Despite the on-going stagnation in the global economy there is no shortage of reasons to use green technology in today’s world.
Primarily, efforts must continue to reduce dependence on fossil fuels, this can bring surprising commercial benefits in its own right. There are additional advantages to green technology in the modern era.
The role of government cannot be underestimated, accurate and focused policy is central to lowering risk in green investment. Good policy is also attractive economically as it provides structure to what is a notoriously turbulent market.
Currently Western governments tend to be more open minded in the adoption of green alternatives, by nature of their stability and history of democratic governments. Emerging industrial nations such as India and China are a harder nut to crack when introducing green approaches to enterprise.
However it is inevitable that even these emerging superpowers will take more seriously the effects of pollution and their obligation to legislate in combating its affect. It’s likely that, concomitant with industrial growth, these emerging nations will set primary regulatory commitments that introduce compliance with environmental standards.
Looking ahead to a more healthy and growing economy, where is the most demand for green technology most like to be?
It appears that it is the areas around the globe that have good regulation and statute that will be the king-makers in the future of green technology. Eastern Europe, China and India are certain to be major investors in technology aimed at reducing air pollution.
Global warming requires a global solution, yet as I stated, there are different opportunities and risks involved between regions. It is perhaps surprising that green technology is more likely to thrive in Western countries where it must adhere to strict environmental protection law. However, there are two reasons why this is the case.
Firstly, it is the environmental drivers behind this new technology that advocated legislation for a cleaner environment in the first place – green companies are at home with their own rules.
Secondly, firms require investment, and investment is attracted through low risk – a stable, regulated green sector tempts investors to part with their cash.
How green technology will impact Africa is less certain. Governments across the African continent have a less than reputable record in maintaining stability, a product of war, famine, and corruption in government. Green technology is more likely to play an important role in reducing Africans dependence on the state for energy, if this level of sustainability can be achieved, governments in Africa will soon have to find more productive ways to impress the electorate.
The world must embrace green technology, this is an inevitability.
What is less certain is how long knuckles will drag before governments and companies make the short term, perhaps high cost, investment in green alternatives. In so doing, they are however more than likely to recover this entry capital with profit, providing investment is secured by a sound regulatory framework.
Image: QuestPoint Solar Solutions
If you read this far, we assume you found this post interesting. Please help Blackle Mag thrive by sharing it using the social media buttons below.Tweet
What did you think of this post? Let us know in the comments below.