Thursday, April 15, 2010

SMART 2020: Enabling the Low Carbon Economy in the Information Age

A report by The Climate Group on behalf of the Global eSustainability Initiative (GeSI)

Report Summary

The ICT sector has transformed the way we live, work, learn and play. From mobile phones and micro-computer chips to the internet, ICT has consistently delivered innovative products and services that are now an integral part of everyday life. ICT has systematically increased productivity and supported economic growth across both developed and developing countries. But what impact do pervasive information and communication technologies have on global warming? Is it a sector that will hinder or help our fight against dangerous climate change?

To answer these questions, this report has quantified the direct emissions from ICT products and services based on expected growth in the sector. It also looked at where ICT could enable significant reductions of emissions in other sectors of the economy and has quantified these in terms of CO2e emission savings and cost savings.

Aside from emissions associated with deforestation, the largest contribution to man-made GHG emissions comes from power generation and fuel used for transportation. It is therefore not surprising that the biggest role ICTs could play is in helping to improve energy efficiency in power transmission and distribution (T&D), in buildings and factories that demand power and in the use of transportation to deliver goods.

In total, ICTs could deliver approximately 7.8 GtCO2e of emissions savings in 2020. This represents 15% of emissions in 2020 based on a BAU estimation. It represents a significant proportion of the reductions below 1990 levels that scientists and economists recommend by 2020 to avoid dangerous climate change1 In economic terms, the ICT-enabled energy efficiency translates into approximately $946.5 billion2 of cost savings. It is an opportunity that cannot be overlooked. Our analysis identifies some of the biggest and most accessible opportunities for ICT to achieve these savings.
  • Smart motor systems: A review of manufacturing in China has identified that without optimization, 10% of China’s emissions (2% of global emissions) in 2020 will come from China’s motor systems alone and to improve industrial efficiency even by 10% would deliver up to 200 million tonnes (Mt) CO2e savings. Applied globally, optimized motors and industrial automation would reduce 0.97 GtCO2e in 2020, worth $107.2 billion.
  • Smart logistics: Through a host of efficiencies in transport and storage, smart logistics in Europe could deliver fuel, electricity and heating savings of 225 MtCO2e. The global emissions savings from smart logistics in 2020 would reach 1.52 GtCO2e, with energy savings worth $441.7 billion.
  • Smart buildings: A closer look at buildings in North America indicates that better building design, management and automation could save 15% of North America’s buildings emissions. Globally, smart buildings technologies would enable 1.68 GtCO2e of emissions savings, worth $340.8 billion.
  • Smart grids: Reducing T&D losses in India’s power sector by 30% is possible through better monitoring and management of electricity grids, first with smart meters and then by integrating more advanced ICTs into the so-called energy internet. Smart grid technologies were the largest opportunity found in the study and could globally reduce 2.03 GtCO2e, worth $124.6 billion.
While the sector plans to significantly step up the energy efficiency of its products and services, ICT’s largest influence will be by enabling energy efficiencies in other sectors, an opportunity that could deliver carbon savings five times larger than the total emissions from the entire ICT sector in 2020.

The ICT sector has both a profitable opportunity and a critical role to play with other sectors to design and deploy solutions needed to create a low carbon society. I urge you to review this report and focus your efforts on improving energy efficiencies wherever possible, to collaborate with us in steering regulations to be more productive and to move boldly forward with technologies to improve our global climate. Acting now will be good for business, good for the economy and good for the world. [Concluding Message of Luis Neves Chair, GeSI]

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