Industry: Communications
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The information and communications technologies industry (ICT) can make a major contribution to tackling climate change by eliminating the need for physical products or activities through the effective use of ICT products or services, and enabling "smart" applications that improve energy efficiency through real-time monitoring and control of processes.

Wireless telecommunications enable this to be done remotely and on the move using cellular connections. Machine-to-machine (M2M) communications will play a key role. This research, in collaboration with Vodafone, indicates that mobile technology has the potential to be a major catalyst in driving carbon reductions across a range of industry sectors if industry and governments can collaborate.



Background

The study identifies 13 opportunities that could enable carbon abatement across 25 EU countries (plus India and Australia in a couple of instances). The report categorizes the opportunities for carbon abatement into two main categories: smart machine-to-machine services, which represents 80 percent of the carbon savings, and dematerialization, which accounts for the remaining 20 percent of the potential energy savings.

M2M services include smart grids, smart logistics, smart logistics, smart manufacturing and smart cities, while dematerialization is the substitution of physical goods, processes or travel with “virtual” alternatives such as video-conferencing or online shopping. The report details both benefits and barriers for each potential opportunity. The study shows how these technologies can play a role in carbon abatement, while providing a cost saving to businesses and governments.

Key Findings

The 13 wireless telecommunications opportunities identified in this report have the potential to reduce carbon emissions by 113 Mt CO2e a year and cut associated energy costs by €43 billion across the EU-25 countries in 2020. These carbon savings represent 2.4 percent of expected EU emissions for 2020. To achieve these savings, 1 billion mobile connections are required.

Of the wider range of possible opportunities for wireless telecoms to reduce carbon emissions and energy costs, 13 opportunities in five key areas were short-listed and assessed to analyze potential emissions abatements and associated energy cost savings:

Dematerialization—Replacing physical goods, processes or travel with ‘virtual’ alternatives, such as video-conferencing or e-commerce (online shopping):

• Mobile telepresence—Connecting ‘virtual meeting rooms’ to mobile devices would allow workers to join conferences from anywhere.
• Virtual office—Using wireless telecommunications products mean people can work remotely or from home.
• Mobile delivery notifications for e-commerce—Businesses can use mobile communications to contact customers for more efficient order placement and delivery.

Smart grid—Improving efficiency of electricity grids through active monitoring and reducing reliance on centralized electricity production:

• Energy network monitoring—Wireless devices monitor losses and load capacity of the electricity transmission and distribution network.
• Smart meter: micro-power generation—Smart meters support the sale of energy generated locally to utility companies for distribution in the locality.
• Smart meter: grid loading optimization—Smart meters encourage end users to adjust daily electricity use and smooth consumption peaks, allowing energy providers to optimize grid loading.

Smart logistics—Monitoring and tracking vehicles and their loads to improve the efficiency of logistics operations by utilizing vehicles more fully:

• Centralized tracking—Wireless vehicle tracking devices feed data to a central fleet management system to optimize speeds and routing (for large freight companies).
• Decentralized tracking—Onboard tracking devices communicate wirelessly with nearby vehicles to adjust speed and routing (for smaller freight companies).
• Loading optimization—Monitoring devices communicate vehicles’ loading status to make use of spare capacity through re-routing.
• Onboard telematics—Data from vehicle sensors are used to plan predictive maintenance and encourage fuel-efficient driving.
• Remote supply control—Devices monitoring stock levels in vending machines can be linked wirelessly to suppliers for more efficient deliveries.

Smart cities—Improving traffic and utilities management:

• Synchronized traffic and alert system—A monitoring system autonomously synchronizes traffic lights and notification boards, optimizing traffic flow and reducing congestion.

Smart manufacturing—Synchronizing manufacturing operations and incorporating communication modules in manufactured products:

• High-value product remote monitoring module—A communication module is incorporated within high-value products and transmits the status of the product to the maintenance provider, enabling predictive maintenance.

Analysis

The sophisticated quantitative research models that underpin the analysis are based on the characteristics of each industry (such as fleet sizes for the logistics and transport sector) and specific criteria (such as local fuel or electricity prices) for each individual country assessed, rather than using aggregate data. This approach sets the findings apart from previous studies and increases the accuracy of the results.

The extensive segmentation of the addressable market for carbon reduction opportunities (e.g., only freight companies with a certain fleet size could implement central tracking systems) yields lower, but more realistic, carbon and cost savings estimates if compared to previously published reports on this subject.