New report from GeSI and Climate Group: SMART 2020: enabling the low carbon economy in the information age

Post no.2 the 19th of June

Another good contribution to the low carbon IT discussion came out today. GeSI and The Climate Group have now released the study done by McKinsey. It is quite similar to the one we and ECOFYS did with the support from HP (see www.panda.org/ict). McKinsey focus on four case studies and use their earlier abatement work (that is a slight problem as that model is not really done for areas with innovation).

For the first incremental changes there are however not much difference between the different studies that exist and the numbers in this report support earlier studies. The lack of work in the emerging economies (that we highlighted in our report) is becoming almost embarrassing and I really hope to get some work done with China Mobile, Wipro and other leading companies in China and India. Great with the two case studies from China and India in this report, really hope that we can get a really serious study done soon that covers China and India in depth. The report also includes a good about IT's own footprint, even if I think they have underestimated the saving potential and technology changes we will see (maybe it would be good to do a study about this?). What I think is the weak part (if used in the wrong way) is that it lacks is a concrete way forward that is not only about the low hanging fruits, as that can lead to high carbon lock-in. I hope that WWFs work, together with GeSI, Climate Group and others, can help people to focus more on the transformative aspects regarding real investments. Linear models are good for inspiration, but they should not be used to guide investments. Our work with Booz Allen Hamilton might contribute here.

The report can be downloaded here.

The Press release
Smarter technology use could reduce global emissions by 15 per cent and save global industry EUR 500 billion in annual energy costs by 2020

Friday 20 June 2008 – 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 [GBP 400 billion/USD 800 billion], according to a new report published today by independent non-profit The °Climate Group and the Global e-Sustainability Initiative (GeSI).

The report – 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, ICT’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.

New report from WWF-Canada: High Tech Key to Low Carbon Future

Is June 19 the day of low carbon ICT solutions? This is the first of three posts about low carbon ICT in one single day… After six years work it is now full speed ahead.

The report from WWF Canada can be downloaded here.

This is the press release:
By making better use of Information and Communications Technology (ICT), Canada's GHG emissions can be reduced by 20 million tonnes a year, according to a study released today by WWF-Canada in conjunction with Bell Canada. That's equivalent to taking 3.2 million cars off the road, or 7 percent of Canada's annual Kyoto obligation. With more aggressive implementation, reductions as high as 36 million tonnes a year are realistically achievable in a 2020 timeframe. Because most of these cuts come from improving energy efficiency, cost savings to business, government and individuals are conservatively estimated at $7.5 billion - $13 billion per year.

Innovating Toward a Low-Carbon Canada: Using Technology to Transform Tomorrow outlines how enhanced use of currently available ICT products and services can help decouple Canada's economic growth and prosperity from its traditional reliance on fossil fuels.

"We have an increasingly digitized economy. What's missing is a roadmap by which governments, business and consumers can maximize the role of ICT in fighting climate change," says Stephane Boisvert, President of Bell Canada's Enterprise Group, which sponsored the report. "Technologies that can reduce our travel and the energy we use, while enhancing the use of energy-efficient goods and services, have multiple benefits for the environment, for the economy and for communities - a triple win."

Similar to an analysis by WWF in Europe, the report outlines how the spectrum of information and communications networks, software, hardware, and broadband services can be deployed to reduce GHG emissions. It makes concrete recommendations for business, government and the ICT sector, namely:

- Build a tele-work culture - financial incentives and management leadership can encourage 5-10 percent of Canadians to avoid commuting in their cars.

- Enhance car-pooling and car-sharing - the power of social networking and on-line communications can get 12-20 percent of commuters ride-sharing and sharing cars.

- Minimize carbon emissions by driving smarter - equipment that reduces idling and optimizes commercial vehicle routes can deliver large fuel and financial savings.

- Encourage more electronic meetings - business and government need to set the pace towards eliminating 20-30 percent of business travel, which makes even more sense with rising fuel prices.

- Facilitate more e-products and e-transactions - significant financial and environmental benefits already exist, and justify broader uptake.

- Deploy electronic meters and controls - regulatory requirements will drive adoption and reduce energy consumption of buildings.

"Business and government need to require, champion and demonstrate ICT solutions to the global warming problem - it won't magically happen," says Mike Russill, President and CEO of WWF-Canada. "ICT products and services offer easy, intelligent ways to save money while at the same time reducing greenhouse gas emissions."

Wipro supports WWF’s new report

As the first CEO in the world Azim Premji Chairman & CEO of Wipro, have provided a comment for my new report about IT: Outline for the first global IT strategy for CO2 reductions: A billion tonnes of CO2 reductions and beyond through transformative change.

“Enabling the world’s poor to move out of poverty can get dramatically accelerated by innovation and resource efficient solutions. IT can provide multiple solutions to drive these innovations and improve quality of life; while at the same time enable sustainable use of natural resources, including reduced dependence on fossil fuel

The WWF report is timely and Wipro looks forward to joint work with WWF, to ensure that more sustainable IT solutions will become available. Wipro has begun to build a portfolio of investments that will create possibilities and opportunities for sustainable business. We will also partner with regional, national & global groups as part of our sustainability initiatives in energy, water, waste & biodiversity.”

Azim Premji Chairman & CEO of Wipro

I hope to get comments from two or maybe three more CEOs from different parts of the IT value chain.

Mobile summit 2008: Game over – What parts of the IT industry is ready to talk about content?

Another conference where people focused almost all attention on the 2% (IT’s own emissions not the 98% of the emissions in society that IT can help to reduce). Interesting is to see that there is a war within the 2% box. Some arguments made sense, like showing that the handsets are less important than the network (1% compared to 99%). Still the most important question now is how IT is used and what IT-solutions that are provided. Would be interesting to see where the resources to reduce CO2 are spent and what the drivers are.

One area that I would like to explore is if companies that focus on “entertainment” and see future revenue streams from games, music and other “trivial areas” are more likely to focus on the 2% (as they can’t really defend their emissions). Companies that actually provide low-carbon solutions obviously have a greater incentive to show that their own emissions might have to increase in order to reduce the overall emissions. I hope to explore this further.

The first low carbon guide for Low-Carbon IT solutions

As the first deliverable straight to the WWF-HP project we now have a “guidebook” for business: ”Becoming a winner in a low-carbon economy: IT solutions that help business and the planet”.