Three Technology Trends Enabling Consumers to Reduce Carbon Emissions

By Bobby Baumler, Manager of Business and Industry Intelligence

Anthropogenic climate change is increasingly evident as observed through rising sea levels, increasing temperatures and extreme weather events. 2021 marked the sixth warmest on record and the most recent decade set a record as the hottest for a ten-year time span in history. Unprecedented storm surge, rain, and wind from September’s Hurricane Ian is estimated to result in insured losses of $67 billion and tragically the loss of at least 92 people.

At last year’s United Nations Climate Change Conference (COP26), leaders stressed the need to halve emissions over the next decade to reach net zero carbon emissions by the middle of the century. As industry and policymakers consider investment in climate forecasting, decarbonization, and resiliency, technology now empowers consumers to proactively reduce their carbon footprint.

Identifying Sources

To combat climate change, an understanding of where greenhouse gases originate is essential. Notably, the abundance of greenhouse gas (GHG) emissions occurs from human activity including agriculture, energy, industry transportation and waste. The use of energy in industry accounts for over 24% of global GHG emissions, followed by commercial and residential buildings contributing nearly 18%, transportation at over 16% and livestock at nearly 6% of global GHG as reported by Climate Watch. For individuals, reductions in automotive and home energy consumption represent tangible areas to reduce emissions.

Connected Thermostats

For most households, heating and cooling represents approximately 43% of total energy expenses according to the Environmental Protection Agency (EPA). The Energy Department estimates that households can save 10% annually by turning their thermostat back while away from home. Consumers seeking an easy solution may wish to install a connected thermostat to ensure comfort and optimize energy usage. CTA’s U.S. Consumer Technology One-Year Industry Forecast (July 2022) forecasts shipments of connected thermostats to increase nearly 37% in 2022, reaching about 3.9 million units. All told, CTA estimates 24% of U.S. households have installed a connected thermostat.

Solar Energy

As renewables constitute just over a fifth of power generation in the United States, the installation of residential solar panels makes an immediate impact in reducing reliance on fossil fuels. A Pew Research survey estimated that 6% of U.S. homeowners have installed solar panels and an additional 46% of households are seriously considering the installation of panels. CES 2022 showcased numerous advancements in solar technology including solar energy shingles that can be installed like traditional asphalt shingles. Collectively, consumers and utilities are projected to double the share of renewables between now and 2050 to approximately 42% as estimated by the U.S. Energy Information Administration (EIA). Further, the Solar Energy Industries Association estimates that 46% of all new generating capacity originates from solar energy.

Electric Vehicles

The transition from internal combustion propulsion to electric vehicles by consumers is paramount to reducing net emissions as passenger cars comprise 41% of all transportation related GHG as tabulated by the University of Michigan Center for Sustainable Systems. In 2021, electric vehicles on the road exceeded 10 million globally and accounted for an estimated 4.5% share of the total new car market as highlighted by the International Energy Agency. According to Gartner, electric vehicle shipments approached 4.5 million globally, representing growth in a supply chain constrained automotive market. The study projects 35% growth this year with electric vehicle shipments exceeding six million cars. By 2050, the EIA forecasts electric vehicles will reach 31% of the global light-duty vehicle fleet, reaching 672 million vehicles.

As sustainable technology adoption by consumers augments investments by businesses, industry and utilities, the prospects for achieving COP26’s net zero vision remains within reach.

Disclaimer:

This content is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. CTA does not offer or sell securities to any persons. No third party is authorized to make any recommendation with respect to any securities or any other disclosures on behalf of CTA. Please consult your financial adviser, investment professional, tax adviser or legal counsel prior to considering any investment.

This content may include or be based in part on projections, valuations, estimates and other financial data supplied by third parties, which have not been verified by CTA. This information should not be relied upon for the purpose of investing in any securities or for any other purposes without independent verification. Any information regarding projected or estimated investment returns are estimates only and should not be considered indicative of the actual results that may be realized or predictive of future performance. Past results should not be viewed as indicative of future performance.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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