What is Clean Energy?
| Clean Energy | Renewable Energy | |
|---|---|---|
| Energy Source | Obtained from sources that produce little to no greenhouse gas emissions. | Derived from resources that are naturally replenished overtime and also produce little no no greenhouse gas emissions. |
| Environmental Impact | Low to zero greenhouse gas emissions, but may still have other environmental impacts depending on the source. | Low to zero greenhouse gas emissions, but some environmental impacts may be associated with resource extraction, manufacturing, and disposal. |
| Examples | Nuclear Energy, Natural Gas with Carbon Capture | Solar, Wind, Hydro, Bioenergy |
| Energy Independence | Can reduce dependence on fossil fuels, but energy sources are not always considered renewable. | Reduces reliance on fossil fuels, supporting energy security. |
The term "clean" energy typically describes the electricity generated by facilities that do not release greenhouse gas emissions, such as carbon dioxide and methane, during the generation process. It is important to note that there is some overlap between these categories, but clean energy is not the same as renewable energy.
Common Forms of Clean Energy
Renewable Energy
This includes energy derived from sources that are naturally replenished, such as solar power, wind power, hydroelectric power, and geothermal energy. These sources do not deplete natural resources and have a much lower environmental impact compared to fossil fuels.
Nuclear Energy
While controversial in some regards due to concerns about nuclear waste and safety, nuclear power is considered a low-carbon energy source that does not emit greenhouse gases during electricity generation.
Biomass Energy
This involves using organic materials, such as wood, agricultural residues, and other plant-based materials, to produce energy. While biomass can be considered a form of clean energy when managed sustainably, it's essential to avoid deforestation and other environmentally harmful practices.
Carbon Capture and Storage (CCS)
While not a source of energy itself, CCS is a technology designed to capture carbon dioxide emissions from power plants and industrial processes and store them underground, reducing greenhouse gas emissions.
Sustainable Corporate Management is No Longer Purely Voluntary
Sustainability is becoming increasingly important for corporations around the world. U.S. Securities and Exchange Commission (SEC), proposed a rule that requires SEC-registered domestic or foreign companies to include climate-related information in registration statements and periodic reports. Which means sustainable management has become more of an obligatory practice for many companies, rather than merely a voluntary choice. Furthermore, investors and consumers now take into account a company's commitment to sustainable business management when making purchasing or investment decisions. Corporations can no longer disregard the mounting pressure from stakeholders, investors, and consumers. As a result, there is a growing demand from companies for the use of clean energy.
The adoption of clean energy is not only for SEC-registered corporates, but also, other companies in SEC-registered corporates’ supply chain also have pressure to start thinking about clean energy and sustainable management.
For example to reduce Scope 3 GHG emissions generated in the supply chain, companies are demanding commitments from their suppliers to use clean energy.
