WASHINGTON, DC--(Marketwire - November 18, 2008) - Information and communications technology
(ICT) has the potential to cut total carbon dioxide emissions (CO2) in the
United States by 13 to 22 percent from business-as-usual projections by
2020. This translates to a gross energy and fuel savings of $140 billion to
$240 billion -- equivalent to a 20 to 36 percent reduction in imported oil
consumption, according to the findings of a study conducted by The Boston
Consulting Group (BCG) on behalf of the Global e-Sustainability Initiative
(GeSI), an international alliance of ICT companies.
The findings and a series of specific policy measures that the U.S.
government can take to leverage ICT to reduce CO2 emissions were unveiled
and discussed at a forum for business leaders, policymakers, and media
today at the Newseum in Washington, DC. The forum, titled "SMART 2020: How
Information Technology Can Help Save the Economy -- and the Planet," was
hosted by GeSI and The Climate Group, an independent nonprofit organization
dedicated to climate change solutions.
The findings and recommendations were also published in the "SMART 2020:
United States Report Addendum," a follow-up to a June 2008 report titled
"SMART 2020: Enabling the Low Carbon Economy in the Information Age," which
outlined how the ICT sector can help other industries reduce greenhouse gas
emissions by 15 percent and deliver savings of EUR 600 billion ($756
billion in current dollars) to the global economy by 2020. The new report
was sponsored by GeSI and a subset of its membership, including AT&T, Cisco
Systems, Dell, Hewlett-Packard, Intel, Microsoft, Motorola, Nokia, Sun
Microsystems, T-Mobile USA, and Verizon, and included input from the
Natural Resources Defense Council.
"With this study, we have taken the guidelines from the earlier report and
researched specific policies and actions that should be implemented in the
United States," said BCG partner Philipp Jung, who led the U.S. study.
"Given the new administration's goal of cutting carbon emissions by 80
percent below 1990 levels by 2050, the case and opportunity for change have
never been greater."
To achieve the potential gains outlined in the new report, BCG and GeSI
recommend that the U.S. government commit itself to four overarching
policies to accelerate adoption of ICT-enabled opportunities:
-- Recognize the important role that the ICT sector can play in a
national energy efficiency strategy
-- Build a national "center of excellence" to establish standards and
metrics for CO2 emissions, consolidate and validate data, coordinate public-
private collaboration, and share best practices
-- Encourage the ubiquitous deployment and adoption of broadband, since
connectivity will be the backbone of all ICT solutions
-- Create market mechanisms that reward energy efficiency and reduce
emissions by monetizing carbon dioxide emissions
In addition, BCG and GeSI recommend specific policy measures in four main
areas that together could contribute to an annual reduction of 0.8 to 1.4
gigatonnes of carbon dioxide by 2020. The opportunities and recommendations
are:
1. A smart grid that could reduce CO2 emissions by 230 to 480 million
metric tons (mmt) of carbon dioxide and save $15 billion to $35 billion in
energy and fuel costs
-- Provide incentives for utilities to invest in smart-grid technologies
and energy efficiency improvements
-- Lead by example and integrate smart-grid technologies into federally
owned utilities
2. More efficient road transportation that could reduce travel time and
congestion while shaving off 240 to 440 mmt of CO2 emissions and saving $65
billion to $115 billion
-- Expand investment in smart infrastructure for roads and road-related
equipment
-- Elevate the importance of ICT solutions in current government programs
3. Energy-efficient smart buildings that could abate 270 to 360 mmt of CO2
and save $40 billion to $50 billion
-- Use incentives and mandates to increase the energy efficiency of new
and existing buildings
-- Introduce environmental requirements into the certification process
for building professionals
-- Lead by example to create demand in the market and identify best
practices
-- Encourage R&D in smart buildings, especially where industry is
underinvesting
4. Travel substitution through virtual meetings and flexible work
arrangements that could reduce CO2 by 70 to 130 mmt and save $20 billion to
$40 billion
-- Lead by example to encourage behavioral change
-- Share best practices to support the case for travel substitution
Copies of the "Smart 2020: United States Report Addendum" and the original
"Smart 2020" report can be downloaded at
www.smart2020.org.
To arrange an interview with a BCG expert, please contact Dave Fondiller at
+1 212 446-3257 or
fondiller.david@bcg.com.
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm
and the world's leading advisor on business strategy. We partner with
clients in all sectors and regions to identify their highest-value
opportunities, address their most critical challenges, and transform their
businesses. Our customized approach combines deep insight into the dynamics
of companies and markets with close collaboration at all levels of the
client organization. This ensures that our clients achieve sustainable
competitive advantage, build more capable organizations, and secure lasting
results. Founded in 1963, BCG is a private company with 66 offices in 38
countries. For more information, please visit
www.bcg.com.
About GeSI (Global e-Sustainability Initiative)
GeSI (
www.gesi.org) is an international strategic partnership of ICT
companies and industry associations committed to creating and promoting
technologies and practices that foster economic, environmental, and social
sustainability and drive economic growth and productivity. Formed in 2001,
GeSI fosters global and open cooperation, informs the public of its
members' voluntary actions to improve their sustainability performance, and
promotes technologies that foster sustainable development. It partners with
two UN organizations: United Nations Environment Programme (UNEP), which
hosts GeSI's Secretariat and the International Telecommunications Union
(ITU). These partners help shape our global vision regarding the evolution
of the telecommunications sector, and how we can best meet the challenges
of sustainable development.