© 2007 ibm corporation corporate environmental affairs ict4ee | 10 november 2010 | round-table wec...

© 2007 IBM Corporation

Corporate Environmental Affairs

ICT4EE | 10 November 2010 | Round-table

WEC Executive Round-table Brussels, November 9-10, 2010

Promoting Energy Efficiency Enabling Capacity of ICTIBM and the ICT4EE Forum

Kurt Van der Herten


EU climate policy © 2007 IBM Corporation

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Introduction

Bio Kurt Van der Herten – Graduation

– Work experiences IBM Corporate Environmental Affairs

– Core tasks of CEA– Developing IBM strategy in the areas of environmental affairs and sustainability

– Establishing IBM's global environmental management system, its requirements, programs, goals and objectives (corporate instructions & environment practices)

– Developing IBM's public policy position on environmental issues and proposed laws and regulations; advocates IBM's position in conjunction with IBM Governmental Programs

– IBM's environment strategies – http://www.ibm.com/ibm/responsibility/environment.shtml

– http://www.ibm.com/ibm/green/index.shtml



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IBM and the Environment

IBM's programs date back to the 1960s

Then CEO Thomas Watson Jr., formalized the company’s commitment to environmental protection in a Corporate Policy issued in 1971

– Called for IBM to "be continuously on guard against adversely affecting the environment. This effort must include constant attention not only to the waste incident to producing the product but also to the consequences of the processes established during product development."



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IBM's Approach to Environmental Management

Long history of commitment to environmental leadership

– Whether or not the topic is popular

– Through lean times and good times

Manage environmental affairs as a strategic imperative

– Invest in and maintain a high level of technical leadership

– Make decisions and develop programs & requirements based on science and facts, often ahead of regulatory mandates

– Anticipate opportunities and prevent problems

– Communicate both internally and externally

Deploy and sustain comprehensive programs

– Anchored in a global environmental management system

– Integrated throughout the business

– Require consistent execution on global basis

– Act responsibly and quickly as necessary

Achieve demonstrable results– Set specific and measurable goals

– Quantify and disclose outcomes

Good environmental management makes good business sense



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IBM and Energy Efficiency

The EMS objectives include achieving and sustaining progress in– improving the environment by maintaining a position of leadership in energy conservation

– reducing costs and increasing competitiveness and shareholder value through gains in energy efficiency.

Achieving Energy Efficiency is one aspect of IBM's five-part strategy to reduce the company's operational GHG emissions

IBM's experience in energy management and demonstrable results inform and contribute to the company's efforts in developing capabilities and solutions to bring value to clients

Operational Energy performance– Between 1990 and 2009, IBM’s energy conservation actions:

– Saved 5.1 billion kWh of electricity consumption

– Avoided nearly 3.4 million metric tons of CO2 emissions

– = An amount equal to 50% of its 1990 global CO2 emissions

– Saved over $370 million through its annual energy conservation actions



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IBM and Energy Efficiency

In 2009, the energy IBM saved through over 1700 energy conservation projects was equivalent to 5.4 percent of its actual energy use.

– 246,000 megawatt-hours (MWH) of electricity; 410,000 million BTUs of fuel oil; nearly $27 million savings in energy costs

– Saving Focus Areas:

– Time of Day Scheduling and More Efficient Hardware for Lighting & HVAC Systems

– Building Recommissioning Efforts

– Data Center Thermal Management and Server Virtualization Projects

– Central Utility Plant and Building Control and Analytics Systems

Renewable Energy– In 2009, IBM purchased 560 million kWh of renewable energy, which represented 11.3%

of the company’s global electrical usage and a CO2 emissions avoidance of 191,000 metric tons.

– Also working to further the availability and afford-ability of RE through IT-related R&D to advance solar technology:

– New solar cells

– Ultra-high concentrator photovoltaic technology



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EU Climate and Energy Efficiency Policy

The international agenda:– United Nations Framework Convention on Climate Change (

UNFCCC) (1992)

– And its Kyoto Protocol (1997) EU steps to address own GHG emissions:

– European Climate Change Program (2000): range of policies and measures

– including the European Trading Scheme (ETS)

– legislation on fluorinated GHG

– EU Communication “the way ahead for 2020 and beyond”– 20% reduction in energy consumption compared with projected trends

– 20% reduction of C02 emissions compared to Kyoto baseline

– 20% increase in renewable energies' share of total energy consumption

– EU versus national level?



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EU Climate Action and Renewable Energy Package– Strengthening and expansion of the EU ETS

– Sectors in scope: 21% reduction by 2020 compared to 2005 levels, single EU-wide cap on ETS, free allocation of emission allowances replaced by auctioning

– New sectors (transport, housing, agriculture and waste): 10% reduction; national contributions according to wealth

– Renewable energy targets: minimum 10% share of biofuels; sustainability criteria

– Carbon Capture and Storage

– Action Plan for Energy Efficiency (APEE)

–Aim: energy efficient infrastructure, buildings, appliances, processes, transport means and energy systems

–Key areas with highest potential for energy savings: energy performance requirements for products, buildings and services; energy transformation; transport; financing & pricing; energy behaviour; international partnerships



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Measures already in place under APEE– Energy Performance of Buildings Directive (EPBD)

– Sustainable transport and energy consumption of cars

– Eco-design and Energy Labelling Framework Directives

– Green Public Procurement

– ... Examples of Energy Efficiency Regulatory Framework for

ICT– ICT4EE (see next slide)

– Product energy efficiency

– Data Centre Energy Efficiency



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ICT for Energy Efficiency (ICT4EE)

Commissions Communication and Recommendation on mobilising ICT for Energy Efficiency (2009)– To reply to its own 2020 targets and speed up energy savings

– Set of ambitious measures of what can be achieved by the ICT sector and within other sectors

– Three sets of actions– ICT to set self a target (but exceeding the 2020 target by 2015!); agreement on

measurement methodologies; set out roadmap

– Partnerships with other sectors (buildings & construction; transport & logistics) to identify ICT solutions, develop joint roadmaps to adopt those, address barriers

– Leading role for Member States: smart metering, procurement practices, broadband infrastructure, create and use opportunities



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The Intergovernmental Panel on Climate Change calls for a 50-85% reduction in CO2 emissions by 2050 to mitigate risks of climate change

IT would account for 2% of global CO2 emissions ...

... IT can significantly contribute to control and reduce the 98% of CO2 emissions caused by other activities and industries

“… you can’t make a product greener, whether it’s a car, a refrigerator or a traffic system, without making it smarter - smarter materials, smarter software or smarter design.” Thomas L. Friedman



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ICT enabled solutions can improve energy efficiency and reduce GHG emissions, potentially driving global energy savings of $1Trillion by 2020

7.8 GtCO2e of ICT-enabled abatements are possible out of the total BAU emissions in 2020 (51.9 GtCO2e). The SMART opportunities including dematerialization were analyzed in depth

Industry•Smart Motors• Industrial process automation•Dematerialization* (reduce production of DVDs, paper)

Transport•Smart Logistics•Private transport optimization•Dematerialization (e-commerce, video conferencing, teleworking)•Efficient vehicles (plug-ins and smart cars)•Traffic flow monitoring, planning and simulationBuilding•Smart Logistics**•Smart Buildings•Dematerialization (teleworking)•Smart Grid ***Power•Smart Grid•Efficient generation of power combined heat and power (CHP)* Dematerialization breaks down into all sectors except power** Reduces warehousing space needed through reduction in inventory*** Reduces energy used in the home through behavior change

Source: The Climate Group, “Smart 2020: Enabling the Low Carbon Economy in the Information Age.” 2008, ICT = Information and Communications Technology

Smart Logistics: $442B Savings/year

Smart Buildings: $341B Saving//year

Smart Industrial Automation:

$107B Savings/year

Smart Grids: $125B Savings/year



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The industries' reply to the challenges: = ICT Industry driven platform ►

Founding members

Supporting associations (global engagement): ITU-T and international standards bodies, Green IT Promotion Council, ITI/DESC



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Structure of the ICT4EE Forum– Steering committee: decision making body

– 3 working groups– WG1: EE of ICT processes

– WG2: enabling capacity within other sectors

– WG3: policy and technology timelines

– Stakeholder plenary for input and dissemination

– ICT4EE Forum management team Documents behind

– MoU

– Terms of References

– 3 year roadmap



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ICT for Energy Efficiency (ICT4EE)Approach How Expected outcomes Timescale

Identify how ICT solutions can contribute to the more intelligent and efficient use of energy.

Initiate dialogue with other sectors and ensure their engagement in the Forum. The dialogues will be used to both inform the parties about what role ICT can play, as well as understand the challenges and pain points of the sector.

Identification of:•existing and innovative sector-driven opportunities.•ICT-driven existing & innovative solutions.•barriers and drivers to improve ICT penetration.•business model that will sustainably embed carbon savings in the economy.

2010

2.1 Buildings & construction - identify areas for ICT solutions to be maximised in buildings and construction.

Set up informal networks with sectoral organisations in buildings & construction to respond to energy efficiency issues. Examine effects of ICT on the operation of buildings including systems for energy supply and changing behaviour of consumers.

Common position papers and statements on energy efficiency and ICT use in the respective sectors. Developed and scaled up of tools and applications to ensure compliance with the EPBD and interoperability in building and energy management systems.

2010

2011



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ICT for Energy Efficiency (ICT4EE)Approach How Expected outcomes Timescale

2.2 Transport & logistics: support the deployment of intelligent transport systems.

Set up informal networks with sectoral organisations in transport and logistics to respond to energy efficiency issues. Drive international standardization efforts to ensure interoperability.

Developed and scaled up technology applications e.g. for e-Freight logistics and ensure integration and interoperability of data flows.

2010-12

3. Energy supply: support the shift to advanced metering infrastructure and transformational initiatives.

Contribute to and align with the Commission’s Smart Grids Task Force.

Increased number, size and scale of projects deploying smart metering and smart grids and smart European cities.

2010-12



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Does IT work to the matter? – Carbon disclosure project

– GeSI

– Efficient servers

Who has to be involved?– IT companies (according to OECD definition of ICT-sector)

– Other sectors– Construction & Building

– Transport & Logistics

– Energy / power supply

– => COM to facilitate

– => similar forum as ICT4EE Forum existing?



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Our world is becoming

INSTRUMENTED

Our world is becoming

INTERCONNECTED

Virtually all things are becoming

INTELLIGENT

... Our planet is becoming smarter

Something profound is now happening with the infusion of intelligence into the way the world works

IBM's strategy



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An opportunity to think and act in new ways — economically, socially

and technically.

+ + =

A Smarter Planet

IBM's strategy

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Reduce traffic congestion Reduce CO2 emissions Increase mass transit usage Improve environment Stockholm case study: Reduced traffic

congestion 25%, Carbon emissions 15%

Intelligent Transportation Systems

Sustainable Solutions & Services Strategy Corporate Social Responsibility Green Sigma TM Business Operations/Supply Chain - SNOW Smart Cities Smart Buildings Cap and Trade Systems

Intelligent Utility Networks Reduce energy usage Improve grid management, reduce outages U.S. case study: 10% energy use reduction, up to

50% reduced load on electric grid

IT and data center facilities energy efficiency Monitoring & verification of efficiency goals Energy Efficient, Virtualized, Dynamic IT/DC IBM and client case studies: 40% to 80% energy use

reduction, up to 85% less floor space

Green IT and Data Centers

Energy Efficient Technologies and Services

IBM innovations address energy & environment challenges – and wherever you begin, IBM can help – ibm.com/green

Reduce traffic and pollution Retain and attract talent Cut facility costs/impact

Mobility Services

Advanced Water Management Flood avoidance Reduce water usage IBM case study: 27% reduced water usage, with 30% increase in

manufacturing output, saving $M in energy and water cost

IBM know-how in thin films, semiconductors, advanced photovoltaic materials, applying IT cooling technologies to concentrator photovoltaics; nanomembranes for desalination; etc.

Alternative Energy Research



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IBM's Enabling capacity – Smarter planet examples

– Transportation / Mobility: Stockholm project http://www.youtube.com/watch?v=rfMylzF4lv8

– Smarter cities: booklet

– Smarter buildings: http://www.ibm.com/smarterplanet/us/en/green_buildings/examples/index.html http://www.youtube.com/watch?v=Hm7MeZlS5fo&feature=player_embedded

So, do we need regulation...?

IBM's strategy



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Questions ?

IBM's environment activities, programs and offerings– http://www.ibm.com/ibm/environment/

– http://www.ibm.com/ibm/green/index.shtml

– http://www.ibm.com/ibm/responsibility/environment.shtml

CEA – Kurt Van der HertenEU Environmental Policy Program Manager– Via mail: [email protected]

– Via mobile: +32475490546

Thank You !



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Backup



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Summary

Introduction

Questions for discussion @ the Roundtable– What does it take to make EE a topic that nobody can ignore?

– Who must show leadership and who has to be involved?

– Which rules and regulations do we need?

Presentation– IBM and Energy Efficiency

– EU Climate and Energy Efficiency Policy

– The Commission Communication & Recommendation on ICT4EE

– The reply from industry: the ICT4EE Forum

– IBM's Strategy of a Smarter Planet

© 2007 ibm corporation corporate environmental affairs ict4ee | 10 november 2010 | round-table wec...

Documents

ibm corporation

energy efficiencyeu

energy use reduction

water costibm

reduced water usage

smarter cities

carbon management

reduced traffic congestion