ICTs – The 98% Solution(s)

1. ICTs –The 98% Solution(s) Stephen Harper Global Director Environment and Energy Policy Intel Corporation Copenhagen COP 15 December 2009

2. Information and Communications Technology (ICT): Improving Quality of Life in Many Ways • Providing new modes of education and training • Improving the quality and availability of health care • Enhancing personal safety • Providing increased accessibility for people with disabilities • Increasing access to information about government and increasing • Providing energy and environmental benefits

3. The Micro and the Macro Story Drive Computing to Be More Energy Efficient ~2%* Opportunity Use Computing to Improve Energy Savings Outside Information and Communications Technology 98% The Big Opportunity *Source: Gartner, 2007

4. “Macro Story” Evidence • American Council for an Energy-Efficient Economy (ACEEE) studied this issue and concluded: • “For every extra Kwh of electricity that has been demanded by ICT, the US economy increased its overall energy savings by a factor of about 10…” (2008) • The Climate Group and the “Global e-Sustainability Initiative” published a report entitled, “Smart 2020: Enabling the Low Carbon Economy in the Information Age” (2008), concluding: • Smart 2020 concludes that ICT strategies could reduce up to 15% percent of global emissions in 2020 against a “business as usual” baseline • US Addendum to Smart 2020 report, prepared by Boston Consulting Group indicates that ICT strategies could reduce US carbon emissions by up to 22 percent by 2020 vs. business-as-usual • TAKE AWAY: ICT strategies offer huge potential for addressing climate challenge

5. Macro Story – Increasing the EE of Other Sectors Substitution De-Materialization Automation Industrial Robots Logistics for Transportation LEED Certified Buildings Smart Motors Smart Power Delivery Video Conferencing Online Entertainment e-Commerce Paperless Office Converting Atoms to Bits On-line Banking Digital Media Content

6. Another View of Micro v. Macro Story (Courtesy: Japan IT Promotion Council) 6

7. Green by IT Forecast for energy-derived CO2 emissions [100 million tons of CO2] 14 +11% Statusquo scenario 13 12 11 10 9 Maximum adoption scenario -22% 8 1990 2005 2020 2030 Energy Supply and Demand Forecasts for 2030in Japan (Courtesy: Japan GIPC) Green of IT Green IT ＋ = 130 million tons 20 million tons 110 million tons Benefit of Green IT -450 million tons -130 million tons 7

8. What Is Missing? • Realizing the full potential of the macro story will require: • Aggressive public policies to correct market failures • Remove implementation barriers • Provide incentives to adoption • Appropriate public policies include: • Developing a National Strategy to guide policy direction • Lead by example – government is the biggest landowner, employer, etc. • Broadband, broadband, broadband • Establish incentives and rewards for investments in EE ICT • Change power generators’ financial incentives • Educate SMEs on the potential of the macro story

10. IT Society in Harmony with the Environment ■ Realization of an IT Society in Harmony with the Environment Develop innovative energy-saving technologies Promote using more energy-efficient products Broadband Internet Era Energy consumption by IT use Minimize Sustainable “Green IT Society”  Improve productivity by the introduction of IT (ex. ERP, SCM, …) Introduce IT-driven energy-saving measures (ex. HEMS, BEMS) Contribution of IT to energy efficiency Maximize