Green tech refers to a type of technology that is considered environmentally friendly based on its production process or its supply chain. Green tech—an abbreviation of "green technology"—can also refer to clean energy production, the use of alternative fuels, and technologies that are less harmful to the environment than fossil fuels.
Although the market for green technology is relatively young, it has garnered a significant amount of investor interest due to increasing awareness about the impacts of climate change and the depletion of natural resources.
What Is Green Tech? How It Works, Types, Adoption, and Examples
Understanding "Green Technology"
Green technology is an umbrella term that describes the use of technology and science to create products and services that are environmentally friendly. Green tech is related to cleantech, which specifically refers to products or services that improve operational performance while also reducing costs, energy consumption, waste, or negative effects on the environment.
The goal of green tech is to protect the environment, repair damage done to the environment in the past, and conserve the Earth's natural resources. Green tech has also become a burgeoning industry that has attracted enormous amounts of investment capital.
Green tech is a goal of a business segment or company, often outlined in its ESG statement or mission statement. Socially responsible investors are increasingly seeking companies that exclusively employ or produce green technologies for their investments.
History of Green Technology
While green technologyhas become increasingly popular in the modern age, elements of these business practices have been in use since the Industrial Revolution. Beginning in the early 19th century, scientists began to observe the ecological impacts of coal-burning industrial plants, and manufacturers have sought to reduce their negative environmental externalities by altering production processes to produce less soot or waste byproducts.
In theUnited States, one of the most important milestones was the Second World War. In order to reduce consumption and waste, more than 400,000 volunteers began collecting metal, paper, rubber, and other materials for the war effort.
Following the war, scientists like Rachel Carson began warning of the consequences of chemical pesticides, while doctors abroad reported mysterious illnesses associated with nuclear radiation. Many point to this era as the genesis of the ecological movement, which sought to preserve ecosystems and resources while raising awareness of the consequences of runaway technology.
Government bodies slowly recognizedthe importance of protecting environmental resources. Curbside recycling programs became common over the following decades, raising awareness about household waste.The Environmental Protection Agency, established in 1970, set firm requirements on pollution and waste and established mandates for coal scrubber
s and other clean technologies.