1. Digital Decarbonization
- Author:
- Varun Sivaram
- Publication Date:
- 06-2018
- Content Type:
- Working Paper
- Institution:
- Council on Foreign Relations
- Abstract:
- In2017,theEconomistproclaimedthatdatawasthenewoil. Justastrade in oil has underpinned the global economy for a century, flows of data— the most valuable resource of the twenty-first century—now drive eco- nomic value. Indeed, in 2017, all five of the world’s most valuable publicly traded companies specialized in digital technologies, whereas just a decade earlier three of the top five companies were in the energy sector. This does not mean that the energy sector has been left behind by the digital revolution. To the contrary, digitalization is at the heart of the tectonic shifts that are starting to reshape the energy landscape. As energy industries produce ever more data, firms are harnessing greater computing power, advances in data science, and increased digital con- nectivity to exploit that data. These trends have the potential to trans-form the way energy is produced, transported, and consumed. An important potential benefit of this digital transformation of energy is a reduction in global emissions of greenhouse gases that cause climate change; the elimination of such emissions from the global economy is known as decarbonization. By enabling clean energy sys- tems that rely on low-carbon energy sources and are highly efficient in using energy, digital innovations in the energy sector can speed decar- bonization. Yet they are not guaranteed to do so. In fact, digital innova- tions could well increase global greenhouse emissions, for example, by making it easier to extract fossil fuels.
- Topic:
- Climate Change, Environment, Science and Technology, and Digital Economy
- Political Geography:
- Global Focus