Johnson Controls may be most well known for its automotive electronics products, but the sharp decline in new car sales has dampened its revenue stream. The Milwaukie company's energy management and efficiency divisions look to become an even larger contributor to its bottom line.

Johnson Controls has upgraded its Energy and Emissions Management System to expand features for greenhouse gas reporting and "consolidates all sources of greenhouse gas emissions, baseline adjustments, and credit trading impacts....," according to the company. The software automates carbon accounting based on the World Research Institute and World Business Council for Sustainable Development GHG Protocol.

In partnership with the non-profit Prince Albert II of Monaco Foundation, Johnson Controls will develop projects in Europe to increase the awareness of how energy efficiency can be used to combat climate change.

The economy's freefall -- particularly the drop in auto sales -- has hurt Johnson Control's revenue. Auto sales dropped 31 percent while the company's overall revenue fell by 63 percent during the quarter ended June 30 from a year ago. During this financial slump energy efficiency, as long as the savings can be documented through a short return on investment, is a much easier sell than new vehicles. Energy efficiency and energy management programs will continue to rise because of the need to save money, to reduce carbon (and possibly generate revenue through carbon credits), and to cash in on Recovery Act dollars. Johnson Controls says it is bidding on stimulus-related projects that could be worth up to $800 million. However, Johnson Controls is currently in a disagreement with the Duluth Steam Operative over just how much money a retrofit of a steam plant will save.

Johnson Controls is looking to earn revenue from renewable energy credits in a unique deal with the Unified School District of Hemet, California. The district hired Johnson Controls, which will assume all of the equipment costs, to build a $30 million solar network, but Johnson Controls will receive ownership of the RECs. The commercialization of plug-in hybrid and all-electric vehicles should help to revive the auto industry overall, and will likely have even greater impact on Johnson Control's auto unit as they are heavily involved in both battery and drive train components of EVs.

John Gartner is Editor in Chief of Matter Network and an Industry Analyst for Pike Research.