Exploring ways that energy productivity improvement could address challenges faced by the food value chain, such as climate change, increasing costs, disruptive innovation and extreme competition, by saving energy and indirectly by delivering multiple business benefits, especially through collaborative action across the value chain taking a systems innovation approach.
Energy productivity is the value delivered per unit of primary energy. It captures the total economic value generated from each unit of energy comprehensively, rather than simply in terms of energy efficiency. Shifting the focus from energy efficiency and intensity to energy productivity transforms the focus of energy conservation and emissions reductions.
Exploring ways that energy productivity improvement could address challenges faced by the food value chain, such as climate change, increasing costs, disruptive innovation and extreme competition, by saving energy and indirectly by delivering multiple business benefits, especially through collaborative action across the value chain taking a systems innovation approach.
The food sector is responsible for about 30% of global energy consumption and is the largest user of land on the planet. Energy is heavily involved in growing, processing, packaging, distributing, storing, preparing, serving, and disposing in the food value chain.
The Australian food and beverage sector operates in a highly competitive business environment, and as production systems intensify and use additional energy-intensive technologies, their dependence on energy inputs increases. With energy use accounting for at least 15% of total operational costs for food and beverage businesses in Australia, improving energy productivity in the sector will be vital for remaining globally competitive and reaching net-zero targets. In fact, Australia is expected to increase its annual productivity from 1.5 to 2.3 per cent per annum to reach its energy productivity target.
Decarbonising our food supply has widespread ambition but needs momentum beyond renewable energy supply and carbon offsets. By applying an energy productivity mindset combined with a value chain approach and systems transition thinking, it is possible to achieve the least cost decarbonisation pathway.
This project explored ways that energy productivity improvement could address these challenges directly by saving energy and indirectly by delivering multiple business benefits, especially through collaborative action across the value chain.
Through research and consultation with industry, existing activity, understanding and attitudes to energy productivity and potential for collaborative action across the food value chain were clarified. Options for models to mobilise collaborative energy productivity action were developed and feedback was sought. This led to recommendations for a consortium-based approach to build awareness and drive action.
The project applied three core elements:
The food sector is responsible for about 30% of global energy consumption and is the largest user of land on the planet. Energy is heavily involved in growing, processing, packaging, distributing, storing, preparing, serving, and disposing in the food value chain.
The Australian food and beverage sector operates in a highly competitive business environment, and as production systems intensify and use additional energy-intensive technologies, their dependence on energy inputs increases. With energy use accounting for at least 15% of total operational costs for food and beverage businesses in Australia, improving energy productivity in the sector will be vital for remaining globally competitive and reaching net-zero targets. In fact, Australia is expected to increase its annual productivity from 1.5 to 2.3 per cent per annum to reach its energy productivity target.
Decarbonising our food supply has widespread ambition but needs momentum beyond renewable energy supply and carbon offsets. By applying an energy productivity mindset combined with a value chain approach and systems transition thinking, it is possible to achieve the least cost decarbonisation pathway.
Emerging issues with the potential to justify more attention on energy productivity and collaboration that were identified included:
We invite organisations within the food sector to get in touch if they wish to work with us to form a consortium to build awareness and drive action around energy productivity in food value chains.
As Director of Strategic Projects, Belinda brings her global experience in accounting, marketing, strategy and innovation for financial services to develop strategies to build greater resilience for Climate-KIC Australia.
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