Green technology like artificial intelligence, the Internet of Things, and electric vehicles have been warned by the United Nations Conference on Trade and Development (UNCTAD) that they may worsen economic disparity around the world.
According to the Technology and Innovation Report 2023, which was released on March 16, 2023, industrialized countries profit the most from these technologies, while developing countries risk losing out on business prospects if prompt action is not done.
Table of Contents
Market Opportunities for Green Technologies
A market worth $9.5 trillion, rising from $1.5 trillion in 2020, may be created by green technologies, according to UNCTAD. Reduced carbon footprint production and service delivery are both possible with these technologies. In 2030, the market value of green frontier technologies, such as electric cars, solar and wind energy, and green hydrogen, is anticipated to increase by a factor of four from its current level to $2.1 trillion.
From today’s $163 billion to $824 billion by 2030, the market for electric vehicles might see a five-fold increase in revenues.
The Gaps Between Developed and Emerging Markets
According to the study, the total exports of green technologies from industrialized nations increased from roughly $60 billion in 2018 to over $156 billion in 2021. On the other hand, exports from emerging nations only increased by roughly $75 billion from $57 billion.
According to the ‘frontier technology readiness index’ presented in the report, only a small number of developing nations have the capacity required to benefit from cutting-edge technologies like blockchain, drones, and solar power.
Information and communication technology (ICT) skills, research and development, industrial capacity, and financial factors are used to rank 166 nations in this index.
The United States, Sweden, Singapore, Switzerland, and the Netherlands are among the high-income nations that are currently leading the index.
The Value of International Cooperation.
Governments in developing nations are urged by UNCTAD to harmonize their industrial, scientific, and technological strategies. It exhorts businesses to prioritize investment in greener, more complicated areas, offers financial incentives to encourage consumer demand for greener products, and increases investment in R&D.
However, the UN organization emphasized that underdeveloped nations cannot utilize green technologies on their own.
The success of their domestic programs will largely depend on international commerce and global cooperation, which would necessitate changes to current trade laws to ensure compliance with the Paris Agreement to combat climate change.
Giving developing countries assistance
In order to ensure that all nations can participate in and fully benefit economically from the green technology revolution, the report advised wealthy countries to lend a helping hand to their less affluent counterparts.
International trade regulations should allow developing nations to support burgeoning green industries via tariffs, subsidies, and public procurement in order to meet local demand as well as achieve economies of scale that boost export competitiveness.
The Preparedness of Developing Nations
A number of Asian nations, including Vietnam, the Philippines, and India, have made significant policy adjustments that have allowed them to perform better than anticipated in terms of their gross domestic output per capita.
India continues to outperform all other countries, coming in at 67 positions higher than expected. The Philippines came in at 54 positions higher than expected, and Vietnam came in at 44 positions higher.
Countries in Latin America, the Caribbean, and sub-Saharan Africa, on the other hand, are the least prepared to utilize cutting-edge technologies and run the danger of missing out on current technological prospects.