The next iteration of the internet is fast taking shape but making it a reality will require vast amounts of energy. Ensuring the future digital landscape doesn’t become an environmental nightmare means opting for renewables, accelerating the energy transition, and locking in a lower-emissions framework.

Run on networks that use consensus mechanisms such as blockchain, Web3 is a new decentralized version of the internet, which aims to give individuals more control over their data and experiences.  Meanwhile, the metaverse is a yet-to-be-realized digital and immersive world that enables users to interact digitally, be that using crypto-wallets to make purchases or virtual reality headsets to explore experiences. 

While both are digital, virtual spaces, they’re very much tethered to the physical world – thanks to the energy needed to power them. 

Despite all of its futuristic promise, the basic building blocks of the new digital landscape are computers and servers, and a recent blog post from Intel suggests that our global computing infrastructure will need to be 1,000 times more powerful than it is today in order to comfortably sustain it. This comes at a heavy environmental cost. 

In a study carried out in 2019, University of Massachusetts researchers calculated that training one large deep-learning model – for example, one that allows machines to work with natural language in a virtual environment – produces 626,000 lbs of planet-warming carbon dioxide or five times the lifetime emissions of an average car. 

At the University of Lancaster, researchers ran a scenario to find out what would happen if just 30% of computer gamers moved to virtual cloud-based platforms by 2030, and found that carbon emissions would jump by almost a third.

Meanwhile, cryptocurrencies, which will underpin transactions in the new online world, have become notorious for their energy intensiveness, with the University of Cambridge finding that crypto mining can consume as much as 121.36 terawatt-hours a year, or more than the annual energy consumption of Argentina or the United Arab Emirates, while the New York Times calculates that bitcoin consumes roughly 0.5% of all energy worldwide.

In today’s energy mix, where the majority of electricity worldwide still comes from non-renewable sources, the huge increase in power use brought about by Web3 spells disaster for the planet.

Around the world, irreversible climate change is already underway, from hotter temperatures to more severe storms and droughts. According to the 2022 IPCC report, released earlier this year, humanity has a “narrowing window for action”, and if we are to secure a livable future, deep cuts in greenhouse gas emissions need to happen now.

The green way forward 

However, before immediately writing off the metaverse and Web3 as an environmental disaster waiting to happen, it’s worth noting what Big Tech is doing to reconcile its own sustainability goals with the creation of a fully immersive digital landscape. Amazon Web Services (AWS), which provides cloud computing solutions for nearly a third of all web applications today, says it will power its operations with 100% renewable energy by 2025. Google has pledged to use 24/7 carbon-free energy in all its datacenters by 2030. Microsoft intends to be carbon negative by 2030, as well as halting the use of diesel in its datacenter generators. Meanwhile, Meta – which changed its name from Facebook to demonstrate just how much it believes in the metaverse – says that by 2030, it will reach net-zero emissions across its own operations and its value chain. 

What’s more, clean energy is increasingly being used to power cryptocurrency activities, with a report from the Cambridge Centre for Alternative Finance finding that nearly 40% of proof-of-work mining is powered by renewables. This is thanks in part to the fact that renewable energy is now cheaper than fossil fuels in most markets around the world, while fossil fuels are only set to become more expensive over time. Another positive sign can be found in the Crypto Climate Accord, inspired by the Paris Agreement. The industry-driven pact’s signatories have vowed to switch to renewable energy sources by 2025 and go completely net-zero, eliminating greenhouse gas emissions altogether, by 2040.

This proliferation of commitments is already outpacing our world’s transition to renewable energy, driving up demand for a greater percentage of the grid to come from clean resources. 

To meet this demand, a decentralized digital world needs decentralized energy sources. Crypto farms will need to be co-located with renewable generation and mining when there is an abundance of energy. Data centers are already entering into direct corporate power purchase agreements (PPAs) with renewable energy suppliers, enabling them to increase their actual use of clean power faster than if they relied upon the grid alone. Digital mining activities have locational flexibility, as has been shown by redeployment of its activity in response to regulatory changes, this means that digital mining activities can pursue the best geographies in terms of abundant and competitive renewable energy.  

Paving the way for a sustainable future

Ensuring that the metaverse and Web3 are powered by clean energy enables the truly transformative power of the new online world to take effect. Forward-thinking individuals who care about the future of the planet are already designing radical new ways for people and companies to be more sustainable via the new tech – from digital carbon credit coins to allow anyone to access carbon trading markets to non-fungible tokens that fund the planting of enough mangroves to sequester 20 million tons of carbon over the next 25 years.

While it’s true that – as things stand today – wide-scale adoption of the metaverse and Web3 would drive emissions up to dangerous levels, all indicators point to the companies involved choosing to combat these environmental challenges. The only viable option to power the future online world is renewables, and this huge surge in demand will drive enormous adoption of clean power, accelerating the energy transition for a better, more sustainable future.

In partnership with Castleberry Media, we are committed to taking care of our planet, therefore, this content is responsible with the environment.

In the wake of the 2021 United Nations Climate Change Conference (COP26), held in November, countries have come forward with ambitious 2030 emissions reduction targets that align with reaching net zero by the middle of the century.

To deliver on these commitments, large corporate energy users will play a key role. Today, a growing movement toward net-zero industrial hubs provides a unique opportunity for corporations around the world to align themselves with the Paris Agreement goals – as well as increase the adoption of renewable energy.

From the aerospace cluster in Queretaro, Mexico to the automotive cluster in Detroit, Michigan, companies have been co-locating in dynamic ecosystems for decades. Sharing resources, problems, and solutions, industrial parks act as economic growth engines while boosting opportunities for increased efficiencies.

Now, as the fight against climate change becomes more urgent, these co-located industrial parks can be leveraged in a new way: to cut emissions down to zero.

How do net-zero industrial clusters work?

The energy and industrial sectors are responsible for as much as two-thirds of the world’s CO2 (around 22 gigatons per annum), according to a new report by Accenture in collaboration with the World Economic Forum.

If companies located within clusters can work together to make the most of new clean technologies and processes, and at the same time maintain or increase productivity, increase the green credentials of their products, and enhance the environment, they can become part of the solution – instead of part of the problem.

What this looks like in practice varies dramatically, depending on the region and type of industry.

At their heart, though, net-zero industrial clusters are a set of facilities, plants, and linked infrastructure dedicated to the reduction and elimination of greenhouse gases through the application of clean energy and emissions control technology.

Through on-site renewables generation, shared dispatchable zero-carbon sources, storage, and microgrids, industrial clusters can tap into the opportunities presented by clean energy to not only reduce emissions but also enable companies located at the sites to meet their own internal sustainability targets. And because of the cluster set-up, if energy demand cannot feasibly be supplied by on-site renewables, companies can pool demand for renewable power purchase agreements (PPAs) instead.

Net-zero industrial clusters today

Net-zero industrial clusters are still a relatively new concept, but one which is gaining ground as cities and nations seek to reach net-zero carbon by 2050 or sooner, at the lowest possible cost to their citizens and businesses.

One such example is the Suzhou Industrial Park. Situated in Jiangsu, China, it is one of the largest and most modern industrial parks in the world. Spread over an area of 288 km2 and home to over 4,000 businesses, the industrial park offers a range of cost-effective, low carbon, and net-zero energy and infrastructure solutions that allow companies located there to track and improve their energy efficiency and emissions in line with their own sustainability goals.

Meanwhile, in the UK, where the government has made a commitment to deliver four low-carbon clusters by 2030 and at least one fully net-zero cluster by 2040, there are numerous promising examples.

One is the Humber industrial cluster, in Yorkshire. Home to industries such as refining, petrochemicals, and manufacturing, this is the country’s most carbon-intensive industrial cluster in the country, emitting 12.4 million tons a year. The plan is to create a shared carbon capture and storage infrastructure alongside the world’s first negative emissions power station, which will enable industries in the region to produce low carbon chemicals. There is also the potential to incorporate green hydrogen production, making use of increasing supplies of renewable energy from offshore wind in the Humber region.

As these projects begin to mature, interest is growing in the US and Latin America, too, with a recent study by the Center for Global Energy Policy at Columbia University identifying opportunities for net-zero hubs in Houston.

Putting it into practice

While net-zero industrial clusters are a great idea in theory, in practice they’re less simple to implement. Most businesses, cities, and states don’t have the ability to start a net-zero transformation from a clean slate, and retrofitting legacy systems for energy efficiency and net-zero carbon involves significant costs. What’s more, not all large carbon emitters are located in clusters, so creating net-zero industrial parks only goes part of the way toward solving the issues.

However, we believe that the net-zero industrial cluster movement presents an exciting opportunity to facilitate and promote the adoption of renewable energy, as companies work hard to meet their climate goals. And for those companies that don’t yet have the opportunity to join a cluster, alternatives are already available.

One of the most effective alternatives for companies seeking to meet emissions reduction objectives is Renewable Energy Certificates (RECs). Around the world, approximately 70% of companies with net-zero targets already utilize RECs as part of their renewable electricity procurement strategies. The use of RECs enables a company to state that it uses renewable electricity from a low or zero-emissions source, and because they provide flexibility in sourcing green power from anywhere in a given country, even companies located in regions without abundant renewable energy resources can benefit.

Another option is through PPAs, which allow corporate consumers to purchase a certain amount of renewable energy from a specific asset under a predetermined pricing arrangement. Approximately 45% of companies with net-zero targets sign these agreements as part of their renewable electricity procurement strategies, and their use is growing as more and more companies seek to tap into the benefits of renewable electricity to achieve their sustainability goals.

However, RECs and PPAs alone will not get companies to carbon neutrality. Daily operations like water use, packaging production, and the use of non-electric equipment all have a carbon footprint, which is why net-zero industrial clusters are so compelling: through shared infrastructure and carbon capture technology, they enable new business models that can contribute to preventing the worst effects of man-made climate change.

For the time being, however, until net-zero industrial clusters become a widespread global reality, the next best thing for large emitters is to take a serious look at their energy use strategies and consider implementing PPAs, RECs, and other tools to set their course for the path to net-zero.

In partnership with Castleberry Media, we are committed to taking care of our planet, therefore, this content is responsible with the environment.

Worldwide, the pressure to move toward a clean, carbon-free future is stronger than ever. Today, “going green” is more than just a lofty idea—it’s becoming the very basis of how many companies do business.

According to a 2022 article in CNBC, corporate giants like Microsoft, Intuit, and Apple are examples of those leading the charge by committing to environmentally sustainable business practices. And those types of actions are being adopted not just by big corporations, but small businesses as well.

Consumers are also becoming more thoughtful about their purchases, seeking products or services that align more with their environmental stance. Yet, with clever packaging and language intended to appeal to an environmentally conscious audience, many companies may mislead consumers—whether intentional or not—into thinking they are more sustainable than they really are. Enter greenwashing.

Greenwashing: using a clean concept to cover a not-so-clean secret

Words matter—especially when those words convey a certain message about what a company stands for or how it operates. The use of words like “green,” “eco,” “sustainable,” “natural,” or “conscious” is rampant, but for some it’s not warranted, and is known as greenwashing.

Specifically, greenwashing is deceiving potential consumers into thinking a company’s products or services are environmentally friendly, but with no real proof to back those claims. Greenwashing can also include inflating the truth in a way that highlights one environmentally friendly aspect of a business to cover up for another, less eco-friendly aspect; for example, an oil company who installs solar panels on its gas stations[AS2]  but then continues to profit heavily from fossil fuels.

Raising the stakes

Although greenwashing is on the rise, so are the consequences of engaging in it. A recent survey shares several examples of litigation cases related to greenwashing—as well as the following specific advice:

Luckily, greenwashing can be avoided. According to earth.org, there are a number of ways to stay on the right side of promoting an environmentally friendly business, and it starts with honesty. One key step is avoiding vague language that cannot be proven. Another is being transparent about areas of the business that are sustainable and others that are not. Or presenting real data to measure the company’s carbon footprint and taking real action to make positive changes, and then sharing that information publicly.   

Eversheds Sutherland states, “One of the lessons to be taken from recent filings is that companies should avoid wide sweeping, broad statements about their sustainability efforts and should avoid advertisements focused solely on the end-product or service they provide. Like all claims for misrepresentation, the truth is the best defense. If a company can support concrete statements with concrete sustainability efforts and firm data, the better able they are to neutralize and defend the greenwashing claims that are now flooding the US litigation landscape.”

Telling the truth is further encouraged by the fact that consumers are becoming wise to greenwashing. Information is everywhere, and it’s easier than ever to confirm if a company is truly environmentally sustainable or not. Furthermore, the scandal caused by greenwashing can leave a permanent mark on a company’s reputation, and ultimately, their bottom line. 

Moving from green washing to the gold standard

Becoming a sustainable business can start small. An article by Inc. provides some helpful tips to begin this process, from replacing traditional light bulbs and eliminating plastic bottles in the office to engaging only with trusted green vendors. American Express offers further insight, such as conducting an environmental audit, repurposing or redesigning products, and rewarding environmentally conscious behavior.

But to truly get to the next level of becoming a sustainable, green business, next-level changes need to occur. It requires a concerted effort by a company’s top leaders and permeates down and throughout the organization, with the ultimate goal of generating sustainable changes at scale and having a real impact on staff, consumers, and the environment.

Creating a green culture

The first step in creating a truly green business is to create a green culture. To accomplish this, leaders must determine what it means to be an environmentally conscious business, and how that affects employees, customers, and the planet as a whole. This step might involve creating a mission statement that is communicated and upheld in a significant way to all staff; a statement that inspires and aligns with the company’s core values. Essentially, it provides a solid foundation on which the rest of the business can operate from going forward.

Key to this effort is engaging the company’s greatest asset—its employees—and encouraging their role in sustaining the new culture. More and more job seekers are looking to work for green companies, so adopting a green culture can not only motivate existing staff but new hires as well.

Taking a hard look at the business

Once a company knows what it is striving for, leaders can begin to dig deep into assessing everything from how the business runs on a daily basis to the sustainability of its products or services (and specifically, its supply chain). This step will likely take the longest, as it requires delving into the details and looking at every procedure, policy, vendor, and so on. Company size will determine where to begin, with smaller businesses likely starting with easy “wins” and larger companies starting with the big picture, such as assessing the amount of energy consumed across the business. During this process, some key questions to consider include: 

• How efficient is the building (or buildings) the company resides in, and can improvements be made (such as adding solar panels)? 
• Is the entire supply chain built/focused on sustainability? Where are there gaps or inefficiencies?
• How are vendor materials produced? Do they comply with environmental regulations?  
• How are products manufactured and packaged (using recyclable or eco-conscious materials in low-carbon facilities) or services delivered (via excessive traveling or number of vehicles on the road)?  

Seeking help

The good news is that a company doesn’t have to take on this seemingly monumental effort alone. Not only is there extensive guidance available, but there are experts in the field who can help. The Green Business Bureau can provide a good starting point. Or, a company like Atlas Renewable Energy can help large consumers of clean energy shift to less-expensive sources of energy. Focused on operating with the highest of standards and adhering to its own sustainable development goals, Atlas has the deep knowledge and real-life experience to develop custom-made power purchase agreements that empower consumers to realize their clean energy goals. 

Or if budget is a concern, a company could develop the mission on their own and then work with consultants on specific activities, like gathering data on key aspects of the business that can be more sustainable. Furthermore, smaller companies might seek out applicable power purchase agreements or renewable energy certificates to help finance their efforts.  

Encouraging ongoing, sustainable change

In the current race to a carbon-free future, good intentions are no longer enough. Words must be used thoughtfully to tell the truth of what a business is, who it serves, and how it operates—and ultimately, what its environmental impact is. And that process begins with taking a deeper look at how a business can do better, from top to bottom, at every level.

An article in Forbes states, “By investing in good people, staying accountable and committing to a mission of sustainability inside and out, businesses in 2021 can push the world toward a better future while strengthening their own positions as market leaders in the bargain.”

In partnership with Castleberry Media, we are committed to taking care of our planet, therefore, this content is responsible with the environment.