Future reductions in CO2 emissions are technologically feasible for the industrial sector of OECD countries if technologies comparable to the present generation of efficient industrial facilities are adopted during regular stock turnover (replacement) (IPCC SAR, 1996). For Annex I countries with economies in transition, GHG reducing options are intimately tied to the economic redevelopment choices and the form that industrial restructuring takes. In developing countries large potentials for adoption of energy and resource efficient technologies exist as the role of industry is expanding in the economy. Although the efficiency of industrial processes has increased greatly during the past decades, energy efficiency improvements remain the major opportunity (IPCC SAR, 1996) for reducing CO2 emissions. Efficient use of materials may also offer significant potential for reduction of GHG emissions (Gielen, 1998; Worrell et al., 1997) (see Table 9.2). Much of the potential for improvement in technical energy efficiencies in industrial processes depends on how closely such processes have approached their thermodynamic limit. For industrial processes that require moderate temperatures and pressures, such as those in the pulp and paper industry, there exists long?term potential to maintain strong annual intensity reductions. For those processes that require very high temperatures or pressures, such as crude steel production, the opportunities for continued improvement are more limited using existing processes. Fundamentally new process schemes, resource efficiency, substitution of materials, changes in design and manufacture of products resulting in less material use and increased recycling can lead to substantial reduction in energy intensity. Furthermore, switching to less carbon-intensive industrial fuels, such as natural gas, can reduce GHG emissions in a cost-effective way (IPCC SAR, 1996; Worrell et al., 1997). In addition to stock replacement, which is an excellent opportunity to save energy, there are many low cost actions that can be adopted as part of good management practices. Table 9.2 provides categories and examples of technologies and practices to mitigate GHG emissions in the industrial sector (based on IPCC SAR (1996), WEC (1995), and Worrell et al. (1997)). This summary is by no means comprehensive, but rather an indication of the wide range of possibilities that exist within and among industrial sectors for reducing GHG emissions. For more specific technologies and information, the reader is referred to a wide body of literature, as has been described in the references mentioned above.

The sensitivity of industry to climate change is widely believed to be low, compared to that of natural ecosystems (IPCC SAR, 1996). Climate change, however, may have (local and regional) impacts on availability of resources to industry as a result of changes in average temperature, precipitation patterns and weather disaster frequencies, in particular, availability of water (as a resource, energy source or for cooling) and renewable inputs (industrial and food crops) may be affected. Industry thus also needs to adapt to climate change, depending on local conditions, e.g. by improving its water efficiency, by strengthening its flexibility to cope with fluctuations in input availability, by reducing the vulnerability of production for weather conditions, and through proper siting and adaptations of industrial facilities. This may include a wide variety of measures such as protecting industrial sewage cleaning installations from flooding by storm water, reducing dependence on water use for various purposes, and siting away from vulnerable coastal areas. Fluctuating water levels at sea or rivers may also affect the steady supply of resources to industrial facilities, as evidenced by the impact of extremely high water levels on river bulk transport on the Rhine river system. There are already examples in which water scarcity has driven innovation into water efficient industrial technologies, which have significant energy efficiency improvements (and hence GHG mitigation potential) as spin off. For example, water scarcity was identified as a potential threat to the textile industry in Surat (India) in the early 1990s. This incited a local engineering firm to invest in the development of dyeing machines customised for local fabric quality. Water and energy consumption are only approximately 1/3 of the water and energy consumption of comparable dyeing machines available on the international market, while the investment is much lower due to local industry. Several hundreds of dyeing machines are now being installed annually in the Surat region, and efforts are underway to market the technology in other regions and abroad (Van Berkel et al., 1996).

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