In an era of accelerating climate action, surging energy prices, and mounting customer expectations, industries face a new imperative: to deliver more with less. The challenge is no longer just about improving outputs – it's about radically rethinking how to drive competitiveness. And at the heart of transforming how products are designed, manufactured, operated and maintained lies a critical enabler: energy efficiency.
A new whitepaper by ABB, Achieving the COP28 UAE Consensus, released on 3rd June, outlines how energy-efficient solutions – ranging from energy audits, upgrading to high-efficiency motors and variable-speed drives to embracing digital performance monitoring – are becoming essential tools for engineering excellence. In fact, as the report demonstrates, energy efficiency doesn’t just cut costs; it fuels innovation, improves reliability, and gives companies a measurable edge in sustainability and performance.
Energy Efficiency: A strategic business lever
Today’s engineering firms must contend with multiple pressures – rising input costs, shorter development cycles, and tighter performance and regulatory requirements. Simply keeping up is no longer enough. They must outrun.
Energy efficiency is the fastest, cleanest, and most cost-effective solution to ease these pressures. Every kilowatt-hour saved is one we don’t need to generate - cutting emissions, easing grid pressure, and saving money. Lighter energy bills, reduced unplanned downtime, and extended equipment life translate into operational savings which compound over time, offering payback that’s both rapid and lasting.
Critically, these gains go beyond cost savings. They free up capital and engineering resources that can be redirected into research, innovation, and broader decarbonization initiatives. And the reputational upside – through visible, data-backed emissions reductions – enhances brand value in ESG-conscious markets.
Future-proofing products, not just processes
Energy efficiency is not just for the shop floor; it’s transforming how products are conceived and built.
Take high-efficiency motors (IE4 and IE5): with lower losses and longer lifespans than IE3 (or earlier standards), they enable the development of smaller, lighter, and more durable end-products. This is a game-changer in space-sensitive sectors like robotics, transportation, and HVAC.
Variable-speed drives (VSDs) further optimize performance by fine-tuning motor speeds to match real-time demand —much like gently pressing the accelerator in a car. This enhances precision, reduces mechanical wear, and accelerates prototyping – benefits that ripple across the entire product lifecycle.
Digital tools and predictive maintenance platforms provide yet another layer of value. Real-time data insights improve asset reliability, speed up iteration cycles, and ensure consistent product quality. ABB’s audits of over 10,500 industrial systems worldwide revealed average energy savings of 43%. Among the 5,900 systems that were prioritized and appraised, the total identified energy savings equated to 941,000 MWh/year – the equivalent of the annual consumption of nearly 92,000 US households.
These are not marginal gains. They are transformative improvements that directly impact profitability and industrial competitiveness.
Compliance, reputation, and the competitive edge
The regulatory landscape is shifting rapidly. From the EU’s Ecodesign Directive to ESG procurement rules worldwide, energy efficiency is no longer an optional upgrade – it’s a critical one.
Early adopters of energy-efficient technologies position themselves not only to comply, but to lead. By measuring and managing their energy footprints – from motor systems to process loads – engineering firms can turn regulatory pressure into market advantage. Offering verifiable energy savings is becoming a valuable asset in securing contracts, attracting investment, and meeting Scope 1 and Scope 2 carbon targets.
In its whitepaper, ABB also calls on policymakers to go further. Clearer incentives, simplified regulations, and coordinated public-private collaboration are essential to accelerate the adoption of efficient technologies. With energy demands rising – driven by data centers, AI, and electrification – governments must do more to help industry scale smarter, not just faster.
The time to act is now
Energy efficiency is no longer just about doing good – it’s about doing better. It enhances performance, reduces costs, and drives innovation from the ground up. In a fast-moving, resource-constrained world, it's becoming the bedrock of competitive engineering.
The tools exist. The benefits are proven. And the future – more sustainable, agile, and profitable – is waiting. The opportunity is there to unlock energy efficiency as the first fuel of the industrial transition – and power the next generation of engineering.
Erich Labuda is Division President at ABB Motion Service
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