This white paper discusses how implementing a smart grid using information and communications technology can help reduce greenhouse gas emissions from the electricity sector in three ways: 1) By reducing growth in electricity demand through tools like smart meters and demand response programs. 2) By accelerating adoption of renewable electricity sources like microgeneration and electric vehicles. 3) By delaying construction of new power plants and transmission lines by prolonging the life of existing infrastructure. The paper outlines the key applications of a smart grid and their potential environmental and economic impacts.