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Operational Efficiency in Carbon-Intensive Sectors
Carbon-intensive, high emitting and “hard to abate” sectors such as Oil, Gas & Chemicals, Metals & Mining, Fossil Fuels Power Generation and Transportation & Logistics are heavily reliant on fossil fuels and account for more than 50% of greenhouse gas (GHG) globally. In South east Asia, these four major industries account for more than 80% of total GHG emissions.
These industries are facing stricter regulations to reduce their carbon footprint and growing pressure to reduce the environmental impact caused by their emissions. Improving operational efficiency, which results in the reduction of energy use, is one of the first steps that companies can take to effectively and efficiently reduce their overall GHG emissions. Further, operational efficiency has the benefit of long term energy cost savings and reduction of operating costs.
This report describes some commonly adopted technologies that help companies in carbon-intensive sectors to achieve improved operational efficiency. They are:
- Common energy efficiency solutions, such as waste heat recovery system and co generation/ combined heat and power system;
- Emissions reduction solutions, such as flare gas and vapour recovery systems; and
- Digitalisation to enhance energy efficiency.
To address our climate challenge, UOB has developed a Transition Finance Framework to assist carbon-intensive, high emitting and “hard to abate” companies in their energy transition journey. To complement this framework, UOB has rolled out a financing solution that is curated to support “operational efficiency”. This solution supports companies’ investments and upgrades to improve their operational efficiency. With UOB’s financing support, carbon-intensive companies and transition enablers such as equipment suppliers and contractors, can tap on a full suite of financing solutions to improve their cashflows when undertaking such projects.
