Worldwide Final Energy
Energy consumption (Gtoe)
Source: IEA 2010c.
Developing Countries‟ Final
Energy consumption (Gtoe)
Source: IEA 2010
9.2 billion by 2050,
2 billion new consumers in emergingeconomies by 2050;
1.1 billion people lackaccess to safedrinking water in 2012,
Deforestation: 80,000 square km everyyear,
Food prices x 2 by 2030,
1.5 bilion people with no access to electricty in 2012,
Geopolitical Changes in the
80% of the current oil reserves have been discovered before 1979,
75% of these oil reserves will need to be replaced by 2035, it
50 million barrels of oil per day,
4 time Saudi Arabia‟s current production.
But shale gas can flood the market, thanks to fields located in:
Today, Europe pays USD 14/1000 cubic feet of gas from Russia, the
USA produces shale gas at USD 2/ 1000 cubic feet.
“Something is more energy
efficient if it delivers more
services for the same
energy input, or the same
services for less energy
National Action Plan for Energy Efficiency (2007). Guide to
Resource Planning with Energy Efficiency. Prepared by Snuller,
Price et al., Energy and Environmental Economics, Inc. p. 2-2.
IPEEC is a high level
Provides global leadership on energy efficiency by
identifying and facilitating government implementation of
policies and programs that yield high energy-efficiency
Aims to promote information exchange on best practices
and facilitate initiatives to improve energy efficiency.
Formally established in 2009 at the G8 summit in
L'Aquila, Italy and resulting from the Heiligendamm
IPEEC is an
Members account for over 75% of world GDP and energy
The IPEEC Secretariatis located in
IPEEC - guiding principles
Improving energy saving and energy efficiency is one of the quickest,
greenest, and most cost-effective ways to address energy security and
climate change as well as to ensure sustainable economic growth
All countries, both developed and developing, share common interests in
improving their energy efficiency performance
There is abundant potential for international cooperation among them
Will contribute to improvement of energy efficiency at the global level
Developed countries need to play an important role in cooperation with
Accelerating dissemination and transfer of best practices, efficient
technologies and capacity building in developing countries
& sample distribution
Small group: start-up/
unit in a company
Large scale operation
Early adopters & niches
Rational economic purchase
& market evaluation
• Standards, labels & incentives led to EE improvement without
interrupting long-term decline in real purchase price: from
$1,000 to $600 (2009$)
• Government action has led to savings of about $20
billion/year in 2010 and $300 billion cumulative since 1978
sed a by a
refrigerator X 4
levels by 2010
Promoting a lowcarboneconomy
China 11th - Five-Year Plan
(2006 – 2011)
Energyintensi - 19.1%
Closure of ty
inefficient Chemicaloxyg - 12.45%
Japan‟s Top Runner Program
EE standards for appliances/vehicles
Standards - set higher than the best performance value of
each product currently on sale in the market
Standard takes into account technological development
21 products are included, low technology products are
In 1999, target: By
2010, fuel economy
improvement would be
Target reached in 2005
EE improvement of 67.4% (1999-2004)
Companies used technologies that they may
otherwise have waited to commercialize
Improved consumer and retailer awareness
accelerated pace of market penetration
Mitigation potential of energy efficiency can be
Building account 40% of energy use, 25% of water use & 1/3 of
all GHG emissions (UN estimates)
industry accounts for 25% of all GHG emissions
manufacturing and construction directly and indirectly account for
37% of CO2 emissions (developing countries 47%)
Industrial energy efficiency can help reach CO2
reductions of around 1.3 Gtoe equivalent to global
emissions reductions of 4% from 2006 levels
Chemical and petrochemical, aluminum, iron and steel,
cement and paper and pulp alone would reduce 12%
of CO2 emissions
USD 250 – 325 billion annualfinancialsavings or
avoidedenergycosts (2009 – 2030)
USD 900 billion annualsavings: investing USD 170
billion annually in EE worldwidecouldgenerate an
average rate of return of 17% and produceenergysavings
up to USD 900 billion per year.
In the US alone,
USD 12 - 16 trillion of possible
energysavings (2012 – 2050)
General estimates: EUR 1 million spent in EE
generates 17 to 19 jobs (as compared to 9 jobs in the
The leverage of public & private funding varies from 5 to
1 to sometimes 10 to 1, meaning EUR 1 million of public
money can lead to investments of between EUR 5 and
10 million. That means between 85 to 190 jobs for
EUR 1 million of public money.
According to ACEEE, if the US chooses to cut energy
consumption, it can create 2 million jobs in 2012 - 2050
About 1.5 billion people
worldwide, more than one in
five, lack electricity,
The UN Secretary-General Ban
Ki-Moon has called to double the
global rate of improvement in EE
by 2030 in order to provide
energy for all.
Enhancedenergysecurity in order to:
Relyless on foreign supplies fromunstableregions of the
Decrease the influence of energyprices on the economy
Address national security issues (embargo, war, etc.)
By reducing the energy use, EE helpsimprovingenergysecurity
According to the UN:
By 2030: almost 50% of the population willbe living in
Water and EE:
Between 2 & 3 % of the world's energy consumption is
used to pump and treat water for urban residents &
Energy consumption in most water systems worldwide
could be reduced by at least 25 percent through costeffective efficiency actions.
Global CO2 Emissions by
Source: Lawrence Berkeley National Lab
Industry: Global Energy
Manufacturing valued added, 2008
7.35 trillion $
2.54 gigatonnes of
Industrial energy intensity, 2008
0.35 tonnes of oil equivalent per US$1,000
Note: Industrial energy intensity in 2000 US dollars.
Source: UNIDO 2010; IEA 2010.
•Thermal power emits heat that can be recycled,
•CHP consists the use of a heat engine or a power station to generate
both electricity & useful heat.
• These applications produce energy where it is needed, avoid wasted
heat, and reduce T&D network and other energy losses. Other benefits
cited by policy makers and industry include:
• Cost savings for the energy consumer;
• Lower CO2 emissions;
• Reduced reliance on imported fossil fuels;
• Reduced investment in energy system infrastructure;
• Enhanced electricity network stability through reduction in
congestion and „peak-shaving‟; and
• Beneficial use of local & surplus energy resources (particularly
through the use of waste, biomass, & geothermal resources in
district heating/cooling systems).
•CHP is one of the most cost-efficient EE measures
Account for 60% of industrial electricity consumption and about 15% of final
energy use in industry worldwide (IEA 2007).
By 2030, if BAU, energy consumption will rise to 13 360 TWh per year and
CO2 emissions to 8 570 Mt per year.
End‐users now spend USD 565 billion per year on electricity used in motors;
by 2030, that could rise to almost USD 900 billion.*
Electronic motor controls that allow for variable speed drives (VSD) have good
Using the best available motors will typically save about 4% to 5% of all electric
motor energy consumption. Linking these motors with electromechanical
solutions that are cost‐optimised for the end‐user will typically save another
15% to 25%.
The potential exists to cost‐effectively improve energy efficiency of motor
systems by roughly 20% to 30%, which would reduce total global electricity
demand by about 10%.
In 2008, less than 4% of the global installed base of 1.5
billion electricity meters could be considered “smart” but
4 years later this penetration has grown to over 18%, and
is expected to exceed 55% by 2020.
The North American market has already peaked
European market has begun its growth period.
The Asia Pacific region will continue to outpace all other
regions driven by major deployments in China, utilizing a
different breed of smart meter technology.
Energy use in « buildings » meansenergy use of the
building themselves and of the electricappliances.
Togethertheyaccount for 40% of the world GHG
Measures to enhance EE in buildings canmean:
Improving EE of appliances,
Commercial buildings, or
Building new EE houses.
Buildings situation change depending on the climate
EE in buildings is a sensitive topicwith social implications.35
Zero Energy Building
Zero energy buildings market remains a small fraction of the
overall building construction industry.
Technologies required to make zero energy buildings possible,
add significant upfront cost.
Worldwide revenue from zero energy buildings will grow
rapidly over the next two decades, reaching almost $690
billion by 2020 and nearly $1.3 trillion by 2035 (Annual growth
rate of 43% - mostly in the EU).
EU‟s Energy Performance of Buildings Directive (EPBD) will
require nearly zero energy construction in public buildings by
2019 and in all new construction by 2021.
EnergyConsumption in the
Source: DOE (2008)/Center for Climate&Energy Solutions
Energy End Use in the US
Source: DOE (2008)/Center for Climate&Energy Solutions
Buildings Energy End Use in
the US (2006)
Source: DOE (2008)/Center for Climate&Energy Solutions
Improving EE in
Buildings: Cool Roofs
A cool roof has a white or special cool color that absorbs less
sunlight, staying cooler in the sun and transmitting less heat
into a building.
Substituting a cool roof for a conventional roof can:
• Reduce the annual air-conditioning energy use of a singlestory building by up to 15%
• Cool interior spaces in buildings that do not have air
• Reduce carbon emissions,
• Reduce peak demand for electricity,
• Potentially slow global warming.
Enhanced Energy Use:
ybring to households?
An example of energysavings:
Compact Fluorescent Lamps (CFL) consume
1/5 to 1/3 lesselectricitythan the traditional
incandescent lamp&lasts 8 to 15 times longer.
Energy-efficient products are still for Asia Pacific customers
Sales of LED lighting systems will increase rapidly over the next 10
years, accelerating sharply after 2015.
Unit shipments (lamps, luminaires) will rise from 66 million in 2011 to
542 million in 2021 – a 700% increase.
Translating into cumulative revenues of $11 billion from 2011 through
2021 for LED lighting in Asia Pacific
Japan‟s 21st Century Light Project;
China‟s commitment to LED is enormous – ex: Shenzhen plans to
install LED‟s in more than 90% of public lighting applications, street
lighting, and commercial spaces in the next decade
Energyefficiency in transportation;
Energyefficiency in agriculture:
Organisation Need to
Coordinate EE Policies
Governmentsneed to exchange:
Theirresources (technologies, know-how, finance),
Theirexperiences& best practices,
Theyneed to establish:
Standards (see the International Standard Organisation),
Multilateral institutions implementvarious type of projects (training,
capacity building, technical support): World Bank, regionalbanks, UN
IPEEC promotes international cooperation;
NGOsimplementsimilarkind of projects on a largerscale
(ClimateWorks network, International Copper Association, Alliance to
EE investments are costly and involve long-paybackperiods.
• Adoption of
• New projects.
… but a Top-Down
Processis not Enough
To be effective, EE measuresneed to bewidelyadopted.
EE measuressucceedwhengovernment action
Policies in Mexico
Strategydirected at strengthening Municipal
and Statelegislation in ordertopromote
Optimum use of
Reclaiming of urbanvoids
Climate Finance Strategy
8 certified , 18 in
800,000 new units
in 15 states
ste, SHF and
Negotiation with Annex
I countries and
• Pilot 2012 in hand Green MortgagePenetration
Aguascalientes Pilot Project
The Role of Local
Implementinnovative EE measures,
Reach people at the local level,
Generatecompetition in terms of EE
Utility Companies& EE: an
Utility &energydeliverycompanies are the
best-positioned in the energymarketplace,
Contact with power
Key actors in EE
But: theyearn money by
deliveringenergy: by promoting EE, they
are beingasked to sellless of theirproduct!
(EEO) for Energy Providers
All EEOs exhibit three core elements:
A multi-year energy savings target, shared between the parties;
Penalties for noncompliance; and
A measurement, verification and quality assurance system.
The popularity of EEOs stems from their flexibility.
Tradable EEOs are usually called White Certificates
EEO in Europe
Electricity & gas
Electricity & gas
Electricity, gas &
Residential,non energyintensive industry
All except large industry
All incl. transport
All except transport
Residentialenergy use: 14% of world
Likely to increase middle classes
grow&adopt new types of consumption
in emerging countries
Appliance manufacturers are
nowexpected to produce EE products
Standards & labelling is a keytool to
The role of financial institutions iscritical to promoteloans
for EE investments.
Some international &bilateral organisations organise
training on EE loans for banks: International Finance Corp.,
Agence France Developpement,
Some countries have
developedspecificschemesthatfacilitate EE investments:
KfW in Germany on EE in buildings,
SIDBI in India for SMEs.
Heavy Industry &Others
Industrialprocesses are most of the time energy intensive
(iron&steel, cement, aluminium, petrochemical, textile,
Most of the companies are committed to
significantlyreducetheirenergy Lafarge as a WWF ClimateSavers
An example of a succesful EE plan: use.
• Reduce its GHG emissions to 33 % per t. of cement below 1990 levels by
• Develop sustainable construction initiatives by 2015 to achieve a lower
carbon footprint and greater EE,
• Contribute to the design of 500 sustainable buildings (2015),
• Advocate for ambitious climate change policies, through trade associations
and international organisations as well as for post-2020 climate policies.
Between 1990 & 2010, reduction of:
• 21.7% of its net CO2 emissions/t of cement,
• 36.5% of its absolute CO2 gross emissions in industrialized countries.
Energy Performance Contracting
- planning & installation of
Source: Berlin EnergyAgency
Light Bulb &Energy Use
Electricity for lighting accounts for almost 20% of global
power consumption and close to 6% of worldwide GHG
If a global transition to efficient lighting occurred, these
emissions could be reduced by half.
Few actions could reduce carbon emissions as cheaply
and easily as the phase-out of inefficient lighting, making
it one of the most effective and economically
advantageous ways to combat climate change.
The En.lighten Initiative
The en.lighten initiative has been established by Philips, Osram,
the China National Lighting Test Center, UNEP & the Global
en.lighten assists countries in accelerating market transformation
with environmentally sustainable, efficient lighting technologies by:
Promoting high performance, efficient technologies in
Developing a global policy strategy to phase-out inefficient and
obsolete lighting products.
Substituting traditional fuel-based lighting with modern, efficient
Assessment of Potential
• Cost of investments
• Lack of skilled people
• Lack of awareness of need of
EE amongst consumers
• Weak in-country R & D
Increased energy security
Creation of market leader
Increased energy access
• Rebound effect (effort does
not reduce energy
consumption as planned)
• Fall in energy prices leading
to “expensive” conservation
Increased value and lifespan
Investment relief (tax)
Market for new innovations
Governments need to commit and also provide the following:
Overarching policy framework combining mandatory and voluntary
policies and strengthening enforcement;
Promote greater awareness of EE
Play an essential role as integrator of the value chain
Establish funding mechanisms to jump-start EE financing,
particularly in the short term.
Institutionalize standard-selling and enhance professionalism within
the industry by creating proper accreditation and certification
Publicizing more accurate information about EE product suppliers
Remove other barriers that distort markets such as energy subsidies
Moving Forward - 2
And Business needs to
Move towards an integrated value chain approach where suppliers
extend their service portfolio to offer complete solutions (auditing,
installation, maintenance and financing solutions).
Develop innovative financing vehicles for EE projects by
collaborating with financial institutions and by developing expertise in
EE project financing.
Increase awareness of EE and enhance professionalism of the
industry from within.
EE suppliers and ESCOs should adopt a more active role in
promoting EE and in professionalizing the industry from within by
setting standards and benchmarks.
Multinationals should act as catalysts by bringing in the best
practices from their experiences in other countries.
The Political Challenge
EE requires a long-term
vision: how governments
in place for only 4–5
yearscan impose it?
In a time of
to enhance the EE
position in the political
To beimplemented, EE measuresrequire:
Access to technology,
How canemerging and developingeconomies have
access to thisknowledge?
Example: the massive need for energyauditors in
countries such as China &Russia
• How to select them?
• How to train new auditors?
The Finance Challenge
EE requires long-terminvestmentswithuncertainpayback
How to finance energyefficiency in the context of global
How to limit the social impact of enhanced EE standards?
Differentresources in different parts of the world :
Money to implementit
Lack of standard measures for energyefficiency
e.g.: EE indicators, standards.
Need for enhanced international cooperation in order to:
•Address global issues,
•Sharelessonslearnt, best practices & technologies,
•Enhance the measurement of EE.
The Social Challenge
Implementing EE measurescanbecostly,
Whendesigningpolicies, governmentsneed to
takeintoaccount the potential social impact of:
Refurbishingrequirements in the building sector,
New equipment standards,
The price of energy.
EE is not trendy:
It requires long-terminvestment,
It does not result in visible results (as compared
to windmills in the renewablesector).
At the same time, climate change &energy issues
are not priorities on the political agenda
anymorebecause of the economiccrisis.
Whatis the reboundeffect?
When an energy-usingtechnology or processbecomes
more efficient, the user cantakeadvantage of the
increased service delivered, ratherthanaccepting the
same service at a lowerenergy or financialcost.
Is the reboundeffect an issue?
Not an issue in the long term?
It exists but seems to belimited,
Reinvestment of energysavingscan
act as a driver for achievements of