Reducing the innovation gap in renewable energy technology

What is it about?

Renewable energy or green energy is important for slowing down the impact of global warming. It is, in fact, a major focus for sustainable development in China. At present, China leads the world in terms of renewable energy technology. However, the growth in this industry is not the same across various regions of China. Moreover, regional differences are also seen in terms of the creation of new technologies in this industry. High growth is seen in regions which are doing economically better. This means that the benefits of renewable energy technology are reaching only some parts of the country. To stop this from happening, less developed regions must be helped financially for creating new technologies. Making use of digital finance to provide them with funds may be a way out. In this study, Zhao and Zhao looked at how digital finance can help. They also put together an index to study how the green energy industry differs in different regions of China. They made use of data from 30 regions of China from 2011 to 2018 for this. The researchers suggest three ways which can be of help. First, promoting the use of digital finance services to reduce the use of notes and coins. Second, combining digital technology and green finance to promote more ecofriendly solutions. Lastly, improving the way in which risks are taken care of can ensure safety.

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Photo by Red Zeppelin on Unsplash

Photo by Red Zeppelin on Unsplash

Why is it important?

Policies for funding the creation of new green energy technologies must focus on lowering regional imbalances. This may be important for regions that do not have enough resources. The proposed solutions can help ensure a fair supply of green credit, technology flow, and energy use. KEY TAKEAWAY: Past studies suggest that newer technologies can increase the supply of renewable energy. It may ensure that the benefits of green energy reach everyone. However, financial resources are needed for the creation of newer green technologies. This study reveals that digital finance may be of help and explains how. This research relates to the following Sustainable Development Goals: • SDG 7: Affordable and Clean Energy • SDG 9: Industry, Innovation, and Infrastructure • SDG 10: Reduced Inequalities • SDG 13: Climate Action