A new report, Harnessing energy productivity for industrial competitiveness, released by Energy Transitions Commission and Mission Possible Partnership, finds that the generation of more economic output per unit of energy could significantly reduce the use of hard-to-decarbonise sectors, such as maritime shipping and aviation, by 25-45 per cent in the lead up to 2050.
Materials such as aluminium, aviation, cement, plastics, chemicals, shipping and steel account for around a quarter of global energy demand. At the same time, demand for these sectors is expected to grow sharply, driven by urbanisation, industrialisation and rising living standards. Aviation activity alone is projected to increase by around 150 per cent by mid-century, while demand for core materials such as steel, cement and aluminium could rise by up to 100 per cent.
The report argues that this growth does not have to translate into proportional increases in energy consumption. Through a combination of technical, service and material efficiency measures, industries can deliver the same or greater output with less energy input.
These measures include improving the efficiency of industrial processes, reducing material use through better design, extending product lifetimes, and increasing recycling rates. For example, recycled aluminium requires around 95 per cent less energy than primary production, highlighting the scale of potential gains.
Lord Adair Turner, Co-Chair at Energy Transitions Commission, shares that energy productivity will play a central role alongside electrification and low-carbon fuels in decarbonising heavy industry (hard-to-abate sectors such as aviation and shipping).
“Improving energy productivity enables us to meet rising demand for buildings, products and transport while reducing energy demand and related costs,” Turner says.
Faustine Delasalle, Chief Executive Officer at the Mission Possible Partnership, shares that recent energy market volatility underscores the need to reduce reliance on fossil fuels and improve energy system resilience.
“Using resources more effectively will make the transition cheaper and faster, while strengthening industrial competitiveness,” Delasalle says.
Globally, more than 1000 clean industrial projects are currently in development. However, without improvements in energy productivity, the transition could require significantly greater investment in energy supply infrastructure.
However, commiting to net zero goals is proving to be worthwhile, highlighted by ETC and MPP’s report that estimates system-wide efficiency gains could reduce global energy investment needs by up to $15 trillion over the next 25 years.
To access the full report, Harnessing energy productivity for industrial competitiveness, click here [PDF].
