Logistics Green Deal – Smart Industry

Published on: September 15, 2020 / Update from: September 15, 2020 - Author: Konrad Wolfenstein

From Green Deal to Smart Deal

“Mere formulations of goals remain wishful thinking if no concrete instruments are mentioned and the consequences are not thoroughly assessed. This creates frustration and investment uncertainty where massive investments would actually be necessary.”

Commentary on the Green Deal

It was somehow clear to all of us that things couldn't just go on as before. Somehow. But no one took the first step. There were hesitant approaches, yes. Individual measures such as waste separation or deposits for PET bottles. The idea itself was good, but critics don't care about the implementation.

Some of the separated waste is not recycled at all, but is instead disposed of abroad. Or waste that has not been properly separated is sorted out but is usually burned. They are still shown as recycled in the statistics. In 2016, around 89 percent of paper waste was recycled, but only 50 percent of plastics. Almost all of the remaining waste in Germany ends up in incineration plants. This justifiably raises the question: why go to all the effort? What is the point and why of statistical calculations? Cui bono? Who benefits?

The introduction of a deposit for disposable beverage packaging was intended to promote reusable, environmentally friendly glass and PET reusable packaging. Exactly the opposite happened. They have lost a market share of almost 25 percent within 15 years. Single-use PET bottles and aluminum cans increased by 27 percent in the same period. But it gets even worse: For every deposit bottle that is not returned, the 25 cents per deposit bottle remain with the bottler or retailer. This deposit slip has developed into a billion-dollar business.

These examples prove that something generally needs to change. There are a number of other well-intentioned measures and programs that ultimately turned out to be a failure.

The problem: Thinking green and acting in an environmentally friendly way is popular in the mainstream, but in economic life it is financially completely uninteresting and therefore inferior to previous methods and measures.

This is now set to change with the European Green Deal. The state must create the framework conditions, because only planning security and transparency for industrial investors can lead to a rethinking of a green growth strategy. But critics rightly complain that simply tightening climate targets alone is not enough.

“Mere formulations of goals remain wishful thinking if no concrete instruments are mentioned and the consequences are not thoroughly assessed. This creates frustration and investment uncertainty where massive investments would actually be necessary,” said Holger Lösch, deputy managing director of the Federation of German Industries (BDI).

Environmental associations and the Greens from the ranks of the political opposition criticize that the Green Deal does not go far enough. “The draft for the EU climate law is a disappointment,” says the Federation for the Environment and Nature Conservation (BUND). “When presenting her Green Deal, Commission President Ursula von der Leyen compared the European Union’s climate protection ambitions to the moon landing. But instead of a big step for humanity, it remains a timid step

The start of the Smart Deal

Be that as it may, criticism is one thing, action is another. If you look closely, politics and the economy have not covered themselves with glory when it comes to sustainability. Strictly speaking, we only ever achieved what was previously a convenient fit with our own concept. And if not, then it was made to fit. See garbage recycling or the deposit for disposable beverage containers.

The approach and development at Amazon shows that there is another way. Without any political involvement, Amazon developed a strategy to secure and even expand its market position for the future. If the cost reduction fits in with a green growth strategy, that is completely legitimate.

Related: “ CO2 Neutrality – Learn from Amazon ”

We are in a time of change and change. A lot has happened in the last few years and has gained breathtaking momentum. Be it with the new approaches through Industry 4.0, Internet of Things, digital transformation and other events. What used to develop socially over centuries now takes decades and shorter time intervals that need to be mastered. The globalization of society and markets brings new changes every day.

Urbanization and at the same time maintaining rural infrastructure is the greatest challenge of our time.

You can find out more about this in our specialist articles:

• „Urban growth – How Japan is setting the course for the future„
• „Securing basic services in rural regions„

But at the same time it is also an opportunity. Especially for companies that see a growth market here through a green growth strategy.

You can find out more about this in our specialist article “ Smart Cities – the solution for mega-urbanization? “.

The path to CO2 neutrality is the key, which is based on two pillars:

• Automation with the help of digitalization (digital transformation), smart technology (especially smart factory), Internet of Things and Industry 4.0.
• Autonomy in the power supply, increasing your own independence and energy efficiency, climate neutrality.