• The study was conducted by the Energy Efficiency Initiative
• This study was supported by international industrial companies such as ABB, Alfa Laval and Microsoft
The 10 key initiatives identified in the study use proven technologies that can be quickly deployed and could help reduce 4 billion tonnes of carbon emissions

The industry is facing an unprecedented challenge to meet global decarbonisation targets while meeting growing demand. The Energy Efficiency Initiative (EEM) has released a report outlining steps businesses can take now. The Energy Efficiency Initiative is a global initiative of more than 400 companies and organizations, including ABB, to share insights, best practices and commitments toward a more energy efficient world.

The Case for Industrial Energy Efficiency (read more here) aims to give business leaders insight into 10 key initiatives that use proven technologies, have a significant impact on business costs and carbon emissions, can be deployed quickly, and do not require complex or expensive integration. The report, based on Action for Energy Efficiency’s Industrial Energy Efficiency Handbook published in 2022 (read more here), helps companies address one of the main challenges in improving energy efficiency: building their business case. In some cases, savings from energy efficiency measures can even cover the cost of the retrofit project. In addition, the report shows that investments in energy efficiency can serve as an important hedge against energy and carbon price volatility, and contribute to the achievement of autonomous and regulatory goals.

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According to the International Energy Agency (IEA), if energy efficiency is doubled by 2030, greenhouse gas emissions are expected to be nearly one-third lower than they are today. For industrial companies, the opportunities are huge. The Energy Efficiency Initiative estimates that if the 10 initiatives in this report were implemented across industry, emissions could be reduced by nearly 1.5 billion tons a year by 2024, and by more than 4 billion tons by 2030, equivalent to the carbon emissions reduced by taking about three-fifths of the world’s internal combustion engines off the road. This estimate is based on a medium scenario, which would still reduce annual global carbon emissions by 11% by 2030. Based on more aggressive estimates, the reduction could nearly double to 7.9 billion tonnes, or about 15% of total emissions in 2030. In five of the 10 initiatives, specific savings can be effectively calculated. These five initiatives could help industry save $178 billion a year by 2024 and $452 billion a year by 2030. Based on more aggressive estimates, the savings could be as much as $491 billion a year.

“In the lead up to COP28, the focus is on demonstrating that we have mature and concrete technical solutions to address the global warming issues we face today,” said Matt Mehta, global president of ABB’s Motion Controls division. Given that renewable energy can only mitigate global warming to a certain extent, there is no doubt that we need to play an important role in accelerating the energy transition to achieve the important goal of net zero emissions by 2050. The private sector needs to act now. This new report aims to show businesses how to reach their full potential for environmental and financial benefits, helping to spread best practice faster.”

Recently, the International Energy Agency called for increasing the annual growth rate of energy efficiency from the current 2.2 percent to more than 4 percent by 2030, and recommended tripling annual energy-efficiency related investments to create a more energy-efficient future. In addition, the International Energy Agency says that to achieve the goal of doubling growth, investment in energy efficiency will need to triple. Energy efficiency-related investment now stands at $600 billion a year, rising to $1.8 trillion by 2030. The Energy Efficiency Initiative believes that this report contributes to this important call for action by the International Energy Agency.

These results, along with emissions reductions, industrial savings and GDP growth, are based on modelling commissioned by Development Economics, an independent economic-impact assessment agency, by the Energy Efficiency Initiative. From May to October 2023, Development Economics rigorously modelled the economic and carbon outlook for the initiatives in this report. Available and applicable data were used in the modelling process, as well as relevant expert views from industrial companies such as ABB, Alfa Laval and Microsoft, with expert advice from the International Energy Agency.