Carbon Trading Software Providers Seek to Penetrate a Spreadsheet-Driven World
Vendors of software for greenhouse gas (GHG) tracking and analysis have a group of formidable competitors that don't capitalize their names: spreadsheets, manual methods and other in-house tools that most of the potential client base is still using to conduct carbon accounting. The same is true of the nascent market for carbon trading software, as the vast majority of potential customers are still using old-fashioned, do-it-yourself methods. In a 2009 global survey of utilities and commercial and industrial companies, Global Change Associates and CommodityPoint, a division of energy and utilities consultancy Utilipoint International found that 44% of respondents were using spreadsheets and other in-house solutions for carbon management and trading, 36% had no particular system at all, and the remaining 18% were using products from software vendors.
"It's a pretty immature market," said Peter Fusaro, chairman of Global Change Associates.
Service Firms Use IT Tools to Build Competitive Positions in Building Energy
Saving money by monitoring and managing the energy used in build- ings and implementing efficiency projects when there's a strong business case sounds like a no-brainer for commercial and industrial firms and institutions like K-12 schools, hospitals, prisons and colleges. But according to executives at leading building energy management firms, the vast majority of companies and institutions in the United States have yet to implement such programs. That means there's a lot of energy out there being wasted-with the attendant carbon emissions-and a very large business opportunity. "The overall energy management opportunity in the commercial and industrial space in the United States alone is more than the equivalent of all of the proven oil reserves in Saudi Arabia," said Gregg Dixon, senior vice president of marketing for EnerNOC. "We think there are a lot of prospects," agreed Matthew Berke, founder and CEO of LPB Energy Management. "If a company is of a certain size, it is understood that it needs an outside accountant to audit its financial statements. We see a similar trend taking hold for energy. If you're using over a certain amount of energy, you need to track, report and take action on it."
Intelligent Transportation Systems Coming to America
Intelligent transportation systems leverage information technology with traffic signals and other mechanisms to manage when and where people travel. ITS strategies such as adaptive traffic management and traffic signal optimization can reduce carbon emissions from vehicles by improving traffic flow. ITS strategies are only recently being deployed in the United States, after a decade of growing usage in Europe. The late start can be an advantage as vendors and local governments can leverage technology deployed in other parts of the world. Deploying ITS strategies can be heavy lifting for state and local jurisdictions in this era of budget deficits, but the segment has some key selling points.
Adaptation Markets Open Up In Geospatial Mapping
As highlighted in CCBJ's adaptation edition, local, state and federal governments are seeking more accurate three-dimensional maps of their coastal terrain and floodplains to plan for the sea level rise and increased flooding projected to occur with climate change. This demand and technological advancements that lower the cost of aerial LIDAR mapping are creating new opportunities for vendors. Remote measurement of forest carbon is potentially an enormous market where LIDAR will compete with emerging GEOSAR technology.
IT Solutions Target Water Resources and Future Agricultural Production
Sensor networks, modeling software and other IT tools are already playing roles in helping farmers, governments and stakeholders understand the impacts of climate change on farming and in some cases respond. Private and public sector RD&D is making these tools more accessible and less expensive, and new service and equipment markets will develop as the value of such information increases in a changing climate. CCBJ examines below two examples of IT tools being used to understand and respond to climate change on farms. In California, researchers are using wireless sensor networks to better measure water resources and to empower farmers to use water more efficiently. And in Aus- tralia, climate modeling software has been developed that can predict the spread of insect and weed pests in a changing climate.
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