ABB Energy Efficiency Whitepaper
02/07/2025 ABB Motion Services
The business case for sustainability: Energy efficiency in process manufacturing
By Erich Labuda, Division President, ABB Motion Services
As global leaders gathered at the 10th Annual IEA Conference on Energy Efficiency, one message stood out: energy efficiency is not just a technical fix or a cost-saving measure – it is a fundamental pillar of sustainable development. Against the backdrop of escalating energy demand and the urgent need to reduce emissions, the International Energy Agency reinforced a strong call to action: doubling the rate of energy efficiency improvements by 2030 is essential if we are to stay on track for net zero.
Electricity demand alone is projected to more than double by 2050. For energy-intensive industries such as process manufacturing, this presents a dual reality: a challenge in managing rising energy needs and emissions, and an opportunity to lead through innovation. By improving energy performance across operations, companies can not only significantly reduce their climate impact and cut costs, but also build resilience in a rapidly evolving energy landscape.
Process manufacturers can turn energy efficiency into a competitive advantage – leveraging the insights from energy audits, the benefits of proven technologies, the power of digitalisation, and the momentum of evolving regulatory frameworks.
Energy efficiency at the centre of the global industrial transition
Energy efficiency has often been described as the “invisible solution” to climate change. But at the IEA’s recent conference, it took centre stage as a critical enabler of global climate, economic, and energy goals. Ministers, CEOs, and industry experts aligned around a clear message: energy efficiency is the first and cleanest fuel in the transition to a sustainable energy system.
The conference’s outcome statement, endorsed by nearly 50 governments, called for the rapid deployment of existing technologies, stronger international collaboration, and a policy environment that actively rewards energy-saving efforts. Importantly, the statement did not treat energy efficiency as a narrow technical topic – it highlighted its potential to deliver broad social, economic and environmental benefits. Reduced energy bills, improved air quality, energy security, job creation, and industrial competitiveness were all cited as outcomes of a well-designed efficiency strategy.
This matters enormously for the process manufacturing sector, which includes industries such as chemicals, pharmaceuticals, and food & beverage, some of the most energy-intensive segments. Despite significant improvements in recent decades, many of these facilities still operate with legacy systems and outdated infrastructure, leaving considerable room for energy savings.
ABB’s June 2025 white paper, Achieving the COP28 UAE Consensus, reinforces this point. It argues that sustainable development must not come at the expense of economic growth. Instead, we must meet rising energy demand with smarter, more efficient technologies that reduce waste and drive productivity.
Proven technologies already delivering results
The good news is that process manufacturers do not need to wait for breakthrough innovations to start saving energy. Many of the most effective technologies are already commercially available and well-proven in industrial settings. The IEA has called for immediate action– urging the adoption of solutions that can deliver impact today, while paving the way for future advancements.
High-efficiency motors and variable speed drives (VSDs) are prime examples. These components are essential in motor-driven systems such as pumps, fans, and compressors, which account for a large share of electricity use in most process plants. Replacing conventional motors with high-efficiency alternatives, and equipping them with VSDs to precisely match output to demand, can reduce electricity consumption by up to 30% – without compromising performance.
But modern efficiency goes beyond hardware. Digitalisation plays a critical role in unlocking further gains. ABB’s Ability™ Digital Powertrain, for instance, enables real-time condition monitoring, performance analysis, and predictive maintenance across an entire system. This not only reduces downtime and maintenance costs, but also helps prevent inefficiencies before they result in wasted energy.
Modernisation programs that retrofit existing installations with energy-efficient components offer a pragmatic and low-disruption pathway to improvement. From modular upgrades to full system overhauls, the return on investment is compelling, both in terms of cost savings and carbon reductions.
Policy, partnership and investments to accelerate adoption
While technology is a key enabler, it is not enough on its own. Unlocking the full potential of energy efficiency requires coordinated action between industry, governments, and financial institutions. The IEA’s call for “joined-up policy” reflects the need for cohesive frameworks that align incentives, remove barriers, and ensure that no sector or community is left behind.
In Europe, momentum keeps building. The revised Energy Efficiency Directive, anchored in the EU Green Deal and reinforced by the Clean Industrial Deal, sets binding national targets to cut energy consumption. It mandates regular energy audits for large enterprises, requires implementation of cost-effective measures, and promotes digitalisation, energy management systems, and technologies like waste heat recovery and electrification. The directive also includes provisions for benchmarking and transparent performance reporting, positioning energy efficiency not just as a decarbonisation tool, but as a strategic driver of sustainable industrial growth, resilience, and innovation in the region.
The UK is also advancing its industrial decarbonisation agenda as part of the recently announced Invest 2035 industrial strategy. Central to the plan are measures to cut green levies and reduce electricity costs for over 7,000 energy?intensive firms – potentially lowering bills by up to 25% from 2027 – funded through energy?system reforms and carbon pricing. The strategy also commits up to £2.8?billion in R&D funding for advanced manufacturing and outlines clean energy investments ramping up to £30?billion per year by 2035.
These policy signals matter – they reduce uncertainty for investors and encourage companies to commit to long-term efficiency strategies.
ABB’s white paper calls for similar efforts on a global scale. To accelerate progress, governments must implement clear policies and legislation, predictable incentive schemes, public procurement criteria, and robust technical standards. This provides the stability and direction needed for businesses to invest with confidence, while also creating a level playing field that rewards sustainability leadership.
Energy efficiency as a resilience enabler
Energy efficiency is one of those rare, sweet spots where doing the right thing also makes economic sense. Yet, as a society, we still don't embrace it enough. In a world of volatile energy prices, tightening regulations and increasing stakeholder expectations, energy-efficient operations are inherently more resilient and competitive.
Energy efficiency contributes to broader business goals: through visible, measurable climate contributions, it strengthens environmental credentials, supports sustainability commitments, and can even improve workforce engagement as employees take pride in being part of a more sustainable operation.
With proven technologies at hand, growing policy support, and a strong economic case, the time to act is now. Process manufacturers who lead on energy efficiency will not only lower their emissions and operating costs – they will set themselves on the right path to outrun, leaner and cleaner.
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