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AI innovation is powering the Net Zero transition, as patent activity soars in the Energy sector
9 December 2024
Guest blog from Marks & Clerk
In this guest blog, the Patent Attorney team at Marks & Clerk reflect on the latest insights on the transformative role of AI in sustainable energy, sharing findings that reveal a significant 35% increase in green AI patent filings, driven by EU regulatory support and European leadership in this sector.
Marks & Clerk is a non-financial support partner on the first Manchester Prize, providing bespoke IP support to our 10 finalist teams.
The Manchester Prize is a multi-million-pound challenge prize from the UK’s Department for Science, Innovation and Technology to reward UK-led breakthroughs in artificial intelligence for public good. The Manchester Prize is funded by the Department for Science, Innovation and Technology and is being delivered by Challenge Works – a Nesta enterprise.
With AI technology developing at a rapid pace, it is exciting to see this emerging technology being applied to help resolve one of humanity’s key challenges – climate change. The strong growth in green AI patents from European companies in particular underscores Europe’s position as a hub for AI and cleantech, fuelled by increased R&D investments and supportive regulatory frameworks. I have seen this first hand, with excellent support being provided by the Manchester Prize to green AI startups. The growth in green AI patents in Europe not only showcases the region’s leadership in AI innovation but also emphasizes the strategic importance of robust intellectual property protection to sustain growth and competitiveness in global markets.
The pace of green technology innovation is accelerating, thanks in part to artificial intelligence (AI) breakthroughs that target sustainable energy. In 2023, patent filings for green AI technologies soared by 35%, despite an overall slowdown in AI patent filings. This uptick highlights the potential of AI to transform the energy sector, positioning it as a key driver toward climate resilience and a net-zero future.
European Leadership in Green AI Patents
In our latest AI Report, we found that European entities are leading the way in green AI patents, filing nearly 50% more applications than their U.S. counterparts. Although the United States remains at the forefront of general AI applications, the European focus on sustainability has propelled the region ahead in green AI patents. In alignment with Europe’s rigorous environmental regulations, the focus is largely on energy conservation and optimising renewable energy systems, while the U.S. emphasises climate change adaptation and resilience technologies.
The European Patent Office (EPO) has also shown its support for this green technology movement, granting patents for green AI solutions at an unprecedented rate.
Patent pooling and licensing initiatives hold the potential to accelerate the commercialisation of new technologies and in doing so, promote faster deployment of green AI solutions These strategies also promote sustained capital investment in green AI innovations. It’s clear from this year’s report that AI is not just transforming technology, but driving a cleaner, greener future for the energy sector. If we draw a parallel with the telecommunications industry, where patent pooling has historically enabled rapid deployment, we should be confident that the energy industry can follow suit.
Our report shows that Europe’s commitment to sustainability and technological innovation, especially underpinned by EU regulations like the EU AI Act, is paying dividends by encouraging a new wave of sustainable patents.
The Role of Green AI in the Energy Transition
While green AI patents still represent only about 4% of all AI filings, their rapid growth signals a profound shift toward sustainable technology. Innovations in AI have proven critical in optimising renewable energy grids, lowering emissions, and transforming how energy is produced and managed. Investors and policymakers are beginning to recognise the potential of green AI to reshape the future of energy and bolster the global energy transition.
In the race to meet net-zero targets, AI-driven solutions are addressing critical challenges in the energy sector, especially in renewable energy domains. While the geothermal, wind, and hydro sectors currently have relatively low levels of patent activity, the growth in green AI patents has been notable in areas like fuel cells, biofuels, and solar energy, where infrastructure demands and implementation barriers are less pronounced. By reducing operational emissions and maximising energy efficiency, these innovations have a substantial impact on sustainability.
Patent Pooling: Accelerating Green AI Deployment
Beyond simply protecting technological advancements, patents are increasingly being used to establish industry standards and facilitate the rapid deployment of emerging technologies. Patent pooling and licensing initiatives, commonly used in the telecommunications industry, are now being leveraged in green AI to promote faster commercial implementation of green technologies. These strategies can stimulate sustained investment in green AI innovations, which are essential for meeting ambitious sustainability goals.
The implications of this approach are significant. By making it easier for companies to share essential technologies, patent pooling encourages collaboration, mitigates competitive risks, and accelerates the scaling of green solutions. The energy sector stands to benefit tremendously from such frameworks, particularly as green AI technologies continue to advance and investors seek clarity around industry standards.
Regulatory Push: The EU AI Act’s Role in Green AI
As regulatory environments evolve, they play an essential role in the development of green AI. The EU AI Act, for instance, includes provisions designed to promote the development and adoption of AI technologies that align with sustainability and climate objectives
AI regulations are advancing at pace in several major markets. While companies wait for the exact impact of these regulations to unfold, the importance of IP protection in green innovation is already clear. It is encouraging to see the powerful growth in patent applications for AI green innovations. This demonstrates that companies are increasingly looking to apply the AI advances made in the last two decades to developing solutions to global environmental challenges. This is clearly still a nascent and developing area, but given the scale of the problem, the societal and financial rewards these innovations could offer are unmatched. Both the US and UK patent offices offer favourable treatment for green innovations, which should further bolster growth in this space
A Bright Future for Green AI
The growth of green AI patent applications reflects a recognition of AI’s transformative capacity in tackling climate change and achieving sustainability. Our fourth annual AI Report provides data-driven insights into global AI patent trends, the findings underscore that AI is poised to lead the next wave of green innovation in the energy sector.
The upward trajectory of green AI patent filings signals a promising outlook for environmentally focused technological advancements. As the dual forces of regulatory support and patent-driven standardization converge, green AI has the potential to play a pivotal role in achieving a cleaner, more sustainable energy future. For both established players and emerging innovators in the energy sector, this focus on sustainable AI solutions could translate to significant societal and financial rewards, fostering a new era of environmentally responsible innovation.
