Following the 2005 Gleneagles Summit on climate change and development in Africa, the Group of Eight (G8) leaders requested that the International Energy Agency (IEA) document global energy efficiency and assess worldwide potential for energy efficiency in the future, particularly in the industrial sector, which accounts for nearly a third of global energy consumption and 36% of CO2 emissions.
The IEA’s 2007 report in response to this request, Tracking Industrial Energy Efficiency and CO2 Emissions, concludes that major opportunities exist within the industrial sector to increase energy efficiency and to reduce CO2 emissions. By incorporating technology already in commercial use and making systematic improvements, industrial CO2 emissions could be reduced by 19 to 32% per year which is about 7 to 12% of today’s global CO2 emissions.
Growth in the Industrial Sector
Despite a history of growing energy efficiency in the industrial sector, total energy consumption by industry increased 61% between 1971 and 2004. Much of this growth is seen in developing or transitioning countries. China, the world’s largest producer of iron and steel, ammonia, and cement, accounts for an estimated 80% of the growth in the industrial sector’s energy demands in the last 25 years. Global energy consumption from manufacturing is broken down by sub-sector below:
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Global Energy Consumption from Manufacturing, 2004
Data Source: IEA, 2007; Graph Source: World Resources Institute, 2007
Energy Efficiency of Transitioning Countries
Japan and Korea have the highest levels of manufacturing energy efficiency of any country with Europe and North America following. Energy efficiency is often lower in more newly developed countries, yet that trend seems to be shifting as production expands. Due to the construction of new plants using the latest technology, IEA highlighted Africa as having the most efficient aluminum smelters and India with the most efficient cement kilns. In countries where the manufacturing sector has stalled, such as in the Russian Federation and Ukraine, out-dated equipment and factories are more common.
In addition, larger plants are on average more energy-efficient than small-scale operations. These less efficient, small-scale operations continue to flourish in China and India. The use of low grade coal in some countries and industrial sub-sectors also contributes to decreased energy efficiency and increased CO2 emissions.
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IEA Continues Climate Change and Clean Energy Research
The IEA climate and energy work is ongoing and continues to contribute to the G8’s "Plan for Climate Action, Clean Energy and Sustainable Development." In early 2008, they expect to release a report assessing new technologies for emissions reduction and their economic potential.
RELATED LINKS:
Energy Related Carbon Emissions in Manufacturing (EIA)
Promotion of Energy Efficiency in Industry and Financing of Investment
Energy for Sustainable Development (UNDP)
EARTHTRENDS
Wasting the Material World: The Impact of Industrial Economies
