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IBM turning green over data centres
Time to take credit for energy efficiency?

By Martin LaMonica

Published: Friday 02 November 2007

IBM is launching an initiative to give its corporate customers a way to measure and potentially monetise energy-efficiency measures in their data centres using an emerging form of currency.

The computing giant has detailed a programme - starting in the US - that will let companies earn energy-efficient certificates, which are awarded after a company undertakes a project to lower its data centre power consumption. It's part of its Big Green Innovations programme to invest in clean tech.

IBM is partnering with Neuwing Energy Ventures to verify the amount of kilowatt hours reduced through data centre makeovers.

Companies can either claim those energy reductions as part of their own corporate environmental initiatives, which increasingly call for more quantifiable measures. Or they can sell the energy-efficiency certificates on the voluntary renewable energy certificate market. A handful of US states also have a mechanism to sell these certificates to utilities that have renewable energy mandates.

IBM designed the programme because more companies are looking for ways to accurately measure their energy consumption as part of environmental initiatives, said Rich Lechner, vice president of IT optimisation at IBM.

He said he expects most customers to hold on to the energy-efficiency certificates rather than sell them. The monetary value of a large-scale energy efficiency programme could be worth hundreds of thousands of dollars if the company chooses to sell as credits, he said.

The energy-efficiency credits are part of a growing trend to use financial markets to reduce greenhouse gas emissions.

IBM will offer the energy-efficiency credits on its mainframes and midrange servers to clients in the US this year. It intends to extend the offering to its entire server and storage line and offer it to customers in Europe next year, said Lechner.

Martin LaMonica writes for CNET News.com