Page 26 - Ebook HTKH 2024

● Renewable Energy Production: Technologies such as solar, wind, and tidal
energy are pivotal in reducing reliance on fossil fuels and curbing greenhouse gas

emissions. Renewable energy production has grown significantly globally, driven by
technological advancements, policy incentives, and increasing environmental
awareness.
● Electric Vehicles (EVs): EVs significantly lower CO2 emissions compared to
conventional vehicles and help mitigate urban air pollution. The market for EVs has
expanded rapidly, supported by government subsidies, advancements in battery
technology, and growing consumer demand for eco-friendly transportation.
● EV manufacturing continues to be the largest Tier 1 activity, indicating its critical

role in driving green growth.
Additionally, efficient IT solutions and green buildings are prominent Tier 1
activities, contributing to energy efficiency and sustainable infrastructure development.
Tier 2: Limited but Net Positive Environmental Benefits
Tier 2 includes green products and services with more constrained but still net
positive environmental impacts. These activities often complement Tier 1 initiatives and

provide sustainable solutions in specific contexts. Examples:
● Large Hydropower: While potentially impacting freshwater ecosystems and
local communities, large hydropower remains a crucial renewable energy source,
providing reliable and large-scale power generation.
● Cloud Computing: By optimizing resource use and reducing the need for physical
IT infrastructure, cloud computing enhances energy efficiency and reduces the
environmental footprint of digital services.

Over half of Tier 2 activities are related to cloud computing, highlighting its importance
in the modern economy.
● Other significant sectors include rail transportation, sustainable building
operations, and waste management, which collectively account for another 20% of Tier
2 activities.
Tier 3: Some Environmental Benefits but Generally Net Neutral or Negative

Tier 3 activities offer certain environmental benefits but may be neutral or
negative. These activities often involve resource extraction or technologies that are not
entirely sustainable. Examples:
● Lithium Mining: Essential to produce EV batteries, lithium mining can have
significant environmental impacts, including water depletion, habitat destruction, and
pollution.
● Biomass from Energy Crops: While biomass energy can reduce reliance on fossil

fuels, it may lead to land use changes, deforestation, and biodiversity loss if not managed
sustainably.
In 2023, nuclear power generation and lithium mining accounted for nearly half of
Tier 3 activities, underscoring the need for improved management and innovation to
mitigate their environmental impacts.

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