Earth Day 2023: The Green Market Revolution Spins Up

Earth Day is a good time to take stock on how well (or not so well) we are progressing to a healthier planet. Unfortunately, the latest Intergovernmental Panel on Climate Change reports that there is more than a 50% chance that global temperature rise will reach or surpass 1.5 degrees Celsius (2.7 degrees Fahrenheit) between 2021 and 2040 and may hit this threshold even sooner. The green market revolution that we introduced last year is already gaining ground with markets, however, growing faster then previously expected due to customer demand and government seed money. A few highlights are:

• How we plug in is transforming quickly. Energy and how we produce, transfer, store, and use it is at the heart of the green market revolution and the key to jump-starting greenhouse-gas emission reduction in other categories. It’s also where the largest government spending is for both the US and EU. And the effects are starting to roll in. For example, the US got 40% of its energy from carbon-free sources in 2022 — a record-breaking amount. The world is set to add as much renewable power in the next five years as it did in the previous 20, which is 30% higher than the amount of growth projected just a year ago. This means that renewable power will overtake coal as the largest source of electricity by early 2025, giving countries and their citizens energy security.
• What we eat is pivoting to plants. In 2022, the global plant-based food market reached $42.8 billion, will expand to approximately $99 billion by 2032, and has a compound annual growth rate of 8.32%. Food production accounts for 25% of all global carbon emissions, mainly from livestock: methane emissions and deforestation for grazing. This pivot to plant-based diets targets that directly.
• How we get around has aggressive benefits and new restrictions. In a recent move by the US Environmental Protection Agency, a newly proposed tailpipe emissions limit could require as much as 67% of all new vehicles sold in the US by 2032 to be all-electric. Add that to moves such as California banning the sale of new gas-powered vehicles by 2035, with other states looking to follow suit. Even though today there are only 10 vehicles that meet the new tax credit rules, the tax credit amounts are uncapped, leading Goldman Sachs to estimate that the tax credit will be $379 billion over the original Congressional Budget Office estimations.
• How we adapt will spur new markets and projects. What we know is that climate change impacts are irreversible this century and they are likely to worsen. However, new markets to solve adaptation problems are taking shape. Global solar desalination is expected to reach over $1.8 billion by 2027 with customers of these solutions boasting savings such as 67% in cost and 180 tons per year in carbon. Government money will also spur adaptation construction projects such as the US state of Louisiana which will spend $50 billion over 50 years on a coastal protection and restoration system.

These are just some of the highlights of this fast-moving revolution. No matter if you are just starting out or maturing quickly, now is the time to address new customer needs, discover new market opportunities, and transform your current operations.

This post was written by VP, Research Director Amy DeMartine and it originally appeared here.