IT and Its Effect on Carbon Emissions

The McKinsey Quarterly, the online publication from the Global Consultancy, just published an interesting report (free registration required) on the role of IT and carbon emissions. Although conventional wisdom would suggest that the increased usage of IT and communications devices are more likely to lead to increased carbon footprint, especially in developing countries, their research suggests that:

Besides the opportunities in these four sectors[manufacturing, power, smart transportation systems, buildings], we studied the possibility of reducing emissions by “dematerializing” physical goods and processes through telecommuting, video conferencing, Internet shopping, and downloading content rather than using paper, CDs, DVDs, and so on to covey it. We found that these kinds of substitutions cut emissions significantly—by 0.5 metric gigatons a year—but far less than the 7.3 metric gigatons in annual emission reductions from improved energy efficiency in factories, buildings, electricity grids, and truck fleets. That is a somewhat unorthodox conclusion.

The authors also suggest that if energy costs and a potential carbon tax be passed on to consumers, then buyers of IT and communications — in both developed and developing countries — will better scrutinize their purchasing decisions. This report offers some compelling evidence that technological progress may not come with as high a carbon cost as previously thought.