DLMINTSATIM01- Current Issues in International Management

Research Paper

Green Transformation and its Implementation by International Firms

Author: Anirudh Girish Kapnadak

Course: International Management
Matriculation Number:1222849
Tutor’s Name: Beverly Wilson- Wünsch

Academic Year – 2022/2024

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Research Paper I Green Transformation and Sustainability I 2023
 Table of Contents

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Research Paper I Green Transformation and Sustainability I 2023
 Introduction
Globally, the need for sustainable practices has grown considerably in recent years.
Environmental issues including pollution, resource depletion, and climate change have forced
governments, businesses, and individuals to reconsider their course of action and work
toward a more sustainable future. International businesses have therefore taken on the duty of
integrating sustainability into their operations and have evolved into change agents.
International corporations now have an important role in influencing the development of the
global economy and society due to the expansion of globalization and interconnection. These
companies have understood the significance of incorporating sustainable practices into their
business structures. These businesses hope to reduce their environmental impact, eliminate
environmental hazards, improve social responsibility, and promote long-term profitability by
implementing green technology.
The adoption and use of green technology is one of the main methods worldwide businesses
use to achieve sustainable goals. Green technology, also called clean or eco-friendly
technology, describes cutting-edge approaches that lessen the environmental impact and
support sustainable development. It includes many methods, items, and procedures that cut
down on waste, minimize pollution, and promote a circular economy.
Several causes drive worldwide businesses to adopt green technologies. First and foremost,
consumers are becoming more aware of and interested in sustainable goods and services.
Customers are more likely to support businesses that value sustainability as they become
more concerned about the effects of their purchases on the environment. By adopting green
technologies, international businesses can better meet customer expectations and gain a
competitive edge. (Daniel C. Esty, 2011)
In addition, governments worldwide are implementing strict laws and guidelines to solve
environmental problems. Businesses are frequently required by these restrictions to adopt
greener technologies, minimize emissions, and adhere to sustainability requirements.
International businesses operating in different jurisdictions know how crucial compliance
with these laws is to preserve their reputation, market access, and licensing. These businesses
assure compliance and reduce legal and regulatory risks by embracing green technology.
International businesses also understand the long-term economic advantages of sustainability.
By adopting green technology, companies can improve profitability, cut expenses, and create
operational efficiencies. Energy-efficient technology, for instance, cuts greenhouse gas
emissions and saves a lot of energy, lowering utility costs. In addition, implementing
sustainable supply chain principles boosts supplier collaboration, eliminates waste, and
increases resource use, which results in cost optimization and greater resilience.
International businesses' use of green technology in their operations differentiates them
strategically. Businesses that actively embrace sustainability and adopt cutting-edge green
technologies improve their brand's overall image. They draw in clients, workers, and
investors who are concerned about the environment and who are looking to work for or invest
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Research Paper I Green Transformation and Sustainability I 2023
in businesses that share their beliefs. International companies may improve stakeholder
relationships, create trust, and open new business prospects by demonstrating their efforts to
promote sustainability.
International companies also have the financial and technological means to support the
development of green technologies. These businesses can create cutting-edge solutions to
urgent environmental problems by innovating. They utilize their expertise and promote
innovations in renewable energy, waste management, water conservation, and sustainable
materials by working with research organizations, universities, and start-ups. Innovation
encourages not only sustainability but also the expansion of the economy, growth in
employment, and technological advancement.
1.1 Aim
The overall aim of the research is to analyse the concept of green transformation and the
challenges faced by international firms in implementing sustainable solutions
1.2 Research Question
How can international operating firms implement sustainability?
1.3 Objectives
1. Analyse the environmental, social, and economic challenges that international firms
encounter when attempting to adopt sustainable practices and green transformation.
2. Provide recommendations for policymakers and business leaders on creating a
conducive global environment for sustainable business practices, including incentives,
regulations, and international agreements.

2. The theoretical background of Sustainability and Green Energy and its

interdependence

The concept of sustainability is present in every aspect of the society. Be it the private,
government, and non-profit sectors of the economy. They have embraced and utilized some
versions of sustainability, be it genuinely or for being in the good books of their potential and
existing consumers. When the idea was brought out it was known to be a poor person´s idea
but today renowned and international companies seem to use sustainability not just to reduce
costs but also as a promotional tool. The idea of sustainability is fundamentally focused on
planning for the future and finding ways of dealing with severe threats to the well-being of
people fifty or a hundred years from now. When the Brundtland Commission asserted that
“sustainable development seeks to meet the needs and aspirations of the present without
compromising the ability to meet those of the future” (WCED 1987: 39), it did so to heighten
attention on the needs of future generations. In short, sustainability consists of an explicit
time dimension irrespective of which definition or specific concept is being implored. (page-
7)

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Green energy is the energy generated from renewable sources of energy and it is considered
one of the most sustainable methods of all. It is because it is renewable, meaning these
sources of energy are continuously replenished by natural processes. By relying on green
energy, societies can reduce their dependence on finite fossil fuel resources, decrease
greenhouse gas emissions, and reduce the impacts of climate change. As a result, green
energy plays an important role in transitioning to a more environmentally friendly and
sustainable energy system.

Green energy has been increasing at a great pace worldwide, and in 2015 more than half of
all added power generation capacity came from renewable sources of energy. In contrast to
2004, investments rose by more than six times, reaching almost $300 billion. China was
solely responsible for about 36% of the rise in investment. On the other hand, while
investment in Africa also increased, in Brazil, it fell by 10%, mostly due to an economic
recession (Frankfurt School, UNEP, BNEF 2016). Whereas these numbers express the
widespread consensus among nations that investments in green energy are needed to reduce
the risks of climate change, in practice the speed of transformation is dictated by the
particular socioeconomic and environmental characteristics of each country or region.
(Page 297 of 450)

Corporate sustainability involves not only a company's capacity to endure in the long-term
strategic viability but also its responsibility towards the external environment. Mostly,
sustainability is equated with how environmentally conscious and caring a company appears
to be, focusing mainly on the company's impact on the environment and its relationship with
stakeholders.
However, leadership teams must recognize that corporate sustainability should encompass
both internal and external aspects. It is not just about fulfilling Corporate Social
Responsibility (CSR) obligations for the public image but about developing a comprehensive
and sophisticated strategy to ensure the long-term viability of the business and to care for the
environment which may not give results in the said minute but will be much more beneficial
to the organizations in the coming years. This means considering the external environmental,
social, and economic factors that may influence the company, as well as identifying and
addressing internal factors that can impact those same external issues. Companies should
recognize the importance of being in an environment that provides the raw materials and
other sources for production or for solely running a business.
In essence, an organization's survival in the future requires a robust corporate sustainability
strategy that goes beyond surface-level commitments and integrates sustainability into the
core of the business operations. This shift in mindset from a mere external focus to a holistic
approach will drive genuine sustainability and resilience within the company.
Page 341 of 450

2.1 Green Dynamic Capability and Green Innovation

Green dynamic capabilities help firms to utilize the available resources for the development
of a green environment and to achieve sustainability through their operational activities. The
firm can identify opportunities for creating green business products and processes and utilize
its resources for the environment's safety, which can bring out green innovation. The green
innovation in the firm is mainly dependent on the green dynamic capability of the firm to
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quickly adopt the changes required for the management of the environment. Environmental
sustainability is the essential element of the business that directs the organization’s efforts
toward adopting a process that protects the ecosystem. Green dynamic capabilities need to be
increased due to the rising awareness and concerns about environmental sustainability and
green innovation. A firm that uses green dynamic capabilities has a high level of adoption of
new, innovative, and sustainable solutions for its customers; thus, green innovation is
increased, and it is also beneficial for the goodwill of that particular firm. Organizational
management focuses on raising employees’ abilities to discover novel innovative ideas in the
business and find solutions to the development of the green environment, increasing green
innovation. Green dynamic capabilities certify the green innovation related to products and
processes involved in the enhancement of technologies that help in the recycling of waste,
management of the environment, energy-saving, designing green products and processes, and
preventing pollution. This helps business firms to use fuel and energy in efficient and
effective ways. All these processes ultimately save the environment and nurture it for future
generations. The firms are concerned with the generation of new ideas for the development of
green products, green practices, green services, green processes, and green marketing, and
help to stimulate and increase green innovation. Customers are now concerned and aware of
environmental issues and are also motivated to purchase green commodities and avail of
harm-free services, hence the firms are forced to create ideas for green innovative products.

3. Challenges in switching to Renewable energy.

Undoubtedly, a crucial step in halting climate change and guaranteeing a sustainable future is
the switch to energy from sustainable sources. However, this transformation is wrought with
complex difficulties that cut across politics, infrastructure, land use, industry, technology, and
public opinion. The complex web of barriers that proponents of renewable energy,
governments, and companies must cross in this discussion to advance this transformation.
This investigation will clarify the complications that surround the future of renewable energy,
ranging from political stances to infrastructural deficiency symptoms of land use conflicts to
the industry's dilemma of the reduction of greenhouse gases and the essential role of public
perception.

3.1 Energy Storage

The first of seven Challenges to be considered is whether the issue surrounding is efficient,
affordable, and reliable to store energy. Historically, one of the main problems with green
energy is that supplies are far more variable than other means of energy generation. Constant
fluctuations in sunlight levels and wind mean the supplies are more irregular than those from
fossil fuel plants. Companies, therefore, need batteries to store energy for future generations.
But the sustainability challenge remains and there are questions surrounding the
environmental costs of technology, mining the rarest metals on earth that battery technologies
require to even out the power grid supply.

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Economic and Financial Challenges
This is one of the biggest challenges faced by the renewable energy sector is economics. In
particular, the issues involved in bringing renewable energy and renewable technologies to
the masses. The rise in new business is driving investment in the sector, but transitioning
from carbon and fossil fuels comes with a premium price tag. Despite the surge in innovation
and emerging technologies in renewables, economic pressure can still hinder progress. Lack
of support from the government and large organizations can slow down the progress.
(OKAFOR, 2020)

3.2 Political Challenges

Inevitably linked with economic concerns are the political challenges of transitioning to
renewables. Political posturing, isolationism, popularism, and anti-science rhetoric threaten
the renewable energy sector. Other jurisdictions are lagging as authorities in other nations
continue to make significant strides in the right direction. Politicians face immense and
complex pressure as they struggle to coordinate the requirements for rapid and immense
change with the refusal of the electorate to enact the necessary reforms. Self-interest,
uncertainty as to the costs and benefits, and other concerns in daily life can sometimes push
renewable energy further down on the political agenda. (OKAFOR, 2020)

3.3 Infrastructure Challenges

The need for energy must be met in large part by using renewable energy sources extensively.
However, the lack of dependable large-scale energy grids in many wealthy countries will
make the transition more difficult to implement. There is a massive and alarming
infrastructure deficit in the West. Energy infrastructure is, in many locations, grossly
underfunded, poorly maintained, and not solid enough or resilient enough to meet future
demands. The inadequacy of many electric grid networks will become an ever more obvious
impediment to the widespread adoption of renewable energy as the demand for renewable
energy rises because of rising home use, rising electric vehicle adoption, and industrial
change. (OKAFOR, 2020)

3.4 Land Use

Land Use is one of the other challenges for the renewable sector is balancing the demands for
energy with other land use requirements. Land use has become a divisive topic in a world
where natural resource depletion is a problem. Determining which land parcels should be
allotted for massive solar and wind farms and how to combine this necessity with competing
demands for land for housing, food production, adaptation, and other uses are at the center of
the challenge. As the most fertile and valuable land frequently corresponds with optimum
places for energy generation, the allocation of agricultural land for wind energy production
caused intense discussion. The renewable energy industry will have a difficult time balancing
the need for power generation with the need for efficient land use in the coming years. While
offshore wind turbines have improved this situation, they are more expensive than onshore
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ones. Similar to other industries, the solar energy sector faces its own set of environmental
issues related to production procedures and the considerable land footprint that solar farms
require. This situation has been and is still a significant barrier in the industry. (OKAFOR,
2020)

3.5 Technical Challenges

Technical challenges make it difficult for industries to reduce CO2 emissions within the area.
Companies cannot alter 45% of emissions from feedstocks by a change in fuels, only by
changes to processes. There is a significant hurdle involved in using alternative fuels,
including carbon-free energy, to reach the high temperatures required for industrial processes.
This changeover would need significant changes to furnace designs. The problem is made
worse by how closely interrelated industrial processes are, as changing one element might
cause a chain reaction of related modifications that would require more adjustments.
Implementing such process improvements would necessitate substantial and pricey rebuilds
or retrofits due to the lengthy operational lifespan of industrial facilities. Energy is essential
to the effort to decarbonize the industrial sector, and a comprehensive transition to
sustainability would have profound effects on the system. According to McKinsey research,
there will be a significant rise in the need for cheap, carbon-free power, with needs ranging
from 25 to 55 exajoules (EJ) per year.
Addressing these difficulties would necessitate a collaborative strategy encompassing both
the public and commercial sectors, like the successful tactics used in renewable energy
development, which have resulted in economies of scale, technological advancement, cost
reduction, and scalable solutions. The combination of energy transition and industrial
decarbonization is critical, and this synergy will be a big challenge for the renewable energy
sector as it grows. (OKAFOR, 2020)

3.6 Public Perception

The difficulty is dependent on how these firms are seen by global stakeholders, including
consumers, investors, and local communities. An adverse public reaction comes from worries
about the sincerity of sustainability efforts or concerns about the environmental impact of
green energy initiatives can harm a company’s brand and hinder market acceptance.
Furthermore, regional differences in sustainability and variations in cultural norms add
complexity, requiring firms to navigate nuanced perceptions and adapt their strategies
accordingly to align with local values, making effective communication and genuine
commitment to green energy sustainability. (OKAFOR, 2020)

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4. SOLUTIONS FOR THE CHALLENGES FACED

4.1 Economic and financial challenges

Self-reliance in supply: As the supply can come from local production or imports, the
independence of a country in terms of supply is considered an essential characteristic of the
supply system. The rate of energy independence is the ratio of indigenous production to total
primary energy requirement. For importers, self-reliance would be less than 100% while for
exporters, the value would be more than 100%. This analysis can be done at a more
disaggregated level by considering self-reliance concerning each type of energy.
Further, using the British example, in 2008, about 30% of coal supply came from local
sources, while 94% and 74% respectively of oil and gas came from domestic sources. So, the
country had an overall self-sufficiency of over 75% in that year. So it is important to not be
dependent so that renewable changes can be made consecutively.

Share of renewable energies in supply: Where the energy balance covers the renewable
energies, this could be examined to see the role of alternative energies in the supply mix.

Efficiency of electricity generation: The Overall efficiency of power generation can be

determined from the ratio of electricity output to energy input for electricity generation.
Where input and output values are available by energy type, efficiency can be determined by
fuel type as well. This indicator can reflect how electricity conversion is evolving in the
country and whether there is any improvement in this vital area.Using the British example
again, in 2008, the electricity system efficiency came to 40%.

Power generation mix: The power generation mix of a country can be obtained from the share
of electricity production by type of fuel. The higher the concentration of power generation
technology, the more vulnerable a country could be in terms of supply risk.

4.1.1 Opportunities for Energy Conservation:

There are several areas where significant energy-saving possibilities exist:
(a) The field of lighting has long been a focus due to the inefficiency of conventional lighting
devices. Standard incandescent bulbs have low technical efficiency (around 10–15%), while
energy-efficient alternatives can achieve substantially higher levels of performance.
(b) Furthermore, lights are often left on unnecessarily, such as the daytime operation of street
lights, overnight outdoor lighting, and illumination in unoccupied rooms.
(c) Ineffective technology and needless consumption are often the result of improper pricing
strategies for energy, high initial costs that discourage adoption, insufficient building designs
that misuse natural light, and a lack of awareness.
(d) Efficient space heating and cooling offer another avenue for savings. Enhancing
insulation and sealing leaks can save energy. Given the long lifespan of buildings, older
structures tend to be less energy-efficient than newer ones. There are often exceptions for
older buildings in regulations, allowing them to persist in energy-inefficient practices. The
enforcement of building codes and thoughtful architectural design are crucial in this regard.
(e) Household appliances and their usage: Inefficient appliances and careless operation offer
opportunities for cost-effective energy conservation. Enhancing the efficiency of household
appliances like refrigerators, freezers, washing machines, vacuum cleaners, stoves, water
heaters, and dishwashers, along with using them appropriately, could lead to electricity
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savings. Since electricity generation often involves inefficiencies and there are losses during
electricity transmission and distribution, reducing electricity consumption at the end-user
level results in capacity and fuel savings, thereby benefiting the environment.
(f) Transportation presents another area with significant potential for reducing losses. Since
transportation is necessary for moving people and goods across distances, energy can be
conserved by three best ways; transitioning to less energy-intensive modes of transportation,
enhancing transportation efficiency, and making changes in travel behaviors.

To curtail fuel consumption in transportation, it's imperative to enhance engines, optimize

road infrastructure, and implement effective traffic management. Even behavioral shifts and
the expansion of electronic communication can reduce the necessity for travel. For instance,
tasks like bill payments can be accomplished over the phone, obviating the need for physical
travel. Encouraging carpooling among colleagues, advocating for living proximity to
workplaces, and promoting remote work options can all contribute to energy conservation.
Nonetheless, engendering energy savings necessitates heightened awareness and appropriate
pricing of complementary and substitute goods. Transport demand remains relatively
inelastic within a wide range of fuel prices, making fuel cost adjustments less impactful in
driving change. For instance, increased parking fees and reduced free parking allowances
tend to discourage short-distance travel. Likewise, a robust and adaptable public
transportation system facilitates the substitution of personal vehicle use for commuting
purposes. Furthermore, the protracted lifespan of vehicles implies that upgrading the vehicle
stock and achieving efficiency takes considerable time, thus delaying the manifestation of
changes.

Addressing electricity generation, though primarily a supply-side endeavor, is discussed due

to its status as a primary energy consumer. The electricity demand, a high-grade and versatile
energy form, is escalating in end-use applications. However, the efficiency of electricity
generation processes remains relatively low, often falling below 30%. Additionally, a notable
portion of generated electricity is lost during transmission and distribution, exacerbating
losses. Enhancing electricity generation efficiency by adopting contemporary technologies
(e.g., combined cycle gas turbines, supercritical pressure boilers) and minimizing
transmission and distribution losses can result in substantial fossil fuel savings. At the sector
level, distinct avenues for improvement emerge. For instance:
(a) Industries can conserve energy through process modifications (e.g., transitioning from wet
to dry cement production), efficient utilization of waste heat, cogeneration for combined heat
and power, and the adoption of efficient lighting and motors. Given that energy input costs
influence production expenses and the competitiveness of energy-intensive industries,
efficient energy usage becomes imperative for their survival unless safeguarded from global
trade pressures. The economic rationale for energy savings is particularly evident for such
industries, while other sectors may require incentives and awareness campaigns for
improvement.
(b) The commercial sector, being a significant electricity consumer, can achieve energy
savings via improved operational practices, leak prevention, efficient lighting, and thoughtful
building designs.
(c) In the realm of transportation, besides passenger travel, substantial energy reduction
potential exists in freight transport by optimizing capacity utilization, refining road and traffic
conditions, improving signage and signals, and leveraging economies of scale.
(d) While not a dominant energy consumer in many countries, energy-efficient practices are
crucial for major agricultural economies. Energy usage in agriculture primarily revolves

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around water pumping for irrigation. Efficiency can be boosted through the adoption of
efficient motors and pumps, curbing wasteful water use, and enhancing irrigation technology.
(Page 145-146 of energy economics book)

4.2 Political challenges

The proposition suggests that by providing communities with a broader array of options for
how they contribute to sustainability efforts, as opposed to questioning whether they should
contribute, the incentive structure can be reshaped to accommodate a wider range of low-
carbon choices within each locality. This shift requires a departure from merely focusing on
energy generation to encompass energy reduction, efficiency improvement, and the adoption
of non-energy-related carbon reduction strategies, such as sustainable waste management,
food practices, transportation, and housing solutions. This would necessitate a substantial
restructuring of the institutions responsible for regulating energy and development. For
instance, transitioning from land use planning to energy descent planning would be crucial.

Indeed, rethinking the regulatory framework is imperative to provide the appropriate context
for the outlined negotiation process. A nationwide low-carbon energy strategy is needed,
wherein communities—spatially or conceptually defined—are aware of the imperative to
achieve carbon reduction targets while maintaining flexibility in achieving these targets.
Interestingly, this approach might lead to a more significant deployment of renewable energy
than one solely concentrated on installing renewable energy technologies. However, the
broader adoption of renewable energy is not the sole or primary concern; it's just one of the
various methods for achieving the transition to a low-carbon economy. Therefore, it's
essential to broaden the perspective beyond renewable energy production as the sole path to a
sustainable energy future, allowing for the possibility that sustainability might entail using
less energy.

Given the magnitude of the task in transforming our energy economy and the limited time
available—roughly a decade to meet government carbon reduction objectives—this transition
to a low-carbon economy will undoubtedly be challenging. The key lies in engaging those
who oppose renewable energy projects while relinquishing the unproductive pursuit of
"consensus" and adopting a more robust approach rooted in republicanism and agonistic
pluralism. Such transparent and candid Republican decision-making processes, even if
administratively intricate, could yield compromise agreements and innovative responses to
our energy challenges. If we couple this with enforceable public targets for each locality, it
could foster creative solutions.

Currently, we lack the necessary incentive structure and creative scope within which
communities are assigned targets and then granted autonomy to determine their attainment.
While we're beginning to comprehend how the impending transformation of our energy
economy will impact nearly every facet of our carbon-dependent society, we haven't yet
figured out how to integrate individuals whose lives will be affected into the decision-making
processes that drive these changes. This underscores not only an important political principle
—ensuring those affected participate in shaping laws and policies—but also makes practical
sense. Engaging people in the decision-making process is likely to garner more support for
the necessary changes, rather than less. (Devine-Wright, 2014)
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4.3 Infrastructure challenges
Supporting the transition to renewable energy in the built environment presents a potent
avenue for achieving sustainable growth. Residential areas, often characterized by high water
and energy consumption, can benefit from independent energy and water systems. The
decreasing investment costs in solar power make technologies like rooftop solar panels an
economically viable option to fulfil household energy needs, encompassing lighting, heating,
cooling, and appliances. Moreover, innovative technologies even permit windows to harness
solar energy. Regions with ample rainfall can utilize solar roofs to collect rainwater for
various purposes like washing and bathing. Biogas production via anaerobic digestion
technology offers another avenue, utilizing household and agricultural waste to generate
energy. This includes converting organic waste and even solid materials like wood and paper
into energy. Repurposing wood waste and organics can enhance soil quality and even
sequester carbon over extended periods. Developed economies are witnessing a dynamic
emergence of these technologies, leading to heightened productivity and reduced energy
expenses compared to conventional fuels.

A particularly promising approach to managing high electricity demand is through thermal

energy storage. This method involves storing heat or refrigeration, which is a less refined
energy form than electricity or potential energy. While the conversion to thermal energy is
generally irreversible, it is a preferred mode for heating and air conditioning applications.
Achieving efficiency levels nearing 100%, thermal energy storage systems can be adopted by
all electricity consumers relying on heating or air conditioning. However, in developing
nations heavily dependent on oil and lacking innovation, the implementation of renewable
energy technologies to support such initiatives is less. (Gorji, 2023)

4.4 Land Use

Geothermal or ground source heat pumps (GSHP) are only applicable for heating premises
that have access to suitable land, subsoil, or water (usually a large pond, called a water source
in that case). If a building has access to nearby land or a reasonable-sized garden, this
technology is certainly an option for the provision of heating. It works best with lower-
temperature water-based heat distribution systems, like underfloor heating. Air source heat
pumps (ASHP) can be used for heating or cooling, but only work with sufficient efficiency
where and when the external air temperatures are greater than 8°C (17°F).

4.4.1 New approaches to utilization of biomass potential

As fossil fuel reserves diminish, innovative methods of energy generation are imperative.
Ideally, these approaches should provide sustainable energy production while minimizing
losses during transportation to the point of use. Agroforestry systems and short-rotation
plantations offer viable avenues for generating biomass to efficiently produce energy and
materials. In the case of short-rotation plantations, rapidly growing trees like willows and
poplars are cultivated to maximize biomass yields within a brief period. Agroforestry
systems, on the other hand, involve cultivating perennial crops such as quality timber trees
alongside annual crops. Both agroforestry and short rotation coppices contribute to the
ecological and economic benefits achievable by incorporating woody plants into agriculture
for biomass and bioenergy production.

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An additional objective involves connecting the improvement of energy efficiency in urban
regions with the untapped possibilities for energy and climate benefits in open areas.
Moreover, plans can be developed to enhance the practical and visual integration with both
existing and emerging commercial zones. For instance, areas that have not yet been put to
commercial use could be temporarily repurposed for the cultivation of biomass.
The objectives of the research project are to develop new sustainable solutions around water,
nutrient, and land management, and to demonstrate benefits arising from reusing the purified
wastewater. The focus is on various aspects of ecotoxicological safety, water balance,
wetland ecology, nutrient recycling, and the production of energy crops. At the same time,
they must review political and legal regulations and requirements for the application of
purified wastewater on soils, and to strengthen the regional value chains.
(Schütte, 2014) (Urban Innovative Actions, 2018)

4.5 Technical Challenges

Many leading organizations and universities are shifting their energy efficiency and carbon
emission reduction strategies from purely technological efforts to incorporate behavior-based
approaches. This transformation spans various levels, involving operational changes such as
equipment scheduling and a fundamental shift in organizational thinking and behavior
regarding energy and greenhouse gas emissions. As organizations evaluate their carbon
footprints, the role of energy consumption becomes paramount, accounting for a significant
portion, often over 80%, of their internal footprint. Initial efforts have yielded modest energy
savings of a few percentage points annually. For example, United Technologies reduced
absolute energy use by 30% over 13 years while doubling in revenue.

To envision a zero-carbon future, organizations are exploring innovative approaches, such as

Toyota's Ultimate-Eco-Factory vision, emphasizing continuous improvement in energy
efficiency to support renewable energy integration. Staples is investing in cost-effective
energy efficiency and financing solar PV installations on store roofs with reduced energy
bills. They aim to drive down energy use to the point where PV can meet all electricity needs
in some stores. PepsiCo focuses on energy efficiency in product manufacturing, extending the
analysis to water savings and reducing energy and water needs to enable recycled water and
locally-produced renewables to meet all plant requirements. These examples rely on a two-
fold behavioral strategy: first, emphasizing practical, cost-effective efficiency measures
across the organization; and second, integrating additional resources into building and plant
operations as they become feasible, taking a holistic, long-term view.

In conclusion, leading organizations demonstrate that behavior-based energy efficiency

strategies are crucial. They prioritize practical efficiency measures and constant attention to
detail in the present while thinking holistically for the future. While quantitative conclusions
about behavior-based energy efficiency programs are limited due to the field's relative
infancy, qualitative insights indicate that building performance is closely linked to operation
and management practices rather than specific technologies. Behavior-focused programs can
be as effective as technology-based ones, and ongoing research is expected to provide further
guidance for enhancing behavior-based approaches. Ultimately, these organizations highlight
the significance of behavior change alongside technological advancements in achieving
significant long-term improvements in energy efficiency. Both for-profit and non-profit
organizations can successfully implement behavior-based programs, albeit with a time-
intensive commitment to detail and continuous improvement. (Huesemann, The limits of
technological solutions to sustainable development, 2003)

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4.6 Public Perception

Public support and resistance are critical factors in the success of energy policy. To bridge the
"social gap" during energy project implementation, it is critical to consider mutual
understanding, societal values, and various lifestyles. Meaningful renewable energy strategy
necessitates bottom-up governance and public participation in decision-making. Improving
public awareness of environmentally friendly sustainability can be accomplished through
transparent communication, highlighting successful projects, involving local communities,
mitigating visual impacts, emphasizing job creation and economic benefits, promoting health
and environmental benefits, utilizing financial incentives, engaging influencers, and
collaborating with schools. These initiatives have the potential to progressively transform
attitudes toward renewable energy to achieve a more sustainable future. (Kadar Jozef, 2023)

5. Conclusion
The first sustainability condition centers around ensuring a continuous supply of materials
and energy from the environment to support industrial economies. Non-renewable resources
like minerals and fossil fuels are inherently limited, making their exploitation unsustainable
in the long term. Some argue that it's permissible to use non-renewables as long as renewable
substitutes can be found, but this approach is also flawed because non-renewables will
eventually be depleted. Additionally, shifting entirely to renewable resources would be
challenging, given the foundations of Western industrial societies.
Ultimately, sustainability requires deriving energy primarily from the sun, but this may come
with negative environmental impacts. The second law of thermodynamics dictates that all
industrial activities have unavoidable environmental consequences. Recycling non-renewable
materials may seem sustainable, but it has limitations. Improvements in eco-efficiency won't
ensure reduced overall environmental impact if economic growth continues unchecked.
Sustainable solutions necessitate addressing both consumption and population growth to
prevent worsening environmental problems over time.
In conclusion, achieving effective improvements in eco-efficiency hinges on society's
commitment to curbing the overall matter-energy throughput to sustainable levels. This shift
would require breaking free from the current fixation on relentless economic growth and
transitioning toward a steady-state economy. To accomplish this, it becomes imperative to
both significantly restrict and reverse population growth while simplifying our lifestyles by
reducing our obsession with excessive consumption. These necessary changes present
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Research Paper I Green Transformation and Sustainability I 2023
substantial ethical, social, and political challenges to the existing status quo. The first crucial
step towards sustainability must involve a public discourse on these intricate and contentious
value-driven issues. Unfortunately, such a vital discussion on the personal, social, economic,
and political transformations needed to attain a sustainable society has been lacking, likely
because many believe that technological solutions alone can ensure sustainability. However,
this belief is far from the reality.

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