In the vein of previous discussions regarding technology’s ability to positively impact energy usage and man-made emissions comes a new report published this week by The Climate Group and the Global e-Sustainability Initiative (GeSI). The report concludes that transformation in the way people and businesses use technology could reduce annual man‐made global emissions by 15 per cent by 2020 and deliver energy efficiency savings to global businesses of over EUR 500 billion [USD 800 billion].
SMART 2020: enabling the low carbon economy in the information age – is the world’s first comprehensive global study of the Information and Communication Technology (ICT) sector’s growing significance for the world’s climate.
The report’s supporting analysis, conducted independently by international management consultants McKinsey & Company, shows that while ICT’s own sector footprint currently two per cent of global emissions will almost double by 2020, this is countered by the sector’s unique ability to monitor and maximise energy efficiency both within and outside of its own sector could cut CO2 emissions by up to five times this amount. This represents a saving of 7.8 Giga‐tonnes of carbon dioxide equivalent (GtCO2e) by 2020 – greater than the current annual emissions of either the US or China.
Although tele‐working, video‐conferencing, e‐paper, and e‐commerce are increasingly commonplace, the report notes that replacing physical products and services with their virtual equivalents (dematerialisation and substitution) is only one part (six per cent) of the estimated low carbon benefits the ICT sector can deliver.
Far greater opportunities for emissions savings exist in applying ICT to global infrastructure and industry and the report examines four major opportunities where ICT can make further transformational cuts in global emissions. These exist globally within smart building design and use, smart logistics, smart electricity grids, and smart industrial motor systems.
Luis Neves, Chair, GeSI, said:
“The ICT industry is a key driver of low carbon growth and can lead transformation towards a low carbon economy and society. The ICT sector must act quickly to demonstrate what is possible, require clear messages from policy makers about targets and continue to radically innovate to reduce emissions.”
One key finding is that a new ‘socially networked’ generation around the world continues to drive unprecedented global demand for ICT hardware, software and services providing mobile and instant access to information.
The global study predicts PC ownership will quadruple between 2007 and 2020 to 4 billion devices and emissions will double over the same period, with laptops overtaking desktops as the main source of global ICT emissions (22 per cent); mobile phone ownership will almost double to nearly 5 billion accounts to 2020 but emissions will only grow by four per cent; and broadband uptake will treble to almost 900 million accounts over the same period, with emissions doubling over the entire telecoms infrastructure. Despite the major anticipated advances in the energy efficiency of products, the ICT sector’s own footprint – currently two per cent of global emissions – is expected to grow at six per cent per year (CAGR) and double by 2020 driven by increased technology uptake in India, China and rest of the world.
Trends like virtualisation of data centres, long‐life devices, smart chargers, Next Generation Networks, and growth of renewable energy consumption (eg solar powered base stations) could help deliver future sustainable sector growth. To help, rather than hinder, the fight against climate change, the ICT sector must manage its own growing impact and continue to reduce emissions from data centres, telecommunications networks, and the manufacture and use of its products.
Crucially, the new report reveals significant opportunities for emissions reductions and how cost savings can be leveraged by applying ICT to global infrastructure and industry. Through enabling other sectors to reduce their emissions, the ICT industry could reduce global emissions by as much as 15 per cent by 2020 – a volume of CO2e five times its own footprint in 2020. If global businesses systematically used ICT to realise all of the solutions indicated in the report they would unlock global energy efficiency savings of over EUR 500 billion (*calculated as at December 2007 prices and not including a carbon price which may emerge if a global carbon market is established). This enabling effect is due to ICT’s unique ability to allow us to measure, optimise and therefore manage energy consumption.
Four major global opportunities are highlighted in the study:
- Application, globally, of smart industry motors and industrial automation
- The global emissions savings from smart logistics
- Institution of smart buildings technologies
- Implementation of smart grid technologies
While there has been some significant criticism of the information technology industry in the past for it’s perceived contribution to increased energy usage and the attendant impacts of that usage, the report shows that the global ICT sector has a, relatively, small footprint but an extraordinary potential for improving energy efficiency and reducing carbon emissions.
You can access the full report here.