By 2030, clean technologies, or ‘cleantech’ will mobilize over €150 billion of investment and create 2.65 million new jobs in the Iberian Peninsula, according to ‘Cleantech for Iberia’. These are some of the projections of the potential growth included in the new monographic study on sustainability published by BBVA, in this edition dedicated to clean technologies.
Cleantech is not only a response to climate change. It also represents a business opportunity. In the European Union, the green economy currently supports 5.2 million direct jobs, and investments in clean technologies could exceed one trillion dollars globally by the end of the decade, according to the report, ‘S&P Global Commodity Insights’.
Sophia Karagianni, Senior Policy Officer at ‘Cleantech for Europe’, explained in the report that “cleantech solutions have three key characteristics: they improve the performance or lower the cost of previous technologies; they drastically reduce the environmental impact; and they promote the efficient use of regenerative resources.”
BBVA’s monographic study underscores the main challenges hindering the expansion of these technologies, such as the need for financing, scalability and the cost of clean energy, which still poses a barrier for businesses and consumers.
Innovation for a sustainable future
‘Cleantech’ is propelling the energy transition of key industries (some of which are difficult to decarbonize), and represents a fundamental component of achieving net zero emissions. Clean technologies range from improving and optimizing current renewable energy to innovations like green steel and clean energy storage solutions, or those based on carbon capture. They are technologies that will completely transform industrial sectors and impact the future of the economy and the planet.
BBVA’s monographic study delves into cases like that of H2 Green Steel, a Swedish company that is building the first large green steel plant in Europe. Its goal is to produce five million tons of steel by 2030, with 95 percent less emissions than traditional steelmaking processes. This project, based on the use of green hydrogen as fuel, is a clear example of how cleantech can transform emission-intensive industries.
Experts in the subject point to progress in other innovations, such as direct carbon capture from the atmosphere, with examples like Heirloom, a company developing systems capable of removing thousands of tons of carbon dioxide (CO2) annually. Or the case of Twelve, a U.S. startup that developed a system that transforms this carbon dioxide into fuel for planes, reducing emissions by 90 percent compared to traditional fuels.
Toward a green transition
According to the monographic study, growth of renewable energy is just one part of the cleantech revolution. Adoption of technologies such as solid-state batteries or green hydrogen will play a crucial role in the industrial sectors. The example of SYRE, a company in the H&M Group recycling and reusing polyester, illustrates how green technologies are impacting all sectors, helping them to significantly reduce or eliminate their emissions.
In this monographic study, BBVA aims to raise awareness of the importance of cleantech, and to stress the crucial role they play in the transition to a more sustainable world.