Connecting countries to climate technology solutions
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Industrial energy efficiency and climate change mitigation

Publication date:
E. Worrell (ed)
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This paper discusses the potential contribution of industrial energy-efficiency technologies and policies to reduce energy use and greenhouse gas emissions by 2030. The article provides a review of the trends, opportunities, and policy options to reduce greenhouse gas (GHG) emissions from the industrial sector. It focuses on the key energy intensive industries: iron and steel, chemicals, petroleum refining, minerals and pulp and paper. The authors argue that the production of energy-intensive industrial goods has grown dramatically and is expected to continue growing as population and per capita income increase. They note that there is a huge demand for technology transfer to developing nations to achieve energy efficiency and reduction in emissions in their industrial sectors. The article states that industry contributes directly and indirectly about 37% of the global greenhouse gas emissions. Full use of available mitigation options is not being made in either industrialised or developing nations due to a number of barriers like: limited access to capital, lack of management attention, insufficient availability of knowledge, or qualified service providers. Key gaps in knowledge include areas such as  baseline energy intensity for specific industries, the potential energy-efficiency improvement potential in non-energy-intensive industries, sustainable development implications of mitigation options, and the impact of consumer preferences.The authors recommend that:

voluntary agreements by industry should be implemented in developing countries in order to have longer-term impacts, including changing attitudes, reducing barriers to innovation and technology adoption, creating market transformations and promoting positive dynamic interactions between different actors
tax exemption and subsidies should be used to stimulate investment in energy-saving measures by reducing investment cost
countries should have financial schemes to promote industrial energy savings
further research is required to improve the knowledge base and improve our understanding of the mechanisms to realise energy-efficiency and greenhouse gas mitigation opportunities in the industrial sector
successful technologies must meet a host of other performance criteria, including cost competitiveness, safety, and regulatory requirements, as well as winning consumer acceptance
there is need for governments to identify the fundamental barriers to technology and find solutions that improve performance, including environmental, cost and safety performance, and customer acceptability.