How did innovation help save the ozone layer? After the Montreal Protocol, chemical companies stepped in as the main players. As CFCs (chlorofluorocarbons) were used in agricultural, consumer, and industrial sectors, the success of these companies in transitioning their chemical use was key to long-term profitability. After investing in technological innovation of substitutes for CFCs, both businesses and the environment have adapted and regenerated.
- Hydrochlorofluorocarbons (HCFCs) were developed and used as a transitional replacement for CFCs, though they were still greenhouse gases that contributed to global warming
- Hydrofluoroolefins (HFOs), refrigerants that only have about 0.1% of the global warming potential of HCFCs, were then developed
Innovation helped find and develop the best alternatives using the latest science. The Montreal Protocol was a regulation that affected companies in many different sectors, but business changed for the better. As a result, these companies have continued to be profitable.
Stratospheric ozone depletion is a planetary boundary that we are no longer close to crossing. A lot of business opportunities arose when regulation and public opinion created a strong alliance. New solutions were soon developed and the comfort of consumers was not affected. When shifts like this happen, there is a huge potential to re-shape the market share structure amongst competitors.
Regulation can lay the groundwork for innovation, and finding the opportunities in regulation to maintain long-term business success can contribute to sustainable development within Earth’s planetary boundaries. Want to read more about how innovation has been key to protecting the ozone layer? Check out this article.