1. Realize device interconnection, or connect industrial equipment to the Internet of Things. This helps to improve operational efficiency, reduce electricity and gas consumption, reduce maintenance costs, and reduce downtime.

2. Install efficient motors: Global electricity consumption could be reduced by up to 10% if the more than 300 million motors in operation were upgraded to more energy-efficient ones.

3. PSMU-350-3 Increase the use of frequency converter: The frequency converter can adjust the power consumption and emissions according to the required load.

4. Properly maintain heat exchangers: Industrial heat exchangers are used for building heating, air conditioning, refrigeration, and data center cooling. Poorly maintained heat exchangers can contribute up to 2.5% of global carbon emissions, roughly equivalent to the emissions of the entire aviation industry.

These four actions alone have the potential to reduce annual carbon emissions by 2.53 billion tonnes by 2030. Taken together, the effect is equivalent to tripling the annual growth rate in energy efficiency seen in recent years.

PSMU-350-3

The Energy Efficiency Action analysis shows that the total economic benefits of taking these four actions between now and 2030 could amount to $4.1 trillion at 2023 prices. Even at the industry-standard discount rate of 6%, this is equivalent to a present value of $1.23 trillion. To achieve this, only 1.6 per cent of global gross fixed capital formation, or producer investment, would be needed over the period.

PSMU-350-3 It is important to emphasize that the Energy Efficiency Action analysis only considers the industrial benefits that can be generated by the relevant initiatives before 2030, and in fact, many initiatives can continue to improve operational efficiency for the next 20 years or more. Of course, the real benefits would be even greater if industry did more.

This will be a disruptive change. The path to achieving and exceeding agreed targets in industry has never been clearer. In addition, those who seize the opportunity will get a return on their investment. This is a win-win solution, but it requires immediate action.