New UNIDO report explores potential of Industry 4.0

26 September, 2017

Industry 4.0 promises improved methods of production and business models through new technologies, including automation, augmented reality and the Internet of Things, that could accelerate the deployment of renewable energy in manufacturing; reduce carbon emissions; optimise energy-use; and enhance productivity and cost savings. This, in turn, could help tackle major global challenges, such as climate change, the lack of access to clean energy access, etc. However, Industry 4.0 also presents challenges that relate to countries’ ability to efficiently and rapidly introduce new technologies in manufacturing processes, and could eventually result in greater inequality. The conditions to be met to ensure that all countries can benefit from the potential of Industry 4.0 to advance sustainable energy are explored in the report.

 Pathways towards sustainable energy

The report looks into two development pathways towards more sustainable energy: developed countries could retrofit their systems to improve energy efficiency, while developing countries could industrialise in a more sustainable manner by jumping from older technologies to very modern ones, such as smart factories and decentralized micro-grids. The report argues that the revolution needs to be supported by policies that foster the transition to sustainable energy systems. At the same time, the report exposes concrete policy recommendations.

“UNIDO can provide policy advice to governments for setting up suitable framework conditions,” said UNIDO senior programme management expert, Takeshi Nagasawa. “As a knowledge-sharing and project development platform, UNIDO can help capitalise on the sustainable energy aspects of Industry 4.0 by transforming systems or leapfrog technology waves.”

Digitising industry in tune with the Sustainable Development Goals

The report further points out that by enhancing the use of information and communications technologies and increasing internet access, there could be a multiplier effect that would contribute to achieving different Sustainable Development Goals (SDGs). In particular, advancing SDG 9 on industry, innovation and infrastructure could help tackle SDG 7 on affordable and clean energy and SDG 13 on climate action.

www.unido.org