| | SEPTEMBER 20228INDUSTRY INSIGHTSBy Anil Chaudhry, MD & Zone President, Schneider ElectricDIGITIZATION OF ENERGY FOR A GREEN WORLDD igitalization is key to snap the link between higher GDP growth and ris-ing carbon trails. Higher economic growth is a perennial imperative world-wide. However, industrialization, urbaniza-tion and modern development are all accel-erating global warming and climate change with disastrous consequences. Clearly, there is no alternative to individuals, insti-tutions and industries collectively reducing their carbon trail if global warming is to be contained initially and reversed later. While multiple solutions are being pursued in lowering the planet's carbon trail, a single, overarching stratagem is required to make a substantial, sustained impact towards this goal. In recent years, it is increasingly apparent that digitalization harbours the potential to reverse the dangerous trend of higher growth leading to higher carbon trails. REVERSING GLOBAL WARMINGThe link between industrialization and global warming cannot be denied or down played. Going by empirical evidence, a one percent rise in global GDP triggers a 0.5 percent increase in carbon emissions, contributing to resource scarcity. A World Economic Forum report highlights that by 2030, present business practices can contribute to a worldwide demand-supply gap of eight billion metric tons (MT) in natural resources. In turn, some $4.5 trillion of economic growth will be lost by 2030.One needs to view the role of digital transformation in combating CO emissions in this context. According to a World Economic Forum report, between 2016 and 2025, it is estimated that digitalization can potentially prevent an estimated 26 billion MT of total CO2 emissions from three sectors, i.e., electricity (15.8 billion MT), logistics (9.9 billion MT), and automotive (540 million MT). Incidentally, entire Europe is expected to emit an almost equal amount of emissions in the same period. Such CO2 reductions could then be a game changer. Anil Chaudhry,MD & Zone President
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