The industrial sector accounts for 24% of total emissions. To achieve the net-zero transition whilst maintaining economic output will require substantial improvements in the energy productivity of firms.
There are huge differences in energy productivity between firms, even within the same narrow industry. A new OECD study will be launched in this session: using data from nine countries, it shows that the top 10% of firms are at least 20 times more energy productive than the bottom 10%. Improving the productivity of the least energy efficient firms has the potential to significantly reduce energy use and associated emissions whilst maintaining or increasing economic output. For example, just raising the energy productivity of the least productive firms to the level of the 25th percentile firm in their industry would reduce aggregate energy use and carbon emissions by nearly half for the same level of output.
This session will discuss the barriers to technology adoption that explains this huge energy efficiency gap, as well as the policy packages that can accelerate the adoption of existing energy-efficient technologies within the manufacturing sector, particularly among lagging firms.
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