Johnson Controls (JCI) may be best known for its automotive products, but the sharp decline in new car sales has dampened its revenue stream. The Milwaukee 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 Protocols.

In partnership with the non-profit Prince Albert II of Monaco Foundation, JCI 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 has a heavy impact on JCI’s revenue. Auto sales dropped 31 percent while the company’s overall revenue fell by 29 percent during the quarter ended June 30 from a year ago. Not surprisingly, the company’s Automotive Experience and Power Solutions (automotive battery) divisions suffered the worst.

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. JCI says it is bidding on stimulus-related projects that could be worth up to $800 million. However, the company 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 JCI, which will assume all of the equipment costs, to build a $30 million solar network, but JCI 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 Controls’ auto unit as they are heavily involved in both battery and drive train components of EVs.