Clean technology

Any process, product, or service that reduces negative environmental impacts

Clean technology, also called cleantech or climatetech, is any process, product, or service that reduces negative environmental impacts through significant energy efficiency improvements, the sustainable use of resources, or environmental protection activities. Clean technology includes a broad range of technology related to recycling, renewable energy, information technology, green transportation, electric motors, green chemistry, lighting, grey water, and more. Environmental finance is a method by which new clean technology projects can obtain financing through the generation of carbon credits. A project that is developed with concern for climate change mitigation is also known as a carbon project. Clean Edge, 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." Investments in clean technology have grown considerably since coming into the spotlight around 2000. According to the United Nations Environment Program, 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. $50 billion of that funding went to wind power. 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, 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 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 (CSR) goals, they participate in using clean technology and other means by promoting Sustainability. Fortune Global 500 firms spend around $20 billion a year on CSR activities in 2018.

Cleantech products or services are those that improve operational performance, productivity, or efficiency while reducing costs, inputs, energy consumption, waste, or environmental pollution. 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, climate change, and the impact on the natural environment from the burning of fossil fuels. Cleantech is often associated with venture capital 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.

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.

The idea of cleantech first emerged among a group of emerging technologies and industries, based on principles of biology, resource efficiency, and second generation production concepts in basic industries. Examples include: energy efficiency, selective catalytic reduction, non toxic materials, water purification, solar energy, wind energy, 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, and chemical manufacturing, and an emerging understanding of human caused impact on earth systems resulting from their use (see articles: ozone hole, acid rain, desertification, climate change, and global warming).

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 emphasises 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. 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 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. 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.