The findings are contained in a new study by BCG and GeSI called SMARTer2020, on update of the influential 2008 SMART2020 report, which awoke the world to the energy saving potential of the IT industry. The new report was released at the COP18 environmental summit taking place in Doha this week.

 The study finds that increased use of IT systems such as video conferencing and smart building management could cut global greenhouse gas (GHG) emissions by 16.5% by 2020, amounting to $1.9 trillion in gross energy and fuel savings, says the report. Concerted action by policy makers to encourage the use of IT as an energy efficiency enabler could save 9.1 Gigatonnes of carbon dioxide equivalent (GtCO₂e) harmful GHGs from being emitted.

 The study was conducted by the Boston Consulting Group (BCG), a management consulting firm, on behalf of the Global e-Sustainability Initiative (GeSI), an IT industry consortium of major vendors and telcos. It concludes that the potential for IT to reduce global carbon emissions has been under-estimated until now, and that the abatement potential of IT is seven times the size of the IT sector’s own carbon footprint.

 The SMARTer2020 report follows up the SMART2020  study, which first evaluated IT’s potential to enable a low-carbon economy in 2008. The updated research in SMARTer2020 now concludes that up to 16.5% of global GHG emissions can be slashed by implementing IT solutions throughout the economy – over substantially higher than was calculated in the earlier study four years ago.

The new research study identifies GHG abatement potential from IT-enabled solutions ranging across six sectors of the economy: power, transportation, manufacturing, consumer and service, agriculture, and buildings. Emission reductions come from virtualisation initiatives such as cloud computing and video conferencing, but also through efficiency gains such as optimisation of variable-speed motors in manufacturing, smart livestock management to reduce methane emissions, and 32 other IT-enabled solutions identified in the study.

 Some IT-driven solutions such as smart electricity grids reap benefits at the national level, while others like intelligent building management systems can result in energy – and cost – savings for individual households and businesses.

 Alongside the sectorial analysis, SMARTer2020 includes detailed national studies of the GHG abatement potential of ICT in seven countries, identifying for each country the best strategies for policy-makers to pursue. The countries studied were Brazil, Canada, China, Germany, India, the United Kingdom and the United States. An Australia study is being considered.

 The launch of the study took place during the United Nations Framework Convention on Climate Change (UNFCCC) COP18 meeting in Doha. Welcoming the report, Christiana Figueres, Executive Secretary of the UNFCCC, said: “It is critical that the world captures every last bit of energy efficiency, if we are to reduce greenhouse gas emissions enough to keep below dangerous rises in temperature. I am pleased that this important new study shows how information and communication technology can play an essential role in saving energy. Now we need more and effective government policies that reward such action and penalise delayed responses.”

 Speaking at the launch of the report, Luis Neves, GeSI Chairman, said: “The IT revolution is powering even more innovations than we had imagined, leading to greater potential to cut GHG emissions, and a smaller IT footprint. SMARTer2020 shows the abatement potential of IT is seven times the size of the IT sector’s direct emissions. IT can drive the transition to a low carbon economy, with greater efficiency, and the preservation of our environment.”

 The study, which is free, can be downloaded at https://gesi.org/SMARTer2020