FRANKFURT – Global industry could save around US$437 billion (S$596 billion) a year from 2030 via energy efficiency savings and could also achieve big reductions in carbon emissions, a study showed.

The report by the Energy Efficiency Movement, an industry collective, which has Switzerland’s ABB, Germany’s DHL Group, Sweden’s Alfa Laval as well as Microsoft among its members, said four gigatonnes of carbon emissions could be saved by 2030 each year – if companies doubled down on efficiency measures.

That would be the equivalent of taking 60 per cent of the world’s internal combustion vehicles off the roads, said the report, seen by Reuters.

Companies could undertake regular energy audits, review the ideal size of industrial assets, connect sites and machines to reap energy synergies, and use more efficient engines, the report said.

“Ahead of COP28, it is important to demonstrate that there are mature and concrete technology solutions readily available to address the global warming issues we are facing,” said ABB executive committee member Tarak Mehta, referring to the COP28 climate conference which will be held from Nov 30 to Dec 12.

“Since renewables can provide only a part of the answer, the critical role energy efficiency plays in accelerating the energy transition towards reaching net-zero emissions by 2050 is undeniable.”

Industry – including makers of cement, steel and chemicals – uses some of the most polluting production techniques, and is faced with the costly process of decarbonising to meet climate goals and to stay competitive.

Last week, the US Energy Information Administration said global energy consumption will likely increase until 2050 and outpace advances in energy efficiency, boosted by population growth and higher living standards, among other factors.

Non-fossil-fuel-based resources, including renewables, will produce more energy until 2050, but that growth is not likely to be enough to reduce global energy-related carbon dioxide emissions, it said. REUTERS