The role of the Internet of Things in the TMC race to net zero
Snapshot
- The implementation of IoT technology across both large industry and in urban environments will not only increase efficiency and improve people's lives but also contribute to global decarbonisation efforts
- The use of IoT technology for decarbonisation is not limited to government and big businesses. Everyone can make a difference by utilising IoT in their homes
- The challenge is to develop and implement IoT in a sustainable way so that the benefits are not outweighed by the carbon emissions produced in the manufacture of the technology
Between 2015 and 2019, global digital energy consumption grew by 6.2% per year; as a result, the technology, media and communications (TMC) sector is in a race to find solutions to reduce its carbon footprint.
Under the Paris Agreement, an international treaty on climate change, a target was agreed of limiting global warming to 1.5 and 2°C. Moreover, launched in 2019, the European Green Deal commits EU Member States to reducing net greenhouse gas emissions, with the EU aiming to be carbon neutral by 2050.
The Internet of Things (IoT) is a substantial contributor to the TMC industry's carbon footprint (think of all those old mobile phones), but this technology has also aided development of a number of the solutions that are now emerging.
Industrial IoT and decarbonisation in the urban environment
IoT systems can contribute to decarbonising cities, as illustrated by Singapore's innovation district which has deployed IoT devices to optimise decarbonisation: Tengah city has implemented a smart waste management system and smart streetlights. In addition to their effectiveness in reducing greenhouse gas emissions, these smart systems contribute to reducing the maintenance required, thereby reducing the need for manual workers to travel and making the maintenance systems more efficient.
A smart grid system can directly tap into a city's energy consumption, with smart meters helping a city's grid managers collect information about how residents use electricity and adjust electricity prices based on changing demand.
The IoT also has value for decarbonisation in industry. Many industrial companies can use IoT to optimise their facilities and better track resources, while reducing carbon emissions. One example of this is the optimisation of logistics to reduce empty truck transport. Sensors are installed on trucks to determine whether they are stopped or not, how much they consume, what their routes are and what they are carrying. And some businesses are exploring ways in which IoT can be used to reduce the energy consumption of factories, in particular by analysing the losses generated by the machines that connected objects can prevent.
The GSMA, the global mobile industry trade body, has committed the mobile industry to achieving net zero carbon emissions by 2050. Most of the main operators have already begun the journey to net zero and are committed to being carbon neutral well ahead of the GSMA and Paris Agreement target date. However, that is not the whole picture. Telecoms operators are equally committed to playing a leading role in tackling climate change by not only addressing their own carbon emissions, but, as the GSMA puts it, "advancing mobile technology innovations in areas such as big data and IoT that can enable energy efficient and environmental solutions across multiple sectors, including transport, manufacturing, agriculture, building and energy." IoT will play an increasing important part in reducing the impact of climate change.
Can IoT cut household energy consumption?
IoT technology is increasingly being utilised to create automated "smart homes" that are able to remotely manage and optimise energy use. With the touch of a few buttons, homeowners are now able to connect and influence many different household appliances and systems such as air conditioning, heating, lighting and electricity supply.
An interconnected domestic environment promotes sustainable consumption. It is possible to control heating and air conditioning with a thermostat and a motion detector through a connected device and turn it off in an empty room or lower the heating to a certain temperature. It is also possible to turn off lights automatically when a person leaves the room or when it is daylight.
A counterbalancing opportunity
The hopes placed on the IoT should not obscure the fact that the IoT, like any connected technology, is partly responsible for an exponential increase in the volume of data and need for data centres, which have extremely high energy consumption and therefore contribute very significantly to the TMC sector's carbon footprint. But the potential for IoT to counterbalance this is enormous. We predict many more examples of this to emerge in 2023 and beyond.
Authors
Matt Suter, Lead author Senior Associate, UK matt.suter@osborneclarke.com +44 20 7105 7447
Xavier Pican Partner, France xavier.pican@osborneclarke.com +33 1 84 82 45 88
Rafael Garcia Del Poyo Partner, Spain rafael.garciadelpoyo@osborneclarke.com +34 91 576 44 76
Laurène Zaggia Counsel, France laurene.zaggia@osborneclarke.com +33 1 84 82 45 98