SMART 2020

Findings from a global study on ICT and climate change

Jodi Newcombe, The Climate Group

November 26, 2008

ABOUT US

> NGO/nonprofit, founded 2004, London, New York,

California, Florida, Australia, Beijing, Hong Kong,

Delhi

> WORK WITH LEADERS: convene working groups on

sectors/issues (finance, IT, retail, world cities etc),

brief companies and governments on policy, science

etc

> RESEARCH: Identify and document best practice in

policy and strategy

> COMMUNICATIONS: Profile successful efforts to

reduce greenhouse gas emissions and promote low-

carbon technologies

> EXPAND SOLUTIONS MARKET: e.g. developing

standard for voluntary carbon offsets

Mission of The Climate Group

Ambition: Ambition: Ambition: Ambition: to make a significant and measurable contribution over the next five years to a major change in direction of the world’s economy towards a low carbon model of energy generation and use.

By: By: By: By:

• Developing close partnerships with the world’s 150 most influential 150 most influential 150 most influential 150 most influential

businesses and governmentsbusinesses and governmentsbusinesses and governmentsbusinesses and governments

• Directing communications efforts towards a target audience of the 1,000 1,000 1,000 1,000

most influential individualsmost influential individualsmost influential individualsmost influential individuals

Focus on: Focus on: Focus on: Focus on:

– leadership

– the business and economic case for action

– harnessing investment in ‘low carbon’

technologies

– engaging with the public together with corporate

government and NGO partners.

BRINGING LEADERS TOGETHER

HIGH LEVEL ENGAGEMENT

BREAKING THE CLIMATE DEADLOCK

"This initiative is explicitly designed to

be a practical way through; not yet

another campaigning polemic to wake

the world up to the challenges of

global warming. The world has woken

up. But now it needs to know what to

do.”

OUR MEMBERS

Our Corporate Members

• APPAREL & FOOTWEAR: NIKE, TIMBERLAND

• AVIATION: VIRGIN ATLANTIC

• DIVERSIFIED: SWIRE, VIRGIN,

• ENERGY: AUSTIN ENERGY, DUKE ENERGY,

FLORIDA POWER AND LIGHT

• ENGINEERING CONSULTANCY: ARUP, HDR,

MWH

• FINANCE: BARCLAYS BANK, STANDARD

CHARTERED BANK, DEUTSCHE BANK, HSBC, JP

MORGAN CHASE, MAN GROUP

• FINANCIAL SERVICES: BLOOMBERG

• FOOD & BEVERAGE: CADBURY, NESTLE

WATERS

• ICT: LENOVO GROUP, IBM, DELL, GOOGLE,

CHINA MOBILE, BRITISH TELECOMMUNICATIONS

• MEDIA: BRITISH SKY BROADCASTING, NEWS

CORPORATION

• INSURANCE: MUNICH RE, SWISS RE

• LEGAL: BAKER & MCKENZIE

• OIL & GAS: BP

• PAPER & PULP: CATALYST PAPER, PRATT

INDUSTRIES

• PHARMACEUTICALS/CHEMICALS: JOHNSON &

JOHNSON, DOW CHEMICAL

• REAL ESTATE: CB RICHARD ELLIS GROUP, INC.

• RETAIL: MARKS & SPENCER, STARBUCKS,

TARGET, TESCO

• TECHNOLOGY: BROAD AIR CONDITIONING,

SUNTECH, BETTER PLACE

• TEXTILES: INTERFACE

Research & Communication

www.v-c-s.org

Cities and Technology Program

• Activity streams:– Consumer - smart meters, led lamps,

wireless control

– Corporate - better buildings, low carbon

finance

– Technology Deployment - low carbon

lighting, electrification of vehicles, BEMs

• Market Transformation – the 5As:

– Awareness

– Availability

– Accessibility

– Affordability

STATES&REGIONS

www.theclimategroup.org

Study aim

What is the ICT sector’s role in the transition to a low carbon economy, in terms of its own footprint and its ability to enable emissions reductions across the economy?

OVERVIEW: SMART 2020Overview: SMART 2020

How can ICTs capture new business Opportunities in the low carbon economy?

What is the climate change impact of ICTs?

How can ICTs reduce the footprint of other processes and sectors?

Supporting Companies

Smart2020 Participants

> ICT is a high-impact sector in the global fight to tackle climate change

> The sector’s current contribution to GHG emissions of around 2% of the global total is set to double (0.83 Gt CO2e to 1.4 Gt)

> ICT could reduce global emissions by a significant amount through enabling reductions in other sectors (7.8 Gt out of 52 Gt business as usual in 2020, or 15% of total emissions)

> ICT’s pivotal role in monitoring, optimising and managing domestic and industrial energy usage could save nearly $946.5 billion in 2020

SMART 2020: Key Findings

Out of Scope: Gaming, audio, visual, medical equipment

Within Scope: data centres, telecoms mobile devices and networks, and PCs monitors and printers

Scope

ICT’s Direct Footprint

> 2% global emissions - 830 Mt C02e (2007)> Set to grow 6% each year until 2020

Projections to 2020

The global ICT footprint by geography

Responsible for largest footprint share in 2020

Projections to 2020

PCs remain largest

contributor to emissions

The global footprint by sub-sector

Reducing ICT Section Emissions

The Enabling Effect

SMART 2020 EXAMINED:

>>>> DEMATERIALISATION>>>> SMART MOTORS>>>> SMART LOGISTICS >>>> SMART BUILDINGS>>>> SMART GRIDS

12 14 16 182 26242220

-80

-60

-40

-20

-120

-100

40

20

864 10

Industrialnon-CO2

Celluloseethanol

Solar

SoilCCS; coal

retrofit

Industrial CCS

Waste

Avoid defores-

tation Asia

Coal-to-

gas shift

Wind;

low pen.

Industrial

feedstock

substitutionCCS EOR;

New coal

Forestation

Live-

stock/

soilsNu-

clear

Smart transit

Small hydro

Industrial non-CO2

Airplane efficiency

Stand-by losses

Avoided deforestationAmerica

Abatement cost

EUR/tCO2e*

Forestation

Insulation improvements

Fuel efficient commercial vehicles

Air conditioning

Lighting systems

Water heating

Fuel efficientvehicles

Sugarcanebiofuel

Co-firingbiomass

Industrial motorsystems

CCS;new coal

Abatement volume

GtCO2e/year

• Dematerialisation• Smart motor systems – China � $107.2 billion globally• Smart logistics – Europe � $441.7 billion globally• Smart buildings – North America � $340.8 billion globally• Smart grids – India � $124.6 billion globally

Opportunities

The Enabling Effect

20 Gt CO2e per year by 2050 or 2 tonnes

per person

Reductions

needed:

Smart Thinking...

Dematerialisation

Dematerialisation

The substitution of high carbon products and activities with low carbon alternatives:

> Replacing face-to-face meetings with tele- and videoconferencing

> Remote working

> Paper with email/online billing

> CDs with online music

Total abatement potential of dematerialisation in 2020: 460 Mt CO2e

MOTOR SYSTEMS – devices that convert electricity into mechanical power. Central to global industrial activity.

> Industrial activity was responsible for 23% total emissions in 2002 (9.2 Gt CO2e), industrial motor systems responsible for 65% of this.

> By 2020 motor systems responsible for 7% global emissions.

Smart Motors

SMART MOTORS

> Control/adjust power usage output, through variable speed drives (VSD) and intelligent motor controllers (IMC).

> Monitor energy use and utilise data for energy and cost savings.

> Simulation software improve plant and manufacturing process design.

> Wireless networks enable inter-machine and system communication.

Total abatement potential of SMART motors in 2020: 970 Mt CO2e

Transport: Smart Logistics

Smart Logistics

> Transport sector responsible for 14% global emissions.

> Majority of logistics emissions come from transport and storage.

> In Europe, logistics activities are predicted to grow by 23% between 2002 and

2020, representing 18% of European GHG emissions in 2020

SMART LOGISTICS

> Software to improve transport network design

> Inter-modal shift to most efficient type of transport

> Eco-driving

> Route optimisation

> Inventory reduction

Total abatement potential of SMART logistics in 2020: 1.52 Gt CO2e

Smart Buildings

Smart buildings

> Global building emissions responsible for 8% total emissions in 2002 (3.36 Gt CO2e) - 11.7 Gt CO2e if energy to run buildings is included.

SMART BUILDINGS

> Technologies used to make the design, construction and operations of buildings more efficient, applicable to both new and existing property.

> Building management systems (BMS) run heating and cooling systems.

> Software to switch off PCs, monitors and lights when not in use.

> Improved building design for energy efficiency.

Total abatement potential of SMART buildings in 2020: 1.68 Gt CO2e

Power: Smart Grids

Smart Grid

> Power sector responsible for 24% global emissions in 2002.

> Expected to be responsible for 14.26 Gt CO2e in 2020.

Smart Grid

> Smart meters – customer information on energy use

> Interactive energy generation

> Advanced grid management systems

> Demand management systems (dynamic demand)

> Reduce transmissions and distribution (T&D) losses

> Integration of renewables

Total abatement potential of SMART grids in 2020: 2.03 Gt CO2e

The Enabling Effect

In 2020, ICT could enable reductions of 7.8 Gt CO2e

SMART 2020 TRANSFORMATIONSmart2020 Transformation

Company CommitmentsA complete list of company commitments is in the appendix of the report. They address their own operations

and products, green power procurement, and the enabling role of ICT

BT -- Reduce the worldwide CO2 emissions per unit of BT’s contribution to GDP by 80% from 1996 levels, by 2020

CISCO -- As part of CGI commitment, invest $15 million in the Connected Urban Development initiative to create replicable templates for sustainable urban infrastructure development considering urban planning, built environment, transport and energy solutions to reduce carbon emissions from cities

Dell -- Starting with FY08, achieve net carbon neutrality for all Dell–owned and –leased manufacturing and facilities operations worldwide, including business air travel. Double our average facilities LEED score by 2012

Deutsche Telekom AG -- 100% of German electricity demand obtained from renewable sources (water/wind/biomass) as of 2008

NSN - Reduce the energy consumption by 29% per ADSL line by 2009 from the 2007 level to meet the Broadband Code of Conduct. With ADSL low power mode, additional 30% savings are possible

Vodafone - Reduce absolute CO2 emissions by 50% against the 2006/07 footprint baseline, by 2020, and develop a separate climate change strategy for India and set a target by March 2009

A complete list of company commitments is in the appendix of the report. They address their own operations

and products, green power procurement, and the enabling role of ICT

1. Develop an agreed ICT industry-wide methodology for the carbon footprinting of ICT products and services

2. Put more emphasis on climate change issues in our supply chain work so we influence the end-to-end manufacturing process for electronic equipment

3. Ensure that energy and climate change matters are fully considered by the organisations that set the technical standards for our industry

4. Work with organisations in the key opportunity areas –travel/transport, buildings, grids and industry systems – to help turn potential CO2 reductions into reality. This will include a strong emphasis on the significant opportunities offered by dematerialisation

5. Work with public policy makers to ensure that the right regulatory and fiscal frameworks are in place to move us all in the right direction.

GeSI Commitments

The Climate Group Activities

1. Develop a more detailed roadmap of technologies, investment, business models and policy framework needed to achieve the solutions

2. Develop an ICT Programme with leading ICT companies to reduce 1 tonne per person through ICT led solutions by 2020

3. Develop specific cross-sectoral projects in smart grids, smart buildings, smart motors, smart logistics and around enabling technologies

4. Work with our expanding offices in India, China, USA, Australia to facilitate technology transfer and wider discussions on best practice between cities/regions, linking to our work on a post-Kyoto global policy framework

5. Work with public policy makers to ensure that the right regulatory and fiscal frameworks are in place to move us all in the right direction.