CLEAN is not GREEN

As technology development the speed of industries growth has been accelerated and many other industries have derived from them. Growth of these massive industries reaches the environment industry. Companies started to find a way to reduce carbon emissions and other hazardous substances. Such as SOx, NOx since the 1920s, and in 1970 US congress passed Clean Air Act (CAA) as federal regulation. Recent COVID-19 also acted as a trigger to accelerate clean technology.

However, we need to look back at those clean technologies which started in 1920. Clean technology which reduces hazard substance that affects the environment. For example, DeSOx system which reduces SOx from power plant uses “Ceramic honeycomb catalyst”. The used ceramic catalyst which is basically made of ceramic and contains SOx inside, goes to land fill. Similar things happen with HEPA filter as well. After COVID-19 companies produce air purifier/sterilizer for household made with HEPA filter, which is known as the most effective filter to clean the fine dust, virus, and bacteria. However, in 2020 only in U.S. more than 8,000 tons of HEPA filter had been thrown away. Those glass fiber HEPA filters used in medical, industrial, and nuclear facilities are mostly incinerated, and those commercial and household filters go to landfill. But those catalyst or air purifier/sterilizer manufacturers advertise them as green tech company that reduces carbon emission.

As in data, the green technology market is smaller than the clean technology market. As you can see in the graph, as of 2021, the green tech market is less than 5% of the clean tech market. Even though CAGR of green tech is four times larger than the other, the present market size is less than 5% it reaching 10% in 2028. One of the reasons that green tech is small is the market is mostly led by SMEs and Start-ups. Therefore, they don’t have enough supply, and marketing channels to show their product to increase the size of the market. On the other hand, major companies are focusing on ESG and they say they are focusing on the environment as well, but the output of it may not be that green. Therefore, the press and public are saying that the major companies are doing “Green Washing” rather than ESG.

It is not easy for customers to know what is green and what is clean for now. But at least the market should tell that the product is “clean but not green” or “clean and green” so that customers can choose which one to buy. This kind of hurdles stops Green market to grow faster, and many more companies (SMEs, Major Companies) to join the Real Green Market.

 

Hebronstar Strategy Consultants
Kim, Jun Young / Senior Consultant