Some of the Middle East’s biggest industrial firms facing up to massive increases in energy costs in the wake of subsidy reforms can make huge savings by investing in low emission technologies, according to an expert.

Philip Rice, energy and utilities expert in PA Consulting’s regional headquarters in Abu Dhabi, said: “The exploding cost of energy drives up the cost base of manufacturers significantly, and the energy subsidies issue in this region has increased the burden.

“In the past 10 years the global manufacturing industry has been investing in optimising its carbon footprint, and reduction targets of 50 per cent less emission and 35 per cent less energy consumption are common,” he said.

Working with PA, one of the world’s largest aerospace and defence companies delivered massively reduced energy consumption cost, identified reduction potentials of 200,000 tonnes of CO2 emissions and optimised investment of more than €450 million across 25 sites in several countries, said Rice.

“Investing in low emission technologies and implementing new behaviours to reduce consumption is no longer a cost position only, but can offer other major business opportunities. But only a few companies are aware of how to exploit this,” he said.

PA helps big industrial firms save millions of dollars by sending in teams of experts to develop a customised energy efficiency roadmap. “Solar and photovoltaic systems, combined heat and power plants, wind power and heat recovery can all reduce carbon footprint significantly and cut costs by millions of dollars, but there is no single solution,” he pointed out.

“Companies need to understand that to succeed in going green, many local factors have to be taken into account, such as sunshine hours, wind intensity and availability of subsidies. But a detailed analysis of each manufacturer’s operations and local conditions will produce a customised energy roadmap that can make a massive difference in terms of cutting costs.”

A study among more than 500 marketing experts underlined why the significance of “going green” is increasing, and how it gives companies a competitive advantage. It said 70 per cent saw an increase in the significance of sustainability for marketing efforts; 60 per cent believed going green increases trust in the brand; 56 per cent said green companies are seen as more innovative and future-oriented; and 50 per cent saw green companies as positively differentiating themselves from their competitors. – TradeArabia News Service