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Renewable Resources: The Impact of Green Energy on the Economy
Learn why renewable energy makes good business sense.
Table of Contents
The world still depends heavily on coal, oil and natural gas to meet its energy needs. However, the use of these energy sources has a drastic impact on the environment. Furthermore, fossil fuels are nonrenewable, so they won’t last forever. As their supplies dwindle, they’ll become more expensive and challenging to retrieve, all while continuing to harm the environment.
In response, more countries are shifting away from nonrenewable energy sources and turning to “green energy” to mitigate environmental damage while benefiting the economy. We’ll explore green energy, its economic and environmental impacts and how businesses can take advantage of renewable resources.
What is green energy?
Green energy is energy generated from renewable sources instead of limited sources, such as fossil fuels. Consumers, businesses and governments worldwide are shifting away from fossil fuel energy toward green energy to lessen the impact of climate change and pollution.
Renewable energy sources include solar, wind, water (hydropower, tides and waves), biomass and geothermal. Compared with fossil fuels, these sources generally have a smaller environmental impact — and they’ll never run out because they’re replenished continuously.
What is green energy’s impact on the economy?
More than 100 countries — an even mix of developing and developed nations — have set renewable energy targets. The European Union, in particular, has defined an ambitious goal of acquiring 42.5 percent of its energy needs from renewable sources by 2030.
The United States is also focused on moving toward a cleaner energy economy as the reality of global climate change approaches rapidly. Significant economic changes are expected, including the following.
Renewable energy could add more jobs.
Making the switch from fossil fuels to renewable energy sources could boost the economy. For example, according to a Labor Energy Partnership analysis, the passage of the Inflation Reduction Act — if left to proceed as passed under the Biden administration — was projected to create more than 1.5 million new U.S. jobs over the next decade. However, with a Republican-controlled Congress and White House and current cost-cutting initiatives, the outlook remains uncertain.
Additionally, according to the International Renewable Energy Agency (IRENA) 2024 Renewable Energy and Jobs annual review, an estimated 16.2 million direct and indirect global renewable energy jobs existed in 2023, up from 13.7 million in 2022. Many more are expected in the coming years. The vast majority of these jobs, approximately 7.4 million, were in China, with about 1.8 million in the European Union and just over 1 million in the U.S.
“From an economic standpoint, the switch to solar and wind has already created hundreds of thousands of jobs in North America and many millions more around the world,” said Ben Zientara, solar policy and industry expert at SolarReviews.com. “We’ve seen many billions of dollars of investment in new manufacturing facilities and solar installation companies and project developers are growing rapidly.”
Virginia Klausmeier, founder and CEO of energy storage company Sylvatex, emphasized the importance of industry momentum. “As demand for low-carbon solutions grows, the labor market expands to include specialized roles in engineering, logistics and advanced manufacturing,” Klausmeier explained. “On the other hand, a lack of adoption limits this job growth, keeping industries tied to fossil-fuel markets that can be more volatile over time.”
Renewable energy can lower consumer expenses.
Renewable energy production is often more cost-efficient and environmentally friendly than traditional energy production. Households with solar panels in states with net metering programs can significantly reduce their electric bills, which translates to even more savings if they purchase an electric vehicle (EV).
For utilities, building a new solar or wind installation is often cheaper than continuing to operate an existing coal-fired power plant. For consumers, driving an EV costs less than half as much per mile as driving a gasoline-powered car.
According to the Business Council for Sustainable Energy’s 2025 Sustainable Energy in America Factbook, average consumer retail energy prices dropped 0.68 percent in 2024, driven by utility investments in sustainable energy and falling natural gas prices. In 2023, energy accounted for 4.1 percent of Americans’ personal expenditures but, in 2024, that number fell to 3.8 percent.
Renewable energy makes good business sense.
Environmentalists have long argued for the adoption of renewable energy to replace traditional energy sources. Today, many governments and corporations are singing the same tune because it makes good business sense.
Companies make money producing wind turbines and solar panels. For example, utility-installed solar and wind equipment accounted for 90 percent of all new builds and expansions in energy generation capacity for the first nine months of 2024, compared to 57 percent for the same period in 2023, according to Deloitte’s analysis of Federal Energy Regulatory Commission data. This growth translates to increased revenue for solar and wind equipment manufacturers and installers.
Other industries are thriving in this environment, including the following:
- The construction industry benefits from retrofitting buildings.
- The automobile industry benefits from investments in mass transit and EVs.
- It’s less expensive for utilities to build renewable power systems than to operate existing fossil fuel plants.
Investing in renewables can also reduce government energy costs significantly. For example, Germany aims to achieve 80 percent renewable electricity by 2030 and potentially 100 percent renewable energy by 2050 — a shift that could save billions of dollars.
Renewable energy facilitates universal energy access.
Fossil fuel dependence distorts the energy market, resulting in a significant number of people without access to power. The International Energy Agency (IEA) estimates that 750 million people worldwide had no access to electricity in 2023.
The World Health Organization estimates that about 2.3 billion people still cook with traditional fuels like coal, kerosene or biomass. These fuels release harmful pollutants into the air inside homes, contributing to roughly 3.2 million premature deaths each year — most of them in Asia and sub-Saharan Africa.
Expanding access to renewable energy with technology like decentralized solar power and mini-grids offers a cleaner alternative, even for people living in remote or underserved regions. However, this shift will require continuous support and investment from governments and nonprofits.
Renewable energy is an ethical investment avenue.
More and more investors are thinking about where their money goes — and what kind of impact it makes. Renewable energy stands out as an ethical, meaningful way to invest responsibly. It’s a sector with exceptionally strong growth potential that also helps create jobs and build healthier, more resilient communities.
Renewable energy reduces disaster recovery and rebuilding costs.
In addition to the catastrophic suffering and loss of life caused by climate disasters such as wildfires, droughts and severe hurricanes and blizzards, governments spend enormous amounts of money on recovery and rebuilding.
According to the National Oceanic and Atmospheric Administration (NOAA), the U.S. has experienced 403 weather and climate disasters since 1980, with overall damages exceeding $1 billion each time. The cumulative cost of these events exceeds $2.915 trillion.
NOAA data shows that in 2024 alone, the U.S. experienced 27 such disasters, including one drought, one flood, 17 severe storms, two winter storms, five tropical cyclones and one wildfire — with total damages reaching $182.7 billion.
Transitioning away from fossil fuels and investing in green energy can help reduce the frequency and severity of climate-related disasters over time.
What is the current and projected global market for energy?
Global energy demand is increasing due to factors such as a growing population, rising cooling needs as temperatures climb, high energy usage from data centers and increased adoption of electric vehicles. We’ll examine the current state of fossil fuel-based and renewable energy in the global market.
Fossil fuels and the global market
Fossil fuels currently dominate the power sector and are expected to remain a major energy source for at least the next decade. According to the IEA, renewable energy provided 30 percent of global electricity generation in 2023 and is projected to grow to 46 percent by 2030. In the U.S., renewables supplied about 9 percent of total primary energy consumption in 2023 and about 21 percent of electricity generation, a share that is expected to reach 24 percent in 2025.
Renewable energy and the global market
According to Allied Market Research, the global renewable energy market is expected to reach $2.5 trillion by 2033, growing at a compound annual growth rate of 8.5 percent from 2024 to 2033.
Here’s a look at renewable energy’s most significant sectors, according to the 2024 IEA Renewables report and other IEA data:
- Hydropower: Hydropower remains the largest source of renewable electricity globally, contributing 47 percent of renewable electricity generation in 2023. Its energy output nearly equals that of all other renewable electricity sources combined. However, its growth is limited due to vulnerability to droughts and other extreme weather conditions. In the U.S., the EIA projects that electricity generation from hydropower plants in 2024 will be 13 percent below the 10-year average, primarily due to drought conditions.
- Solar and wind energy: Solar and wind power are leading the charge in the global shift to renewable energy. In 2024, solar topped the charts for new energy capacity, accounting for 95 percent of growth through 2030, highlighting just how quickly it’s growing around the world. Together, solar and wind are making up a larger share of global electricity each year — and that trend is expected to continue. By 2050, experts believe these two sources could supply a significant portion of the world’s electricity, playing a key role in helping countries meet their net-zero targets.
Here’s how the globe’s major players stand in the renewable energy sector according to the Energy Institute’s Statistical Review of World Energy 2024:
- China: China continues to lead the world in renewable energy production. In 2023, it generated about 29.5 percent of global hydroelectric power, 38.1 percent of global wind energy and 35.6 percent of global solar energy.
- EU: The European Union has also played a big role in the renewable energy space. In 2023, EU countries produced about 10.5 percent of global hydroelectric power, 20.4 percent of global wind energy and 16.3 percent of global solar energy.
- S.: The U.S. is a significant producer of renewable energy. In 2023, it generated approximately 6.9 percent of the world’s hydroelectric power, 13.5 percent of global wind energy and 9.5 percent of global solar energy.
What businesses use green energy?
Although many business types can adopt green energy in some form, it’s easier for some to switch to renewable energy and implement energy conservation strategies:
- Warehouses, superstores and factories: Warehouses and factories with large buildings typically have extensive roofs on which solar panels can be installed.
- Businesses with vehicle fleets: If your company involves distribution, transportation, logistics or delivery, switching to EVs involves a capital expense that can be amortized — and may qualify for a tax break — while reducing fuel costs.
- Farms and ranches: Operations with large tracts of land, particularly in the West, can install wind turbines to generate renewable energy.
- Construction companies: Businesses involved in new construction can incorporate green energy solutions into their designs, including solar power and green building practices.
- Companies with stand-alone buildings: If your business has a brick-and-mortar location, you can install a microwind turbine or a geothermal heat pump to power your heating, ventilation and air conditioning system.
How can companies take advantage of renewable resources?
Adopting renewable energy isn’t just about environmental impact — it’s also about long-term strategy. Christophe Girardier, CEO of Glimpact and a sustainability advisor to the European Commission, cautioned that overlooking environmental impacts can leave businesses vulnerable to regulatory shifts, resource limitations and reputational harm.
“Taking a more complete approach to environmental evaluation gives investors a clearer picture of a company’s long-term sustainability and potential for growth in a market that increasingly values eco-consciousness,” Girardier said.
With that in mind, consider the following ways businesses — even small ones — can leverage renewable resources in their daily operations.
Generate your own renewable energy.
Companies with their own buildings have the most flexibility when it comes to generating and using green energy. For example, they can install solar panels, geothermal heat pumps or wind turbines. In addition to saving on electricity bills, there are federal — and often state and local — tax incentives for investing in clean energy.
Zientara emphasized that businesses with space and resources to generate their own energy — especially through solar — are missing out if they don’t take advantage of it.
“Adding solar and energy storage can help a business greatly reduce both grid energy usage and demand charges, so much so that it can pay back the initial cost of installation quickly,” Zientara explained. “In addition, businesses in the United States can claim the federal solar Investment Tax Credit (ITC) and MACRS [modified accelerated cost recovery system] depreciation on their solar installations.”
Support the generation of renewable energy.
If you don’t have your own building, you can still support renewable energy production by partnering with your utility or a third-party provider. One way to do this is through a corporate power purchase agreement (CPPA) — a long-term contract that guarantees your energy comes from renewable sources at a fixed price. CPPAs help finance new green energy installations while also protecting your business from future utility rate hikes.
David Gould, founder of Sunbeam Candles, supplements the business’s solar setup by purchasing wind energy from a third-party provider instead of relying on the default fossil-fuel-heavy utility.
“There are other options,” Gould said. “We always recommend looking into regional green energy programs — you might be surprised by how accessible wind, hydro or solar power can be through a third-party provider these days. It’s come a long way in just a few years.”
Use electric-powered vehicles.
Any company that operates vehicles can consider switching to EVs, which can significantly reduce fuel costs and emissions. Businesses may also qualify for a federal tax credit of up to $7,500 per vehicle, depending on the manufacturer, battery capacity and the buyer’s tax liability.
Use recycled packaging.
If your business packages products for distribution, commit to eco-friendly packaging practices by using materials made from recycled content. You can also choose packaging that uses less plastic — for example, inflated air pillows instead of bubble wrap. A bonus: Eco-friendly packaging is often lighter, which may reduce your shipping costs. In some cases, you may also qualify for government tax credits.
Encourage reuse of packaging and products.
Some companies incorporate reusable or multiuse packaging. For example, a candle manufacturer might use a glass vessel that can be repurposed as a bowl or vase once the candle is finished. Another strategy is to offer customers a discount when they bring their own container or return used packaging for reuse.
Examples of the green energy movement in the corporate world
Sensitivity toward global warming is increasing worldwide and some big companies claim to be functioning entirely on green energy to reduce carbon emissions and do their part to save the planet. Here are some examples of companies that use renewable resources in their operations.
Intel
Intel is making big strides toward sustainability, according to its latest Corporate Responsibility Report. The company already uses 100 percent renewable electricity in the U.S., Europe, Israel and Malaysia and reached 95 percent globally in 2023. It’s on track to hit 100 percent worldwide by 2030. Intel also powers its operations with on-site solar installations totaling 30 megawatts across multiple sites, along with other clean energy efforts like solar hot water systems and micro wind turbines. The tech giant is aiming for net-zero Scope 1 and 2 greenhouse gas emissions by 2040 and net-zero upstream Scope 3 emissions by 2050. To support this goal, Intel is investing $300 million in energy conservation projects to save 4 billion kilowatt-hours by 2030.
Apple
Apple plans to be carbon neutral across its operations by 2030. It has installed more than 18 gigawatts of clean energy to power its global operations and manufacturing supply chain. This is three times the amount it had in 2020. It is also investing in solar power in the U.S. and Europe to offset the energy its customers use to charge their Apple devices. In addition, it has asked its suppliers to follow suit. Over 320 Apple suppliers, accounting for 95 percent of Apple’s direct manufacturing purchases, have added 16.5 gigawatts of renewable energy to its supply chain.
Microsoft
Microsoft has been carbon neutral since 2012, primarily through buying carbon offsets. But in 2020, Microsoft announced a more ambitious plan, recognizing that neutrality wasn’t enough. It committed to reducing emissions further and actively removing carbon from the atmosphere.
According to the United Nations Climate Change initiative, Microsoft will be carbon-negative by 2030 and will have removed all of the carbon it has ever emitted since its founding by 2050.
The company has used 100 percent green power in its U.S. operations since 2014 and has already cut emissions by 20 million metric tons. Through its Climate Innovation Fund, Microsoft plans to invest $1 billion in new renewable energy and climate technologies around the world.
Estée Lauder
In 2022, Estée Lauder announced a goal to transition its global corporate vehicle fleet to electric by 2030. The company constructed solar arrays at its facilities in the U.S., the United Kingdom, Canada, Switzerland, Belgium and Japan. It also purchases wind power from a wind farm in Oklahoma. It is part of the U.S. Department of Energy’s Better Plants program, which improves energy efficiency in factories and other industrial settings. It is investing in energy-efficient buildings for all new facility construction and has achieved zero industrial waste-to-landfill for all global manufacturing, distribution and research sites.
Google has set its sights on reaching net-zero emissions across its entire global operations and supply chain by 2030. That includes a bold goal: powering its offices and data centers with carbon-free energy like solar and wind around the clock. To get there, the company is investing in energy-efficient building upgrades and adding more on-site renewable energy wherever it can.
Google is also focused on its broader impact. It’s partnering with suppliers to help them set and meet emissions-reduction goals, aiming to support a cleaner, low-carbon economy from top to bottom.
Unilever
Unilever is committed to achieving net-zero operational emissions by 2030, having already reduced its Scope 1 and 2 emissions by 74 percent compared to 2015 levels. In 2024, the company announced a significant initiative to cut 14,000 metric tons of carbon emissions annually at its four U.S. ice cream factories by replacing natural gas boilers with electric boilers and industrial heat pumps utilizing waste heat recovery.
The company continues to transition to sustainably sourced biofuels and is phasing out high-impact hydrofluorocarbon refrigeration systems, contributing to increased use of renewable energy throughout its supply chain.
In terms of packaging, Unilever has revised its goals to reduce its virgin plastic footprint by 30 percent by 2026 and 40 percent by 2028 from a 2019 baseline. As of 2024, it achieved a 23 percent reduction. The company is also scaling up reusable packaging models, aiming for 100 percent of its plastic packaging to be reusable, recyclable or compostable by 2030 for rigid packaging and by 2035 for flexible packaging.
