The Malta Business Weekly

A sustainabi­lity conundrum

The recently published Global Risks Report 2024 (GRR) by the World Economic Forum highlights the long-term structural transforma­tions of climate change and the rise of AI that are affecting us already today

- LINA KLESPER Lina Klesper is Legal Assistant at PKF Malta

It shows that complex solutions for our contempora­ry challenges are desperatel­y needed. As the world faces increasing environmen­tal challenges and a growing awareness of the need for sustainabl­e practices is arising, the green economy plays a crucial role in solving the sustainabi­lity challenge. Within the green economy, the green workforce can be seen as the very backbone of the green transition. The term "green workforce" generally refers to a group of workers employed in environmen­tally friendly or sustainabl­e industries, such as renewable energy, energy efficiency, environmen­tal conservati­on, waste management, and sustainabl­e agricultur­e. As the recognitio­n of the importance of the green workforce is growing, many agree that the upskilling and assembling of the green workforce can only be accelerate­d. Still, progress seems to be hindered by a plethora of challenges, one of which is permanent technologi­cal changes. Rapid advancemen­ts in technology may lead to shifts in the skills required for green jobs counting on the human ability to absorb new technologi­es to adapt and update their skills to keep up with the evolving technologi­cal landscape. Closely intertwine­d with this challenge is the access to training and education. To meet the demands of a rapidly changing industry, workers in the green sector require access to relevant training and education programs. This is not only relevant for workers already in the green workforce but also for displaced and “stranded” human capital of the green transition coming from carboninte­nsive industries. Therin lay challenges that can be seen as one example of calling for localized strategies, leveraging investment and regulation to accelerate to growth and quality of the green workforce while also having the ability to tackle unemployme­nt and green labour shortages, which the GRR recognized as serious global risks.

As technology has become a key strategy to combat climate change, it is apparent that AI can be leveraged in many ways to help reduce carbon emissions and promote sustainabi­lity for a net-zero future. AI can be used to optimize energy efficiency, renewable energy integratio­n, precision agricultur­e, supply chain management and to develop climate modelling and prediction­s.

For the European Union, to solve the equation of “AI+Co2=net zero” and leverage data-driven models, it needs to combine AI technologi­es with strategic policies and collaborat­ive efforts. The main focus should not only be on how AI can contribute positively to the equation but also how AI-driven solutions do not nullify that equation. AI systems themselves accumulate an immense carbon footprint due to the vast amount of energy required to power the hardware in data centres. Those data centres are said to contribute over 2 per cent of the global carbon emissions with the trend increasing. Hence, designing greener and sustainabl­e AI should be the overarchin­g goal for the EU. Especially the allocation of resources for investment research and developmen­t initiative­s focusing on green AI applicatio­ns for climate change mitigation and adaptation is an important driving factor for innovation and breakthrou­gh research. It is equally important to foster cooperatio­n and partnershi­ps between government­s, research institutio­ns, industry, and technology companies to accelerate the developmen­t and deployment of AI solutions. To ensure that green AI solutions are widely accessible, used ethically and will be beneficial for all, the EU needs to promote data sharing and accessibil­ity and set up regulatory frameworks concerning the ethical use, privacy concerns and transparen­cy of AI-driven solutions. Additional crucial building blocks are capacity building for a skilled workforce, incentives for green technologi­es as well as public awareness and engagement.

However, when focusing on combating climate change on a regional level, as within the EU, it must not be neglected that climate change is a global crisis, for which advanced solutions cannot be reserved for those who can afford it. In other words, sustainabi­lity and green technology cannot be a luxury exclusivel­y for rich, developed countries and individual­s. The GRR of 2024 warns that “AI could create a new set of divides between those who are able to access or produce technology resources and intellectu­al property (IP) and those who cannot.” To avoid such a creation of new winners and losers across advanced and developing economies, it is necessary to acknowledg­e and tackle the digital gap between highand low-income countries. It is to truly internaliz­e the mantra from the European Green Deal that echoes to leave no one behind.

To conclude, the solution to this sustainabi­lity conundrum requires a smart mix of measures and policies. The challenges of the green workforce and AI solutions to combat climate change show that innovative investment­s, careful management and cooperatio­n across the borders of the EU are promising to enhance technologi­cal and human developmen­t that benefits all.

“As technology has become a key strategy to combat climate change, it is apparent that AI can be leveraged in many ways to help reduce carbon emissions and promote sustainabi­lity for a net-zero future.”

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