7.      Other industry

The “other industry” sector includes all industries that cannot be allocated in one of the six industry sectors above.  It includes industries such as food, beverage, and tobacco processing; manufacturing of other nonferrous metals (e.g., copper, lead, nickel, tin, titanium, zinc, gold, silver, platinum) and other non-metals (e.g., glass, ceramics); manufacturing of textiles, wearing apparel, leather, and related products; manufacturing of computers, electronics, optical products, and electrical equipment; manufacturing of machinery and equipment; and the construction industry.

7.1.  Activity level

For the other industry sector no specific information was found at the sector or subsector level in IPCC and IEA ETP 2DS on their activities in 2010 or toward 2050. For that reason, they fall into method III. The relative activity growth of the sector was modeled by using the predicted global economic growth rate from the IEA ETP 2014 2DS pathway, roughly 3.3 percent per year.

7.2.  Emission reduction potential

Because no data are available for these industries, the emission budget of this sector was determined by the total industry IEA ETP 2014 2DS emission pathway minus the emission budgets of the five energy-intensive industry sectors described above. In that way, the emissions pathway of the other industry sector can be determined for 2010 till 2050. CO2 emissions in 2010 were 2,140 Mt, targeted to decrease to 903 Mt in 2050, a decrease of 58 percent.

 

A steep decline of the emission intensity is needed in this sector with its many and diverse small- and medium-size enterprises (SMEs). SMEs typically have larger reduction potential than the large energy-intensive companies (Saygin, Patel, & Gielen 2010); this potential can be approximated with generic efficiency improvements. There is also potential to reduce scope 2 emissions, such as more efficient motor systems and decarbonizing electricity.

 

7.3.  Carbon intensity pathway

With increasing activities and decreasing emissions from 2010 to 2050, the carbon intensity of the sector declines steeply. The carbon intensity index of the sector goes from 1 in 2010 to 0.14 in 2050, a decrease of around 87 percent.

 

The carbon intensity of a company in this sector is calculated by dividing the emissions of the company by the value-added of the company. The company’s carbon intensity and the sector’s intensity in the base year are linearly reduced at the same rate to the target year. This means that companies in this sector will have an intensity target that should decline about 87 percent by 2050.  

 

Figure I.7 Other industries will grow, but have a target of reducing carbon intensity by 87 percent by 2050

Source: based on IEA (2014).