Industrial activities contribute the greatest share of Australia’s emissions - nearly 40 per cent. This is also forecast to increase faster than emissions from any other sector.
ClimateWorks research shows that industrial emissions could be significantly reduced through the implementation of profitable energy efficiency improvements. Shifting to lower emissions fuels and sector-specific technologies could also reduce non-energy emissions.
Factors inhibiting further abatement activity in the industrial sector include capacity issues, such as lack of capital, low project attractiveness compared to other investment opportunities, and lack of motivation to pursue these activities due to competing priorities.
ClimateWorks research has found:
ClimateWorks’ ‘Industrial Energy Efficiency Data Analysis’ report showed only around 40 per cent of energy savings identified through companies’ Energy Efficiency Opportunities reports were expected to be implemented, leaving energy savings worth AUD$1.8 billion per annum untapped.
ClimateWorks’ subsequent 'Energy Management and Company Competitiveness' research found there is a large variation in the amount of energy savings implemented by industrial companies, with the top 20 per cent implementing around four times more energy savings than the average, while the bottom 20 per cent implements on average zero per cent.
This variation in performance has significant financial value; companies most exposed to energy costs could increase their Earnings Before Interest, Tax, Depreciation and Amortization by around five per cent if they improved their energy performance to best practice.
ClimateWorks ‘Tracking Progress Special Report’ also found companies with better internal energy data analysis practises, senior oversight, and energy culture, demonstrated higher implementation of energy efficiency activity.\
ClimateWorks is partnering with business, investors, and government to improve transparency on industrial energy performance and activities, as well as understanding around the factors currently inhibiting uptake of profitable energy efficiency improvements.