How does manufacturing affect climate change
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The Impact of Manufacturing on Climate Change
Manufacturing Processes and Climate Change
Manufacturing processes are diverse and involve a wide range of commodities traded globally, making the analysis of their impact on climate change complex. Climate change affects the manufacturing sector by influencing the security of electricity supply, availability of transportation, and access to water. These factors are critical for manufacturing operations, and their disruption can lead to significant negative impacts on production processes by the 2040s, potentially worsening in the latter half of the century without effective global action1.
Climate Change Effects on Manufacturing Productivity
Climate change poses a significant threat to the manufacturing sector, affecting productivity, business risk, and the availability of natural resources. Severe weather conditions, such as increased temperatures and precipitation, negatively impact manufacturing outputs. For instance, in Nanjing, China, higher average temperatures and precipitation levels have been shown to reduce manufacturing productivity, although warmer winter temperatures can have a beneficial effect2 4.
Mitigation Technologies in Manufacturing
The adoption of climate change mitigation technologies is crucial for controlling greenhouse gas emissions in the manufacturing sector. Technologies such as low-carbon energy, eco-efficiency, and green design can significantly enhance the environmental performance of manufacturing firms. However, not all technologies have the same impact; for example, low-carbon energy technology positively affects firm performance, while pollution control technology can have a negative effect3 10.
Energy Intensity and Technological Innovation
Decoupling manufacturing production from energy use is essential for mitigating climate change. Technological advancements play a fundamental role in reducing energy intensity in manufacturing. Studies have shown that capital-energy substitution and technological progress significantly contribute to improvements in energy intensity, particularly in developed economies7. Low-carbon technology innovation (LCTI) is particularly effective in enhancing environmental performance, as evidenced by increased carbon efficiency and productivity in OECD countries10.
Supply Chain Risks and Climate Change
Climate change also impacts global supply chains, affecting food production, natural resources, and transportation. Extreme weather conditions can disrupt supply chains, leading to cascading effects across interconnected sectors. Effective management of climate change risks in supply chains is essential to mitigate these impacts and ensure business continuity8.
Policy Implications and Adaptation Strategies
Manufacturing industries must adapt to climate change by implementing various strategies, including continuous staff and management training on climate change, and integrating climate considerations into factory planning. Carbon accounting is also becoming increasingly important for managing climate change risks and making informed decisions to mitigate environmental impacts2 6 9.
Conclusion
Manufacturing significantly affects and is affected by climate change. The sector faces challenges related to productivity, resource availability, and supply chain disruptions due to severe weather conditions. However, the adoption of climate change mitigation technologies and innovative practices can enhance environmental performance and reduce energy intensity. Policymakers and industry leaders must prioritize adaptation strategies and technological innovations to mitigate the adverse effects of climate change on manufacturing.
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Most relevant research papers on this topic
Manufactured commodities and climate change
Climate change will negatively impact global manufacturing, but regions responsible for most exports are well-positioned to adapt and minimize adverse impacts.
Effect of Climate Change on the Manufacturing Sector
Climate change significantly impacts the manufacturing sector, affecting productivity, business risk, goods and services, chemicals and minerals, natural resources, and buildings, requiring adaptation strategies and ongoing staff and management training.
Do United States manufacturing companies benefit from climate change mitigation technologies
Adopting low-carbon energy technology positively impacts unified performance in US manufacturing firms, while pollution control technology negatively affects it, while other mitigation technologies show no significant impact.
Impact of climate changes on manufacturing: Hodrick-Prescott filtering and a partial least squares regression model
Increased average temperature and precipitation negatively impact manufacturing in Nanjing, China, while higher temperatures in winter offer benefits.
Climate Change and Manufacturing
Manufacturing technology can contribute to reducing the effects of climate change by adapting processes and implementing mitigation measures.
Effects of Climate Change on Factory Life Cycle
Climate change impacts factories, requiring planning-related strategies to adapt to these changes and reduce costs.
Assessing the role of technology in global manufacturing energy intensity change: A production-theoretical decomposition analysis
Capital-energy substitution and technological progress contributed to decreasing manufacturing energy intensity from 2005 to 2014, while poor technical performance in production and energy utilization remained a primary barrier.
Managing climate change risks in global supply chains: a review and research agenda
Climate change significantly impacts global supply chains, requiring a systems-theoretical framework to manage climate change risks and mitigate its impact on food, mining, and logistics sectors.
Systematic Review
Highly CitedIMPACT OF CARBON ACCOUNTING AS A REFLECTION TO CLIMATE CHANGE IN MANUFACTURING INDUSTRIES
Carbon accounting in manufacturing industries is crucial for mitigating climate change impacts and promoting environmental conservation, providing a competitive advantage for companies.
Role of low-carbon technology innovation in environmental performance of manufacturing: evidence from OECD countries
Low-carbon technology innovation significantly improves the environmental performance of manufacturing in OECD countries, with the chemical industry showing the highest level of low-carbon technology.
Observational Study