1、Transforming Energy DemandW H I T E P A P E RJ A N U A R Y 2 0 2 4In collaboration with PwCImages:Getty Images 2024 World Economic Forum.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,including photocopying and recording,or by any informa

2、tion storage and retrieval system.Disclaimer This document is published by the World Economic Forum as a contribution to a project,insight area or interaction.The findings,interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World E

3、conomic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakeholders.ContentsForewordExecutive summary1 Why transforming energy demand matters2 The three energy demand levers3 Business solutions overall appr

4、oach4 Business solutions selected interventions for change in buildings,industry and transport4.1 Industry4.2 Buildings4.3 Transport5 Government leadershipConclusionAppendixA1 Modelling methodologyContributorsEndnotes345111315 162429333738384044Transforming Energy Demand2ForewordAs the global energy

5、 system undergoes a rapid transformation,leaders across all sectors need to collaborate to accelerate an energy transition that creates positive outcomes for people,society and the planet.The private sector can play a leading role in driving this transformation.That is why a year ago,the Internation

6、al Business Council(IBC),a group that together represents 3%of global energy use,decided to focus on energy demand.This is an under-addressed area that will allow us to increase economic output,while reducing greenhouse gas emissions(GHG)and driving up global access to energy.Our research shows that

7、 there are many tangible actions that all businesses can take today to act on energy demand.The potential of this demand-side action is extraordinary,offering a short-term,cost-efficient 31%reduction of demand,shared across all economic sectors.These gains are deliverable now,at attractive returns,n

8、eeding no new technology.Such concerted action would unlock growth and productivity while getting the world back on track to meet the targets sets by the Paris Agreement.At the same time,it would support delivery of the pledge by over 120 countries at COP28 to double the global average annual rate o

9、f energy efficiency improvement.These findings should be exciting for all leaders,in growth and mature markets alike,and we thank all the IBC members for their support in driving this work.Our ambition is to get the world to act as much on energy demand as supply its efforts to reach net zero.We hop

10、e this paper will inspire many other businesses and governments to join this effort.There is no time to lose.Ana Botin Executive Chairman,The Santander Group;Chair,International Business CouncilBob Moritz Global Chair,PwC;Member,International Business CouncilOlivier Schwab Managing Director,World Ec

11、onomic ForumTransforming Energy DemandJanuary 2024Transforming Energy Demand3Executive summaryThe value of action on energy demand is compelling:a possible 31%reduction in energy intensity and up to$2 trillion in annual savings if measures were to be taken by 2030(see Appendix,A1:Methodology).Reduci

12、ng energy intensity energy used per unit of gross domestic product(GDP)would boost growth by enabling previously wasted or over-utilized energy to be redirected to more productive activities.It would also help companies save cash and maintain competitive advantage while reducing emissions.This paper

13、 outlines the value of actions on energy demand from the private and public sectors and how to deliver them.Actions are doable today,at attractive returns with existing technology,and so it is believed this establishes a compelling case to act as much on energy demand as supply in the journey to net

14、 zero.Finding a way to reduce or even reverse the pace of energy demand growth while supporting economic output is critical.By 2050,the worlds population will grow by two billion,and GDP is forecast to double.Emerging markets and developing economies need abundant and low-cost energy to enable growt

15、h and meet development goals.Simultaneously,the world is targeting supply decarbonization.Acting on demand and supply simultaneously is the best wayto achievethesechanges.Acting on energy consumption is doable,affordable and profitable.This research shows that all companies and countries can use exi

16、sting levers to reduce energy intensity.Across buildings,industry and transport(BIT),International Business Council(IBC)examples illustrate that these actions,where supported by appropriate public policy,can enable the world to reduce its energy needs by approximately a third while freeing further e

17、conomic output.Affordability is also clear,with interventions potentially fully paid back globally within a decade,driving estimated annual savings in the range of$2 trillion.Three levers can deliver this change.First,“energy savings”operational improvement interventions funded through operating exp

18、enditure(OpEx).Results are typically immediate but often overlooked as they require coordinating many interventions across an organization and constant energy cost improvement.“Energy efficiency”pools measures under direct company control that require capital expenditure(CapEx).Together,savings and

19、efficiencies offer businesses the lower-hanging fruit and at least half of the improvements in energy intensity that this research has identified.The final lever is“value chain collaboration”,where working directly with suppliers and business partners offers company agency over energy impact,reducin

20、g cost and getting ahead of the race to net zero.Each sector needs a“roadmap”to guide company and government action.Company and national energy transition plans are needed to capture the benefits of managing energy consumption while integrating supply-side actions.Businesses across the energy demand

21、 and supply spectrum will need to work together with government to develop these plans and increase awareness of the routes and results available to address barriers to action.Developing these plans is the essential next step in raising awareness and getting behind action on energy demand.At COP28,o

22、ver 120 countries pledged to double the pace of energy efficiency improvement.The IBC can be a leading private sector group to support countries in their ambition.Actions on energy demand can be taken by all companies now,are profitable and can accelerate progress towards climate goals.Transforming

23、Energy Demand4Why transforming energy demand matters1Actions on energy demand can reduce energy consumption by up to 31%,saving up to$2 trillion per annum.What if a business could reduce its annual operating costs by 10%within three years?What would be the implications for a companys stock price if

24、it could increase margins on a sustained basis by 200-300 basis points?All while simultaneously building both measurable progress on reducing greenhouse gas(GHG)emissions and delivering greater resilience in operations.These are not trick questions,but are based on real examples from IBC members.The

25、 answer lies at the root of this study:transforming energy demand.The energy triangleFIGURE 1Energy transitionSupplyRenewableNuclearFossil fuelsDeliveryTransmissionPipelinesInfrastructureTimeframeEnergysecurity and resilienceJust and affordabilityGeopoliticsEconomiesSustainability and climate change

26、DemandIndustryUrban and buildingsTransportEnablers:Policy,finance,collaboration technology,digitalization and workforceNote:The triangle represents the energy trilemma the imperative of delivering a just energy transition while ensuring affordability,security and sustainability.Source:World Economic

27、 Forum,Fostering Effective Energy Transition,2023.Transforming Energy Demand5The problemThe energy transition creates immense and growing tensions between the imperatives of security,affordability and sustainability(see Figure 1).SecurityOn energy security,the first challenge is to simultaneously ma

28、intain a secure and stable supply of energy amid an increasingly volatile geopolitical situation,all while transforming todays hydrocarbon-dominated supply.In 2021-22,Europe grappled with energy shortages and prices that have threatened the industrial base and forced governments to procure their oil

29、 and gas from the flows normally destined to other emerging markets and developing economies(EMDE),1 which in turn had to resort to higher coal consumption and overall face higher energy prices.AffordabilityThe second challenge,affordability,is to ensure that energy is economic not just for business

30、es but for society in general.While forecasts differ on the level of energy demand in 2050(see Figure 2),the expected doubling of global gross domestic product(GDP)and the addition of two billion people will intensify pressure on energy supply systems,2 particularly in EMDE,which are responsible for

31、 approximately 60%of current demand.These markets need a clear range of routes to economic growth,which include abundant access to affordable clean energy.3 If the future level of energy demand is not met by adequate supply,it could lead to higher prices and obstacles to growth and competitiveness.S

32、ustainabilityThe third challenge,sustainability,is to meet this growth in energy demand in a way that keeps the world on track to meet the 2050 Paris Agreement.Even with an assumed three-fold growth in renewable energy,scenarios forecast a significant shortfall in clean energy supply by 2050(see Fig

33、ure 3),which could be met with more fossil fuel-based energy.This is as,if not more,true in EMDE,due to the lack of adequate renewable supply chains.To date,the majority of debate and action has been focused on governments and energy companies driving changes in energy supply.This has resulted in re

34、markable changes in the energy system,with rapid increases in emissions-free and decentralised electricity generation.However,the trajectory of theenergy transition remains off-track compared to climate and development goals,hindered by issues such as slow permitting and poor access to finance.There

35、fore,while action on energy supply remains crucial,it will be difficult for it to be the answer alone.Forecast demand growth to 2050FIGURE 2Current policiesFurther actionShell“Archipelago”(base year 2019)XOM“Global outlook”(base year 2021)Schneider Electric“New Normal”(base year 2018)TotalEnergies“M

36、omentum”(base year 2021)Equinor“Walls”(base year 2020)BP“New momentum”(base year 2019)IEA“STEPS”(base year 2022)IEA“APS”(base 2022)IEA“Net Zero”(base year 2022)33%14%14%9%8%8%21%-3%-22%Percentage growth in total energy consumption across differing global scenarios(sample)%,base year to 2050Sources:I

37、nternational Energy Agency(IEA),Net Zero Roadmap:A Global Pathway to Keep the 1.5C Goal in Reach,2023;Shell,The Energy Security Scenarios,2019;ExxonMobil,ExxonMobil Global Outlook,2023;Schneider Electric,Back to 2050:1.5C is more feasible than we think,2021;Equinor,2023 Energy Perspectives,2023;bp,b

38、p Energy Outlook 2023 Edition,2023;IEA,World Energy Outlook 2023,2023;TotalEnergies,TotalEnergies Energy Outlook 2022,2022.To date,there has been too heavy a reliance on governments and the energy industry,not the wider economy,to deliver net zero.Transforming Energy Demand6Shortfall in renewable en

39、ergy supply vs demand from commercial sourcesFIGURE 3Commercial energy demandRenewable energy supply20502022Supply shortfall75%42%Supply shortfall30475392227Global commercial*total final consumption and renewable energy supply and IEA stated policies(STEPS)scenario,exajoules(EJ),2022-2050It is,there

40、fore,vital to address energy demand alongside supply,reducing the energy intensity of current activity and future growth.Demand-side action is an area where the business and social cases for demand-side action overlap closely.Such action can increase productivity,while unlocking access to energy and

41、 economic growth.This is done by reallocating previously wasted or unnecessarily-used energy to new consumers and/or new uses.After all,the cheapest form of energy is energy that is not used.Theres also a clear opportunity cost any delay in action will force increased energy spending and continued m

42、issing of climate goals.The great news is that transforming energy demand is doable and affordable now.All companies,regardless of sector,can tap into existing,affordable technologies to reduce energy intensity that is,using less energy to create the same(or greater)output.This in turn will reduce e

43、missions intensity(the volume of emissions created in manufacturing a product or providing a service)due to energy-related emissions being reduced.Measures to tackle energy consumption are also beneficial across all markets,as delivering higher output with lower energy use is a universal good.Howeve

44、r,benefits will vary in importance between markets.For example,in developed economies,lower energy intensity helps to enhance competitiveness through lower total energy cost while attenuating environmental risks.In EMDE,taking action to manage energy demand as well as focusing on the supply can impr

45、ove access to secure energy,improving the ability to attract investment while offering the opportunity to avoid low-efficiency legacy systems seen in developed economies.The solution:action on energy consumption alongside supply*All energy demand from commercial buildings,industry and transport,excl

46、uding residential buildings and road transport.Sources:IEA,World Energy Outlook 2023,2023.Transforming Energy Demand7This study breaks global energy demand into “BITs”buildings,industry and transport.Together,these account for 94%of global demand.4 Achievable5 interventions have been identified acro

47、ss these areas that would reduce overall energy intensity by around 31%relative to current levels(see Figure 4),with further,harder-to-deliver interventions increasing this to 42%(see Figure 6).Size of the energy demand prizeShort-term reduction potential of energy demand actions(achievable scenario

48、 only)FIGURE 4Potential energy intensity reduction by vertical(achievable*)2022 global energy demand by verticalPotential energy intensity reduction for the whole economy(achievable*)123 In(1),individual interventions by vertical are identified(e.g.installing more efficient electric motors),and thei

49、r potential impact on vertical-wide energy intensity is summed.To gain the overall impact of these changes on global demand,these are then scaled by the proportion of energy demand that each vertical represents(2).In addition,an average intensity reduction is applied to sectors not considered in dep

50、th(defined as“other”)This results in(3),the potential combined impact of individual interventions on global energy intensity.2022 demandIndustryBuildingsTransport442 EJ6%31%29%38%21%38%Industry30%Buildings26%TransportOther11%Industry12%Buildings5%Transport4%OtherTo understand how these interventions

51、 would affect the world over time,this report considers what would occur if these interventions were globally enacted by 2030(see Appendix,A1:Methodology).This was achieved by first modelling energy demand in 2030 if no energy intensity improvement were made between 2022 and 2030(“no efficiency”scen

52、ario,see Figure 5).*Achievable is defined as interventions that are currently technologically available at scale with associated data available on their energy intensity impact;*Percentage does not total 31%due to rounding.Sources:IEA,World Energy Outlook 2023,2023.Transforming Energy Demand8Forecas

53、t of“no efficiency”scenario,2030FIGURE 52022 energy demand:Total energy consumed,2022Impact of making no energy efficiency progress2030“no efficiency”scenario:Forecast 2030 energy demand if no further efficiency gains are made2022 energy consumptionImpact of making no energy efficiency progress2030“

54、no efficiency”scenario442574131+30%EJ,2022-2030,global“No efficiency”scenario2023“current policies”scenarioImpact of achievable interventions vs“no efficiency”Impact of ambition interventions vs“no efficiency”2030 net-zero scenario2030 achievable energy demand*2030 ambition energy demandForecast ene

55、rgy demand if all achievable interventions are put in place by 2030Forecast energy demand in 2030 if historical rate of energy efficiency improvement is maintainedForecast energy demand if all achievable and all ambition interventions are put in place by 2030Net zero scenario forecast in 2030-31%-42

56、%-19%574482406393331EJ,2030,globalIf applied to the“no efficiency”scenario in 2030,these interventions would allow output to be maintained with less energy,resulting in a reduction in energy intensity around 19%below the levels forecast if current policies are enacted(see Figure 6).On an annual basi

57、s,this would correspond to an improvement in energy intensity of 4.6%per annum.Such gains are ahead of the target set by the Sustainable Development Goals(SDGs),the International Energy Agency(IEA)and the International Renewable Energy Agency(IRENA)of doubling the current rate to over 4%to reach net

58、 zero.As a result,if delivered,these interventions would put the world ahead of the targets in the Paris Agreements.Impact of proposed interventions on global energy demand,20306FIGURE 6Source:IEA,World Energy Outlook 2023,2023.*Achievable”scenario represents difficult steps to implement that will r

59、educe energy intensity,but that are based on technologies that are available at scale today,making them technically achievable.“Ambition”scenario represents the impact of all achievable interventions alongside some less proven,more difficult to scale interventions.Source:IEA,World Energy Outlook 202

60、3,2023.Transforming Energy Demand9Even with the energy numbers being so compelling,these interventions would have to be affordable.Again,acting on energy demand offers good news,suggesting a clear range of routes which come at a fraction of the long-term capital expenditure needed to switch energy s

61、upply away from fossilfuel.While a recent report by IRENA puts the cumulative cost of energy efficiency interventions by 2030 to reach net zero at$14 trillion,7 this study suggests that,of this,up to$8 trillion is repaid during the period,with further annual savings of up to$2 trillion per annum at

62、current prices,depending on how energy pricing varies in response to intensity reduction(see Figure 7).Impact of energy demand-side levers on global energy demand and illustrative associated cost impacts,2022-30FIGURE 7Current policies scenario22022 demandAchievable energy demandAmbition energy dema

63、nd$0.9 trillion additional spend1 and approximately 3,000 additional power stations if current policies are enacted with no further action on demand$1.1 trillion in energy savings1 compared to 2022 demand$2.5 trillion in energy savings1 compared to 2022 demandGlobal energy consumption(EJ)Global ener

64、gy demand forecast scenarios and associated cost reductionsEJ,global0103303403503603703803904004104204304404504604704902022203048019%Combined$2 trillion savings vs forecast spend under current policiesNotes:1 Assumes current average price per joule to stay constant.This is illustrative and to quanti

65、fy the theoretical size of the prize based on current spending.Actual figure would vary depending on response of energy prices to reduction in demand,and changes in overall energy systems and their fuel mixes.;2 IEA STEPS scenarioSource:IEA STEPS scenarioWhile supply-side interventions remain crucia

66、l,interventions on energy consumption are effectively self-funding during the period,can be paid back within the decade and embed long-term efficiency all while shifting the worlds ability to deliver the Paris Agreement.To help organizations pursue this prize,this report identifies the opportunities

67、 and the barriers to adoption,highlighting the levers that will help companies reduce intensity,and developing suggested routes to follow to deliver these changes.Most of these interventions can be deployed now,driving significant improvements in less than a year.In developing these conclusions,a gl

68、obal survey was conducted,which involved contributions from the 120 members of the World Economic Forums International Business Council(IBC),a group of multinational companies representing about 3%of global energy demand from their direct operations.The survey aimed to understand the current role th

69、at companies are playing in the energy transition,what is preventing further action and how these issues can be overcome.In addition,member interviews were conducted to identify examples of replicable energy consumption-focused measures.The results of these interactions are captures in the recommend

70、ations throughout the remainder of this report.Transforming Energy Demand10The three energy demand levers2There are three existing,deliverable levers to reduce energy intensity,but these face challenges that limit uptake.Three levers energy demand leversFIGURE 8Energy savingEnergy efficiency1Value c

71、hain collaboration10%30%45%Interventions to save energy by changing a companys ongoing core behaviours and activities,primarily OpEx funded with short-term paybackUsing less energy to perform the same task,typically funded by CapEx with medium-term payback by investing in core business processesScal

72、able,replicable partnerships with adjacent supply chains to achieve energy and emissions intensity improvements through demand substitution,demand consolidation and flexible demand response AI-driven software to control existing HVAC systems Reduces HVAC energy intensity by 20-25%,payback of less th

73、an 1 year Retrofitting buildings using smart products,lighting,improved HVAC Reduced energy required for non-industrial sector operations by 27%Payback less than 15 years2 Swedish sulphuric acid plant supplying energy to urban district heating Reduced citys heating energy intensity by 25%Less than 1

74、-year paybackLeverDescriptionMedian energy intensity impactCase studyAroundAroundAroundLower complexity/shorter paybackHigher complexity/longer payback123Note:Impact defined as percentage decrease in energy intensity of a given process e.g.fitting LED lights can reduce energy intensity of lighting d

75、emand by 75%not the percentage decrease in a companys overall energy intensity 1 While energy efficiency is a widely used and understood term,here it is defined in the sense of a particular intervention type(i.e.CapEx-led ways to use less energy to perform the same task).It therefore is different fr

76、om“energy intensity”and common use of“energy efficiency”in this context.2 This example is from Aramcos Lead by Example programme.See online case studies:https:/initiatives.weforum.org/energy-and-industry-transition-intelligence/transforming-energy-demandLevers 1 and 2 offer immediate value.Savings a

77、nd efficiency interventions can deliver a reduction in process intensity of up to 90%with no need to replace changes with innovation in technology,regulation or external funding.Electrification is a key vector for this,often driving lower energy intensity in existing processes purely through inheren

78、t lower levels of wastage compared to combustion-based alternatives.Progress can be driven even further through a focus on repeated application of these levers with a culture of continuous improvement.While each individual action may be small,they can compound to drive major changes in intensity ove

79、r time(see case study 1).The third lever,collaboration,shows how companies can create new value pools and revenue streams by collaborating with adjacent supply chains and the public sector.This must be done in concert with energy suppliers and with a long-term view to Transforming Energy Demand11ens

80、ure future-proof change.Rather than waiting for the energy supply-side to fix itself,companies from all sectors can become active participants in the energy transition.An example of this lever is energy demand consolidation where companies and/or other parties collaborate(e.g.in an industrial cluste

81、r)to drive changes in energy intensity,such as through district heating(see Figure 8),or longer-term through the design of circular business models.Businesses can also collaborate to achieve supply substitution using their energy demand,in concert with financiers,energy companies and government,to c

82、hange their energy and emissions intensity.In South Africa,African Rainbow Minerals and other mining companies partnered with renewable developers,using offtake contracts and grid“wheeling”to create utility-scale solar farms.With local bank support and mining firm guarantees,they achieved rapid grid

83、-scale power deployment in 18 months,faster than seen in most other countries and a significant achievement given the countrys unstable coal-based energy supply.Collaboration can also enable flexible demand response where companies collaborate with their power provider and government to adapt operat

84、ions based on demand and price signals.This includes reducing operations at peak times and installing energy generation or battery storage to enable flexible energy usage.While demand response predominantly improves emissions intensity(as fossil fuels are commonly used at times of high demand),it ca

85、n also improve the grids efficiency and effectiveness.8 While the economic and business case is clear,there are three significant barriers:1.Low awareness Through the interviews,a notable lack of awareness was identified among businesses about how to change their energy use,particularly outside ener

86、gy-intense industries.This focuses on an inability to build and execute measures to address energy consumption,and a lack of clarity on the impact these interventions can have both on their energy bill,the transition and wider resilience.Energy use is simultaneously not a top strategic priority and

87、a difficult number to get a firm handle on:while 82%of companies discuss emissions intensity at the board level,only 42%of companies do so for energy intensity.Discussions with business leaders reflect a perception that the energy system is outside their control and is the responsibility of governme

88、nts and the energy sector to solve.In total,94%of surveyed IBC organizations said they had a good understanding of their own energy use but only 53%understood the energy use of their supply chains where energy consumption is often a far larger part of the companys extended energy and climate impact.

89、This can be driven by a lack of tech-enabled monitoring and reporting,as well as limited partnerships and data sharing within supply chains.Energy use is widely dispersed the sum of a huge number of different activities,managed by many different actors within an organization.Since most interventions

90、 changing light bulbs in one location,installing new motors in another are small,it is hard to get people excited about them,and even harder to take control and deliver change.Many companies lack a single person or department responsible for energy costs,with the survey finding 29%of companies havin

91、g no single department owner.2.Difficulty in achieving appropriate payback Of surveyed members,38%said that solutions for reducing energy/emissions intensity offered insufficiently attractive returns.The issues stem from extended payback periods.To take one example,building retrofits,which can be ve

92、ry valuable,pay back in less than 8 years,whereas businesses typically have planning cycles of 3-5 years.Developing financing from businesses or financiers that is designed around the savings from energy intensity reductions and their associated longer returns period,rather than revenue growth.3.Lac

93、k of supportive policy environment Businesses repeatedly highlighted the barriers that policy and regulation pose to further action on energy intensity,among them:a lack of supportive regulation(47%of respondents),clarity(47%)and insufficient incentives(38%).To address these challenges,governments n

94、eed to develop policies and regulations that create incentives for,and alignment on,reducing energy and emissions intensity.The challenges:growing awareness and developing an enabling policy environmentof boards discuss energy intensityvs 82%for carbon intensity42%Transforming Energy Demand12Busines

95、s solutions overall approach3All businesses can take three steps to reduce their energy intensity for their direct and indirect operations.1.Assess energy use across the buildings,industry and transport(BITs)portfolio:Break down use across BITs,both directly within the company and in its value chain

96、.Businesses can then consider the specific interventions set out in the chapter 4(alongside methods used in the case studies in this document and online)to identify levers for change.These will vary by industry.For example,financial companies can provide innovative financing solutions to energy inte

97、nsity improvement projects.Product manufacturers can find ways to reduce lifetime product energy consumption.It is necessary to tailor these solutions based on geographic context,with businesses in EMDE and fast-growing markets more likely to focus on measures to minimize the energy intensity of gro

98、wth,rather than retrofitting to improve current operations.2.Understand companys role in the energy system:The second step for every company is to identify its role in the energy system(see Figure 9).While opportunities exist for meaningful impact across all energy system roles,positioning determine

99、s the current level of focus and the appropriate and most impactful actions that the business can take.Energy system rolesFIGURE 9ArchetypesDescriptionProvider of energy to other businessesCompanies that both supply energy,and use large amount of energyCompany with energy intensive activity;consider

100、s energy costs in operationsCompanies that are neither suppliers,nor use large amounts of energy in operationsCompanies that can enable the energy reduction of other firmsRenewable energy supplier,work with customers on intensity reductionSavingsEfficiencyCollaborationWork across value chain to enab

101、le energy transitionReduction in energy use,share best practice with othersFocus on demand consolidationProvision of technology,finance or other assistance,e.g.consultingEnergy companiesEnergy generatorsOil and gasSteelChemicalsConcreteMiningFast-moving consumer goodsRetailConsumer technologyProfess

102、ional and financial servicesClimate and measurement technologiesDemand responseCurrent energy awarenessPotential energy transition roleHighest impact demand leversExample industriesEnergy supplierSupplier and userHigh energy userLow energy userEnablerHHLMHMTransforming Energy Demand133.Institute a p

103、rogramme of changeFinally,businesses should consider how to effectively execute change based around an energy transition plan.Such plans designed by both governments and businesses can aim to double energy efficiency identifying and capturing demand-side benefits,and to triple renewable capacity int

104、egrating actions alongside the supply side by 2030.Detailed actions for each key sector of the economy should be integrated,linking targets and implementation roadmaps across national and local levels of government in all departments,as well as incorporating costs into market mechanisms.These plans

105、should interrelate between public and private levels,with multiple paths to achieve the overall goal depending on context.These should be distinct from,but integrated into,wider net-zero transition plans.Based on case studies from businesses affiliated with the Forum,five areas have been identified

106、to focus on to create a systematized approach to developing and executing these plans(see Figure 10).Execution approachFIGURE 10 Develop an energy transition plan across direct and indirect energy Using accurate,digitized measurement Include overarching demand targets linked to global goals(e.g.doub

107、ling the rate of energy efficiency improvement)Create business cases for action to prioritize Align ambition,accountability and incentives at all organization levels Create a centralized team with an energy-intensity mandate and funding This may take the form of a chief energy officer reporting to t

108、he chief executive officer/chief finance officer Determine funding mechanisms Identify financiers early who are willing to collaborate on complex demand financing Promote solutions that share savings from interventions Approach government and supply chain participants early Use this to build support

109、ing infrastructure for change Identify customers and suppliers that can underwrite interventions(e.g.via offtake contracts)Engage staff for ideas and then upskills to power delivery Build digital ongoing measurement of impact and benchmark internally/with peers Link this to executive and centralized

110、 team incentives Collaborate cross-company to expand coverage of measurement to adjacent supply chains,enabling wider changeStrategizeCentralizeFinanceCollaborateMeasureConcrete governance practices are key to drive change,particularly for actions in adjacent supply chains.Because the impact of thes

111、e measures can be harder to measure,changing mindsets and aligning governance structures and incentives can help to ensure these wider actions that will benefit businesses long term.Having a chief energy officer responsible for driving these changes can act as a focal point to identify the capabilit

112、y,funding and governance changes needed in order to drive widespread change.This approach has particularly high potential given the barriers around awareness and the dispersed solution set,though current uptake is low.Transforming Energy Demand14Business solutions selected interventions for change i

113、n buildings,industry and transport4Interventions for change are available across all sectors but require concerted private-public collaboration to overcome uptake barriers.Interventions have been prioritized by their economic sector within BIT and by their impact on total global energy use.Combined,

114、these illustrate possible routes available for change and methods to overcome barriers to action.The focus is on currently-available interventions,while acknowledging technological improvements and removing legacy systems will be needed longer-term.Delivering change will require collaborations betwe

115、en all private and public stakeholders to align available infrastructure and supply chains that will make technically-achievable changes on energy demand deliverable.These collaborations can catalyse action in areas that would be insoluble for any stakeholder alone.Further upsides can be realized th

116、rough future technological developments,especially in artificial intelligence(AI)that offers myriad opportunities to reduce energy intensity across all verticals,as outlined below.AI comes in many forms and is continuing to develop.Crucially,however,certain modalities are already available today tha

117、t work at scale,delivering profitable changes to energy intensity for companies and consumers.This currently focuses on energy savings OpEx-based optimization of existing processes in order to reduce energy consumption.This is typically done through the use of real-time data to better predict enviro

118、nmental conditionsand then to change systems in response.Google has multiple examples of this in transport alone.For example,Google Maps now includes an option in several countries to select the most fuel-efficient route,using AI to plan this based on currenttraffic conditions,topography and speed l

119、imits.This is estimated to have avoided more than 2.4 million tonnes of CO2 equivalent(MtCO2e)of emissions since October 2021,while saving the corresponding amount of energy with no loss in output.Similar technology can be applied at a company level for fleet routing management to reduce overall fue

120、l costs and energy intensity while maintaining successful routing and delivery.For further information on this and the wider impact of AI on the energy transition,see the report Accelerating Climate Action with AI.AI and energy intensity exampleBOX 1Transforming Energy Demand15Coverage of industry v

121、erticals and sectors within this reportFIGURE 11IncludedExcludedGlobal total final consumption by industry vertical and sector(EJ,2022)VerticalSectorIntervention areasIllustrative examples*By sectorIndustryMining and extractiveSteel and ironChemicalsCementOther industryResidentialCommercialOther bui

122、ldingsRoadAviationMarineOther transportBuildingsTransportOtherBy sub-sector38%8%8%5%4%13%21%9%18%6%31%25%6%442442Light industryExtractiveChemicalsEnd-of-lifeExisiting buildingsFreightPassengerNew buildingsIron and steelRetrofittingElectric vehiclesIron and steel1%2%2%2%Increasing coverage detail*The

123、se examples represent those that are covered in more detail later in the report.They do not cover all attractive example interventions-e.g.in Transport,in addition to electric vehicles,there are clear opportunities to reduce energy intensity by moving to higher efficiency combustion engine vehiclesS

124、ource:IEA,World Energy Outlook 2023,2023.Industry is defined,in this report,as the vertical encompassing the production of commercial products,including“heavy”industry(steel,cement,chemicals,aluminium,extractive)and light industry(all others).This sector accounts for around 38%of global energy deman

125、d and 21%of GHG emissions.9 To illustrate the relative energy consumption,examples from chemicals,extractive industries,food and beverage,and pharmaceuticals are provided,along with a more detailed example for steel manufacturing.Interventions have been identified that can reduce energy intensity of

126、 individual industrial processes by up to 90%(e.g.introducing high-efficiency electric motors).If implemented widely,these could drive a reduction of the vertical energy intensity of 29%compared to current levels,reducing overall global energy demand by 11%.This requires action from all companies,as

127、 all have industrial components to their value chains.Industry4.1The opportunityTransforming Energy Demand16Energy impact of individual interventions in industry FIGURE 1295%90%85%80%75%70%65%60%55%50%45%40%35%30%25%20%15%10%5%0%SavingsEfficiencyVarious time periods,geographies 17%28%Collaboration62

128、%Note:Data represents the impact of individual interventions on a subset of energy use(e.g.the impact of staff training on machine energy intensity),not the impact on industrial energy demand or global energy demand as a whole.Blue datapoints represent the median impact of individual interventions.D

129、atapoints used come from a combination of IBC member case studies and wider research.Transforming Energy Demand17Demand interventions in industryFIGURE 13Energy savingEnergy efficiencyValue chaincollaborationDemand interventions in industry123 Intelligent process design,e.g.using AI to optimize fact

130、ory line design Staff training and awareness raising to reduce wasted materials and energy consumption Capture and reuse manufacturing waste within production lines Switching motors to electric and MEPS for electric motors Upgrade heating,ventilation and air conditioning(HVAC)equipment Electrificati

131、on of heat sources for low heat processes(less than 180 degrees centigrade)Use of combined heat and power systems(CHPs)Heat recovery and reuse Use of power factor correction systems in low power factor machinery,such as motors,heating systems and lighting LED lighting Recycling inputs for manufactur

132、ing Sourcing green raw materials Demand consolidation to purchase clean energy and renewable fuels Industrial clustering cross-industry to share infrastructure and energy intensity initiatives Business-to-business partnerships to improve product energy intensity during its use Energy hub enablement

133、and integrated energy solutionsThese sectors are often termed“hard to abate”due to their high energy use and introduction of new,efficient technologies,such as direct reduced iron(DRI)steel,effectively requiring a knock-down and rebuild.In this context,the cost of energy demand-side interventions ca

134、n be prohibitive for industries amortizing installed capacity over 25-40 years.Importantly,the first two levers savings and efficiency could deliver significant reduction in energy consumption now without a full rebuild.Too many public policy initiatives focus on“big ticket”transformative changes ov

135、erlooking these,still impressive,potential gains.This lower-hanging fruit should be as important a focus for players and policy-makers as the dream of a fully modern infrastructure if Paris goals are to be realistic.Longer term,there are opportunities to drive the development of more energy-efficien

136、t products through innovation.An example is a partnership between a chemical company and an environmental services company that initiated a design to facilitate the recycling of electric vehicle(EV)battery metals in Europe,thus securing a local supply source for critical materials.Additionally,the i

137、mpact of AI is likely to continue to grow,with existing use cases including its deployment to allow for predictive maintenance of industrial machinery.This can increase uptime,remove unnecessary scheduled interventions and extend machinery lifetime.1.Heavy industryMining and extractive Extractive in

138、dustries(mining,oil and gas)constitute around 8%of global energy use.Within mining,approximately 93%of energy is used for extraction,intra-mine movement and crushing,all of which are equipment focused.Major interventions,therefore,focus on energy efficiency specifically digital optimization of plant

139、 operations,and automation and electrification of transport.An automated truck network has the potential to save 15-20%of transport energy demand,through the optimization of routing,uptime and throttle input.On a per-truck basis in 2018,a multi-national mining companys autonomous trucks operated 700

140、 hours more than human-driven trucks and led to a 15%cost reduction.However,consideration of ensuring a just energy transition must be given here,with care given to the human impact of automation.Within oil and gas,where processes are typically asset-heavy,energy efficiency is also the major lever f

141、or change.For example,improvements in drilling technology can improve overall drilling time and production rates:a major oil and gas company collaborated with an oil and gas service company to deploy a closed-loop automated wired drill string,which provided real-time drilling data.This innovation re

142、sulted in an 82%reduction in the overall drilling time per well.By leveraging real-time data,they were able to extract more hydrocarbons in a given area,thereby increasing overall production while reducing the energy intensity of the operation.10 Industry examplespotential reduction in industry ener

143、gy intensity29%Transforming Energy Demand18Chemicals The chemicals sector constitutes approximately 10%of global energy demand and is crucial to the energy transition due to its rapid growth(around 4%per annum),11 driven by need for its end products(e.g.ammonia and methanol).Feedstocks,which account

144、 for about half of energy use,are often difficult to replace due to the precision of chemical synthesis processes.However,in steam cracking,the single most energy-consuming process in chemicals(about 8%of sector energy),12 intensity can be reduced through switching to non-steam catalytic methods.For

145、 example,Dows UNIFINITY technology,reduces energy use by around 20%compared to incumbent catalytic methods and can be retrofitted to existing steam crackers.2.Light industryPharmaceuticals In the pharmaceutical industry,which consumed approximately$1 billion of energy in 2021,the primary mode of dir

146、ect energy consumption is heating,ventilation and air conditioning(HVAC)(around 65%of demand).Facing significant margin pressure due to the global energy crisis,an American pharmaceuticals company13 installed a combined heat and power plant(CHP)at one site,using the heat generated to drive manufactu

147、ring processes.This drove a 37%reduction in primary energy consumption while reducing emissions.If replicated across the sector,such efforts could reduce energy consumption by up to 20%.Food and beverages(F&B)Energy intensity improvement in F&B has lagged historically,with food manufacturing achievi

148、ng only a 6%decrease from 2000-2020.14 For one American beverage company,cold drink equipment is the largest contribution to their systems carbon footprint.Working with bottlers and suppliers,the company created a machine consuming 10%less energy overall than an average machine.Additionally,it used

149、power for cooling at night when electricity demand is lower,increasing the efficiency of grid use and limiting the need for more-flexible higher emission intensity energy sources.While actions exist that can be taken in all sectors,they are not being implemented at scale due to industry-specific bar

150、riers.These vary between light and heavy industries due to the differing levels of energy use(see below).Yet,all can be reduced through collaboration with adjacent supply chains.High-levelized costs of production associated with low margins make transformative changes complex within heavy industries

151、 and expensive within light industries compared to their rather low energy use.Collaboration between stakeholders is key to identifying novel funding and repayment methods,increasing the attractiveness of equipment replacement,such as extended repayment periods and sharing benefits.Lack of sufficien

152、t creditworthiness and collateral make access to financing complex for industrial small-and medium-sized enterprises(SMEs).This can be addressed by banks and insurance companies collaborating with SMEs to co-design energy intensity-oriented green financial products15 matching risk profile with requi

153、red funding.Limited awareness towards energy intensity measures,particularly within light industries,and fragmented supply chains limit the ability to drive change.Creating cross-industry groups to share learnings and best practices on energy intensity e.g.information on process heat interventions a

154、nd anonymous databases on energy intensity for benchmarking purposes.Close cooperation between energy service providers and end users could also create energy-as-a-service models with providers actively optimizing end users energy intensity.In the longer term,technical barriers should also be addres

155、sed to reduce the energy intensity of energetically and thermally intense processes.Others are encouraged to take similar approaches to the ones taken here in order to drive this technical progress.In EMDE,this vertical is key,as 54%of steel and 58%of methanol is produced in China,and 45%of iron ore

156、 is mined in China,India,Brazil and South Africa.However,access to reliable energy sources or lack of grid capacity to support vertical electrification have proved challenging.To drive change,key industry players can co-form offtake agreements with both developers and government to encourage clean-e

157、nergy development.Industrial sites colocation aggregating demand to develop microgrid solutions can also be a key lever in more remote areas.Collaborations to overcome barriers to action:Collaboration between stakeholders is key to identifying novel funding and repayment methods.Transforming Energy

158、Demand192022 demandSavingsEfficiencyCollaborationAchievable energy demand3525126Energy intensity impact of interventions2022,all geographies,EJDetailed sector-specific example:steel energy intensityMetal manufacturing is responsible for 8%of global energy demand and 7%of global emissions.Iron accoun

159、ts for 93%of mined metals by tonnage,of which 95%is used in steel production.16,17 In this hard-to-abate sector,economically and technologically viable interventions that are currently available can deliver an energy reduction of up to 22%(see Figure 14).The opportunityEnergy demand interventionsAlo

160、ngside vertical-wide actions(e.g.staff training,LED lighting),steel-specific interventions can upgrade and optimize existing machinery across all operators.This is driven by the diverse ages and types of manufacturing technology in use in current systems:Energy savings:Blast furnace energy and input

161、 optimizationEnergy efficiency:Upgrading outdated blast furnaces with plug-in cost-effective efficiency solutions,including waste heat recovery,digital optimization,furnace efficiency upgrades Implementing energy management systems(EnMS)Switch to coke dry quenching from wet quenching,to recover heat

162、 and reduce energy intensityValue chain collaboration:Increase the proportion of scrap metal use in electric arc furnace(EAF)steel production Increased proportion of steel produced by DRI-EAF Impact of interventions on steel sector energy demandFIGURE 14Source:IEA,World Energy Outlook 2023,2023.Note

163、:Wider collaborations to drive change are more challenging but can drive further impact.Transforming Energy Demand20Collaborations actions led by private sector to overcome barriersVariability of demand:End users committing to low-intensity steel purchasing through guaranteed contracts.A German stee

164、l companys planned plant in Sweden was made possible through supply-chain partnerships,securing consistent supply of sustainable iron ore,a 2.3 terawatt-hour(TWh)per year power purchase agreement(PPA)with a major energy company,and offtake contracts with customers guaranteeing around 1.5 billion in

165、demand.The plan was initiated to replace an existing plant at end-of-life and will lead to a 95%reduction in emissions per unit of steel.Limited supply of scrap metal both in quality and quantity:All sector stakeholders e.g.operator,recyclers,together with construction companies and governments can

166、provide kickback contracts for end-users providing steel,or volume-based discounts on future steel based on scrap steel recovered.Long-term development of improved technologies should also be pursued.Indeed,a similar collaborative approach focusing on demand signals has already successfully been dev

167、eloped for future steel technologies by the First Movers Coalition initiative,while wider,long-term demand-side interventions can be found in the Mission Possible Pathways Making Net Zero Steel Possible report.Transforming Energy Demand21Case study backgroundMahindra has publicly pledged to double e

168、nergy productivity by 2030(2009 baseline)and to net zero by 2040ImplicationsAttractive business cases exist for sustainable technology investmentSignificant improvement can be driven through widespread incremental changesNew facilities can use efficient technologies to ensure low intensity from day

169、oneBlockers and unlockersTaskDrive operational efficiency improvements to support goalsActionsResultsEnergy efficiency increase from a 2009 baselineEnergy transition planPath to sustainable energy efficiency CASE STUDY 1Mahindra:Indias largest auto manufacturer by product volume TagsRegionSectorFocu

170、sIndiaIndustryEnergy efficiencyBusiness caseEnergy diagnosticEnergy intensity tracking&monitoringDefine goals:Enhance energy efficiency and consumption across Mahindras operationsEstablish baseline:Analysed existing energy consumption and carbon emissions.Identified areas with high energy useIdentif

171、y Gaps:Assessed areas where energy-saving opportunities exist.A.Small-scale projects:Switched off lights when not in use Transitioned to energy-efficient LEDs.Implemented process changes (e.g.DC motors for higher efficiency)B.Larger high-impact projects:Integrated hybrid solar HVAC systems Compresso

172、r heat recovery Energy efficient equipment such as brushless direct current fans and electronically commutated blowersGHG mitigation(FY2023)Energy conserved(FY2023)Efficiency increase Investment(FY2023)Cost savings(FY2023)11,000 tCO2e 80,000 gigajoules95%in 2023 from a 2009 baseline (automotive divi

173、sion)INR 80 millionINR 100 millionBlockerUnlockerUpfront equipment investment costsHighlighting the financial benefits,with typical payback of 1-3 yearsConcerns about plant shutdowns and impacts on qualityGaining top-level executive commitments to energy intensityAbsence of effective regulations and

174、 limited impact of carbon pricingReportingenergy efficiency progress202020212022202370%45%60%58%55%61%95%87%AutoFarmDeploy strategies:2341Source:IBC member interviewsTransforming Energy Demand22Case study background Aramco has a strong existing focus on energyintensity through its corporate energy p

175、olicy.Historically,Aramco had been purchasing powerfrom the National Power grid,which had a standard grid energy efficiency.ImplicationsEnergy intensity projects should be examined for revenue as well as cost opportunitiesPartnerships and clustering can help to deliver change where there is an insuf

176、ficient business case to drive action alone(e.g.via joint ventures)Digitization offers the opportunity to further continually optimize CapEx-led solutionsBlockers and unlockersTaskIncrease the efficiency and reliability of thecompanys industrial energy supply to support energypolicy goals.ActionsRes

177、ultsCorporate energy intensityEnergy intensity measurement and reportingPartnership for cogeneration transformationCASE STUDY 2Aramco:majority state-owned energy company(listed)TagsRegionSectorFocusSaudi ArabiaIndustryValue chain collaboration;energy efficiencyEnergy transition planBusiness caseHoli

178、stic energy analysis Conducted holistic energy analysis to understand current energy use.Strategy development Developed a comprehensive master energy plan to deliver on the corporate energy policy.This included the installation of combined heat and power plants(cogeneration units).Partner identifica

179、tion Identified joint venture and third-party partners to optimize current and future power project needs.This ensured better asset management.Installation of cogeneration (cogen)units Installed 17 cogeneration facilities for reliable,high-efficiency energy generation.Upgraded power blocks for inter

180、nal energy self-sufficiency in power and heat.Ongoing optimization Installed digitized monitoring for all cogen units Developed optimization solutions,including CHP software Applied CHP software to 45 cogen units across 17 facilities.This maximized efficient cogen unit operation by aligning output t

181、o current and planned need,avoiding excess steam generation.BlockerUnlockerCogeneration units are highly complex,risking energy wasteExtensive data analysis prior to installationOngoing digital performance monitoringCreation of custom software to optimize operationsHigh cost of installation and pote

182、ntial downtime during installationAbility to use wasted natural gas from operations as a fuelDesign of commercially-driven business model that enables efficient wheeling of excess power to facilities without cogeneration assets,generating revenue20112022-23%23451Achieved a total high-efficiency powe

183、r output of 5.3 GW and exported surplus power to the national grid.CO2 emissions3Notes:1 Total energy intensity has steadily reduced,driven by both the cogeneration programme and several other energy management programmes 2 British thermal unit/barrel of oil equivalent 3 CO2 emissions reduction driv

184、en solely by cogeneration programme7 million tonnes/year reduction148 BTU/BOE2113 BTU/BOE1Transforming Energy Demand23This sector represents about 30%of global energy demand and approximately one-third of global GHG emissions.This energy is used in construction,heating and cooling(around 50%),lighti

185、ng(around 20%),and operating appliances and equipment installed in them(around 20%).18,19,20 Interventions have been identified that could reduce building energy intensity approximately by 38%,reducing overall global energy demand by 12%.Buildings4.2The opportunityEnergy impact of individual interve

186、ntions in buildingsFIGURE 1575%70%65%60%55%50%45%40%35%30%25%20%15%10%5%0%SavingsEfficiencyVarious time periods,geographies Collaboration46%46%34%Notes:Data represents the impact of individual interventions on a subset of energy use(e.g.the impact of LED lights on lighting energy intensity),not the

187、impact on buildings energy demand or global energy demand as a whole.Blue datapoints represent the median impact of individual interventions.Datapoints used come from a combination of IBC member case studies and wider research.Transforming Energy Demand24Energy demand interventions in buildingsFIGUR

188、E 16Energy savingEnergy efficiencyDemand interventions in buildings123 Adjusting room temperatures closer to external conditions Closing under-used space Turning off unused assets(e.g.lights,equipment)Whole building retrofit(including roof,walls and windows)Digitalization of building management syst

189、ems Installation of efficient HVAC equipment Electrification of heat LED lighting Replacement of old equipment(puters)District heating and cooling systems Enhanced circularity(including on-site energy production and storage solutions)and greener material use Changes to building design District energ

190、y management systems Demand response programmesValue chaincollaborationWhile energy savings are applicable in all buildings,energy efficiency and collaborations can be classified into interventions that improve energy intensity of existing buildings(retrofitting),new buildings(green buildings)and re

191、moval of old buildings(end-of-life).In EMDE,there should be far more focus on building codes as most population growth is expected there and mainly in cities.Two thirds of the required new buildings are in countries that currently lack building energy codes.21 Cooperation between the public and priv

192、ate sector is key both to fund retrofit programmes and to secure green building uptake,including integrating green and distributed energy systems.For example,real estate developers in Brazil have engaged in retrofit projects such as energy-efficient lighting and integration of smart building systems

193、 for commercial office buildings to meet the increasing demand for modern and sustainable workspaces.Transforming Energy Demand25 Impact of interventions on existing buildings energy demandFIGURE 172022 energy consumptionImpact of making no energy efficiency progress2030“no efficiency”scenarioImpact

194、 of achievable interventions2030 achievable energy demandImpact of ambition interventions2030 ambition energy demand992912950791564Size of the prizeThis potential will continue to grow as AI solutions become more develop and prevalent.An example of an already existing energy savings intervention usi

195、ng AI is in HVAC,where installation of AI-driven HVAC management software for existing equipment can lead to reductions in HVAC energy use of up to 25%.Beyond reducing energy intensity,retrofitting has the potential to provide broader socioeconomic benefits such as reducing staff sickness by 20%,imp

196、roving employee productivity(up to$7,500 per person per year)and the creation of 3.2 million new jobs per year.24,25 Additionally,asset values of retrofitted buildings increase by approximately 15%,allowing for rental premiums.Energy demand interventionsRetrofitting is a disaggregated set of interve

197、ntions.Most are CapEx-led energy efficiency types,based on installation of higher efficiency systems,equipment and building materials(see case study 3 for examples).New business models are emerging based on more distributed energy sources,particularly for district heating and cooling.For instance,th

198、e City of Paris district cooling network,operated by Fracheur de Paris,plans to cut CO2 emissions by up to 50%with forecasted sales of 2.4 billion over the 20-year concession contract period.Wider value chain cooperation is required to retrofit buildings at scale and turn them into key actors of the

199、 energy system.Retrofitting is the key intervention available to drive meaningful impact,quickly.This is because,globally,75%of buildings that will be standing by 2050 already exist.22 Moreover,energy used for building occupation represents about 70%of buildings energy consumption.23Detailed sector-

200、specific example:building retrofittingContextSource:IEA,World Energy Outlook 2023,2023.Transforming Energy Demand26Cashflows and financing:Designing customized green leasing and financing products that enable easy payback at lower costs would support uptake:Launch of zero-interest energy efficiency

201、programmes with customers paying the loan through energy bills with a maximum payback period of five years for insulation.26 Support the growth of the energy-as-a-service model with no upfront cost and sharing of energy benefits between the payor and the supplier and co-investment models between dwe

202、llers and tenants.27 Lack of agency and desegregation are other key barriers.Creating clusters between insurance companies,property owners and retrofitters to create risk insurance will allow businesses to bundle interventions and improve agency,thus increasing the transfer of risks for retrofitting

203、 to insurance companies.Energy savings insurance can enable business models for SMEs with limited balance sheets and limited ability to provide guarantees,even though the quality of their project work may be high.28Develop a local retrofit network to upskill workers and secure critical material:Coop

204、erate at local levels with cities,universities and technical schools to ensure a pool of skilled resources.Cooperate with local industrial clusters to create critical material supply availability and circularity(including recycling).Green buildingsBOX 2Collaborations to overcome barriers to actionDe

205、signing lower-intensity buildings is a key part of the energy transition,as cities are expected to grow around 50%by 2050.This will be particularly significant in EMDE,where 80%of the growth in buildings is expected.Key aspects of green building design include the use of lower-intensity materials,hi

206、gh levels of insulation to allow for passive heating,design to align buildings for maximum natural light absorption,as well as electrified heating and cooling.Combined,these can additionally reduce building running costs by approximately 40%.29The major barriers to the uptake of green buildings are

207、increased cost(around 15%or more for residential and 3-5%for commercial30,31)compared to traditional buildings,as well as limited awareness of the principles or benefits.Companies can address this challenge by securing guaranteed energy demand offtakes from corporate buyers,including by considering

208、the total cost of ownership rather than the initial cost only.Widespread change would also likely require government intervention in standards and building codes(see government leadership section)Transforming Energy Demand27Case study backgroundIn 2017/18,Schneider Electric acquired an existing,25-y

209、ear-old,multi-tenant building to be its new East Asia and Japan headquarters.ImplicationsPotential to reduce energy intensity in buildings regardless of size and ageDigitizing buildings enables flexible retrofitting for multi-tenant propertiesGovernment engagement can help overcome financial barrier

210、s and raise awarenessBlockers and unlockersTask Transform the office into a sustainable facility Demonstrate retrofitting expertise and savings Support the companys climate goalsResultsElectricity consumption decrease from 2018-2020Energy intensity measurement&reportingSingapore headquarter retrofit

211、tingCASE STUDY 3Schneider Electric:global building technologies company focused on digital automation and energy managementTagsRegionSectorFocusSingaporeBuildingsEnergy efficiencyEnergy management system Government engagementBlockerUnlockerExisting inefficient buildings pose structural challengesDep

212、loying various digital solutions to overcome and adapt limitationsDiverse tenant needs create varying energy demand challengesSoftware-managed system balances energy use in building enabling the different entities to balance out their energy useVariable engagement in energy intensity from tenantsEng

213、agement with tenants to understand needsPolicy support from Singaporean government to increase attractiveness(grants,information,certification)20182020-45%ActionsAssess existing footprint:Assessed current energy use across four sites and concluded a consolidation would align with corporate energy go

214、als Selected a single site in Kallang PulseEvaluate new site:Evaluated the energy footprint of the new site,Identified major areas of energy loss and expenditure Decided on measures to implementLiaise with existing tenants:Worked with building tenants to understand energy use Designed customized ene

215、rgy solutions for existing tenants,aligned through a single building management systemInstall low-energy intensity equipment:Installed smart HVAC,LEDs,LED lighting systems Implemented onsite solar generation and storage for 100%renewable energyOngoing optimization:Deployed digital twin for energy mo

216、delling with occupancy and operations data Integrated real-time weather forecasts into the building management system for improved energy efficiency and performance23451Electricity consumptionWater savings per yearReduced 45%3,700m3Transforming Energy Demand28Transport constitutes the movement of go

217、ods and people(excluding off-road industrial vehicles).It represents 26%of global energy demand and 21%of GHG emissions.32 This study focuses on sector-specific examples in road transport and aviation,representing 76%and 10%of transport energy consumption,respectively.33 Interventions have been iden

218、tified that could reduce the energy intensity of processes by up to 90%.If widely applied,they would reduce energy intensity of transportation by 21%,resulting in a 5%reduction in overall global energy demand.Transport4.3The opportunityEnergy impact of individual interventions in transportFIGURE 189

219、0%85%80%75%70%65%60%55%50%45%40%35%30%25%20%15%10%5%0%SavingsEfficiencyVarious time periods,geographies Collaboration38%14%33%Note:Data represents the impact of individual interventions on a subset of energy use(e.g.the impact of moving from business class to economy class travel),not the impact on

220、transport energy demand or global energy demand as a whole.Blue datapoints represent the median impact of individual interventions.Datapoints used come from a combination of IBC member case studies and wider research.Transforming Energy Demand29Energy demand interventions in transport FIGURE 19Energ

221、y savingEnergy efficiencyDemand interventions in transport123 Modal shifting away from higher energy intensity forms of travel and use of public transport More efficient driving Traffic management Switch to smaller vehicles or reduce vehicle weight Switch to newer,more efficient vehicles Optimised r

222、outing planning and automation Electrification of transport Switching to renewable fuels,including SAFValue chaincollaborationTechnically and economically viable interventions are available that can reduce energy intensity of individual transport activities today.Applicability varies,with savings an

223、d efficiency broadly available globally,whereas fuel switching will only be possible where supporting infrastructure exists(e.g.grid capacity for EVs).However,these interventions can have a significant impact while the bigger,“gamechanger”interventions are being developed (e.g.electric aeroplanes).T

224、his similarly applies to applications of AI,which has already been used to optimize use of freight capacity in road transport,reducing empty space in trucks by combining loads and owners.This reduces the number of trucks needed overall in the network,and so energy intensity of transport.This type of

225、 solution can be deployed now while new AI applications are developed longer term to drive more transformative change.In total,94%of the projected growth in transport energy use occurs in EMDE.However,the lack of reliable grid capacity makes vehicle(mainly two and three wheelers)electrification comp

226、lex and inhibits cost parity for low-intensity transport options.To encourage electrification uptake,collaboration between all stakeholders is key to support grid expansion,green energy supply and adequate public transport.Businesses can take the lead on transition of systems by switching their own

227、fleets,as is being done by some taxi companies.Companies can also capture low-hanging opportunities to improve intensity by moving to more efficient vehicles and alternative fuelsIn Kenya,a start-up is electrifying bikes through the gradual rollout of battery-swapping stations.The start-up is paying

228、 around a third of the price for new electric bikes,while customers pay a daily subscription for the outstanding balance and access to battery-swap stations.Profits for motorbike and scooter drivers are around$6-11 a day since joining the scheme.Transforming Energy Demand30Aviation is a fast-growing

229、 area of energy use,with passenger travel forecast to grow at approximately 4%per annum,39 driven by population expansion and increased global wealth.Without a viable alternative to jet fuel,actors across the value chain can work to drive change through energy savings and energy efficiency measures.

230、This can include changes to travel policy to encourage the use of less energy-intensive options,like rail.This can be complemented by using carbon footprint travel budgets and compensation metrics,including data in booking platforms and educating employees to drive behavioural change(see case study

231、3).Manufacturers and airlines can prioritize weight reduction and replacement of older aircraft with more efficient,modern models.There is potential for governments and industries to collaborate on identifying solutions to address this issue and improve the financial case for more efficient flight.S

232、ustainable aviation fuels(SAF)present an opportunity to abate the remaining energy use,using existing infrastructure and reducing upfront investments to drive change.The main limitation of SAF is supply of input feedstock from waste sources increased cost compared to standard jet fuel.Offtake agreem

233、ents can help to create new demand,enabling the SAF market to scale.Businesses such as Boston Consulting Group(BCG)have committed to replacing 5%of its conventional jet fuel with SAF by 2030 and have signed offtake deals with airlines,fuel producers and coalitions such as the Sustainable Aviation Bu

234、yers Alliance.Detailed sector-specific example:EV rolloutAviationBOX 3The opportunityCollaborations to overcome barriers to action(passenger vehicles)It took Norway over 20 years to reach the point where most cars sold were electric,and the proportion now tops 80%.34 Electric cars are now cheaper(ar

235、ound 33%price decrease 2010-19),35 more available,and have better ranges(2.7 times average increase from 2010-2136)than ever before.As a result,EV rollout is occurring faster than ever.Electrification drives both lower emissions and efficiency,as EVs can be up to approximately 50%more efficient than

236、 ICE vehicles,37 with the impact on emissions being amplified if input electricity is low-or no-carbon.Full electrification could lead to a reduction in global transport energy demand byupto 22%.While this is a significant opportunity,it should be noted that electrification is still nascent for heav

237、y vehicles,which make up around 38%of emissions;38 freight accounts for 78%of heavyvehicles.Additionally,the viability of electrification is currently lower in the Global South due to grid capacity.Companies in all countries can act now though,reducing energy intensity through using more efficient v

238、ehicles,and emissions intensity through alternative fuels.Infrastructure and charge point availability are key barriers.Only markets with large and flexible grid capacity,ideally with renewable energy supply,are well suited to rollout.Permitting and grid connections for charge points are often compl

239、ex,resulting in slow rollout.Energy companies,finance and government can improve the ease of grid connections by targeting planning and development of grid energy capacity and flexibility,including through distributed energy generation and storage solutions.They can lobby for simplified and prioriti

240、zed planning processes for grid connections.They can also provide private capital and labour to support grid connection creation.Financing and energy companies can create products to accelerate charge point rollout both at homes and in commercial locations.Charge point operators can work with real e

241、state owners,energy companies,finance and governments to accelerate charge point rollout by identifying attractive locations with existing parking space for further rollout(e.g.supermarkets,workplaces,hotels)and offer installation with shared revenue models.Affordability is another challenge.To enco

242、urage fleet adoption and overcome concerns about affordability,car manufacturers and other stakeholders can run informational campaigns on the relative benefits of EVs and options available.Co-investment from fleet owners,government and manufacturers to subsidize the uptake of vehicles through reduc

243、ing upfront costs or total cost of ownership.EVs can be up to approximately 50%more efficient than ICE vehicles.Transforming Energy Demand31Case study backgroundKearney is the first global consulting firm with SBTi-approved near-and long-term net-zero emissions reduction targetsImplicationsContinuou

244、s monitoring and progress tracking helps make informed decisionsDemonstrates impact of low-cost changes without restricting growthBlockers and unlockersTaskReduce air travel,to support achieve a 30%absolute reduction in scope 3 business travel emissions by 2030,in line with SBTi near-term targetsRes

245、ultsFlights per employeeBehavioural changeModal shifting via employee incentives CASE STUDY 4Kearney:Global management consultancyTagsRegionSectorFocusGlobalTransportEnergy savingsSenior leadership buy-inInformed decision-makingDouble-digit business growth while reducing flights per employee by 50%B

246、lockerUnlockerLack of real-time third-party carbon calculatorsDeveloped an in-house carbon tracking solutionEmployee engagement levelsImplemented employee feedback mechanismsCollaborated with suppliers for IT integrationEmployed a targeted communications strategy with transparencyStrong on-site work

247、ing mindsetWorking with teams in hybridformats20192022-50%ActionsBaselining:Established the baseline level of business travel activity across the firm Build guiding policies:Global travel policy Varied this locally based on available travel infrastructure Pushed communication on policy changes and r

248、easoningGlobal level:Implemented air travel dashboards at office level Promoted hybrid and remote workingLocal level:Country-specific policies and initiatives to promote sustainable travel(e.g.carpooling between employees).Track,monitor and grow:Ongoing tracking and reporting to drive transparency R

249、eviewed policies with employees Planning for an internal carbon price in 20242341Source:IBC member interviewsDevelop effective initiatives:Transforming Energy Demand32Government leadership5Governments can drive change through energy transition plans,public-private collaboration,and sector-specific r

250、egulation,incentivization and information.Governments have already begun to increase focus on energy demand,with ore than 120 countries pledging to double the average annual rate of energy efficiency improvement.To be effective,policy-makers need to build on the traditional tools of taxes and subsid

251、ies and increase the focus on the enabling environment,targeting individual sectors or even specific initiatives within sectors.There are number of high-level and specific actions that all governments can take to drive the transition.The majority of countries have set net-zero targets or committed t

252、o doubling the global energy efficiency annual rate of improvement.However,they are not routinely supported by a detailed delivery plan,let alone a detailed energy transition plan.The existing plans are typically long-dated(2040 or beyond)and focus on the source of energy while largely ignoring meas

253、ures to better manage energy consumption.It is therefore recommended that all governments produce energy transition plans that focus as much on energy demand as energy supply.The necessary characteristics to include are set out in Figure 20.Energy intensity policy recommendationsFormulate an energy

254、transition plan Main demand-lens characteristics and actions to integrate in an energy transition planFIGURE 20Convey a clear ambition and path for energy intensity Define ambitious targets overall and per sector linked to broader global goals(e.g.doubling the rate of energy efficiency improvement).

255、Prioritize achieving change in own operations Identify areas to reduce energy intensity and,where this is not possible,focus on reducing carbon intensity Create a centralized delivery/coordination team composed of both public and private actors with executive assessment and decision-making rights.Fo

256、cus on improving awareness among society via:Transparent,public data tracking Public benchmarks of expected performance by industry.Provide clear guidelines on performance and support permissible activities that promote lower energy intensity through:Mandated,funded energy audits Inclusion of energy

257、 intensity into green certification programmes Liberalize energy markets to allow captive generation,energy wheeling and dynamic pricing Simplify permitting processes for supporting infrastructure(e.g.grid and supply development)Upskill workforce for delivery.Set both positive and negative incentive

258、s for action,including:Carbon and energy taxes Tax relief on energy efficiency investments Certification schemes for best practice.Energy transition planningLeadInformRegulateIncentivizeTransforming Energy Demand33EMDE and developed economiesChallenges and opportunities related to implementing energ

259、y transition plans vary widely across geographies.The political and economic cost of implementation will also vary significantly depending on the specific energy supply and demand situation of each economy.In developed economies with large,diverse sources of upstream energy and dense,integrated tran

260、smission grids,it makes sense that the push to decarbonize focuses largely on adding large-scale renewables to the current grid.At the same time,there are clear inherent benefits to pursuing energy intensity reduction.This is because,by reducing energy intensity,output can increase for the same or l

261、ower amounts of energy.This limits total energy costs,supporting profitability and maintaining competitiveness.In contrast,in EMDE markets with more limited energy sources and limited grid in terms of scale and connectivity,combining economic growth alongside measures to manage energy consumption an

262、d secure supply is critical.There is an urgent need for the public sector to shape and drive local,highly adapted energy transition plans.An example of successful EMDE policy planning is Indias UJALA programme.In 2015,India recognized significant levels of wasted energy and cost in domestic lighting

263、,which represented 27%of domestic energy due in part to the fact that only 0.4%of the installed lighting base were efficient LEDs.Uptake was prevented by the high cost of LED bulbs,even though they use 75%less energy and lasting around 25 times longer than incandescent bulbs.The government overcame

264、this barrier in four ways:Created a tender for large-scale LED bulb procurement Signed offtake value chain agreements with state governments and utilities to distribute bulbs Provided two payment options:upfront and on-bill repayments through electricity bills Built swap schemes for rural households

265、 where one LED bulb could be swapped for a working incandescent bulb.Creating economies of scale for LED bulbs lowered upfront costs per bulb to as low as$0.8.This drove the uptake of more than 1.15 billion LED light bulbs by 2020,resulting in annual savings of over$2.5 billion and around 47 billion

266、 kilowatt hours(kWh).40 This is an example of the opportunity that EMDE have:to“leapfrog”from higher-to lower-intensity technologies,avoiding the incremental retrofit changes that developed economies had to pursue over time.This applies across each of the BIT verticals:Variations in public sector ac

267、tions applicability in EMDEFIGURE 21IndustryExamples of public sectoractions Increase grid reach to promote electrification of heating,smelting and extraction Introduce MEPS for electric motors across sectors Disseminate information and regulations regarding EnMS useBuildingsExamples of public secto

268、ractions Launch awareness campaigns(standards and regulations)Design and enforce building codes(MEPS)and launch large retrofit programmes(starting with public buildings)Invest in grid capacity for modular/micro-grid solutions and standardize permitting Support workforce upskillingTransportExamples o

269、f public sectoractions Enable electrification of two-and three-wheelers,enabled by distributed energy solutions Enforce minimum fuel standards for vehicles Improve public transport provision to enable modal switchingCase studyFrom 2015-2017,the Mexican government undertook the CONUEE programme to pr

270、omote EnMS among SMEs.This involved the dissemination of information and training of workers on EnMS.The outcomes of these initiatives were annual energy savings of 57.7 gigawatt hours(GWh),14.8 kilotonnes(kt)of CO2 reduction in emissions,$5 million saved in energy costs,and improvements in product

271、quality and overall productivity.Source:Asia Pacific Energy Research Centre,Compendium of Energy Efficiency Policies in APEC,2017.Transforming Energy Demand34Inform,regulate and incentivize at a sector-specific levelWithin each vertical,governments can take action to use and encourage the levers pre

272、sented in this paper and can collaborate with the private sector to overcome barriers to action.Figures 22,23 and 24 represent a non-exhaustive selection for further discussion.Identified actions for“industry”to integrate the energy consumption-lens of energy transition planningFIGURE 22Collaboratio

273、n Launch industry information campaigns on available technology and best practice to drive behavioural change.Introduce energy intensity labelling for machinery and processes.Create public benchmarks of expected energy intensity levels by industry to highlight underperformance,increase awareness and

274、 drive action.Standalone actions Mandate procurement of lower-energy materials and products in government procurement processes e.g.through carbon contracts for difference.Introduce minimum energy performance standards(MEPS)across industries.Provide energy audits.Introduce non-energy benefits to pol

275、icy business cases.Promote the uptake of energy manage-ment systems(EnMS),energy measure-ment and management frameworks(e.g.ISO 50001).Collaboration Legislate to increase barriers to higher-in-tensity steel purchasing for companiesStandalone actions Build in tax relief on investments into energy eff

276、iciency e.g.faster equipment amortization.Collaboration Provide funding for scrap steel recovery,including from governments own products.Provide funding and structures for collaboration between industry players.IndustryInformRegulateIncentivizeEconomies such as the EU,the US,Canada and Japan have in

277、troduced minimum energy performance standards(MEPS)for industrial electric motors.These require that all motors are switched to IE3 or higher in the international efficiency(IE)standards.This switch contributed to an approximate 20%reduction in energy consumption in the Japanese manufacturing sector

278、 between 2000 and 2012.41Example of public sector action:industryTransforming Energy Demand35Identified actions for“buildings”to integrate in a demand-lens energy transition planFIGURE 23Collaboration Launch public awareness campaigns.Mandate digital public tools to track energy consumption.Publish

279、information on building performance and standards.Standalone actions Create minimum efficiency building codes for houses and commercial buildings that increase over time.Legislate to require green building design across new builds to align with a zero-carbon world.Shorten administrative procedures,i

280、ncluding permitting.Legislate to require scrap steel to be provided from any building at end-of-life.Standalone actions Allocate programmes and dedicated funding for widespread retrofitting interventions andelectrification.Collaboration Provide support for the creation and provision of green mortgag

281、es to fund retrofitting.Invest in local energy communities to generate jobs and economic growth,as well as in critical material and recycling hubs.BuildingsInformRegulateIncentivizeIn 2010 the California Public Utility Commission42 launched a zero-interest financing programme to fund energy efficien

282、cy investment and assist non-residential energy customers to retrofit buildings.Since August 2023,the programme also supports purchase for water heat pumps and EV charging infrastructure.Customers pay the loans(ranging from$5,000 to$4 million)through monthly instalments on their energy bills with a

283、maximum payback period of five years.Example of public sector action:buildingsIdentified actions for“transport”to integrate in a demand-lens energy transition planFIGURE 24Collaboration Set government travel policies to support lower intensity transport use.Standalone actions Reduce average vehicle

284、size/weight allowances.Collaboration Implement policies and incentives that support the uptake of zero-and low-emission vehicles(such as EVs).Set mandatory low-emissions zones in cities.Review planning legislation to ensure charging points have a priority focus.Review grid infrastructure planning to

285、 ensure sufficient electrical capacity and connection points for EVs.Use of demand-based signals for phase-out of higher emission vehicles,timed in collaboration with private actors.Standalone actions Invest in public transport,including expanding existing cities to allow for modal shifting.Invest i

286、n optimized route planning for all local and national fleet vehicles.TransportInformRegulateIncentivizeThe shift from internal combustion engines(ICE)to EVs in Belgium now around 50%of the new vehicles market was accelerated through the use of tax incentives for company cars.The programme included t

287、he gradual phasing out of the tax deductibilityfor ICE by 2028 in favour of EVs(which maintain100%deductibility)as well as providing 200%tax deductibility for charge points in the first years for uptake.43Example of public sector action:transportTransforming Energy Demand36ConclusionTransforming ene

288、rgy demand needs to be as much a focus of global effort as transforming energy supply to accelerate the energy transition and deliver commercial benefit.To realize the promise of such efforts,businesses should:Baseline energy use,ensure direct central accountability and develop a programme to increa

289、se efficiency across the three levels.Embed this exercise and target setting into a full energy transition plan covering self-help and collaboration with the supply chain.Examine energy costs and the opportunities to drive change.Commit to energy intensity targets(e.g.doubling the rate of energy int

290、ensity improvement).Engage with policy-makers to develop detailed policy frameworks and energy transition plans,in particular,to remove current blockers to action(e.g.access to financing).The IBC will continue to explore ways in which the energy demand agenda can be progressed,moving into a second p

291、hase of the project in 2024.Transforming Energy Demand37AppendixModelling methodologyA1Modelling aim Quantify the potential impact(size of the prize)that energy intensity interventions can have if implemented over a theoretical timescale.Approach1.Identify the impact of an individual intervention on

292、 a verticals energy consumption.a.Selection of sectors for detailed investigationi.Analysis was structured around three verticals:buildings,industry and transport(BIT),totalling 94%of global energy demand.ii.Sectors within these were chosen for detailed analysis based on sector energy consumption,se

293、ctor carbon emissions and relevance to International Business Council(IBC)members.iii.Final sectors selected:aviation,road transport,commercial buildings,residential buildings,mining and extractive,steel and iron,chemicals,and other industry.b.Identification of interventions and their impacti.Demand

294、-side interventions that reduce energy intensity were identified in each sector(e.g.energy management systems)that have been proven to have an impact in existing case studies.ii.Their impact on a subcategory of demand was determined based on examples from IBC members and wider desktop research,with

295、identified reductions in energy intensity reaching as high as 90%.c.Scaling of intervention impact to vertical leveli.Impacts were scaled to represent the total potential impact of an intervention on an entire vertical.ii.This was done by multiplying the impact identified in 1b together with the int

296、erventions applicability(i.e.the relevant portion of a verticals energy use)and the penetration(i.e.an estimate of the feasible level of adoption that an intervention could reach).I.For example,for the intervention of passenger vehicle electrification,impact=reduction of energy vs internal combustio

297、n engines(ICE)vehicles,applicability=proportion of road transport relevant to (i.e.light vehicles)and penetration=expected proportion of vehicles electrified.2.Calculate the combined impact of identified interventions on global energy intensitya.Selection of interventions to include in achievable an

298、d ambition casesi.Two modelling cases were defined:I.“Achievable”where we had a high confidence that the intervention was deliverable and where there was good impact data availability.II.“Ambition”,which adds further interventions on top of those in the achievable case that are more difficult to del

299、iver or where potential penetration rates were less certain.ii.Interventions were then sorted between these two cases,with any interventions that overlapped removed.b.Determination of total“achievable”and“ambition”impact by verticali.The scaled impacts of each intervention determined in 1c were summ

300、ed for each vertical to give an overall impact on energy intensity by vertical.c.Scaling of impact by vertical to total economyi.Energy intensity reduction was multiplied by the share of energy demand that each BIT represents in 2022 to give an overall reduction of global energy intensity for both t

301、he achievable and ambition cases.ii.An average intensity reduction is applied to sectors not considered in depth(defined as other)I.Average impact was calculated as a weighted average impact from other interventions in a vertical,or across verticals for the 6%of demand not in BIT.Transforming Energy

302、 Demand383.Examine the impact of this reduced energy intensity on energy demand scenariosa.Creation of“no efficiency”scenarioi.To understand the impact of these reductions in intensity over time,there needed to be understanding of what total energy demand would be in the future if no improvements we

303、re made in global energy intensity.I.Forecasts of energy demand based on historical trends in energy intensity(or existing policies)could not be used in order to avoid overlap with identified interventions.ii.A“no efficiency”scenario for energy demand in 2030 was calculated by removing energy intens

304、ity improvements from the International Energy Agencys stated policies scenario(IEA STEPS)(i.e.current policies)scenario.I.2030 was selected to illustrate what could happen if the interventions were implemented by this point,rather than suggesting that all interventions definitively can be delivered

305、 by this point.b.Application of intervention impacts to 2030 “no efficiency”scenarioi.Energy intensity reductions calculated in 2c were multiplied by forecast 2030 energy demand from 3a.ii.This was then subtracted from current demand and expected demand growth under current policies(IEA STEPS)to ide

306、ntify the absolute energy demand change under“achievable”and“ambition”scenarios.c.Modelling of 2022-30 energy demand in“achievable”and“ambition”conditionsi.Growth in demand was modelled linearly from current demand to illustrate potential overall progression in energy demand to 2030 if identified in

307、terventions were to be implemented.ii.This assumes a linear rate of improvement.4.Estimate the impact of this reduction on energy spending and need for energy generation capacitya.The cost per unit of energy in 2022 was calculated based on IEA spend and energy demand data.b.This was multiplied by th

308、e absolute change in energy identified in 3b to give an illustrative level of energy saved.i.Cost per unit energy based on current spend on energy divided by current energy demand.This therefore assumes the average price per exajoule(EJ)to stay the same over the period.c.The energy output of a power

309、 station was modelled based on available desktop research data.i.The energy output of a power station is based on the average energy output of a coal power station.d.The absolute change in energy identified in 3b was then divided by this figure to give an illustrative level of new power stations avo

310、ided.Limitations The aim of this modelling was to illustrate the potential energy demand reduction through demand-side intervention,rather than being a detailed industry analysis.Not all sectors are modelled in detail sectors were selected based on energy demand,carbon emissions and IBC member prese

311、nce.Within sectors,selected interventions are covered in depth,where impact and applicability can be confidently quantified,and the impact of interventions does not overlap with others.Impacts are based on a variety of sources,including the IEA and company websites,in addition to primary research.Im

312、pacts for the wider economy are modelled to be achieved in line with these case studies.Intervention impacts assume no technological improvements between now and 2030.This may be conservative based on historic improvements,so actual reductions in energy intensity could be greater.A penetration value

313、(i.e.scaling of the impact of intervention based on expected feasibility)is applied to all interventions based on our understanding of possible rollout by 2030 e.g.assuming the proportion of steel production that will switch to scrap-electric arc furnace method.Where sectors are not covered in detai

314、l,an assumed impact is used based on the average impact from sectors covered in detail within the vertical(industry,buildings or transport).For the proportion of energy demand not covered by the three verticals,a weighted average impact is applied.The“no efficiency”scenario in 2030 is based on the I

315、EA STEPS scenario and the assumptions underpinning it with energy intensity improvement removed.Subsequent achievable and ambition models implicitly rely on the STEPS scenarios population and economic growth assumptions.Transforming Energy Demand39ContributorsAcknowledgementsWorld Economic Forum Rob

316、erto Bocca Head,Centre for Energy and MaterialsRamya KrishnaswamyHead,Institutional Communities Gabriele LiottaLead,Public Policy,Strategic Initiatives,Institutional CommunitiesEspen MehlumHead,Energy Transition Intelligence and Regional AccelerationBiggie TanganeSpecialist,Strategic Initiatives and

317、 Institutional CommunitiesPwCJohn Butterworth Senior Manager,Project ManagerCatriona Campbell Senior AssociateMalle GomezSenior Manager,World Economic Forum FellowPenny Maloney AssociateNii Ahele Nunoo Manager,World Economic Forum FellowRobert Turner Partner,Project LeadCharles WhitehouseSenior Asso

318、ciate Companies engaged with as part of evidence gathering:Overall International Business Council(IBC)member organizations engagementABBAccentureAfrican Rainbow MineralsAgilityAllianz Aramco Bain&Company Banco Santander Bank of AmericaBASF BBVA Boston Consulting Group(BCG)bpChevronCisco SystemsDell

319、TechnologiesDowEnelEniEYGIC HEINEKENHoneywellHubert Burda MediaInfosys Ingka GroupKearneyLippo GroupMahindra GroupManpowerGroupMerck GroupMUFGNomura HoldingsOccidental PetroleumOlayan Financing CompanyPalo Alto NetworksPwCTransforming Energy Demand40Repsol Royal PhilipsS&P GlobalSalesforceSAP Schnei

320、der ElectricSiemensStandard Chartered BankSumitomo CorporationSumitomo Mitsui Financial Group(SMFG)Suntory HoldingsSwiss Reinsurance Company SyensqoTD Bank GroupTencent Holdings The Coca-Cola CompanyTotalEnergiesUnileverVattenfall Yara InternationalNote:Overall engagement includes one-to-one senior

321、leader consultations,workshop attendance,chief executive officer survey responses,detailed demand survey responses and in-person conversation.This report was prepared by the IBC chaired by Banco Santander,the World Economic Forum and PwC,who functioned as knowledge partners to the initiative.This in

322、itiative was led by:Ana BotinExecutive Chairman,The Santander Group;Chair,International Business CouncilBob MoritzGlobal Chair,PwC;Olivier SchwabManaging Director,World Economic ForumA chief executive officer and chair-level advisory group provided strategic guidance on this initiative.Members inclu

323、ded:Ana Botin Executive Chairman,The Santander Group;Chair,International Business CouncilClaudio Descalzi Chief Executive Officer,EniPeter Herweck Chief Executive Officer,Schneider ElectricMasayuki Hyodo Representative Director,President and Chief Executive Officer,Sumitomo CorporationJosu Jon Imaz

324、Chief Executive Officer,Repsol Ilham Kadri Chief Executive Officer and Chairman of the Executive Committee,SyensqoManny Maceda Chief Executive Officer,Bain and Company Bob Moritz Global Chair,PwCPatrice Motsepe Founder and Executive Chairman,African Rainbow Minerals Douglas L.Peterson President and

325、Chief Executive Officer,S&P Global Patrick Pouyann Chairman of the Board and Chief Executive Officer,TotalEnergies Christoph Schweizer Chief Executive Officer,BCG Anish Shah Managing Director and Chief Executive Officer,Mahindra Group Bill Winters Group Chief Executive,Standard Chartered Bank A numb

326、er of senior leaders provided expertise on this initiative,including:Elvira Calvo AdiegoSustainability Business Transformation Head,BBVA Fahad Al-DhubaibSenior Vice-President,Strategy and Market Analysis,AramcoLucas AranguenaGlobal Head,Green Finance,Banco Santander Kenta AshidaHead,Climate Change A

327、dvocacy,Corporate Sustainability Department,SMFGJames BairdAssociate Partner,Bain&CompanyTransforming Energy Demand41Olivier BlumExecutive Vice-President,Energy Management and Member of the Executive Committee,Schneider ElectricArne CartridgeSpecial Adviser,Strategy and Business Development,Yara Int

328、ernational Luis CabraExecutive Managing Director,Energy Transition,Technology and Institutional Affairs,Repsol Lucas ChaumontetManaging Director and Partner,BCGPhilippe ChauveauHead,Climate Strategy,SyensqoBrian DamesChief Executive Officer,African Rainbow Energy and PowerAshiss DashExecutive Vice-P

329、resident and Global Head Services,Utilities,Resources and Energy,Infosys Suzanne DiBiancaChief Impact Officer,SalesforceRosanna Fusco Head,Climate Change Strategy and Positioning,EniChristophe GirardotVice-President,OneB2B Solutions,Transport and Logistics,TotalEnergiesRuth HarperChief Marketing and

330、 Sustainability Officer,ManpowerGroup Tomohiro IshikawaChief Regulatory Engagement Officer,MUFG Shigeaki KazamaExecutive Officer;Deputy Chief Sustainability Officer,Suntory HoldingsAlicia LenzeVice-President,Global Head,Sustainability Marketing,SAPNeil LoaderVice-President,Carbon Ambition,Strategy a

331、nd Sustainability,bpRobert MetzkeChief of Staff,Innovation and Strategy;Head,Sustainability,Royal PhilipsJudy MossierGovernmental Affairs Adviser,UBSSimon MulcahyPresident,Sustainability,TIMEJohn MurtonSenior Sustainability Adviser,Standard Chartered BankSushant Palakurthi RaoManaging Director,Globa

332、l External Relations,AgilitySaugata SahaPresident,S&P Global Commodity Insights,S&P GlobalRob Schwiers Chief Economist,Chevron CorporationDaniela SellmannGlobal Vice-President and Head,Energy and Utilities Industries,SAPTakayuki SumitaManaging Executive Officer,Assistant Chief Sustainability Officer

333、,Sumitomo CorporationMasayuki TakanashiGroup Chief Sustainability Officer,SMFGAnkit TodiLead,Group Sustainability Strategy and Partnerships,Mahindra GroupRobert TurnerPartner,PwCDaniel WomackGlobal Lead,Climate and Carbon Policy,DowThe work could not have been achieved without the support and cooperation provided by many government bodies,organizations and companies worldwide,notably the Internati