ICTs – The 98% Solution(s)

ICTs –The 98% Solution(s)

Stephen HarperStephen HarperGlobal DirectorGlobal Director

Environment and Energy PolicyEnvironment and Energy PolicyIntel CorporationIntel Corporation

Copenhagen COP 15Copenhagen COP 15December 2009December 2009

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Information and Communications Technology (ICT): Improving Quality of Life in Many Ways

Providing new modes of education and trainingProviding new modes of education and training

Improving the quality and availability of health careImproving the quality and availability of health care

Enhancing personal safetyEnhancing personal safety

Providing increased accessibility for people with disabilitiesProviding increased accessibility for people with disabilities

Increasing access to information about government and Increasing access to information about government and increasing increasing

Providing energy and environmental benefitsProviding energy and environmental benefits

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The Micro and the Macro StoryThe Micro and the Macro Story

Drive ComputingDrive Computingto Be More to Be More

Energy EfficientEnergy Efficient

Use Computing to Use Computing to Improve Energy Improve Energy Savings Outside Savings Outside Information and Information and Communications Communications

TechnologyTechnology98%98%

The Big The Big OpportunityOpportunity

~2%~2%**

Opportunity Opportunity

**Source: Gartner, 2007Source: Gartner, 2007

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“Macro Story” Evidence American Council for an Energy-Efficient Economy (ACEEE) American Council for an Energy-Efficient Economy (ACEEE)

studied this issue and concluded:studied this issue and concluded:• ““For every extra Kwh of electricity that has been demanded by ICT, the For every extra Kwh of electricity that has been demanded by ICT, the

US economy increased its overall energy savings by a factor of about US economy increased its overall energy savings by a factor of about 10…” (2008)10…” (2008)

The Climate Group and the “Global e-Sustainability Initiative” The Climate Group and the “Global e-Sustainability Initiative” published a report entitled, “published a report entitled, “Smart 2020: Enabling the Low Carbon Smart 2020: Enabling the Low Carbon Economy in the Information AgeEconomy in the Information Age” (2008), concluding:” (2008), concluding:

• Smart 2020 concludes that ICT strategies could reduce Smart 2020 concludes that ICT strategies could reduce up to 15% up to 15% percentpercent of global emissions in 2020 against a “business as usual” of global emissions in 2020 against a “business as usual” baselinebaseline

US Addendum to US Addendum to Smart 2020Smart 2020 report, prepared by Boston Consulting report, prepared by Boston Consulting Group indicates that ICT strategies could reduce US carbon Group indicates that ICT strategies could reduce US carbon emissions by emissions by up to 22 percentup to 22 percent by 2020 vs. business-as-usual by 2020 vs. business-as-usual

TAKE AWAYTAKE AWAY: ICT strategies offer huge potential for addressing : ICT strategies offer huge potential for addressing climate challengeclimate challenge

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Macro Story – Increasing the EE of Other SectorsMacro Story – Increasing the EE of Other Sectors

Industrial RobotsIndustrial Robots

Logistics for Logistics for TransportationTransportation

LEED Certified LEED Certified BuildingsBuildings

Smart MotorsSmart Motors

Smart Power Smart Power DeliveryDelivery

Video Video ConferencingConferencing

Online Online EntertainmentEntertainment

e-Commercee-Commerce

Paperless OfficePaperless Office

Converting Atoms Converting Atoms to Bitsto Bits

On-line BankingOn-line Banking

Digital Media Digital Media ContentContent

AutomationAutomation SubstitutionSubstitution De-MaterializationDe-Materialization

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Business

Transportation

IT control systems of machines/factories

HEMS、BEMS

Energy-saving home appliances LED/OEL illumination

Advanced automotive electronics

Ecological driving with ITS, ETC

More efficient distribution

with RFID tags

HomesTelecommuting, Videoconferencing, online sales, etc.

Industries

Power Electronics

IT infrastructure

Introduction of more energy

efficient IT devices/systems

Green by ITGreen by IT

Green of ITGreen of IT

Another View of Micro v. Macro Story(Courtesy: Japan IT Promotion Council)

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Green of ITGreen of IT Green by ITGreen by IT＋=Green ITGreen IT

1990 2005 2020 2030

Forecast for energy-derived CO2 emissions

+11%

-22%

[100 million tons of CO2]

Status quo scenario

Maximum adoption

scenario

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9

10

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12

13

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Benefit of Green IT-450 million tons

-130 million tons

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Energy Supply and Demand Forecasts for 2030 in Japan(Courtesy: Japan GIPC)

130 million tons 20 million tons 110 million tons

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What Is Missing?

Realizing the full potential of the macro story will require:Realizing the full potential of the macro story will require:• Aggressive public policies to correct market failuresAggressive public policies to correct market failures• Remove implementation barriersRemove implementation barriers• Provide incentives to adoptionProvide incentives to adoption

Appropriate public policies include:Appropriate public policies include:• Developing a National Strategy to guide policy directionDeveloping a National Strategy to guide policy direction• Lead by example – government is the biggest landowner, employer, etc.Lead by example – government is the biggest landowner, employer, etc.• Broadband, broadband, broadbandBroadband, broadband, broadband• Establish incentives and rewards for investments in EE ICTEstablish incentives and rewards for investments in EE ICT• Change power generators’ financial incentivesChange power generators’ financial incentives• Educate SMEs on the potential of the macro storyEducate SMEs on the potential of the macro story

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Develop innovative energy-saving technologies

Promote using more energy-efficient products

Improve productivity by the introduction of IT (ex. ERP, SCM, …)

Introduce IT-driven energy-saving measures (ex. HEMS, BEMS)

■ Realization of an IT Society in Harmony with the Environment

Energy consumption by IT use

Contribution of IT to energy efficiency

Broadband Internet Era

Minimize

Maximize

IT Society in Harmony with the Environment

Sustainable “Green IT Society”