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Explore the trends and forces shaping energy efficiency markets, capital requirements, emission targets, the CDM market, and financial flows to understand the potential for developing countries. Learn how energy efficiency can drive emissions reduction strategies.
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Trends in Efficiency MarketsandForces that Shape Them Marina Ploutakhina UNIDO
Introduction • Rapid growth in energy demand • Low energy efficiency (global - 37 %) • Economic opportunities (espec. for developing countries and EIT) • High potential for energy savings = Significant energy efficiency market • Driving forces for energy efficiency market?
Energy, GDP & Population Trends (Source: EIA/DOE, 1993; 1996; UN, 1994)
OECD & Non-OECD Energy Intensities (1970 - 2015) (Source: EIA/DOE, 1993; 1996; UN, 1994)
Economic & Environmental Incentives • Provide significant opportunities and scope for the deployment of energy efficiency technologies in developing countries • Provide an opportunity to consider a new GHG emissions control strategy - EFFICIENCY
Capital Requirements for the Energy Sector • Developing countries will require investments over $100 billion per year for the next thirty years to meet electricity demand • Only US$12 billion is available from external sources
Capital Requirements for the Energy Sector(cont’d) (Source: IIEC, 1991)
The CDM Market • OECD: 580-1160 Mtc in 2010 in excess of the reduction target • Hot Air supply: 100-300 Mtc • Reductions needed to meet the target : 440-830Mtc
Money Matters • The ODA flow to developing countries is US$50 billion per year • A CDM of US$10 billion comprises the addition of 20% • The FDI flows are around US$240 bn and in this context the CDM is only 4%
Conclusion: A Question • How energy efficiency can become a strategy for GHG emissions reduction and control and how such a strategy can be deployed by developing countries and economies in transition to enable their participation in CDM and JI?