The document discusses climate change and the energy sector. It provides information on: 1) The greenhouse effect and how human activities are increasing greenhouse gas levels and global warming. 2) Key greenhouse gases like carbon dioxide and their sources. Human activities like fossil fuel use are the main driver of rising CO2 levels. 3) Climate change is already affecting factors like temperature, sea levels, and glaciers. Impacts are projected for areas like agriculture, water resources, and human health. 4) International agreements like the UNFCCC and Kyoto Protocol aim to reduce emissions but countries have different commitments. The EU ETS is a carbon market program to lower emissions cost-effectively.

1. Climate Change and Energy Updated PowerPoint show about climate change and energy sector

2. Research results of climate change

3. Global warming is due to strengthened greenhouse effect Greenhouse effect The Earth has a natural temperature control system. Certain atmospheric gases are critical to this system and are known as greenhouse gases. On average, about one third of the solar radiation that hits the earth is reflected back to space. The Earth's surface becomes warm and as a result emits infrared radiation. The greenhouse gases trap the infrared radiation, thus warming the atmosphere. Naturally occurring greenhouse gases create a natural greenhouse effect. However, human activities are causing greenhouse gas levels in the atmosphere to increase. Source: National Geographic

4. Earth’s energy budget Source: Nasa, Atmospheric Science Data Center

5. The six greenhouse gases under the Kyoto Protocol: Carbon dioxide or CO 2 Methane or CH 4 Nitrous oxide or N 2 O Perfluorocarbons or PFC compounds Hydrofluorocarbons or HFC compounds Sulphur hexafluoride or SF 6 Other greenhouse gases: Ozone or O 3 Bromine compounds or halogens, e.g. CF3Br Freons or chlorofluorocarbons or CFC:s Water vapour or H 2 O (g) Global atmospheric concentrations of greenhouse gases have increased markedly as a result of human activities! Strengthening of greenhouse effect is due to increase of greenhouse gases in the atmosphere Source: IPCC Fourth Assessment Report

6. Different greenhouse gases have different meaning to global warming Source: IPCC Fourth Assessment Report

7. Meaning of carbon dioxide to global warming Carbon dioxide is the most important anthropogenic greenhouse gas . The primary source of the increased atmospheric concentration of carbon dioxide results from fossil fuel use in power and heat production as well as transport . The change of land use provides another significant but smaller contribution. The atmospheric concentration of carbon dioxide exceeds by far the natural range over the last 650,000 years . Source: IPCC Fourth Assessment Report

8. Sources of EU-27 greenhouse gas emissions Industry Industry

9. The global atmospheric concentration of greenhouse gases has increased

10. Atmospheric concentration of greenhouse gases correlates with temperature

11. According to researches earth’s mean temperature has risen in the 20th and the 21st century Source: IPCC Fourth Assessment Report

12. According to measurements the temperature is rising

13. Different reconstructions of mean temperature have been published by researchers

14. Sea level is rising

15. Change in volume of glaciers Cumulative Change in Volume of Arctic Glaciers since 1960

16. The average temperature is rising but our choices make a difference Multi-model averages and assessed ranges for surface warming Source: IPCC Fourth Assessment Report

17. Effects of climate change Source: IPCC Fourth Assessment Report

18. Examples of major projected impacts on agriculture, forestry and ecosystems Virtually certain (>99%) is, that Increased yields in colder environments; decreased yields in warmer environments Increased insect outbreaks Very likely (90-99%) is, that Increased danger of wildfire. Damage to crops, soil erosion and inability to cultivate land due to heavy precipitation events Likely (66-90%) is, that Intense tropical cyclone activity increases damage to trees, crops and coral reefs Salinisation of freshwater systems due to high sea level Source: IPCC Fourth Assessment Report

19. Examples of major projected impacts on water resources Virtually certain (>99%) is, that Effects on water resources relying on snow melt and some water supplies Very likely (90-99%) is, that Water quality problems, e.g., algal blooms Adverse effects on quality of surface and groundwater; contamination of water supply; water scarcity may be relieved Likely (66-90%) is, that More widespread water stress Power outages causing disruption of public water supply Decreased freshwater availability due to saltwater intrusion Source: IPCC Fourth Assessment Report

20. Examples of major projected impacts on human health Virtually certain (>99%) is, that Reduced human mortality from decreased cold exposure Very likely (90-99%) is, that Increased risk of heat-related mortality Increased risk of deaths, injuries and infectious, respiratory and skin diseases Likely (66-90%) is, that Increased risk of malnutrition and water- and food borne diseases Intense tropical cyclone activity and floods increase risk of deaths, injuries and diseases Source: IPCC Fourth Assessment Report

21. Examples of major projected impacts on industry, settlement and society 1/2 Virtually certain (>99%) is, that Reduced energy demand for heating Increased demand for cooling Declining air quality in cities Reduced disruption to transport due to snow and ice Effects on winter tourism Source: IPCC Fourth Assessment Report

22. Examples of major projected impacts on industry, settlement and society 2/2 Very likely (90-99%) is, that Reduction in quality of life for people in warm areas without appropriate housing Disruption of settlements, commerce, transport and societies due to flooding Likely (66-90%) is, that Water shortages for settlements, industry and societies Disruption by flood and high winds Costs of coastal protection versus costs of land-use relocation; potential for movement of populations and infrastructure Source: IPCC Fourth Assessment Report

23. Impacts of climate change in Finland Climate will warm up in the Nordic countries and Arctic region especially in winter Winter season will become shorter and days with snow cover will became less usual Period of growth will become longer Precipitation will increase specially in winter, but not necessarily in summer Frequency of heavy precipitation events increases in every season Coniferous forest zone moves north Source: www.ilmastonmuutos.info, www.ilmasto.org

24. Energy production and consumption

25. Total energy consumption has increased substantially in Finland *Tähän diaan on liitettynä muistiinpanoja

26. Electricity consumption has increased even more than energy consumption

27. Final energy consumption by sectors in Finland 2006

28. Electricity consumption by sector in Finland 2007 (90,3 TWh)

29. Electricity supply by energy sources in Finland 2007 (90,3 TWh)

30. Net supplies of electricity in Finland 2007 (90,3 TWh)

31. Market share of space heating in Finland 2006

32. Fuel consumption in production of district heat and CHP in Finland 2007

33. Fuel consumption in production of district heat and CHP in Finland 1976-2007

34. Fuel shares of district heating and CHP in different areas of Finland year 2007

35. Electricity supply in the Nordic countries 2006

36. Electricity consumption in the Nordic countries 2006

37. Total gross electricity generation in Europe 2006

38. Gross electricity generation by Fuel – EU-27 2005 Source: Eurostat , European Commission * Pumped Storage Plants and Other Power Stations

39. Final energy consumption in Europe 2006

40. Final energy consumption by fuel - EU27 2005

41. Final energy intensity in Europe 2006 per capita

42. Final energy consumption by sector – EU-27 2005

43. Electricity consumption by sector EU-27 2005

44. Global total primary energy supply is increasing

45. Regional shares of world’s total primary energy supply 2005

46. Use of all fuels has increased globally

47. Fuel shares of world’s total primary energy supply

48. Increasing of electricity generation has been even faster than world’s total primary energy supply

49. Fuel shares of electricity generation 2005

50. Evolution from 1971 to 2005 of world’s electricity generation by regions (TWh)

51. World’s electricity generation by regions in 2005

52. Remaining natural resources

53. Renewable Energy

54. Renewable energy sources Water Biomass Wind Sunlight Geothermal heat Renewable energy technologies are directly or indirectly powered by the sun – as well as fossil fuels.

55. Renewable energy covered more than a fourth of the electricity supply in Finland 2007

56. Renewable energy covered almost a fourth of the energy consumption in Finland 2007

57. The share of renewable energy sources in primary energy consumption increased slowly in the EU-27

58. Renewable energy sources in the EU countries 2005

59. Peat is a slowly renewable biomass fuel Growth of peat is bigger than use in Finland In Finland peat is classified as a slowly renewable biomass fuel, because the average regrowth rate of a single peat bog is 2000-3000 years. Peat Industry utilizes less than one per cent of peat bogs in Finland. Energy industry utilizes 90% of harvested peat. Twenty-six percent of the land area of Finland is peat bog of some sort

60. Green house gases

61. EU-27 green house gas emissions in 2005

62. Carbon dioxide intensity in power generation in some European countries in 2003

63. Greenhouse gas emissions in the EU 1990-2005

64. Finnish greenhouse gas emissions 1990–2006 and the emissions target

65. Greenhouse gas emissions by source in Finland in 2006

66. Sources of EU-27 greenhouse gas emissions

67. Estimated green house gas emissions in Finland 2010 and 2025

68. Evolution from 1971 to 2005 of world’s CO2 emissions by fuel *** Other includes industrial waste and non-renewable municipal waste. Source: IEA

69. World’s CO 2 emissions by fuel shares in 2005 Source: IEA

70. Evolution from 1971 to 2005 of world’s CO2 emissions by region *** Asia excludes China. Source: IEA

71. World’s regional shares of CO 2 emission in 2005 *** Asia excludes China. Source: IEA

72. CO 2 emissions avoided by utilization of Combined Heat and Power production

73. CO 2 emissions avoided by renewable and nuclear power 70 60 50 40 30 20 10 0 MtCO 2 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: Finnish Energy Industries Actual Emissions Nuclear Power Hydro Power Bioenergy Wind Power

74. Climate treaties and –policy

75. United Nations Framework Convention on Climate Change The United Nations Framework Convention on Climate Change (UNFCCC or FCCC) is an international environmental treaty produced at the United Nations Conference on Environment and Development (UNCED), informally known as the Earth Summit, held in Rio de Janeiro in 1992. Its’ stated objective is to achieve stabilization of greenhouse gas concentrations in the atmosphere at a low enough level to prevent dangerous anthropogenic interference with the climate system. UNFCCC members that ratify this treaty admit officially that climate change is a serious problem. 192 nations have signed the UNFCCC. Source: UNFCCC *Tähän diaan on liitettynä muistiinpanoja

76. Kyoto Protocol 1/2 The Kyoto Protocol is the principal update of UNFCCC Notable international agreement 178 countries have ratified Kyoto Protocol Countries that ratify this protocol commit to reducing their emissions of carbon dioxide and five other greenhouse gases CO 2 , N 2 O, CH 4 , SF 6 , HFC, PFC carbon dioxide is primary target 2008-2012 developed countries have to reduce their greenhouse gas emissions by a collective average of 5% below their 1990 levels EU will reduce 8 % . Reduction has been shared between EU countries by burden sharing agreement Lähde: UNFCCC

77. Kyoto Protocol 2/2 Emission reduce targets for 38 countries, e.g. EU-15 - 8 % (Burden Sharing Agreement) USA - 7 % (has not ratified) Japan and Canada - 6 % Australia + 8 % (has not ratified) Russia, Ukraine, New Zealand 0 % Eastern European transition economy countries (not all) - 8 %; incl. 8 new EU countries Eastern European countries have to do nothing. Emission are already well below their levels Many countries haven’t got limits e.g. Oil countries in the Middle-East, China, India, South-America, Asian developing industrial countries, South-Africa,… The idea was that those countries will start reducing their emissions in the future Source: UNFCCC

78. Burden sharing in EU-15 EU shared targets between member states. Finland have to reduce emissions to same level as 1990. Percentages don’t tell how challenging the target is. The target for Finland is estimated as one of the most expensive in many analyses Finland’s emissions 1990 ca. 71 MtCO 2 -eq. 2008-2012 on average ca. 83 MtCO 2 -eq.

79. Burden sharing in Finnish NAP2 Governmental use of Kyoto mechanisms 2,4 MtCO2/a Emissions trading sector 12,1 MtCO2/a 18 % Sectors outside emissions trading 1 MtCO2/a 3 % Finland´s need to reduce emissions from WM 2008-2012 - 12,2 MtCO2/a + - 2 MtCO2/a* Industry 1,5 MtCO2/a 7 % Electricity and DH 10,6 MtCO2/a 41 % New entrants reserve 1,4 MtCO2/a * EU Comission required Finland to reduce the amount of emission allowances by 2 MtCO2/a

80. The EU Emission Trading System 1/2 The EU Emission Trading System started 2005 Aim is reduce green house gas emissions and reach Kyoto target. Companies that are in emission trading system are bound to: apply for a permission to green house gas emissions track and validate the actual emissions in accordance with the relevant assigned amount retire the allowances after the end of each year Member states set a quota for GHG emissions the total amount of allowances is less than the amount that would have been emitted under a business-as-usual scenario.

81. The EU Emission Trading System 2/2 The second phase (2008-12) expands the scope significantly: emission allowances available 200 MtCO 2 /year less than 2005-2007 companies will reduce emissions or buy emission allowances total emissions will reduce Finland has emission allowances 16 % (8 Mt CO2/year ) less than 2005 Reduction has been allocated mainly to power and district heating production.

82. Emission trade sectors Energy Industry over 20 MW (thermal) power plants, oil refineries and coke furnaces under 20 MW power plants for district heating if in same network is one or more over 20 MW power plant in Finland Excluding incineration of municipal and hazardous waste Steel Industry roasting and sintering units of metallic minerals iron and steel production and founding if production capacity is over 2,5 t/h Construction Industry Production of cement, lime, glass, fiberglass, bricks, porcelain and burned stone products. Paper and Forrest Industry Production of pulp, paper and board if production capacity is over 20 t/h

83. Scope of emission trading Emission trading covers ca. 60 % greenhouse gas emissions of the EU. 500 Energy and Industry plants in Finland 12 000 plant in the EU Possibly enlarging the scope of the scheme to new sectors, including aviation, petrochemicals, ammonia and the aluminum sector, as well to two new gases (nitrous oxide and perfluorocarbons) All 27 countries of the EU are in emission trading

84. Emission trading affects fuel prices and competitiveness

85. Purpose of the emission trading system is to affect demand and supply through CO 2 price Emission free and low emission energy sources will gain competitive edge enhance investments and increase utilization factors One funding source for new investments is the emission allowances of high CO2 emission energy sources Changes in product prices effect the demand Competition on the market aims to minimize price increase The goal is to reduce green house gas emissions in a cost-effective way

86. Emission trading and Kyoton mechanisms ” Additional” emission allowances through Kyoto mechanisms by the state (JI, CDM, Global ETS) Installations in EU ETS ca. 55 % of emissions CO2 emissions from other sectors and other GHG ca. 45 % of emissions Additional emission allowances through EU ETS Additional emission allowances through Kyoto mechanisms Finland’s emission ceiling 2008-2012 (ca. 71 MtCO2-ekv/a without Kyoto mechanisms and EU ETS)

87. Climate Policy - Responsibilities 2008-2012

88. Link directive brings to the carbon market emission reductions though so called Kyoto- mechanisms Link directive published 13.11.2004, In Finland implemented by changing the emission trading law 12.1.2007 Makes it possible to utilize emission reduction executed outside EU in EU’s ETS Clean Development Mechanism (CDM)-projects executed in developing countries provide CER-units, which have been used since 2005 Joint Implementation (JI) -projects executed in industrial countries provide ERU-units, which have been used since 2008 Limits the price increase of emission allowances in the EU Makes the carbon market global

89. CDM, Clean Development Mechanism, CDM is an arrangement under the Kyoto Protocol allowing industrialized countries with a greenhouse gas reduction commitment to invest in projects that reduce emissions in developing countries as an alternative to more expensive emission reductions in their own countries. Distribution of CDM emission reductions, by country. The CDM allows net global greenhouse gas emissions to be reduced at a much lower global cost by financing emissions reduction projects in developing countries where costs are lower than in industrialized countries Additionality A crucial feature of an approved CDM carbon project is that it has established that the planned reductions would not occur without the additional incentive provided by emission reductions credits, a concept known as "additionality". Flexibility mechanisms (Kyoto mechanisms) 1/2

90. Flexibility mechanisms (Kyoto mechanisms) 2/2 JI, Joint Implementation Through the Joint Implementation, industrialized countries with a greenhouse gas reduction commitment (so-called Annex 1 countries) may fund emission reducing projects in other industrialized countries as an alternative to emission reductions in their own countries. Typically, these projects occur in countries in the former Eastern Europe. Emission reductions are awarded credits called Emission Reduction Units (ERUs).

91. Climate credits (Carbon credits) Emission Reduction Unit, ERU Emission reduction unit (ERU) refers to the reduction of greenhouse gases, particularly under Joint Implementation, where it represents one tonne of CO2 equivalent reduced. Certified Emission Reduction, CER Like ERU, but CERs are climate credits (or carbon credits) issued by CDM.

92. Future Prospects

93. Growth scenario of global energy use

94. Electricity supply by energy sources scenario in Finland

95. Development of power consumption

96. Target of United Nations Framework Convention on Climate Change is stabilize greenhouse gas emissions to safety level 5 10 15 20 25 Source: UK DEFRA CO 2 -emissions (GtC) Basic Scenario Developed countries Undeveloped countries 550 ppm stabilization 0 30 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100 450 ppm stabilization

97. Scenarios compared to actual emissions

98. EU in international climate negotiations Communication on Limiting Global Climate Change to 2 degrees Celsius Independent commitment to reduce GHG emissions by 20% from 1990 level If an international agreement signed, 30% GHG reduction compared to 1990 + developing CDM Targets will be reached by: Developing EU ETS Improving energy efficiency (20 % by 2020) Increasing share of renewable energy (20 % by 2020) CCS-technology, other R&D, reducing emissions from transportation and other sectors

99. Finland’s energy and climate strategy and current political climate –Kyoto period Main Messages of the Government All energy sources must be exploitable Renewable energy must be promoted Industrial Electricity Tax reduced Major Part (ca.8Mt/a) of the emission reduction allocated to emission trading sector, other sectors need to reduce emission 1Mt/a Finland (state) will utilize Kyoto mechanisms 2Mt/a How will Finland reach its’ Kyoto target and what is the role of other policy instruments in EU’s Emission Trading Scheme Environment?

100. Main techniques to increase renewable energy 1/2 Hydro Power Utilizing rivers Reservoirs Tide power Wave power Bioenergy Wood and agricultural products Biogas Biofuel made from biomass

101. Main techniques to increase renewable energy 2/2 Wind Power Wind Mill nowadays is possible to build onshore, offshore or inland Solar Power Solar Electricity solar cell Solar Heating thermal collectors heat pumps Electricity and Heat concentrated solar power

102. Carbon Capture and Storage - CCS CCS is an approach to mitigate global warming by capturing CO 2 from large point sources such as fossil fuel power plants and storing it. Technology for large scale capture of CO 2 is already commercially available and fairly well developed. Although CO 2 has been injected into geological formations for various purposes, the long term storage of CO 2 is a relatively untried concept and as yet no large scale power plant operates with a full CCS system. CCS could reduce CO2 emissions approximately 80-90%, increase the fuel needs of a coal-fired plant with CCS by about 25% and increase the cost of energy from a new power plant with CCS by 21-91% [ IPCC special report on Carbon Dioxide Capture and Storage 2005]

103. CO 2 capture In post-combustion, the CO 2 is removed after combustion of the fossil fuel - this is the scheme that would be applied to conventional power plants. Here, carbon dioxide is captured from flue gases at power stations. The technology is well understood and is currently used in other industrial applications. Pre-combustion is widely applied in fertilizer, chemical, gaseous fuel (H 2 , CH 4 ), and power production. In these cases, the fossil fuel is partially oxidized, for instance in a gasifier. The resulting syngas (CO and H2) is shifted into CO 2 and more H 2 . The resulting CO 2 can be captured from a relatively pure exhaust stream. The H 2 can now be used as fuel; the carbon is removed before combustion takes place. In Oxy-fuel combustion the fuel is burned in oxygen instead of air. To limit the resulting flame temperatures to levels common during conventional combustion, cooled flue gas is recirculated and injected into the combustion chamber. The flue gas consists of mainly carbon dioxide and water vapour, the latter of which is condensed through cooling. The result is an almost pure carbon dioxide stream that can be transported to the sequestration site and stored. Source: Wikipedia

104. CO 2 Storage (sequestration) Various forms have been conceived for permanent storage of CO2. These forms include: gaseous storage in various deep geological formations (including saline formations and exhausted gas fields) liquid storage in the ocean solid storage by reaction of CO2 with metal oxides to produce stable carbonates Source: Wikipedia

105. CCS – Carbon Capture and Storage