I have always been optimistic about new
technologies and innovations. More specifically, I am interested in how new technologies can benefit our society and make our world a better place in the long run. I only learned a few years ago that there is an official term for people who think like me: I am a techno-optimist. I am also convinced that innovations will solve our most vicious problems directly or indirectly.
Looking at our world a couple of hundred years ago, an unimaginable amount of innovations has changed our lives and society, arguably for the better. For example, vaccinations have eradicated or significantly reduced the prevalence of deadly diseases such as smallpox and polio. Air conditioning systems have significantly improved the quality of living in hot and humid climates. Communication technology has made it possible to communicate in real time between people almost anywhere in the world, and airplanes have made it possible to travel virtually anywhere on our planet.
Many of these revolutionary technologies have become so commonplace that we do not even notice them let alone appreciate them. Looking at how our standard of living has improved during the last couple of hundred years and the current speed of technological advancement, it is highly probable that the world will change even faster in the next centuries and for the better.
Advancements in healthcare, renewable energy, and artificial intelligence are just a few areas where rapid progress is being made. These innovations have the potential to solve some of our most pressing global challenges, such as climate change, disease, and poverty. With continued investment in science and technology, we can expect even more breakthroughs that will enhance our quality of life and create a more sustainable future.
Humanity Must Avoid Climate Crisis with New Technology
One of today’s most pressing questions is, how can we continue to consume and increase our energy usage without destroying the earth and
depleting its natural resources? Let’s face it: most people living on Earth still want to increase their consumption or at least not decrease it significantly. According to the World Bank, 700 million people still live on less than $2.15 per day. When the world develops, there will be
hundreds of millions or even billions of people who will likely increase their consumption.
People rising from poverty and poor nations developing in the future is a wonderful thing,
but will put immense pressure on the environment. We are already pushing our planetary boundaries, so something must be done.
More Consumption but Less Pressure on the Environment?
To simplify, let’s think of the effect of consumption on our planet as the quantity of products consumed times emission intensity or the amount of emissions per product consumed released into the atmosphere. Globally, the quantity of products will likely increase, but we can significantly lower the emission intensities of the products by investing in new technologies or methods of production.
For example, electricity can be produced with various technologies such as solar panels, nuclear reactors, and burning coal. These technologies have very different emission intensities, meaning that one unit produced with different technologies will put different amounts of pressure on the environment.
According to Our World in Data, France’s carbon intensity of electricity generation was 56 grams of CO2 per kilowatt-hour in 2023, while the same number in Germany was 381. In Germany, the production of electricity puts 6.8 times more pressure on our environment than in France. This is a great example of how the tech portfolio used in production can significantly affect the emission levels. France has invested heavily in nuclear power, while Germany has opted to close down existing nuclear plants.
If nuclear power had never been invented, the world’s energy production would be much dirtier on average if all else stayed the same. Moreover, if France’s energy policy had not adopted the wide usage of nuclear power, its energy production would have been much dirtier. The world needs clean technology and good policies to achieve lower emission levels while consumption increases.
The Need for Climate Technology Opens Up Possibilities for Businesses.
In the next 10–30 years European countries should keep investing in clean technology. The need for sustainable production in several sectors and the likely increase in the number of consumers globally will generate more demand for cleantech innovations. In an optimistic vision, when third-world countries develop they can leap-frog with readily available European cleantech to increase their consumption without putting more pressure on the environment.
By investing in disruptive technologies in young innovative companies, we can achieve a sustainable future and more export revenue to Europe. We also need sound policies that will help businesses to innovate and countries to adopt these innovations sooner rather than later.
Youssef Zad, Chief Economist of Finnish Startup Community
Original text published in Reviews The Corporate, July 2024