The Trillion Dollar Transition To Renewable Energy

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As the global threat of climate change has become more and more of a mainstream idea and widely accepted by most people around the world, entrepreneurs and policy makers have been diligently working to create new technologies and shift us into a world that is in a transition to renewable energy and becoming more sustainable.

We are currently in the middle of a major transition from Internal Combustion Engine cars to electric vehicles, and while this is the most easily tangible transition happening because we can see the ads by car makers and the physical vehicles on the roads all around us, other major industries are shifting to become more sustainable. This is leading to a trillion dollar transition from outdated fossil fuel based industries to renewable energy based infrastructure.

This transition has two major effects on the world we live: 1. this will cause less pollution and CO2 in the atmosphere, but also lead to new industries emerging, new jobs available, and billions, if not trillions of dollars being injected into the economy. Let’s take a look at some major industries that are shifting to be more energy efficient and environmentally friendly.

Transportation

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The global on-demand transportation market size was valued at USD 75.0 Billion in 2017 and is anticipated to expand at CAGR of 19.8% from 2018 to 2025. The transportation industry is already massive, and nearly every major car manufacturing company from Ford, to Lexus, to Mercedes, to Hummer, have introduced electric vehicles to their fleet.

“Electric vehicles represented almost 5% of all newcar sales in 2020. EVs are forecast to reach over 7% of new car sales worldwide in 2021, a further 66% growth, to exceed 5 million units sold. Approximately 1.3 million EVs were sold in both China and Europe in 2020, four times the EV salesin the US.” Business Wire

According to the New York Times, fewer than 1 percent are electric. Automakers are now shifting to electric vehicles, which could make up one-quarter of new sales by 2035, analysts project. But at that point, only 13 percent of vehicles on the road would be electric.

What does this mean?

It means that all of the major car manufacturing companies are noticing a trend in people’s interest in wanting to buy electric vehicles. In the most standard, capitalistic form of supply and demand, there is an increasing demand for electric vehicles and these companies are planning on supplying them.

Energy

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The global renewable energy market is expected to continue its upward growth over the next years, reaching 1.5 trillion U.S. dollars on a global scale. Environmental concerns regarding fossil fuels, rapid urbanization, and economic growth in emerging regions are all major factors that are contributing to the projected market growth.

Energy in the United States comes mostly from fossil fuels: in 2010, data showed that 25% of the nation’s energy originates from petroleum, 22% from coal, and 22% from natural gas. Nuclear power supplied 8.4% and renewable energy supplied 8%, mainly from hydroelectric dams and biomass; however, this also includes other renewable sources like wind, geothermal, and solar. Data from 2019 shows that 37% of the nation’s energy originates from petroleum, 32% from natural gas, 11% from coal, 11% from renewable energy, and 8% from nuclear power. In less than ten years, renewable energy increased 2.8%. While that number may seem small, it is a major step in the right direction, and as we continue to make renewable energy sources more efficient we can expect to see that number to increase.

Artificial Intelligence

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Artificial Intelligence is quickly becoming a part of our everyday lives, without us even realizing it. Artificial Intelligence is defined as “the theory and development of computer systems able to perform tasks that normally require human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages.” Companies, organizations, and individuals have been working on and implementing artificial intelligence into every major sector and industry in the world to create more efficient systems and processes and streamline the international supply chain of goods and services.

At Going Green, we have featured Artificial Intelligence experts on our podcast and written articles about it, and as technology gets better, and financial opportunities continue to grow, more and more companies are investing in Artificial Intelligence and implementing it into their business plan.

The biggest impact Artificial Intelligence can have on renewable energy and sustainability is identifying and creating the most efficient energy grid when it comes to distributing renewable energy. Artificial Intelligence will be able to identify where and when most energy is being captured, as well as how to distribute it in the most efficient way. With the ability to streamline a local, national, and international energy grid, Artificial Intelligence will help us capture, store, and distribute renewable energy in the most efficient way possible.

Agriculture

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There are 7.6 billion people on the planet, and while we all have differing views on a variety of subjects, there is one thing we all have in common: we all have to eat. The global supply chain for the agriculture industry is hard to comprehend because it effects every single one of us everyday. Over one billion people worldwide work in agriculture generating $2.4 trillion for the global economy.

The above categories we mentioned, transportation, energy, and artificial intelligence all work together for our agricultural industry to continue to be efficient and thrive. Our recent podcast guest, Farmlink Project, works to connect farms with excess food which ends up in landfills with underfed communities utilizing artificial intelligence.

Farms utilize wind power, solar power, and redistribute biomass in order to be more energy efficient and sustainable. According to UCSUSA.org, “Crops and biomass wastes can be converted to energy on the farm or sold to energy companies that produce fuel for cars and tractors and heat and power for homes and businesses. According to the U.S. Department of Energy, tripling U.S. use of biomass energy could provide as much as $20 billion in new income for farmers and rural communities and reduce global warming emissions by the same amount as taking 70 million cars off the road. “

How You Can Get Involved in the Transition To Renewable Energy

The first step to living more sustainably is staying educated and being on the forefront of where the biggest changes are happening. You can research and invest in companies that are in these industries and utilizing renewable energy and clean technology to streamline their processes and bring a more energy efficient and sustainable future to established industries.

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Our goal is to provide you with the latest, most up to date information in the sustainable, renewable energy, and cleantech industries. We produce weekly podcast episodes interviewing industry leaders, as well as research and share fun, interesting trends.

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