chance to establish a sustainable future by embracing greentech, which can be viewed as an embodiment of the Japanese concept of "a reason for being," known as Ikigai. By incorporating sustainability into every aspect of our lives, we can unlock possibilities and create a better world for ourselves and future generations.

The future looks promising, and several advancements in greentech are expected to enhance our interaction with the environment. Innovations in green architecture, solar and wind power, electric vehicles, carbon capture and storage technology, fuel energy, and recycling will gain momentum and accelerate the wider adoption of renewable energy resources, paving the way for a more sustainable future. The greentech industry is rapidly growing and offers many benefits, including the ones listed below.

• Economic viability: As the world shifts towards sustainable development, businesses increasingly invest in energy-efficient technologies to reduce operating costs and increase profitability. In addition to contributing to a cleaner environment, using renewable energy sources such as solar and wind power can significantly reduce electricity costs, making it a financially sound decision. Furthermore, with the new normal of hybrid working, many organisations have embraced the trend of reducing everyday consumption of power and transport, which has become a mandatory requirement to conduct smooth operations. According to a report almost two-thirds of Fortune 500 companies have set ambitious carbon reduction targets for 2050. Thus, investing in energy-efficient technologies is an environmentally responsible choice and a smart business decision that can lead to long-term cost savings and increased profitability.
• Impact on the environment: Greentech involves utilising alternative fuels and solutions that have less negative impact on the environment than traditional fossil fuels. One such example is electric vehicles, which have gained popularity as a means of green transportation, contributing towards reducing greenhouse gas emissions. Green Hydrogen is also being evaluated as a potential source of energy despite the high production costs and associated risks. Another approach to achieving sustainability is using energy-efficient and smart appliances in our homes, optimising power consumption and minimising pressure on the environment.
• Huge growth potential: With a projected market size of $45-55 billion and an estimated annual growth rate of 25-30%, the sector presents an opportunity for businesses to be at the forefront of innovative and sustainable practices. Not only can it help reduce an organisation's environmental impact, but it can also enhance its brand reputation and competitiveness in the market. According to a research, the investment in low-carbon technologies reached $755 billion in 2021, representing a 27% increase from the previous year. However, to eliminate net carbon emissions by 2050, we need to invest three times the current amount. This shows that there is still a long way to go, but it also presents an opportunity to step up our efforts and work towards a cleaner and safer future for all. This is not a task that can be achieved in isolation; it requires a concerted effort from the government, businesses, investors, and stakeholders. Organisations that invest in greentech must be transparent about their investments in renewable energy and its impact on their emissions. This will help investors and stakeholders evaluate their environmental commitment and support their efforts to reduce their carbon footprint. Additionally, the funding of greentech projects should be given precedence as it will be a blue-chip investment for our future.

Investing in the greentech is not only an attractive economic opportunity, especially since it is expected to grow to a $45-55 billion market size in India over the next five years, but it also presents a chance to promote innovation and progress. By collaborating and working towards this common goal, we can positively impact and create a sustainable world for ourselves and future generations. It is indeed a scary picture, but with a problem-solving approach backed by technological innovations and a collaborative approach, we have the right armour to build a sustainable future.

This article is authored by Lakshmanan Chidambaram, president – Americas (Enterprise Business), Tech Mahindra.