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Photo Credit: Boston Consulting Group

14.07.2020

Green technologies create green business

Joint study by Boston Consulting Group (BCG) and VDMA shows that green technologies enable almost 90 percent less greenhouse gas emissions in industrial applications // The market potential of decarbonisation by 2050 is more than 300 billion euros per year // The study identifies five levers to improve the ecological footprint of industry. Hydrogen offers great potential for mechanical engineering

Green technologies enable almost 90 percent less greenhouse gas emissions in industrial applications

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.

Green technologies reduce emissions in all industry sectors

The study identified five technical levers that mechanical engineering companies can use 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 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 Markus Lorenz, BCG partner and author of the study. The widespread dissemination and use of these technologies, which are currently economical, could reduce 13 gigatons of CO2e or 37 percent of total emissions.

Switch to sustainable technologies 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. "Manufacturers who want to participate in this growth align their product and service 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 course by means of a functioning global emissions trading system, investments in research and a market framework for scaling up new technologies," says Hartmut Rauen, Deputy Managing Director of VDMA.

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