Navigating Greenhushing: Clean Energy Progress Amidst Challenges

crypto As industries and nations shift from the era of exaggerated claims about their clean energy initiatives—termed greenwashing—to a more understated approach known as greenhushing, the momentum for clean energy continues to build. This sentiment was echoed by executives at the Fortune Global Forum held in Riyadh, who noted that the energy transition is still advancing despite increasing political opposition from the U.S. and other Western countries.

One significant transformation in this landscape is the movement away from vague net-zero carbon commitments towards more tangible, business-oriented applications of green energy that offer attractive returns on investment. According to Jose La Loggia, EMEA group president of Trane Technologies, this shift is crucial. He stated, “This bump in the road in this green agenda is being driven by this myth that if we continue to do things in a green way it’s going to be more expensive for the economy and cause people to lose their jobs.”

La Loggia debunked this myth, highlighting that Trane’s advanced cogeneration systems can achieve an energy efficiency rate of up to 400% and quickly recoup their costs. “It’s greener, cheaper, and better for everyone,” he emphasized, noting that the primary hurdle remains humanity’s inherent resistance to change. “We shouldn’t underestimate the fact that people really don’t like change, and we have to work on that.”

Faisal Sultan, president of Lucid Motors Middle East, pointed out that the electric vehicle (EV) sector is currently grappling with the recent withdrawal of tax incentives for EVs in the U.S. He observed that the industry had become complacent and fell short in advancing its technologies, particularly in battery charging, driving range, and luxury features—areas where Lucid is now concentrating its efforts.

Navigating Greenhushing: Clean Energy Progress Amidst Challenges Sultan remarked, “The EV market is undoubtedly expanding, but growth will be more practical going forward.” He stressed the necessity for governments to implement more stable, long-term policies rather than reacting impulsively to shifting political circumstances. “We need policies that are going to be long-term,” he asserted. “The one thing we must agree on is the climate because the world has to exist.”

He further added, “There are some people who think we can live on Mars,” seemingly alluding to Elon Musk and Lucid’s competitor Tesla, “but we shouldn’t give up on our Earth so fast.”

Mohammed El Zarkani, the United Nations resident coordinator for Saudi Arabia, highlighted the severe economic implications of climate change, noting that issues such as land degradation and droughts cost the global economy approximately $900 billion annually. “That’s not abstract. That’s factories shutting down because of water shortages, shipping routes being disrupted, food shortages spiking, and supply chains breaking under distress,” he explained.

El Zarkani argued that prioritizing environmental protection through a stronger emphasis on green energy is not only beneficial for the planet but also makes economic sense. “Environmental risk is business risk,” he noted.

He characterized the current political backlash as merely a “blip,” attributing it to older politicians and contrasting that with the ongoing momentum from younger generations who remain committed to addressing climate issues.

La Loggia also addressed the growing concerns surrounding the rapidly expanding AI sector, particularly given its high energy consumption due to substantial data center operations. However, he pointed out that AI-driven software management holds the potential to eliminate over 25% of energy waste. “We have to use this technology for good,” he emphasized, stating, “We have to stop wasting energy.”

The dialogue at the Fortune Global Forum reflects a broader recognition that while challenges remain, the transition toward clean energy is not only essential but also economically viable. As industries adapt to changing circumstances and technological advancements, the path forward will require collaboration, innovation, and a commitment to sustainability.