Green technologies enable almost 90 percent less greenhouse
gas emissions in industrial applications
•
BCG and VDMA: Market potential of decarbonization at over 300 billion
Euro per year until 2050
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Joint study identifies five levers to improve the ecological footprint of
industry
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Hydrogen offers great potential for mechanical engineering
Munich/Frankfurt, July 14, 2020 – Due to its integration in all sectors, the mechanical
and plant engineering industry plays a key role in reducing global greenhouse gas
emissions. The use of green technologies offers great potential here. If machine
manufacturers offer green technologies to their industrial customers and promote the
transition, the 35 gigatons (Gt) of industrial emissions can be reduced by up to 86
percent, or the equivalent of 30 gigatons. These are the results of the study
For
Machinery Makers, Green Tech Creates Green Business. To this end, the strategy
consultancy Boston Consulting Group (BCG), together with the Engineering Federation
(VDMA), has determined the greenhouse gas emissions of 14 sectors and analysed how
these can be reduced by using state-of-the-art technologies.
"Due to the close ties between mechanical and plant engineering and almost all
industries, the development and supply of such climate-friendly technologies offer a
large market potential of over 300 billion euros per year, both economically and
ecologically," says
, BCG partner and author of the study. The OECD and
BRIC countries produce 35 gigatons of CO2 equivalents (CO2e) every year. Although
Boston Consulting Group
mechanical engineering itself emits only 0.2 gigatons of this figure, its technologies
influence the greenhouse gas emissions of virtually all industries - from the energy
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sector to agriculture. The largest amount of greenhouse gases is generated by
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manufacturing (16.7 Gt), followed by construction (6.7 Gt), transport (5.7 Gt) and
agriculture and waste disposal (4.3 Gt). "Machine manufacturers have the ability to
develop and offer even more green technologies. The most important thing here is a
global market perspective to generate the greatest possible benefit," says
,
Deputy Managing Director of the VDMA.
VDMA
e.V.
Green technologies reduce emissions in all industries
The study identified five technical levers that mechanical engineering companies can use Tel
to improve the ecological footprint of their customers. Each of these levers includes a
wide range of individual technologies for the companies. "Already today, mechanical and
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plant engineering companies supply green capital goods. The energy industry benefits
from plants for generating renewable energy, such as wind and water turbines, or
optimized heating and cooling systems with heat recovery. Industrial companies are also
already using highly efficient motors," explains
. The widespread dissemination
and use of these technologies, which are currently economical, could reduce 13 gigatons
of CO2e or 37 percent of total emissions.
Further levers will only become more important in the coming years: Methane capture in
agriculture would be possible, but still too expensive to be used on a large scale in
production. Processes for the production of environmentally friendly fuels, such as
hydrogen and its derivatives, or for the capture and storage of CO2 in industrial
production are not yet technically scaled and thus not yet economically viable under
current market conditions. Simply by perfecting these technologies, a further 17 gigatons
or 49 percent of current greenhouse gas emissions can be avoided. "The hydrogen
economy in particular, with its great potential, for example in steel production, with
manufacturing processes for fuel cells on an industrial scale, electrolysis or liquefaction,
offers many opportunities here to combine green technologies with positive
environmental aspects," says
.
Switch to sustainable technology has huge market potential
There is no alternative to reducing global greenhouse gas emissions in order to stop
global warming. This presents a great opportunity for the mechanical and plant
engineering industry. The switch to green technologies creates a market potential of
over 300 billion euros per year. This corresponds to 12 to 15 percent of the current total
turnover in the industry and will add up to around 10 trillion Euros by 2050.
Boston Consulting Group
"Manufacturers who want to participate in this growth align their product and service
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portfolios in a climate-friendly manner and make their companies fit for the
development and global marketing of future technologies. Politicians must also set the
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course by means of a functioning global emissions trading system, investments in
research and a market framework for scaling up new technologies," says
The results of the study can be downloaded
here.
VDMA
e.V.
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About BCG
Boston Consulting Group partners with leaders in business and society to tackle their
most important challenges and capture their greatest opportunities. BCG was the
pioneer in business strategy when it was founded in 1963. Today, we help clients with
total transformation—inspiring complex change, enabling organizations to grow,
building competitive advantage, and driving bottom-line impact.
To succeed, organizations must blend digital and human capabilities. Our diverse, global
teams bring deep industry and functional expertise and a range of perspectives to spark
change. BCG delivers solutions through leading-edge management consulting along with
technology and design, corporate and digital ventures—and business purpose. We work
in a uniquely collaborative model across the firm and throughout all levels of the client
organization, generating results that allow our clients to thrive.
Further information
: http://www.bcg.de
About VDMA
The VDMA represents around 3,300 German and European companies in the mechanical
and plant engineering sector. The industry stands for innovation, export orientation,
medium-sized companies and employs around four million people in Europe, more than
one million of them in Germany alone.
Further information
: http://www.vdma.org
Boston Consulting Group
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