Green technology will need incentives to take off

Technological advances such as intelligent buildings and next-generation traffic monitoring will be central to meeting government targets to cut carbon emissions by 60 per cent by 2050.

But the balance between introducing financial incentives, such as carbon trading allowances, and using regulatory restrictions, such as emissions caps, has yet to be struck.

The impact of IT developments will be felt only by addressing the fundamental economic issues, economist Andrew Sentance told a conference hosted by supplier group Intellect last week.

“The power of economic incentives are the way to engender change in society,” said Sentance, who sits on the Bank of England’s monetary policy committee.

“The industry can then create enabling technologies to help us meet the challenge.”
There are five main areas of green development: carbon capture and storage; renewable energy; biofuels; electric vehicles; and controlling and improving the efficiency of energy use.

And while technology has a role in all five categories, the management of energy use is the most significant for business.

Many companies are already investing in green IT, such as datacentre virtualisation, video conferencing and e-commerce. But the next generation of developments will have a more profound impact, according to the Intellect report published at the conference.

Remote sensing equipment ­ often using infra red ­ can help identify where an infrastructure is losing energy. But such systems are currently considered too expensive by most utilities.

Monitoring technologies ­ such as networked “smart meters” for electricity supply ­ can help keep track of usage patterns and reduce consumption at a domestic level. But utilities are waiting for a government mandate to make the business case for the necessary investment.

Intelligent transport technology could have a major impact on congestion. If all cars were fitted with real-time routing systems to help avoid traffic jams, vehicle emissions could be cut by as much as 30 per cent, according to some estimates.

But while many cars already have GPS, few update routes to avoid congestion. And Transport for London’s iBus system, which tracks and routes buses via satellite, has had problems.

Building management technology is also on the rise. In the UK, the National Theatre is using lighting control systems to reduce power consumption by a sixth ­ see story below. And the Kodak Park project in the US co-ordinates energy use across 150 buildings to save more than $1m (£507,000) annually.

As broadband becomes ubiquitous, and home-working is more practical, there are significant carbon savings to be made by cutting commuting time.

Perhaps unsurprisingly, BT is a leading example: its teleworking scheme saves £180m a year and delivers an average travel reduction of 193 miles per week.

There is also growing support for the use of satellites to replace traditional, power-hungry terrestrial communications infrastructure with a carbon-free, solar-powered alternative ­ see story below, left.

But, despite such an array of green developments, take-up remains low. Only one in five executives claim their companies practise environmental purchasing, according to Pricewaterhouse Coopers.

And businesses are already growing weary of IT suppliers pushing their green credentials, said Dan Sutherland, chief executive of supplier Carrenza and head of the Green Technology Initiative.

“Customers are much less interested in the green angle when it comes to procuring services than they were nine months ago ­ they are back to looking at shorter-term cost benefits,” he said.

Even the public sector ­ which spends £14bn a year on IT ­ has unclear green procurement guidelines .

To bring about the necessary cultural and behavioural changes will need a careful balance of financial carrot and stick. Relying on the power of argument will not work on its own.

“Only with take-up of low-carbon technologies can we hit government targets,” said Intellect director of energy Laurence Harrison. “But policy alone will not be enough.”