Industrial decarbonization
The decarbonization of industries is vital if we are to secure a livable future for all. Digital technologies, supported by 5G networks, play a pivotal role in supporting industries on that journey by cutting energy consumption, reducing material waste, and driving top-line growth. Below, we examine the need for industrial decarbonization and explore what is happening across sectors today.
What is industrial decarbonization and why is it important?
Mitigating climate change means cutting the release of destructive greenhouse gas emissions from all sources, with a particular focus on heavily pollutant sources, such as power plants, factories, and transport systems.
This means that rapid and far-reaching industrial decarbonization of all sectors will be vital if we are going to keep global average temperature 1.5°C above preindustrial levels and remain on track to meet decarbonization trajectories, in line with the 2015 Paris Agreement.
Achieving a 1.5°C planet will require the fastest economic transition in history and in most cases a fundamental overhaul of traditional industrial processes, including how our industries are powered and the very business model itself.
Digitalization of industries is proving today that it can have a transformative impact in decarbonizing industries by creating process and energy efficiencies, enhancing automation and autonomous operations, and enabling the transition to renewable energy sources.
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The impact of ICT across industries
Industrial digitalization, enabled in part by 5G and other disruptive technologies such as AI, IoT, XR, autonomous vehicles, robotics, and more, serves as the bedrock of ongoing sectoral transformation and, in doing so, can make a decisive impact in mediating the shift towards more efficient, low-carbon industrial operations, as well as more sustainable consumption.
According to the Exponential Roadmap report, ‘exponential technological development can considerably reduce energy consumption and material waste in all sectors, while supporting global health, sustainability and economic goals… [as well as] enabling rapid transformation through new disruptive business models.’ It also states that: ‘digital services have potential, tenfold their footprint, to reduce energy and materials across the economy and could directly enable a third of the emissions reductions needed by 2030.’
An Ericsson Research macro analysis confirms a strong causal relationship between digitalization and decarbonization, with a 10 percent increase in mobile broadband penetration found to cause a 7 percent reduction in CO2 emissions per capita.
Learn more about the Ericsson Research macro analysis: How is mobile broadband intensity affecting CO2 emissions?