COP29: An energy efficient industry is key to decarbonisation

SINTEF is participating at COP as an independent observer, committed to advancing sustainable climate and energy solutions. To support this goal, we are providing advice to climate negotiators on 15 key areas with the potential to significantly reduce emissions.

• SINTEF’s  advice for COP29: Technology for a Faster Global Climate Transition

Recommendations for an energy efficient industry

• Map energy needs and use across industries, including a concretisation of measures for improvement.
• Update, share and implement the best practices in energy efficiency.
• Introduce regulations and financial incentives to support the introduction of new energy efficiency innovations, such as energy-efficient raw materials, and processing and utilising excess heat.
• Ensure that low-emission technologies are equally competitive to implement.
• Stimulate the development of new energy efficiency technologies.
• Establish long-term decarbonisation plans in collaboration with politicians, authorities, energy companies and industry.

Problem

Increased energy efficiency is the first and most important measure in any decarbonisation strategy. If a kWh is not going to be used, it does not need to be produced. Every year, large amount of energy are lost in industrial processes. Industry accounts for large parts of the energy consumption, and energy efficiency measures will therefore have a large impact. Reducing industry’s energy demand, and developing new methods to reuse the surplus energy, are among the most important things we can do to ensure that industry can use energy resources even more efficiently, and reduce its climate footprint nationally and internationally as a result.

One challenge is the high development costs associated with energy-efficient technologies. As such, economic incentives are needed to ensure that industry prioritises long-term energy savings over short-term gains. COP28 highlighted two key points related to energy efficiency: first, energy efficiency must double from 2 to 4 percent annually until 2030. Secondly, the principle of putting energy efficiency as the first fuel should be integrated into all policymaking, planning and essential investment decisions.

The big and obvious advantage with increased energy efficiency in the industry is that increased value creation by reducing the specific energy use in one part, contributes to increase value creation in the entire value chain. This is why energy efficiency is put as the first of the five points in the US Department of Energy’s Industrial Decarbonization Roadmap. In their 2050 report, the International Energy Agency (IEA) states that it is essential to have a “major worldwide push to increase energy efficiency” in order to reduce energy needs within 7% by 2030.

Solution

In June 2024, the European Energy Research Alliance published a white paper, which provided an overview of gaps in technology development, barriers to the realisation of technology and solutions, R&D needs, and a set of recommendations for EU decisionmakers – particularly in relation to energy efficiency as a solution for decarbonising industry.

This work shows that research and development within energy efficiency and circular economy must be strengthened at all levels, including industrial clusters, heat pump technologies and heat-to-power processes.

We also need to develop decarbonised processes and components that can capture excess heat at the highest possible temperatures. This enables heat to be reused in other parts of the production or by other players who would otherwise increase the total energy use. An important part of this work is to ensure a good overview of all resource use in industry, such as raw materials, energy and water, as well as register this type of data in accordance with EU requirements.

Increased energy efficiency will strengthen national and international energy security, reduce the cost of energy and products, and help develop robust industrial symbioses and circularity in material streams.

Main COP29 recommendation: International research communities and industrial partners are developing technologies to reduce emissions and advance the energy transition, and we strongly recommend establishing a global North-South R&D program with open, competitive calls to ensure a fair, accelerated path to a sustainable economy.