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Embracing low-carbon tech: The carbon-neutral revolution

Low-carbon technology presents a strong business case for achieving sustainability goals.

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Quantumrun Foresight
December 20, 2023

Insight summary

Businesses across various sectors are increasingly adopting low-carbon technologies, like energy-efficient buildings, electric vehicles, and renewables, to reduce environmental impact, save costs, and meet consumer demands for sustainability. This trend, driven by climate change awareness, is transforming industries from energy to agriculture, with a notable shift towards cleaner energy sources, carbon capture technology, and energy-efficient infrastructure. The implications include enhanced corporate reputations, new jobs, supportive government policies, and investor preference for sustainable practices, with even traditional industries like oil and gas moving towards decarbonization and renewable energy.

Embracing low-carbon tech context

Low-carbon technology, also known as "clean tech," is designed to reduce or eliminate the production of greenhouse gases that contribute to climate change. Examples are energy-efficient buildings, electric vehicles (EVs), and renewable energy sources like solar, wind, and hydropower. From tech giants like Google and Apple to traditional energy companies like BP and Shell, companies are investing in low-carbon technologies to embrace more sustainable practices and comply with regulatory policies.

Low-carbon technologies offer significant cost savings over the long term. For example, while installing a solar panel system may require a significant upfront investment, it can save a company a substantial amount of money on electricity bills over the system's life. Similarly, energy-efficient buildings can save on heating and cooling costs. Additionally, there is a growing demand from consumers for more sustainable products and services. As more people become aware of the importance of reducing carbon emissions, they are increasingly seeking out companies that prioritize the environment.

One industry that has been particularly quick to embrace low-carbon tech is energy. Many companies in this sector are looking for ways to transition to cleaner sources. For example, several utility firms are investing in wind and solar. They are also exploring carbon capture and storage (CCS) to reduce emissions from existing fossil fuel-based power plants. Carbon capture tech, in particular, is expected to become a $6.87 billion global market by 2031, according to intelligence firm Research and Markets.

Disruptive impact

More industries will likely adopt clean tech under the pressure of stakeholders, government policies, and green investors. A major example is the transportation and logistics sectors pivoting to EVs. However, these cars are just the beginning; other low-carbon transportation options are likewise being explored, such as hydrogen fuel cell vehicles, high-speed trains, and autonomous vehicles (AVs).

Another industry that will likely shift to more sustainable practices is construction, which focuses on energy-efficient infrastructure. For example, smart home automation systems can help reduce energy consumption by automating lighting, heating, and cooling systems to optimize usage. Additionally, by monitoring and controlling energy usage in real-time, these systems help building owners and managers identify areas for further energy savings.

Meanwhile, the agriculture sector is exploring precision techniques to optimize water and fertilizer use. By leveraging IoT technology and data analytics, farmers can monitor crop health and growth, and make targeted interventions to improve yields and reduce waste. Supply chain management is also prioritizing clean tech to track each stage of the supply chain, from procurement to manufacturing to shipping.

Implications of embracing low-carbon tech

Wider implications of low-carbon tech adoption may include:

Enhanced brand reputation and customer loyalty for companies as consumers become more environmentally conscious.
New jobs in industries related to renewable energy, energy efficiency, and sustainable infrastructure.
Governments adopting policies that support the development and deployment of low-carbon technologies, including tax incentives and removing oil and gas subsidies.
Companies adjusting their supply chains to ensure that they are sourcing materials and products from suppliers that meet sustainable and ethical standards.
Increased regulatory scrutiny, as governments seek to regulate emissions and encourage the transition towards more sustainable technologies.
Investors increasingly prioritizing companies that embrace sustainability and low-carbon technologies.
More firms specializing in low-carbon tech, including carbon capture and waste recycling.
Oil and gas firms investing in decarbonization and renewable energy sources.