A new report by The University of Minnesota and the Environmental Defense Fund suggests that the key to cutting carbon emissions is improving energy efficiency in the supply chain, especially among SMEs
The report identified the lack of energy-use data, standardisation and transparency as one of the major obstacles to improving energy efficiency. Taking action to improve these areas could help to reduce the high transaction costs that exist in current energy efficiency financing and investments, a particular problem for SMEs.
Another recommendation in the report is the creation of finance and credit risk approaches for energy efficiency projects. These would help investors better capture the extensive potential of energy efficiency investments, especially in SMEs.
Based on a two-day workshop attended by 31 industry experts, the report suggests that public and private collaboration will be crucial to reduce the transaction costs of implementing supply chain energy efficiency.
This might take the form of sector-based collaborations which bring together groups of peer manufacturers within a supply chain, using benchmarking and best practice to identify and improve industry competitiveness.
amee’s unique breadth of data on specific industries, for example manufacturing, simplifies the management of these challenges for both SMEs and supply chain owners.
Considering that nearly one-third of all global primary energy is consumed by the industrial sector, there are “massive opportunities” to improve energy efficiency in this area, said the workshop organiser Jennifer Schmitt.
To read the full report click here.