The Green ICT Efficient ICT for a brighter and sustainable future
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1 The Green ICT Efficient ICT for a brighter and sustainable future Luis Neves, Deutsche Telekom AG Vice-President Corporate Responsibility Torino, 5 th July
2 The Green ICT Efficient ICT for a brighter and sustainable future 1. A bright future - Yes We have a fantastic story 2. Difficult Yes We are moving to slowly 3. Possible Yes If we do the right things 2
3 The ICT industry s value proposition. Presentation of the global SMART 2020 study in June Study concept S Standardization M Monitoring A Accountability R Rethinking T Transformation The Climate Group which is an NGO presented the study "SMART 2020: Enabling the low carbon economy in the information age" that was produced on behalf of the Global esustainability Initiative (GeSI). The study investigated the potential contributions that the ICT industry could make to achieving global climate protection goals. The study identified five core areas in which ICT can Smart motors bring about significant logistics reductions buildings in emissions: (Industrial automation) Smart (Logistics) Smart (Building management) Smart grid (Electricity sector) Dematerialization Deutsche Telekom announced a German SMART report at the Third National IT Summit at the end of
4 The Business Opportunity Efficiency represents a large market opportunity, attracting significant private capital investment Area Opportunity Drivers of efficiency value Size of market EUR billions Smart logistics Reduction of waste and optimization across entire logistics process 16% reduction of worldwide fuel used for road transportation Average cost of fuel plus price of carbon* 280 Smart buildings Reduction of waste of energy across commercial, industrial and residential buildings for HVAC and lighting 15% saving on worldwide electricity consumption for HVAC and lighting 15% reduction in consumption of primary energy sources 196 Smart grid Industrial automation *Assumes a price of carbon of EUR 20/tCO2e Source: Expert interviews, Jan-Feb 2008; Team analysis Reduction of transmission and distribution losses in power grids Reduction of waste in manufacturing systems, from motors to complex systems 50% recovery of worldwide power transmission and distribution losses plus price of carbon* Average world electricity price plus price of carbon applied to carbon intensity of power* 8% reduction of total electricity used in industry Average world electricity price plus price of carbon applied to carbon intensity of power*
5 The size of the opportunity The ICT can facilitate carbon reductions across sectors world-wide up to the order of 15% of total emissions by 2020, or 7.8GtCO2 emissions through the development and deployment of products and services. This represents a business potential of around 623 billion Euros (conservative estimate at current prices) for the Industry. ICT s business opportunity Smart logistics (Europe) Smart buildings (America) Smart grid (India) Industrial automation (China) Tot al ,8 GtCO2 623 billion ICT FOOTPRINT 1,5 GtCO2 30 billion ICT industry carbon bill EUR billions, 2020, worldwide ENABLING Average cost of fuel and world electricity prices plus assumed current price of carbon ICT industry carbon bill At a carbon price of EUR 20/ton, the total ICT Carbon Bill would reach EUR 30 billions under business as usual 0,4 0, PC and printer Mobile phone Broadband and IPTV 6,7 6,1 Data centres Telecom infrastructure Total
6 The Green ICT Efficient ICT for a brighter and sustainable future Cost optimization through resource efficiency Global climate change Value added Infrastructure Procurement Audits (e.g., observing environmental standards) Purchase of energyefficient hardware and equipment Cooperation with suppliers Focus Reduction of energy consumption Optimization of operations Natural resources Selection of IT hardware Recycling Product development Calculating the carbon footprint Sustainability design Resource-saving business solutions (energy, transport, paper, etc.) Social and political requirements Service and salesusers Service technicians (fuel cell bicycle) Fleet service - Green car policy - Pilot: fuel cell as vehicle drive system Energy efficiency Improved efficiency through upgraded technology Approx. 30 % less power consumption through upgrade of the GSM network Annual building checks Modernization of inefficient systems Air conditioning in data centers Modernization of switching systems for mobile communications Virtualization (Dynamic Services) Smart Metering User behavior (online bill, digital answering machine) Video and telephone conferences instead of business trips Use of telework Use of online shopping Smart Metering Power supply 100 % power supply from renewable energies in Germany (fuel mix for Germany + water and wind energy [RECS certificates]) Severing the link between energy consumption and CO 2 emissions Waste disposal/e- Waste Return systems (e.g. T- Mobile cell phone recycling with Deutsche Umwelthilfe e.v.) In Germany, over 100,000 old cell phones were brought back in 2007 Group-wide recycling rate in 2007: 98 % Group-wide e-waste strategy by end of 2009 Low-CO 2 energy supply Implemented at several locations: Wind energy Solar energy Fuel cells Geothermal energy (pilot project) Demands of business customers and consumers 6
7 The Green ICT Efficient ICT for a brighter and sustainable future Possible Yes If we do the right things Walk the talk Innovative move the ICT Agenda Engage our Stakeholders Do not make mistakes Take risks no risk no fun 7
8 Thank you. 8
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