G SI SMART 2020 th R l f ICT i D i iGeSI SMARTer 2020: the Role of ICT in Driving a Sustainable Future

GreenTouch WorkshopBrussels, June 26, 2013

GeSI SMARTERer 2020 report re-evaluates ICT’s potential to enable a low-carbon economy

SMARTer 2020 follows up the SMART 2020 study, which first evaluated ICT’spotential to enable a low-carbon economy in 2020

T dToday

In 2008

SMART2020 SMARTer 2020

The potential for information technology to reduce global carbon emissions has been under-estimated until now

9 1 GtCO e 16 5%9.1 GtCO2e 16.5%

Total abatement potential of ICT-enabled solutions in 2020

% of global GHG emissionsin 2020

9.1 gigatons of GHG emissions amounts to USD1.9 trillion in gross energy and fuel savings

1Savings of 21.6 billion barrels of oil1

x 1,000,000

Equivalent to GDP of the Russian economy2q y

1. Number of barrels of oil with equivalent emissions assuming Barrel of oil emits 0.43 metric tons of CO2 2. At today's crude oil price, value of the oil that would be saved ($87.99 per barrel of crude oil as of Nov 6, 2012)

ICT emissions growth expected to slow down from 6% to ~4%ICT emissions 2.3% of global emissions by 2020

Global ICT emissions (GtCO e)Global ICT emissions (GtCO2e)

2.0

1.51.27

Data centers+6.1%

+3.8%CAGR

2002-2011CAGR

2011-2020

8.6% 7.1%1.0

0 5

0.91

0.53

Voice and Data Networks

4.7% 4.6%

0.5

0.0

End-user devices 6.1% 2.3%

202020112002

% global GHGemissions 1.3% 1.9% 2.3%

1. Data for 2010 2. Previous study used an incorrect number for the wireless network emissions (50 vs. 24kWh/yr) and therefore ended up with higher total emissionsSource: Gartner; Forrester ; U.S. Census Bureau; IEA; Greentouch; CEET; CDP; Ovum; GSMA; CERN; Cisco; CEET; SMART 2020: Enabling the low carbon economy in the information age; academic publications; industry experts; academic experts; manufacturer websites; GeSI Smart2020 Refresh team members; BCG analysis

The abatement potential of ICT is seven times the size of the ICT sector’s own carbon footprint

Key changes

Increase in potential due to:

SMART2020 study SMARTer 2020

Increase in potential due to:• Availability of new abatement

solutions• Updates to previous estimations

due to recent trends and

7.8GtCO2e

Abatement potential in 2020

9.1GtCO2e

technological innovations• Increase in total global GHG

emissions5.5x 7.2x

Lower estimate due to:• Emergence of smart devices which

have lower footprint than PCsICT industry's emissions in 1.4 1.3 have lower footprint than PCs

• More precise estimates of wireless networks emissions available

• Global economic slowdown also a factor

emissions in 2020

1.4GtCO2e

2.6% of global emissions1

1.3GtCO2e

2.3% of global emissions1

1. On a base of 55 Gt CO2e GHG emissions (IEA)

SMARTer 2020 study identifies GHG abatement potential from ICT-enabled solutions across six sectors

1.910

9.1

Abatement potential (GtCO2e)

Agriculture &Land-Use

2.0

6

80.7

Buildings

Land Use

6

1.3

1.64

Manufacturing

Power

2 1.6

Power

Service &Consumer

Building Manufact-uring

TotalPower0

Service & Consumer

Agriculture Transport-ation

Transportation

35 ICT-enabled abatement solutions identified in the studyAbatement potential modeled individually for each sublever

Sources of emissions by economic end-use sectors1

Transportation Service and consumer

Agriculture andland useManufacturing BuildingsPower

01010101001000 Digitalization and

dematerialization

Video-conferencing

Telecommuting

E-commerce

E-paper

Online media

e le

vers

Data collection & communication

I t ti f

Demand management

Time-of-day pricing

I t ti f EV

Eco-driving

Real-time traffic alerts

Apps for intermodal

Asset sharing

Smart water

Disaster management

Livestock management

Soil monitoring /Weather forecasting

I t ti f

Smart water

Cha

nge

System integration

Power-load

Integration of renewables

Virtual power plant

Integration of off-grid storage

Optimization of truck

Integration of EVs, bio-fuelsIntelligent traffic management

Fleet management &telematics

Optimization of Minimization of Smart farming Building design

Integration of renewables

Building management system

Process, activity and functional optimization

balancing

Power grid optimization

proute planning

Optimization oflogistics network

pvariable speed motors

Automation ofindustrial processes

packagingReduction ininventory

g g g

Voltage optimization

Total abatement in GtCO2e 2 0 1 9 1 2 0 7 1 6 1 6Total abatement in GtCO2e 2.0 1.9 1.2 0.7 1.6 1.6

1. Based on 2008 data – EDGAR= calculated abatement potential by sub-lever

Policies at the national level have the most significant potential to drive sub-lever adoption

Individual behaviors, attitudes, and habits

Barriers to be addressed at national level

Economics: High costs of smart gird and

Energy Transportation Manufacturing Service and consumer

Agriculture and land use Buildings

Infrastructure: Strong public transit must be

M&E: Difficult to quantify savings

Behavior: Need to ensure private

d ti

Financing: High upfront costs,

Financing: High upfront CAPEX costsnational level

Deployment: Technology require full deployment to

grenewable technologies

Behavior and habits: Must change strong

transit must be in place to serve as a viable option

Slow adoption: Often little motivation for action because of low

g

Education: Few consumers realize or understand full

adoption without policy

Economics:Need for stronger b i

especially for small farmers

Landlord-tenant: Need to better align incentives and simplifying

CAPEX costs

E t bli h b k t Develop financial aid C t "C t fE f i IP li i

deployment to be effective

change strong habits

because of low energy prices

understand full benefits

business case p y gbuilding code

Global policies

Establish carbon marketto monetize emissions

pprograms for developing

countries

Create "Center of Excellence"

Ensure fair IP licensing of abatement technology

Set and enforce global cascading targetsfor GHG emission reduction

Recognize ICT solutions as part of a global strategy to reduce emissions

Country deep-dives provide context to demonstrate how national and local policies can yield higher abatement

Brazil Canada U.K.China U.S.Germany India

All countries have unique circumstances that impact their ability to abate GHGs

Those differences drive which end-use sectors and which sub-levers deserve most attention

Policies at the national level are the most effective drivers of change in all countries