Industrial Decarbonization: Gain Efficiency and Save Costs with an Energy Management System [Guide]

As energy prices remain volatile and industry decarbonization targets grow in urgency, manufacturers are under pressure to manage energy more strategically. The key question: What are the critical energy challenges industries must solve to stay competitive and sustainable? 

The path to decarbonization has become imperative for industries worldwide, as we collectively strive to mitigate the environmental impact of energy consumption. Our white paper explores the intricate relationship between energy management, clean energy sources, and innovative carbon capture and storage technologies. We highlight the importance of aligning decarbonization efforts with sustainability agendas and government initiatives to create a greener and more sustainable future. 

Why Energy Cost Allocation in Industry Matters 

Manufacturing costs include raw materials, labor, indirect costs and energy costs. Of these costs, the latter has a major impact on the overall cost structure. They can represent around 10% of the selling price of manufactured products (such as in the case of metallurgy or auxiliary building materials). For this reason, it is common practice to track them. Energy management systems (EMS) are tools that monitor energy consumption data and provide analytical tools to detect problems and control consumption, optimizing and reducing it. 

Energy Management Systems (EMS) allow you to monitor, analyze, and optimize energy consumption. But not all EMS are created equal. When offering analysis features, these systems can identify areas or processes that result in higher energy costs, allowing measures to be initiated for optimization. In addition, the analysis of energy consumption patterns by energy management systems will enable opportunities for improvement to be identified and energy efficiency measures to be implemented in an informed and strategic manner. 

Strategies for Industrial Decarbonization 

Energy savings alone aren’t enough. Today’s industrial leaders must also reduce emissions to meet regulatory mandates and meet growing customer demand for greener products. 

This is why industrial decarbonization is a priority of the sustainability agenda, and initiatives and programs, such as the Strategic Projects for Economic Recovery and Transformation (SPERT) have been put in place. These initiatives serve as a funding mechanism from the European Union’s Next Generation Funds, with an investment of over €11 billion. 

In 2021, the United Kingdom led the launch of the Clean Energy Ministerial’s Industrial Deep Decarbonisation Initiative to encourage the public procurement of low-emission steel and concrete. 

The Industrial Decarbonisation Strategy represents a groundbreaking initiative from a significant economic powerhouse, outlining a comprehensive roadmap for the decarbonization of industries in alignment with the country’s net-zero goals. It emphasizes the importance of maintaining competitiveness while preventing the transfer of emissions to other regions. 

Drawing upon the foundational principles of the 10 Point Plan for a green industrial revolution, this strategy accomplishes the following: 

1. Articulates the government’s vision for a thriving, low-carbon industrial sector in the United Kingdom by 2050. 

2. Provides the industry with the necessary long-term assurance and stability, essential for making investments in decarbonization. 

3. It is complemented by the Energy White Paper: “Empowering Our Net Zero Future”, which further expands upon the nation’s path to achieving net-zero emissions. 

Environmental Impact of Energy Consumption in Industry

The industrial sector consumes nearly one-third of global energy and contributes approximately 26% of all greenhouse gas emissions, according to IEA data. That’s a major climate footprint—and a huge opportunity to drive impact 

The same IEA report points out that the industrial sector consumes approximately one-third of all energy at present. The more energy that is consumed, the greater the possibility of implementing saving measures and reducing consumption, bearing in mind that the higher the consumption, the higher the emissions of greenhouse gases and other pollutants. 

The generation of energy from non-renewable sources, such as fossil fuels, is one of the main causes of greenhouse gas emissions, such as carbon dioxide (CO2), nitrogen oxide (NOx) and sulphur dioxide (SO2). These gases contribute to global warming, which has serious consequences for the environment, such as rising temperatures, changes in weather patterns, loss of biodiversity and deterioration of ecosystems. 

In addition to the impact on emissions, energy consumption in industry can also have other negative effects on the environment. For example, the treatment of water used in production processes can generate polluting discharges that affect water quality and aquatic ecosystems. 

Also, the proper management of materials used in production, such as waste and chemicals, as well as their recycling, can be a challenge in terms of environmental impact.  

Efficient and sustainable management of energy consumption in industry is also vital to mitigating environmental impact. 

The best way you can do this is by using energy management solutions. Advanced tools to monitor and optimize energy consumption in real-time, identify inefficiencies and establish energy-saving strategies. This allows you as an industry professional to reduce your carbon footprint, reduce greenhouse gas emissions and improve overall environmental performance. 

Economic Benefits of Energy Savings in Manufacturing

Saving energy through energy optimization and efficient energy management can have significant economic benefits for your organization in the industrial sector. Logically, if you reduce your energy consumption, you reduce your total cost. Sometimes, to make medium-term savings, you will have to incur upfront costs. 

Some ways to get started on your path to energy efficiency and savings include adjusting your contracted power, optimizing your energy output, replacing inefficient machinery or lighting, and using waste heat recovery techniques, among others. 

Start Reducing Costs and Emissions Today 

If you’re ready to turn energy management into a competitive advantage, this guide is for you. 

• Learn how to identify hidden inefficiencies 
• Explore policy frameworks supporting decarbonization 
• See how EMS technology enables smarter, sustainable operations 

📘 Download the full white paper now: