Given that the machinery sector ranks relatively low in global greenhouse gas emissions, is it necessary to highlight the current progress in its clean energy transition? Should global efforts be concentrated solely on the highest-emitting industries?
Indeed, the machinery sector is frequently overlooked in climate change discussions, even within the industry itself. According to recent research by PwC, many machinery and equipment manufacturers have yet to prioritize sustainability strategically.
However, the sector’s impact on global warming extends beyond just the manufacturing process. The machinery sector generates significant Scope 2 and Scope 3 emissions. Most machinery is made from metals like iron and steel, which are major contributors to global warming, and machinery operation often requires substantial energy. Traditional manufacturing processes, which use energy-intensive machinery, also produce considerable carbon emissions.
There are measures the industry can take to reduce its carbon footprint across the entire value chain. Emphasizing a circular economy, especially a cradle-to-cradle model where machines are designed for repair, reuse, and repurposing, could be beneficial. Recycling materials from end-of-life machinery can reduce the need for new metal ore mining, thus lowering greenhouse gas emissions associated with the mining, transportation, and manufacturing of metals.
Learn more here: https://atradius.ca/reports/industry-trends-clean-energy-transition-machines.html
