Energy Efficiency as a Green Growth Policy

1. Energy Efficiency as a Green Growth Policy 2nd Training of Trainers Capacity Development Seminar GREEN GROWTH: A Path to Good Governance

2. Growth in energy demand in Asia and the Pacific • Asia and the Pacific accounts for almost 45% of the global total primary energy supply in 2007. • More than a 56% increase in the region’s energy supply in 1990. Total primary energy supply of the world’s regions, 1990 and 2006 Source: Statistical Yearbook for Asia and the Pacific 2008, ESCAP, 2009

3. Energy mix in Asia and the Pacific

4. Projected growth – primary energy demand by region over time (Mtoe) • Primary energy demand, along with energy related CO2 emissions are projected to grow by 40% by 2030 from 2007 levels. • A large proportion of this growth will come from developing Asia as economies support their development needs.

5. Urbanization and population growth • In 2008, the population in Asia and the Pacific was over 4.1 billion and it is projected to grow by another billion by 2030. • In Asia-Pacific 40% of population (1.6 billion) currently lives in urban areas; by 2030, a majority (around 2.7 billion) will live in cities and towns • 40% of Asia-Pacific’s urban residents live in slums, without adequate shelter and basic services • Over 80% of the region’s GDP is produced in cities and towns • Cities contribute 67% of world’s primary energy demand and are responsible for 71% of global CO2 emissions (*) • Given the projected rate of urbanization, cities are expected to increase this share to 73% energy use and 76% of CO2 emissions by 2030 if nothing is done to correct current practices (*) (*) World Energy Outlook 2008

6. Considerable unmet demand and social concerns • Ecological and social implications • Almost 810 million lack electricity in Asia* • Enormous socio-economic costs • Degrading environment • Diseases, child mortality, weakening social services • Restricted opportunities for women • Major implications for achieving the MDGs *Source: World Energy Outlook 2009, IEA

7. Why energy efficiency? • Saving precious resources which could be used for other purposes – future generations, export for income generation, poverty reduction, etc. • Reduce import dependency – improved energy security • Economic savings • Limit environmental impacts and associated concerns

8. Source: Climate in Peril, UNEP, 2009 • Current trends put us on track for a global average temperature increase of up to 6⁰C. • Impacts vary depending on the degree of temperature change, but can projected to significantly affect: • water • food security • ecosystems • human health • oceans

9. International Energy Agency low carbon development projections International Energy Agency analysis of emission reduction scenarios and contributions of emission reduction options. Note: CCS – Carbon capture and storage Source: OECD/IEA, 2008, Energy Technology Perspectives 2008

10. Lifespan of Assets and Infrastructure How infrastructure is planned and constructed has implications on how energy is used and consumed for generations. Source: WWF Living Planet Report 2006

11. Losses across the electricity supply chain Source: “Electropedia” website http://www.mpoweruk.com/energy_efficiency.htm accessed 23 March 2010.

12. Radiant Energy Coal Power Plant Transmission Grid Lamp Illumination An example of lighting 100 1.7 40 34 Energy Service Primary Energy Heat-Power Transmission & Distribution End-use Conversion

13. “Virtual” power plant • Every kWh saved equates to 3 or more kWh worth of energy that does not need to be produced. • What would be the equivalent-sized power plant capacity worth of energy saved? • How much money does it cost to build a new power station? How much debt does a country need take on? • How much does it cost to change a light bulb or encourage other end use energy efficiency practices and technologies?

14. Electricity demand by sector Around 50% of all electricity is used in buildings Source: OECD/IEA, 2008, Energy Technology Perspectives 2008

15. Energy efficiency in buildings • Site management to suit the climate • Building form • Building fabric • Air infiltration • Natural day-lighting and ventilation • Passive solar heating and cooling • Artificial lighting • Limit fossil fuel based heating and cooling • Other appliances and services • Harvesting renewable energy Ulaanbaatar, Mongolia – winter temperatures reach -40⁰C

16. Policy options to encourage energy efficiency in buildings • Building codes and standards • Procurement regulations • Energy efficiency targets and quotas • Auditing • Standards and labels • Utility demand side management • Fiscal and taxation incentives • Information – awareness campaigns and training • Market creation for energy efficiency • Strengthened research and development • Government leadership

17. Australia Vietnam China Europe Korea Strategies to encourage the use of energy efficient appliances • Information campaigns to make consumers aware of the on-going costs associated with using various appliances; • Minimum energy performance standards for new and imported appliances; • Energy labels that raise awareness of consumers on the energy use of products they purchase; • Low interest loan programmes aimed at overcoming financial barriers to the purchase of energy efficiency appliances, the initial cost of which may be higher than inefficient appliances; • Energy audits that provide information on which items and appliances use the most energy and options for reducing this energy consumption; • Tax and fiscal incentives that favour the purchase or import of high-efficiency appliances and equipment; and • Energy service companies that provide clients with a variety of options for increasing the efficiency of operations.

18. Energy efficiency in industry • Globally, one third of all energy use is for manufacturing industries. • 25% of worldwide CO2 emissions, of which: • Projected to double by 2050.

19. Energy efficiency strategies in industry • Energy management systems in industry require a holistic approach across the entire process and involving all departments. Level 1: Active or efficient in-house management of energy efficiency through maintenance and housekeeping measures with only minimal investment Level 2: Replacement of selected equipment requiring medium-sized investments Level 3: Modification of entire manufacturing processes, which many require large-scale investments

20. Energy efficiency in industry • Many institutional, legislative and financial policies can encourage energy efficiency industries, for example: • Energy centres • Training and development • Equipment standards • Labelling • Energy/green industry audits • Licensing and report • Tariffs, taxes and financial incentives • Award programmes • Social responsibility reporting

21. Transport • More than half the oil used worldwide; • 25% of energy-related CO2 emissions; • Projected to increase more than 50% by 2030 and double by 2050; • Growth will be lead by developing countries, especially China and India, due to income growth, poverty reduction leading to increased vehicle ownership.

22. Strategies to make transport energy efficiency • Urban planning • Public transport • Fuel switching • Taxation and financial incentives/disincentives • Fuel consumption labelling • Demand management programmes – traffic restrictions, parking restrictions, fees for travelling in certain areas, etc • Vehicle maintenance programmes • Review of legislative and institutional barriers

23. Energy production and transmission efficiency • Alternative energy sources • Advanced/alternative fossil fuel technologies – e.g. super critical, gas turbine, combined heat and power • Carbon capture and storage • Redesign of current power plants (condition of the system) • Operation of current systems • Improving the quality of fuel • Fuel switching – coal to gas • Transmission distances • High voltage transmission • Superconducting or high efficiency transformers

24. Thank you!! Kelly Hayden Energy Security Section - ESCAP haydenk@un.org