550. Manufacturers see energy efficiency and the installation of new or upgraded equipment as the main pathways to effectively reduce emissions within their businesses.
551. In non-domestic buildings, the highest 6% of electricity consumers are responsible for 80% of electricity consumption, while the highest 4% of gas consumers are responsible for 80% of gas consumption.392 We should seek to prioritise action where we can make the biggest impact on emissions via energy consumption.
552. Almost half (47%) of businesses had adjusted their business practices to reduce energy consumption in response to heightened energy prices in 2022. This was consistent across manufacturers of all sizes, sectors and regions.393
553. Optimising industrial processes is a continuous improvement process and energy efficiency is never 'done in the first go.' Emission and cost savings can be made over again, even for those who have already started with some measures.
"While energy efficiency is largely straightforward, the transformation of industrial processes is less so, yet this will be critical within the next decade. Therefore, Government must take bolder action. It must hold itself to account on its Industrial Decarbonisation strategy by providing regular updates on progress in order to help business understand the Government's overall intentions and make investment decisions accordingly." - Make UK394
554. Manufacturers are replacing old equipment that is no longer energy efficient with more modern equipment. It is often the case that when equipment has not reached the end of its life, an upgrade is sufficient to improve efficiency or reduce carbon emissions. Manufacturers may also want to replace machines or vehicles running on fossil fuels with electric ones, for example, enabling them to electrify their processes and operations.
555. The Industrial Decarbonisation Strategy set out how the Government will support sites, including dispersed sites, and focus on installing energy management systems, improving heat recovery and reuse across sites, developing a communications plan on existing available policy support and finally, increasing resource efficiency and material substitution within industry.
556. The Government must accelerate and unlock the potential of energy efficiency to decarbonise the manufacturing sector by delivering on the plans set out in the Industrial Decarbonisation Strategy by 2024.