Resource efficiency through ICT-applications Smarter Networks: Collaborating to Reducing CO2 Emissions Luis Neves GeSI Chairman

 GeSI is a Global International Non for Profit Association to address sustainability (triple bottom line - social, environmental and economical)  industry led and open to full ICT industry  manufacturers, operators and regional associations  partnered with United Nations Environmental Programme (UNEP) and International Telecommunications Union (ITU), World Business Council for Sustainable Development (WBCSD), the World resource Institute (WRI) and the Electronic Industry Citizenship Coalition (EICC)  Carbon Disclosure Project (Global Initiative of Institutional Investors representing more than 57 trillion USD of Asset under management) and WWF What is GeSI?

GeSI Partnerships UN Organisations Electronic Industry Citizenship Coalition Business Initiatives for Sustainable Development WBCSD

OUT OF SCOPE: GAMING, AUDIO, VIDEO, MEDICAL EQUIPMENT WITHIN SCOPE: PATHWAYS TO 2020 SCOPE

PROJECTIONS TO 2020 PCs remain largest contributor to emissions The global footprint by sub-sector

REDUCING ICT SECTOR EMISSIONS PCs : > Efficiency gains and longer product life. > Shift from desktops to laptops > Shift from CRT to LCD screens > Potential breakthroughs – solid state hard drives, new LCD screens, new battery technology, quantum and optical computing Data Centres: > Higher rates of virtualisation; more efficient virtualisation architectures > Low energy cooling > “Utility”/“cloud” computing, Software as a service Telecoms Devices : > ‘Smart’ chargers > 1W or lower standby devices > Broadband routers and IPTV boxes’ footprint increases over timeframe due to higher penetration from small base today Telecoms Infrastructure: > New network management tools > Network optimisation packages > Solar-powered base stations > Potential breakthroughs – night battery operation, natural ventilation, “network sharing” REDUCING ICT SECTOR EMISSIONS

THE ENABLING EFFECT SMART 2020 EXAMINED: > DEMATERIALISATION > SMART MOTORS > SMART LOGISTICS > SMART BUILDINGS > SMART GRIDS

DEMATERIALISATION The substitution of high carbon products and activities with low carbon alternatives: > Replacing face-to-face meetings with tele- and videoconferencing > Remote working > Paper with /online billing > CDs with online music Total abatement potential of dematerialisation in 2020: 460 Mt CO 2 e

SMART BUILDINGS > Global building emissions responsible for 8% total emissions in 2002 (3.36 Gt CO 2 e) Gt CO 2 e if energy to run buildings is included. SMART BUILDINGS > Technologies used to make the design, construction and operations of buildings more efficient, applicable to both new and existing property. > Building management systems (BMS) run heating and cooling systems. > Software to switch off PCs, monitors and lights when not in use. > Improved building design for energy efficiency.

SMART BUILDINGS Total abatement potential of SMART buildings in 2020: 1.68 Gt CO 2 e

SMART BUILDINGS HURDLES TO ADOPTIONOVERCOMING THE HURDLES > Lack of incentives to invest in smart building technology >Unclear business case for investing in energy efficiency > Buildings sector slow to adopt new technology > Lack of skilled technicians > Difficult to apply common standards to all buildings > Interoperable technologies exist but are not uniformly deployed > Energy companies reluctant to encourage efficiency and sell less energy > Develop new business models > Develop new financial mechanisms to support investment > Prioritise sectors with large share of addressable energy costs e.g. retail > Develop green building valuation tools > Support long term solutions for industry change > Better training for operators and information for users > Develop standards to enable BMS interoperability

SMART GRIDS > Power sector responsible for 24% global emissions in > Expected to be responsible for Gt CO 2 e in SMART GRIDS > Smart meters – customer information on energy use > Interactive energy generation > Advanced grid management systems > Demand management systems (dynamic demand) > Reduce transmissions and distribution (T&D) losses > Integration of renewables

SMART GRIDS Total abatement potential of SMART grids in 2020: 2.03 Gt CO 2 e

Smart Motors Smart Logistics Smart Logistics Smart Buildings Smart Grids Smart Grids Demateriali- zation Process optimization Consumption monitoring Consumer accountability Emissions monitoring Transport Optimization Consumption monitoring Emission sensitive design Consumption monitoring Process redesign Network management SMART 2020 framework organizes areas of intervention from a solution/offer perspective... Main Levers for Emission Reduction Solution Providers Process Optimization Consumption Monitoring IT and Telco's SMART 2020 framework clearly identifies solutions for emission reduction in which ICT can be an important part of

The size of the “opportunity” ENABLING OPPORTUNITY: The ICT can facilitate carbon reductions across sectors world-wide up to 15% of total emissions by 2020, or 7.8GtCO2 emissions through products and services. This is an opportunity 5x bigger than the size of the sector’s own footprint. 623 billion € 7,8 GtCO2 1,5 GtCO2 30 billion € ICT FOOTPRINT ENABLING OPPORTUNITY