Last year undoubtedly presented a great number of challenges. Our communities continue working collectively to support and overcome both COVID-19 and the accompanying recession. While our attention is focused on solving these urgent dilemmas, we must not lose sight of the greatest threat looming over people and our planet: climate change.
The primary driver of climate change is carbon emissions, and 80% of carbon emissions are energy-related. To tackle this climate crisis, we must drastically reduce these emissions. In fact, we need to cut our carbon footprint in half within the next 20 years. This requires us to fundamentally change how we produce and consume energy.
At the same time, there are still two billion people today living without access to energy and digital technology. That means two billion people without basic comforts and opportunities. Without digital access, they lack education and economic inclusion.
This is the paradox we have been discussing for some time: How can we make progress in our society, ensuring that every individual on Earth has access to these basic human rights while simultaneously taking drastic action against irreversible environmental impacts?
This is Schneider Electric’s Purpose
Empowering everyone to make the most of our energy and resources by bridging progress and sustainability for all—connecting people worldwide with reliable energy and resources while cutting our emissions in half. Our mission is to be the digital partner for sustainability and efficiency.
There is an equation to solve the climate paradox, which comes down to two technological revolutions and four priorities. The technology is here; the action is up to all of us.
The Two Revolutions to Solve Climate Change
The First: Digitalization
Digital technology has revolutionized how we work and live. The first phase involved people becoming digitally connected, using technology to enhance communication, work, and daily life. Imagine how different 2020 would have been without the digital tools and connectivity we have developed over the last 20 years—mobile phones, the Internet, and video conferencing.
The next phase will revolutionize how people interact with their surroundings, in our homes, buildings, factories, and cities. This is the IoT revolution, the second phase of the Internet, where machine-to-machine communication occurs. With digital tools, energy will only be used when and where needed.
The Second: Electricity
Electricity is fundamental because it is the only energy that can be decarbonized. Electricity is not new, but the way it is produced and consumed is changing. It will be powered by renewable energy sources, making it clean and green.
The Four Priorities
In line with the Paris Agreement, to address climate change, we must limit global temperature increases to 1.5°C.
Building on the two revolutions mentioned above, there are four priorities that must be tackled simultaneously to solve climate change.
1. A Leap in Efficiency
The first step is simply eliminating any waste of our resources caused by inefficiencies in our systems. Digital technology and connectivity are key to improving efficiency. By connecting everything—software, analytics, and Artificial Intelligence (AI)—we can optimize consumption and improve both process and energy efficiency. If we connect everything in our environments, we could save a large portion of our resources: buildings and industries could become 30% more efficient.
2. Transitioning to Circularity
The next step is transitioning to a circular economy, where business models are designed to reuse all resources, not just reduce waste. Digitalization is essential for this process. It is estimated that we can achieve more than 70% energy efficiency with steel recycling, for example.
3. Doubling Electricity Use from 20% to 40% of the Energy Mix
Any energy we use should be electric. Currently, only one-fifth of our energy use is electric. We must double the share of electricity in our energy mix. And this transition is already underway. A major migration is happening in transportation with electric vehicles, and in buildings for heating, cooling, and creating zero-emission, human-centric structures. Over the next 20 years, the world will invest more in electricity than it has since its creation.
4. Decarbonization: Increasing Renewable Energy from 6% to 40% of the Energy Mix
This is where electricity, an old technology, evolves. Instead of relying on carbon-intensive sources like fossil fuels, tomorrow’s electricity must come from clean sources such as solar and wind. The good news is that, in most parts of the world, renewable energy is already the cheapest source of power generation.
The First and Last Generation to Act on Climate Change
We are living in a unique moment in history. We are the first generation to fully understand the dangers of climate change. And we will be the last generation that still has time to change our trajectory. We have a great challenge ahead, and no one can tackle it except us.
Digital and electric. Smart and green. These four words will redefine our future.
This article was part of our Innovation Summit World Tour 2020. With 11 virtual stops around the world, we welcomed more than 20,000 customers, partners, and students through virtual doors to discuss how we can build a more resilient and sustainable future together.
If you want to learn more about the event, we invite you to read the following articles:
- 3 Reasons to Attend Schneider Electric’s Innovation Summit World Tour
- Benefits of the Next-Generation Industrial Automation Promise
- Workplace Safety: A Key Pillar of Smart Buildings
- How to Ensure IT/OT Convergence for Cybersecurity Solutions
- Resilient and Sustainable Data Centers for Buildings