In 2021, IKEA committed to investing GBP 4 billion in renewable energy by installing solar panels in their stores and factories, generating an estimated 700 gigawatt-hours of clean energy annually. Three years on in April 2024, Apple also announced that 18 gigawatts of clean electricity now power its global operations and manufacturing supply chain.
Such commitments underscore the importance that firms are placing on sustainability, given ongoing challenges posed by climate change, from extreme weather to rising temperatures and more. Sustainable practices have become increasingly common in everyday life as seen with rising demand for electric vehicles, plastic bans, and a movement towards a circular economy. Major organisations, recognising the importance of sustainability, are adopting such practices, such as harnessing renewable energy sources, and improving energy efficiency in their manufacturing units (IEA, 2023). Such commitments, especially in manufacturing industries indicate a rising interest in ‘Clean Technology Manufacturing’, which adopts eco-friendly processes in manufacturing technology. Its primary goal is to reduce greenhouse gas emissions, promote resource efficiency and ensure responsible waste management throughout product lifecycle management.
According to the Global Manufacturing and Industrialisation Summit (GMIS), manufacturing is responsible for 23 percent of global carbon dioxide (CO2) emissions. In order to minimise negative environmental impacts, eco-friendly practices are used in all stages of creation cycles, from the sourcing of raw materials to the final product. Such practices help alleviate climate-related risks including air and water pollution, ozone depletion, and more (El-Haggar PE, 2007).
Various techniques are being used to successfully implement clean technology manufacturing, yielding notable results. For example, Toyota has achieved a 40 percent reduction in energy consumption per vehicle produced from 2021 to now. This has been accomplished by using energy-efficient machinery and smart technologies, such as IoT devices, to monitor, analyse, and manage manufacturing processes, ensuring seamless connectivity and optimization of energy use.
Another innovative approach is the implementation of carbon-capturing and storage devices, which are designed to track and reduce greenhouse gas emissions. They filter out harmful substances before they are released into the atmosphere, hence mitigating their environmental impact. The process includes capturing, transporting and permanently storing the CO2 produced.
While limiting carbon emissions aids in curbing the negative environmental effects of manufacturing, a widespread adoption of energy-efficient machinery and smart technologies, such as IoT devices, is crucial. To facilitate this, a larger supply chain establishment for their production is imperative.
Moreover, conducting regular energy audits is highly recommended to ensure ongoing improvements in energy efficiency. A recent analysis on the advancement of clean technology manufacturing revealed that investment in this sector rose to USD 200 billion in 2023, which is more than a 70 percent increase from 2022. This substantial growth accounts for 4 percent of the global GDP increase, highlighting the rising significance and impact of clean technology manufacturing on the global economy (IEA, 2024).
The adoption of clean technology manufacturing represents a significant stride towards a more sustainable future, moving a step closer towards attaining the 17 UN SDG 2030 goals. By integrating various practices, the manufacturing sector is transforming into a cleaner and greener industry. This shift not only mitigates negative impacts on the environment, but also aligns with growing consumer and regulatory demand for greener practices. As companies like Toyota, IKEA and Apple demonstrate, embracing clean technology manufacturing is essential in addressing climate change and fostering a healthier planet for future generations.
References:
Apple ramps up investment in clean energy and water around the world. (2024, April 17). Apple. https://www.apple.com/in/newsroom/2024/04/apple-ramps-up-investment-in-clean-energy-and-water-around-the-world/#:~:text=To%20address%20the%20greenhouse%20gas,in%20markets%20around%20the%20world.
Banham, Russ. (2019, October). Insutry 2050: How Clean Manufacturing is a Win-Win Proposition. Forbes. https://www.forbes.com/sites/mitsubishiheavyindustries/2018/10/18/industry-2050-how-clean-manufacturing-is-a-win-win-proposition/?sh=41f51bf7f352
El-Haggar PE, Salah (2007). Cleaner Production. Sustainable Industrial Design and Waste Management. https://www.sciencedirect.com/topics/earth-and-planetary-sciences/cleaner-production#:~:text=On%20a%20broader%20scale%2C%20cleaner,%2C%20and%20reduced%20bio%2Ddiversity.
From Grease to Green: The Journey of Clean Technology Manufacturing to Achieve the Net-Zero Dream. Data Dynamics. https://www.datadynamicsinc.com/blog-from-grease-to-green-the-exciting-journey-of-clean-technology-manufacturing/
IEA (2023). The State of Clean Technology Manufacturing, IEA, Paris https://www.iea.org/reports/the-state-of-clean-technology-manufacturing.
IEA (2024). Surging investment in manufacturing of clean energy technologies is supporting economic growth. https://www.iea.org/news/surging-investment-in-manufacturing-of-clean-energy-technologies-is-supporting-economic-growth#:~:text=In%20a%20first%2Dof%2Dits,2022%20that%20accounted%20for%20around
What is carbon capture and storage? (2024, March 26). National Grid. https://www.nationalgrid.com/stories/energy-explained/what-is-ccs-how-does-it-work
Aastha Doshi is an intern at Artha Global.
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