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January 17, 2020
With the Green Deal, Europe is taking on an unprecedented challenge, which also offers new opportunities. In it, Signify sees chances for big energy savings
On December 11, Frans Timmermans, the European Commission’s Climate Chief, launched the European Green Deal, Europe’s groundbreaking climate plan to make Europe the first climate neutral continent in the world by 2050.
A green future will unlock new markets and prospects for European businesses, high-skilled jobs in dynamic new industries for the workforce, and cleaner air and healthier lifestyles for citizens.
The first target, requiring CO2 emissions to be reduced by 55% (versus 1990 levels), must be met by 2030. Signify already makes a big contribution to this energy-saving objective and is committed to doing much more in the future.
Today, 13% of our total electricity usage is for lighting, already a significant reduction from 2006, when lighting accounted for 19% of electricity. When we make the final switch to LED, this can be reduced to as little as 8%, or almost half by 2030.
If we were to completely transition to LED lighting in Europe today, that would mean that from 2006, the year when conventional lightbulbs were to be phased out, until 2030, we would save 198 megatons of CO2.
This equates to 267 power plants or about 50,000 windmills.* The savings for the Netherlands alone would be 3.5 megatons of CO2. This is the equivalent to the electricity use of three million households, according to the Nederlandse Licht Associatie (Dutch Light Association) and Fedet.**
The mission is therefore not only to make LED lighting the standard, but to make the use of LED lighting obligatory; in the Benelux as well as in the whole of Europe. And the Green Deal will speed up the transition to LED lighting in Europe.
Almost 85% of all light points in the Benelux still use conventional lightbulbs and can be replaced with LED lightbulbs. This would go a long way towards the goal of energy savings. But it depends on whether governments proactively incentivise businesses and consumers.
This can be done for example, by supporting the renovation of buildings with energy-saving measures such as LED lighting and the use of correct insulation. It therefore goes without saying that the voluntary nature of the usage of LED should be replaced by a mandatory usage in the new European climate law.
According to the Green Deal, a new circular economy is needed in order to become climate neutral by 2050. Whereas a linear model always leads to waste, a circular economy aims to stretch the lifespan of finished products for as long as possible and even to reuse them.
Signify has been a world leader in this field for several years with its Circular Lighting proposition. This means that lighting is offered as a service – buy lighting, not light bulbs. Customers can reduce their monthly electricity bill and switch to energy-efficient quality lighting. Signify bears the costs, supplies state-of-the-art lighting and the service. At the end of the contract, the company takes care of the recycling and/or reuse.
Circular LED lighting should be mandatory for cities and municipalities. Conventional public lighting, such as public spaces and the road network is now responsible for more than half of energy usage. By making circular LED lighting connected and suitable for remote use, municipalities can make energy savings of up to 80%.
In conclusion: LED lighting is an excellent way for Europeans to do their part in implementing the Green Deal. It makes financial sense on an individual level too: if an average family, with about 35 points of light in the house, switches to LED lighting, the savings will be approximately €400/year.
When we have the will, a consistent policy, and the support of the transition fund, we will all be making a big step in the green direction!
* Where the production of an average power plant is 600 megawatts and that of a windmill is about 3 megawatts
** https://www.fedet.nl/lichtindustrie-pleit-voor-aanpassing-eml/
Signify (Euronext: LIGHT) is the world leader in lighting for professionals, consumers and the Internet of Things. Our Philips products, Interact systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. In 2023, we had sales of EUR 6.7 billion, approximately 32,000 employees and a presence in over 70 countries. We unlock the extraordinary potential of light for brighter lives and a better world. We have been in the Dow Jones Sustainability World Index since our IPO for seven consecutive years and have achieved the EcoVadis Platinum rating for four consecutive years, placing Signify in the top one percent of companies assessed. News from Signify can be found in the Newsroom, on X, LinkedIn and Instagram. Information for investors is located on the Investor Relations page.
