BOOM IN EMISSIONS WATCHING TOOLS

Small market for carbon tracking is growing fast
Nicola Groom and Michael Szabo (w/Nina Chestney and Gerald E. McCormick), August 10, 2009 (Reuters)

"A growing list of companies, from tiny start-ups to some of the world's biggest corporations, is investing in products that will help them cash in on a mad dash for businesses to track their carbon footprints.

"Giant software concerns Microsoft Corp and SAP AG along with U.S. manufacturer Johnson Controls Inc and UK-based carbon offset firm Camco International Ltd,are among those piling into what is now a small but fast-growing market for tools to measure environmental impacts."

A Pioneer solutions schematic demonstrates the complexity of the task. (click to enlarge)

"Until now, companies eager to prove their green credibility have voluntarily measured the greenhouse gas emissions of assets and operations such as buildings, delivery fleets, employee travel and factories…Corporate behemoths including Wal-Mart Stores Inc, Coca-Cola Co and Tesco Plc are among those that already track their carbon footprints, and…the specter of legislation is calling more and more companies to action…

"More and more firms are snapping up carbon-measuring products in anticipation of a mandatory program in Britain called the Carbon Reduction Commitment (CRC) that forces some 5,000 businesses to cut their emissions and reduce energy consumption starting next year. In addition, many expect a similar program in the United States won't be far behind…"

EnerNoc's approach seems more methodical - but there are now many other choices - and many more coming. (click to enlarge)

"A recent study by Groom Energy Solutions, a U.S. firm that helps companies reduce energy consumption, estimated that about half of the Fortune 500 companies have calculated their carbon footprints, compared with just 4 percent five years ago…[M]ost of those measurements so far have been done internally, the study found, rather than with commercial software products. That, however, is bound to change as carbon legislation requires ever more data and analysis…

"…EnerNOC and Canadian start-up Carbonetworks Corp are targeting British firms…More than 50 companies offer software products that measure carbon footprints…Estimates of the size of the market vary wildly…[A good estimate is] about $50 million -- with the promise of reaching several billion dollars in three to four years as U.S. carbon legislation promised by the Obama Administration takes shape…[W]ith dozens competing for a slice of what is still a fledgling market, long-term winners are difficult to call…SAP, Johnson Controls, business information company IHS Inc and private companies Enviance, Environmental Support Solutions Inc, PE International and ProcessMAP Corp [are] the market leaders…Microsoft and CA Inc [and other potential winners may] yet emerge…"