Energy efficiency and CO2 intensity overview

Source: Energy Digital

Date :6/27/2007 8:52:45 AM

Tracking industrial energy efficiency and CO2 emissions, shows that efficiencies differ widely between countries producing similar products and using similar processes.

“Manufacturing industries in OECD countries have made great progress in energy efficiency during the last 25 years, but important opportunities to reduce emissions remain,” says Claude Mandil, executive director of the Paris-based International Energy Agency (IEA), today at the launch of a new publication that contributes to the G8 “Plan of Action for Climate Change, Clean Energy and Sustainable development.”

This finding is of global significance as manufacturing industry accounts for 36% of world CO2 emissions.

“Good information and analyses of trends in energy and emissions – or indicators -- are vital”, Claude Mandil says. This study elaborates a set of powerful new indicators that look at energy use per unit of physical product. This approach has been developed in close collaboration with industry experts.

Much of the efficiency differences that have been identified can be attributed to the age of plants. New plants tend to be more efficient than older ones. As a consequence, the most efficient industries can in some cases be found in emerging economies where production is expanding. For example, the most efficient aluminum smelters are in Africa, and Brazil is among the most efficient cement producers. Similarly, some of the most efficient steel plants can be found in China. Industrial energy efficiency is consistently high in certain IEA member countries such as Japan, which has had active efficiency policies for decades.

Another notable finding is that China accounts for four fifths of the growth in industrial production and CO2 emissions during the past 25 years. China is now the single largest industrial producer of a wide range of energy intensive industrial commodities such as aluminium, ammonia, cement and steel. The rapid growth of production in less efficient developing countries has limited the average efficiency gains worldwide. “Improving industrial energy efficiency is an approach that can help developing countries in their economic growth and contribute to a significant global greenhouse gas reduction”, noted Claude Mandil.

The study suggests a technical efficiency improvement potential of 18-26% for the whole manufacturing industry, if process improvement options and systems options are taken into account. As this estimate does not consider the potential role of new technologies, the impact could be much larger. “The potential is so large that more efforts are warranted, in order to achieve deep CO2 emission reductions, reduce fossil fuel dependence and increase industrial competitiveness”, concludes Claude Mandil.