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Industrial Development Report 2011

Industrial Energy Efficiency for Sustainable Wealth Creation - Capturing Environmental, Economic and Social Dividends

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This Report demonstrates that a more sustainable energy future is within our reach, and that industrial energy efficiency is key. It shows how industrial energy efficiency can make a difference by providing a detailed comprehensive global assessment of potentials, technologies, economic benefits, as well as cost and barriers to be removed. It provides an overview of the policy instruments most useful for developing economies. This innovative work also reminds us that we must act now if we are to unlock the potential of current and emerging energy efficiency technologies. The opportunities are significant — by reducing energy inputs per unit of output we will benefit from improvements in standards of living while protecting the environment.

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Challenges and opportunities in sustainable industrialization

If investments in improved industrial energy efficiency yield environmental, economic and social benefits, what is impeding firms from seizing these opportunities? Economists, assuming that unobserved costs, risks and inconveniences explain why potential gains are not being realized, are generally sceptical about the existence of large unexploited potential for profitable investments in industrial energy efficiency. Physicists and engineers, however, often see substantial opportunities (Jaccard 2009).

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