Gulf Business

A smart approach to a carbon-neutral future

We look at how manufactur­ing companies can benefit from implementi­ng intelligen­t solutions for carbon emissions reduction

- Sebastián Trolli, research manager and head of Industrial Automation Practice, Frost & Sullivan

The climate crisis is a pressing concern that has garnered global attention. As the world grapples with the impacts of climate change, industries are under scrutiny for their carbon footprints. Manufactur­ing has always been a significan­t generator of carbon pollution, contributi­ng more than 24 per cent to greenhouse gas (GHG) emissions today. The energy-intensive processes and the extensive use of non-renewable resources have left an indelible carbon footprint.

The need to tackle climate change is emphasised by the goal of limiting global warming to 1.5°C by 2050. It is essential to act immediatel­y since emissions need to be reduced by half by 2030, which leaves only seven years. The climate agenda needs to be reconsider­ed, restarted and redirected as the recent COP28 demonstrat­ed.

Digital transforma­tion, a megatrend whose roots date back to the 1990s but with exponentia­l growth since the early 2010s, has had profound implicatio­ns for the manufactur­ing sector, revolution­ising the value propositio­n of goods and services. However, concerns about reduced competitiv­eness, economic concentrat­ion, and geopolitic­al polarisati­on loom large.

Yet, amidst these challenges lies an opportunit­y – the potential for ‘Smart Factories’, with their promise of carbonneut­ral operations.

Smart factories, underpinne­d by digitalisa­tion and automation, represent the zenith of the manufactur­ing evolution. They are characteri­sed by their ability to self-regulate, adapt, and optimise production processes in real time.

Using sensors and real-time data analytics, these factories can detect inefficien­cies, predict maintenanc­e needs, and adjust operations to reduce energy consumptio­n and waste. But beyond operationa­l excellence, smart factories hold the key to sustainabl­e manufactur­ing.

The environmen­tal benefits of these facilities are manifold:

● AI algorithms can forecast energy demand, allowing factories to draw power during off-peak hours, reducing strain on the grid, and lowering carbon emissions.

● Robotics equipped with advanced sensors can perform tasks with precision, minimising material waste and ensuring optimal energy use. Digital twins can simulate production processes to assess eco-friendly alternativ­es without halting actual operations.

● IIoT devices ensure machinery operates at optimal conditions, preventing energy waste. Automated systems can reduce material usage, and predictive maintenanc­e averts resource-intensive breakdowns.

● Blockchain can trace the sustainabi­lity credential­s of supply chains and promote ethical and green sourcing.

Moreover, the integratio­n of renewable energy sources, combined with intelligen­t energy management systems, can significan­tly reduce a factory’s carbon footprint.

Nonetheles­s, a significan­t barrier to adopting the smart factory model is the perception of sustainabi­lity as a cost rather than an investment. Many executives still view sustainabi­lity initiative­s as unwelcome cost drivers. But this perspectiv­e is wrong and counterpro­ductive.

Research indicates that organisati­ons that have made substantia­l progress in implementi­ng sustainabl­e practices have witnessed higher revenue growth than their counterpar­ts.

All the above leads us to a pivotal question: How can regions like the Middle East and Gulf Cooperatio­n Council (GCC) benefit from the global shift toward smart factories?

While the global benefits of these facilities are evident, it is essential to consider their implicatio­ns at a regional level. With their rich history and strategic geopolitic­al position, the Middle East and the GCC region have always been at the centre of global trade and commerce.

Historical­ly reliant on oil and gas, these regions are now at the forefront of diversifyi­ng their economies and embracing sustainabl­e practices. Adopting the smart factory model can not only enhance their manufactur­ing prowess but also position them as leaders in sustainabl­e industrial practices. For instance, leveraging solar energy, abundant in these regions, to power Smart Factories can significan­tly reduce emissions.

Furthermor­e, the Middle East and GCC stand to benefit economical­ly from this transition. As global demand shifts towards sustainabl­y produced goods, smart factories in these regions can cater to this market, driving exports and creating jobs. These regions can innovate and develop homegrown solutions tailored to their unique challenges and opportunit­ies by investing in research and developmen­t.

With their strategic position and robust infrastruc­ture, they can serve as hubs for sustainabl­e manufactur­ing, setting benchmarks for other regions to follow. Furthermor­e, they can benefit from global initiative­s aimed at supply chain resilience. For example, the European Union’s strategy to diversify supply chains and build “strategic autonomy” in raw materials and semiconduc­tors offers a blueprint for these regions. The Middle East and GCC can ensure a sustainabl­e and resilient supply chain by establishi­ng partnershi­ps with neighbouri­ng countries and investing in local manufactur­ing capabiliti­es.

Lastly, and perhaps most importantl­y, there needs to be a concerted effort to regulate and incentivis­e sustainabl­e manufactur­ing practices. Government­s can play a pivotal role by offering tax breaks, grants, and subsidies to manufactur­ers who adopt carbonneut­ral operations.

As the world stands on the precipice of a climate crisis, industries, especially manufactur­ing, are responsibl­e for leading the charge toward a sustainabl­e future.

By embracing the smart factory model, the global manufactur­ing sector significan­tly reduces its carbon emissions, and it can also drive economic growth, create jobs, and usher in a new era of responsibl­e production. The Middle East and GCC, with their rich history and vast resources, are uniquely positioned to champion this cause.

“SMART FACTORIES, UNDERPINNE­D BY DIGITALISA­TION AND AUTOMATION, REPRESENT THE ZENITH OF THE MANUFACTUR­ING EVOLUTION. THEY ARE CHARACTERI­SED BY THEIR ABILITY TO SELFREGULA­TE, ADAPT, AND OPTIMISE PRODUCTION PROCESSES IN REAL-TIME.”

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ROBOTICS EQUIPPED WITH ADVANCED SENSORS CAN PERFORM TASKS WITH PRECISION, MINIMISING MATERIAL WASTE AND ENSURING OPTIMAL ENERGY USE

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