- link Copy Url - [ Share on twitter ](https://twitter.com/intent/tweet?text=Schneider Electric VIDEO: Accelerating the Energy Transition: 4 Dimensions for Progress https://www.3blmedia.com/markdownify/node/139571?absolute=1&via=3blnews "link to 3 B L Media's Twitter") - [ Share on linkedin ](https://www.linkedin.com/shareArticle?mini=true&url=https://www.3blmedia.com/markdownify/node/139571?absolute=1 "link to 3 B L Media's Linkedin") - [ Share on facebook ](https://www.facebook.com/sharer/sharer.php?u=https://www.3blmedia.com/markdownify/node/139571?absolute=1 "link to 3 B L Media's Facebook") - [ email Share via email ](mailto:?subject=Schneider Electric VIDEO: Accelerating the Energy Transition: 4 Dimensions for Progress&body=ESG News from Schneider Electric https://www.3blmedia.com/markdownify/node/139571?absolute=1 "Share via email") [Energy](/CSR-News/energy-0) # Schneider Electric VIDEO: Accelerating the Energy Transition: 4 Dimensions for Progress ##### by Jean-Pascal Tricoire Dec 14, 2017 7:55 AM ET Campaign: [Schneider Electric | Our Commitment to a Sustainable Future](/news/campaign/schneider-electric-our-commitment-sustainable-future) ![](/sites/default/files/videos/thumbnails/307486/thumbnail-307486_0006.png) ▶ Video [Schneider Electric Blog | Sustainability](https://blog.schneider-electric.com/sustainability/2017/08/22/accelerating-energy-transition-4-dimensions-progress/) While the 2015 Paris Agreement was the theoretical call for action to limit worldwide temperature to well below 2 degrees, there is a need for implementing this call with concrete action. **Better energy, greater prosperity** As a Commissioner of the [Energy Transitions Commission](http://www.energy-transitions.org/) (ETC), I am privileged to be part of a diverse group of energy leaders who are driving the urgent need to ramp up the transition to low-carbon energy systems. The ETC recently released its [“Better Energy, Greater Prosperity” report](http://energy-transitions.org/sites/default/files/BetterEnergy_fullReport_DIGITAL.PDF) on realistic opportunities for governments, businesses, and investors to cut emissions in half by 2040. This report shows that energy transition is technically and economically possible, in both mature and developing economies. It maps out how to achieve rapid progress along four dimensions: **1) Decarbonization of power combined with extended electrification** In many countries, new utility business models are taking shape to leverage a shift towards decentralized solutions such as microgrids and energy storage. Smart meters and on-site generation capabilities are giving utilities the flexibility and speed to deliver power when and where customers need it. In addition, opportunities for extended electrification are increasing. The ETC report indicates that in the residential and commercial building sector alone, at least 35% of energy needs not currently met by electricity could be electrified by 2040\[1\]. In transportation, electric vehicles could hit at least 95% of new sales and 73% of the stock of light duty vehicles by 2040\[2\]. **2) Decarbonization of activities that cannot be cost-effectively electrified** The decarbonization of “hard-to-electrify” industrial applications and long-haul transport is begging for innovation from the private sector. Switching to fuels such as biofuels and hydrogen, capturing carbon, and converting carbon into products and storage, all show promise. Carbon pricing (a tax or payment linked to CO2emissions) is one way to amplify innovation and investment. **3) Acceleration in the pace of energy productivity improvement** Moving towards greater electrification is a significant first step. The next is making sure electrified activities are as energy-efficient as possible. We need to speed up the pace of energy productivity improvement to meet the Paris climate objectives. Improvement must rise from 1.8% to 3% per year globally. At Schneider, we know the EE potential is still significant. In buildings, for example, 82% of the energy efficiency potential is not yet tapped; in industry, that number is 58%.\[3\] **4) Optimization of fossil fuels use within overall carbon budget constraints** Today, fossil fuels account for 70% of final energy demand. The ETC reports that this number must drop to about 50% by 2040 in the two-degree scenario. Fossils fuels still play a major role in the energy mix, especially as they remain the primary source of energy in a growing world economy. We therefore must optimize their use by type, and escalate carbon capture. **The time for change** What is intuitive to us as advocates for cleaner energy takes an understandable overhaul of the way many of us have done business for generations. A “business as usual” approach, however, is not sustainable for the planet. As the [“Better Energy, Greater Prosperity” report](http://www.energy-transitions.org/better-energy-greater-prosperity) demonstrates, ongoing prosperity and economic development can happen alongside — and even because of — the energy transition. We must take action now. At Schneider Electric, we are committed to driving [energy efficiency across our main markets](http://www.schneider-electric.com/b2b/en/campaign/innovation/overview.jsp) to help our customers do their part in our shared move towards a cleaner energy future. Even in energy-intensive industries, change is possible. The China National Building Material Group (CNBM) has set an example here. Energy consumption accounts for more than 60 percent of CNBM’s total costs. Energy efficiency therefore is critical for the Group’s bottom line and for the environment. We’re helping [CNBM lower its energy use](http://www.schneider-electric.com/b2b/en/campaign/life-is-on/case-study/cnbm.jsp). At large, we have made [10 COP21 commitments](http://sdreport.schneider-electric.com/en/company-at-issue/#10-Carbon-Commitments). Among these, one goal is to reduce our own energy intensity by 3.5% each year, and we’re on track to ensure that 75% of our product revenue comes from our Green Premium™ ecoLabel products by the end of this year. The time is now for all of us to leverage the many opportunities from more decentralized, decarbonized, distributed, and electric energy. \[1\] Copenhagen Economics analysis based on data from IEA, ETP (2016) and the Global Calculator, as reported in ETC’s “Better Energy, Greater Prosperity.” \[2\] Copenhagen Economics analysis based on data from IEA, ETP (2016) and the Global Calculator, as reported in ETC’s “Better Energy, Greater Prosperity.” \[3\] World Energy Outlook 2012, OECD/IEA; Internal analysis [![Schneider Electric Logo](/sites/default/files/Clients/Screen_Shot_2020-02-13_at_4.11.24_PM.png)](/profiles/schneider-electric) ### More from Schneider Electric ###### [Schneider Electric Exceeds Its 2024 Sustainability Target and Approaches the End of Its Current Program](/news/schneider-electric-exceeds-its-2024-sustainability-target-and-approaches-end-its-current) Feb 20, 2025 2:00 PM ET ###### [Schneider Electric’s New Researches Forecast AI’s Impact on Energy Consumption](/news/schneider-electrics-new-researches-forecast-ais-impact-energy-consumption) Dec 5, 2024 2:15 PM ET ###### [Schneider Electric and Alstom Target Environmental Impact of Mobility Industry](/news/schneider-electric-and-alstom-target-environmental-impact-mobility-industry) Dec 3, 2024 10:30 AM ET ###### [Schneider Electric Foundation Wraps Up the Year With the Giving Season and Envisions the Next 25 Years To Come](/news/schneider-electric-foundation-wraps-year-giving-season-and-envisions-next-25-years-come) Nov 29, 2024 4:00 AM ET ###### [Schneider Electric Advances Environmental Impact Transparency in MEP by Sharing Product Data Through One Click LCA](/news/schneider-electric-advances-environmental-impact-transparency-mep-sharing-product-data-through) Nov 28, 2024 10:55 AM ET ###### [Tackling Energy Poverty: The Necessary Rise of Minigrids](/news/tackling-energy-poverty-necessary-rise-minigrids) Nov 26, 2024 11:00 AM ET ###### [Schneider's Sustainability Program Heads Full Speed Toward Its End-Year Targets With Strong Local Impact](/news/schneiders-sustainability-program-heads-full-speed-toward-its-end-year-targets-strong-local) Oct 30, 2024 2:00 PM ET ###### [How Corporate Power Can Preserve Biodiversity](/news/how-corporate-power-can-preserve-biodiversity) Oct 23, 2024 2:15 PM ET