The German Federal Environment Agency publishes a study on the potential of digitalization for reducing greenhouse gases in the energy sector

In issue 74/2021 of the "Climate Change" series, the panel of authors led by Dr. Swantje Gährs presents their new study. The result: Digitalization can contribute to climate protection in the end-customer energy market.

The study conducted by the German Federal Environment Agency (UBA) categorizes the potential effects of digital applications in the energy sector on climate change into direct and indirect effects. Direct effects are those arising from the production, use, and disposal of the technology. Unsurprisingly, these have a negative impact on greenhouse gas emissions. The UBA study also identified potential positive climate protection effects through indirect effects, i.e., those resulting from the use of the technologies. In particular, case studies on the sub-areas of "efficiency monitoring" and "smart meters with feedback" revealed potential greenhouse gas savings.

Overall, however, the study also shows that the investigated applications can only contribute marginally to achieving the 2030 climate protection targets under current market conditions. Therefore, the panel of authors concludes that digitalization can only support, and not replace, measures such as building renovations and energy transitions.