Mobile and Environmental Sustainability 20 September 2012 Mobile Energy Efficiency © GSM Association 2011 Executive summary In July 2012 the GSMA published “Mobile’s Green Manifesto 2012” which presented aggregate data derived from the Mobile Energy Efficiency (MEE) benchmarking project and quantified the industry’s enabling potential In 2010, mobile network energy consumption (120 terawatt hours) and carbon emissions (70 million tonnes) are low compared to other industries such as aviation (650 million tonnes of carbon emissions) Despite considerable growth in connections and traffic between 2009 and 2010, global mobile network energy consumption increased only modestly, by 1.6%, and declined per connection (5.4%) and per unit of traffic (19%) Mobile enabled an emissions reduction of approximately 3 million tonnes of carbon in 2011. However, mobile has the potential to reduce 900 million tonnes of carbon in 2020, largely driven by machine to machine connections gaining scale Confidential 2 The GSMA’s Mobile Energy Efficiency service benchmarks energy consumption for 35 operators representing over 200 networks Confidential 3 The benchmarking output assists in the measurement and management of industry energy costs and carbon emissions 2010: 100% 5 bn 120 TWh $13 bn 70 Mt 90% South & Central America 80% East Europe 70% Middle East 60% West Europe 50% 40% Africa 30% USA & Canada 20% Asia Pacific 10% 0% Connections Energy Consumption Energy Cost CO2 Emissions If all networks with above average energy consumption are improved to the industry average, this implies a potential energy cost saving of $1 billion per annum at 2010 prices. Improving to the top quartile saves potentially over $2 billion annually Source: GSMA. Note costs exclude the capital cost of diesel generators and their maintenance Confidential 4 Estimated total industry mobile network energy increased slightly from 2009 to 2010, but decreased per connection and per unit traffic Estimated Total industry RAN + Core Energy TWh 140 120 30 +1.6% 119 Estimated Total industry RAN + Core Energy per connection kWh / connection 40 25.5 121 Estimated Total industry RAN + Core Energy per unit traffic kWh / GB 25 -5.4% 24.1 35 33.6 -19% 30 100 20 25 80 15 20 60 15 10 40 27.2 10 20 5 0 0 2009 2010 5 0 2009 2010 2009 2010 Note: This analysis is based on 34 networks where data for 2009 and 2010 was high quality, with the % changes applied to estimated global totals and averages. The dataset was equally split between developed and emerging markets but not truly representative as the growth in connections was lower than the true global total. The definition of energy here is total energy, whether from electricity or diesel Source: GSMA Confidential 5 Mobile has the potential to enable significant reduction of GHG emissions and energy costs Industry Areas Mobile enablement of energy and GHG reduction Smart Grids & Meters Electricity network monitoring Smart meter: assist with micro-generation for buildings Smart meter: grid loading optimisation Transport & Logistics Fleet management Traffic monitoring, connected road signs, traffic lights Buildings, Dematerialisation, Other Increasing building automation and control Remote or smart working Near field communication Smart motors Confidential 6 Mobile has the potential to enable emissions savings that are much greater than its own emissions Forecast mobile GHG emissions vs. enabled GHG emissions savings, Mt CO2e 1000 900 900 3.5 billion M2M connections 800 700 600 500 400 200 100 100 billion M2M connections 26 million M2M connections 300 80 75 70 3 18 0 Mobile Enabled Network Emission Emissions Savings 2010 2011 Mobile Enabled Network Emission Emissions Savings 2015 2015 Note: Includes dematerialisation. Excludes double-counting and rebound effects Source: GSMA Analysis Confidential 7 Mobile Enabled Network Emissions Emissions Savings 2020 2020 potential Smart grids and meters have the largest potential for mobileenabled emissions reduction Potential GHG emission savings in smart grids & meters, Mt CO2e, 2020 200 Total smart grids and meters = 361 Mt CO2e 180 10 11 13 15 16 160 140 120 100 9 19 Latin America 42 Middle East Europe: East Europe: West 80 US & Canada 60 108 40 Africa 76 Asia Pacific 20 15 10 0 Electricity network Smart meter: micro- Smart meter: grid loading optimisation generation monitoring Note: Excludes double-counting and rebound effects Source: GSMA Analysis Confidential 8 Transportation and logistics is the other main area where mobile enabled emissions reduction is high Potential GHG emission savings in transport & logistics, Mt CO2e, 2020 350 Total smart transportation and logistics = 330 Mt CO2e 300 75 250 Africa 200 Middle East 86 Latin America 150 Europe: East 100 Asia Pacific 128 50 0 Fleet management - road Europe: West 9 Traffic volume monitoring, Connected road signs (incl variable speed limits and variable lanes), Traffic lights Note: Excludes double-counting and rebound effects Source: GSMA Analysis Confidential 9 US & Canada Conclusions The mobile industry needs to continue to address its own emissions, both in terms of measurement and management To fulfil the significant potential to enable emissions reductions, more work needs to be done to understand how to accelerate growth to fully exploit the potential. Reasons why the enabled emissions reduction today appears relatively low may include the the slow speed of smart grid launches, and the lack of capex in the fleet management sector during tough economic times, but this needs further study Confidential 10