The Banking Executive Magazine - September 2023 Issue

The Transition to Green Economy tion Communications Technologies (ICT) might consume more than 10 percent of global electricity produc- tion equal to all the electricity gener- ated in Japan and Germany combined. Researchers at Massachusetts Insti- tute of Technology MIT, Purdue Uni- versity, and Yale University have concluded that one hour of stream- ing can emit between 150 and 1,000 grams of carbon dioxide, depending on the service. They think that re- mote work could have contributed 34.3 million tons in greenhouse gas emissions in 2021. To store and transmit all of the data powering the internet, data centers consume enough electricity to account for 1 percent of global energy demand. SUSTAINABLE INFORMATION TECHNOLOGY MARKET The impulse to adapt Information Technology (IT) and telecom infra- structure for low carbon emissions is not merely a cost. It is a commercial opportunity. Specialist companies are moving into the space, which is growing fast. A recent report pre- dicted the green technology and sus- tainability market will grow from $17.8 billion in 2022 to $60.7 billion by 2027. In the early 21st century, millions of consumers are bringing a new factor into their decision-making which is environmental sustainability. Digital technology companies are now re- sponding to these forces. As a conse- quence, companies across the tech space are now taking action to re- duce their footprint. A major source of energy use and carbon emissions for enterprises is self-owned IT equipment and data centers. One way to tackle this is to improve the efficiency of these sys- tems. But this is usually difficult and expensive. Another solution is to move to a new model that does not require ownership at all. This solu- tion is the cloud-based software-as- a-service model. GREEN IT VERSUS IT FOR GREEN Green IT (Information Technology) relates to tech equipment, products and services that minimizes technol- ogy impact on the planet. This involves reducing energy consump- tion, building with more environ- mentally friendly materials, developing cloud computing alterna- tives and maximizing the lifespan of products through the repair, reuse, and recycling of materials. IT for Green is about IT specifically serving the environmental cause. Many technological advances are emerging to help business of every kind cut down on energy and emis- sions. This applies to Internet of Things IoT platforms and sensors that manage lighting, cooling, and power. It also embraces preventive mainte- nance systems, which analyse equip- ment and identify minor faults before they turn into more disruptive major ones. GREEN ECONOMY MODELS The process of implementing the Green Economy system is difficult. However, some nations can act as role models because of their steadfast dedication to putting into practice a theory of green growth or a low-car- bon economic plan and developing large-scale initiatives that have suc- ceeded in boosting productivity or development in long-lasting. South Korea Green economy model A national strategy and five-year plan for green growth have been adopted by South Korea for the years, allocat- ing 2% of its GDP to investments in a variety of green industries, such as renewable energy. The Global Green Growth Institute (GGGI), which strives to assist nations, particularly developing nations. in creating green growth strategies, was also estab- lished by the government. China Green Economy Model China surpasses all other nations in its investment in renewable energy. This has produced 64 percent in- crease in total installed wind capac- ity. China now has more than 130 gi- gawatts of solar energy capacity, making it the world's largest solar en- ergy producer. Even China's objec- tive for solar energy capacity was met, according to the International Energy Agency (IEA). Brazil Green Economy Curitiba city in Brazil is regarded as the country's sustainable city, and this state is well renowned for its urban growth. This world's greenest city encourages sustainable living. ISSUE 177 SEPTEMBER 2023 the BANKING EXECUTIVE 27