How is ABB Cutting Emissions Without New Infrastructure?
As global energy demand continues to rise, driven by electrification, digitalisation and climate pressures, the need for efficiency has never been more urgent.
ABB’s latest white paper outlines a compelling roadmap for achieving the COP28 UAE Consensus, particularly the pledge to double the rate of global energy efficiency improvements from 2% to 4% annually by 2030.
At the heart of ABB’s strategy is a practical solution: replacing outdated electric motors with high-efficiency alternatives and pairing them with advanced variable-speed drives.
This approach offers an affordable, scalable way to cut emissions, improve productivity and reintroduce up to 10% of energy capacity back into the grid, without building costly new infrastructure.
Energy efficiency: The fastest path to impact
ABB’s report underscores how energy efficiency is not just environmentally urgent, it’s financially compelling.
Since 2019, global investment in energy efficiency has risen by nearly 50%.
In 2024 alone, global electricity demand surged by nearly 1,000 TWh, comparable to Japan’s entire annual consumption.
The industrial sector drove nearly 40% of that increase.
While efficiency returns were once measured in years, upgrades using variable speed drives and IE4/IE5 motors now often pay for themselves within months.
The Energy Efficiency Movement, initiated by ABB, estimates that just four efficiency actions across industrial settings could avoid 2.53 gigatonnes of CO₂ annually by 2030, equal to the emissions of 600 coal-fired power plants.
These actions alone offer a US$4.1tn gross benefit and a net upside of US$1.23tn after investments and discounting.
One case study with CERN found that energy audits across 800 motors revealed a 17.4% efficiency improvement opportunity in cooling and ventilation, translating to annual savings of 31 GWh—enough to power more than 18,000 European homes.
"Adopting energy-efficient solutions helps companies cut electricity consumption, minimise waste and extend equipment lifespan, therefore lowering both operational costs and emissions,” Erich Labuda, Division President at ABB Motion Services tells Energy Digital Magazine.
“By doing more with less, energy efficiency preserves resources, reduces dependence on fossil fuels, and cuts operational costs – all while maintaining or even improving productivity, delivering benefits for the planet and for the bottom line.
“Saying this differently, energy efficiency is key to ensuring industries can outrun, leaner and cleaner.
“It’s a must, not a plus. The technology exists, the opportunity is real, and the time to act is now."
Innovation and practicality
ABB’s white paper highlights that 45% of the world’s electricity is used by industrial electric motors, yet only 25% of those are operated with drives.
Drives allow motors to adjust speed based on load, rather than running constantly at full speed and wasting energy through inefficient throttling.
ABB’s audits from November 2024 to May 2025 screened more than 10,500 motor-driven systems.
Among 5,900 prioritised for upgrades, average energy savings reached 43%, totalling 941,000 MWh, equivalent to the annual energy consumption of 91,715 US households.
Aurubis, Europe’s leading copper producer, replaced 460 ageing motors with IE4 and IE5 models in Bulgaria, many paired with ABB drives, cutting electricity use by 25 GWh annually.
The project paid for itself in just 3.5 years and also delivered reduced emissions, greater flexibility and improved performance.
"The COP28 Global Renewables and Energy Efficiency Pledge calls for doubling the global average annual rate of energy efficiency improvements from around 2% to over 4% every year until 2030,” says Erich.
“Enhancing energy performance, especially across industries, with electric motors consuming about 45% of global electricity, can deliver fast paybacks and immediate emissions reductions without requiring large-scale infrastructure changes.”
Governments and industry
Policy is essential to scaling efficiency. ABB advocates for ambitious minimum efficiency performance standards (MEPS), tax incentives and smart carbon markets.
For example, India’s government made industrial efficiency upgrades eligible for carbon offsets, incentivising businesses to adopt best practices without compromising financial performance.
In China, ABB has installed more than 11 million high-efficiency motors and drives, saving more than 510bn kWh – the equivalent of Shanghai’s entire electricity use for three years and avoiding 500m tonnes of CO₂.
“Energy efficiency is an abundant and cost-effective resource that reduces the need for additional energy supply and paves the way to net zero – that’s why the International Energy Agency (IEA) labelled it the 'first fuel',” Erich explains
“Yet, only 25% of motors are controlled by variable speed drives (VSDs), which adjust a motor’s speed to match actual demand — much like gently pressing the accelerator in a car.
“Installing higher-efficiency motors can reduce global electricity consumption by up to 10%, equivalent to the amount of electricity used by 300 million households.
“In a time when energy affordability, security and industrial competitiveness are more important than ever, these are opportunities that we cannot afford to ignore."
ABB’s research shows 86% of Chinese companies are planning further energy efficiency investments.
ABB also notes the strain from AI and data centres, which consumed 415 TWh in 2024, 1.5% of global electricity.
These facilities are ideal targets for efficient motor and drive solutions.
Digitalisation
ABB frames digitalisation as the foundation of modern efficiency.
Smart sensors and cloud-connected systems enable real-time insights into motor performance, allowing predictive maintenance and system-wide optimisation.
In Brazil, ABB helped utility company Saneago reduce pumping energy bills by US$700,000 annually and improve uptime by deploying ABB Ability smart drives and motors.
These solutions allow businesses to monitor energy usage remotely, prevent failures and refine operations dynamically.
ABB’s Top Industrial Efficiency (TIE) Initiative offers businesses the highest-performing efficiency options as default.
In 2025, ABB helped an Indian steel plant achieve a motor efficiency of 99.13% – a world record.
Over 25 years, this single upgrade is set to save US$5.9m and 61 GWh in electricity.
ABB’s white paper makes the case that the technology to meet climate and energy targets already exists.
By doubling energy efficiency improvements annually, a third of the emissions needed for net zero could be cut, equivalent to China’s annual final energy use.
Governments, businesses and investors must align to remove barriers to adoption. High-efficiency motors and drives are proven, affordable, and immediately impactful.
With better policy, targeted investment and greater awareness, the world can reduce emissions, relieve grid pressure and unlock economic growth, all by doing more with less.
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