Challenges and Opportunities to Accelerate Energy Efficiency

Global Workshop to Accelerate Energy Efficiency: Challenges, Opportunities and Roadmaps UN City, Copenhagen9-12 November, 2015

Jyoti Prasad PainulyCopenhagen Centre on Energy Efficiency

Starting point for SE4ALL goals

Percent

Proxy indicator

Universal access to modern

energy services

Doubling global rate of

improvement of energy efficiency

Doubling share of renewable energy in

global energy mix

Percentage of population with electricity access

Percentage of population with primary reliance

on non-solid fuels

Rate of improvement

in energy intensity

Renewable energy share in TFEC

1990 76 47–1.3

16.6

2010 83 59 18.0

2030 100 100 –2.6 36.0

Strengths- Incredible reach

SE4All Global Ministerial Policy Dialogue convened at the UN General Assembly Hall, UN Headquarters, in New York, May 2015; Source: IISD Summary Report

• A unique global initiative- brings together top-level leadership from all sectors of society –governments, business and civil society.

• Governments from 106 countries and the European Union have partnered with SE4All to advance the three objectives

• Governments, the private sector, and multilateral institutions mobilizing resources

• A huge network of experts, practitioners, and a variety of stakeholder with common objectives

Challenges

• Overall progress over the tracking period (2010-12) falls substantially short of what is required to attain the SE4All objectives by 2030. (GTF 2015)

but• The energy intensity of the global economy dropped by 2.3% in 2014,

more than double the average rate of fall over the last decade, from improved energy efficiency and structural changes in some economies, such as China. (IEA, 2015)

• Financing

• Transforming commitment to visible targets by 80%+ club– 20 Developed and Emerging Economies account for 80% Global

Energy Consumption (High Impact Countries for Energy Efficiency)

Challenges

• Tracking energy efficiency progress- energy intensity or indicators?

• Energy intensity- shifting goal post?

• What level of efforts needed?

– Modelling studies show significant reductions in energy intensity in BAU; Eg ECM-TIAM 2.72% reduction per year

– Modelling studies- carbon tax better option? Positive impact on growth in most cases.

– Estimated damages (Yale) 1.6 trillion dollars at 2013 emissions. Dale Jorgenson – carbon tax used to decrease cost of capital is "double dividend" and better than emission trading (in the US).

– Is the tax regressive? Distributive impacts unclear.

Annual Global Investment - actual and required ($ billion)

Annual global investments of 1.0 -1.2 trillion is required to 2030 to meetthe SE4ALL objectives.

Source: Progress Toward Sustainable Energy - Global Tracking Framework 2015

7

Global Accelerator

Platform

Appliance &

EquipmentAccelerator

Transport Accelerator

Industry Accelerator

DistrictEnergy

Accelerator

Building Accelerator

LightingAccelerator

Global EE Accelerator Platform

Secretarial Support (C2E2)

Technical and

Analytical Support (C2E2 &

ECCJ)

Finance Accelerator

(EBRD)

Marketing and

Promotion (GFT &

Platform Secretariat

Power Sector

Accelerator

Finance Facilitators

Opportunities- examples

Taisei’s zero-energy building in Yokohama

100/100/100+ Governments/ Companies/ Financiers being mobilized to drive the SE4ALL Global Energy Efficiency Accelerator Platform at COP 21

Emerging Technologies and political commitments

• Japan: All new public buildings zero-energy by 2020, and private buildings by 2030.

• European Union: Buildings to be “nearly zero-energy” by 2020

• US Department of Energy: Cost-effective commercial sites by 2025

Opportunities- examples Falling cost of technologies enabling switch to efficient sources

– India: Innovative financing, and economies of scale - procurement cost of LEDs reduced by 74% in less than nine months. Target to replace all the streetlights and all the incandescent bulbs to LED lights over the next three years.

Cities taking responsibility- Copenhagen to be Carbon Neutral by 2025

• Since 1990, carbon emissions reduced by 40% with real economic growth of 50%• District Heating: 98%; District Cooling (projected): 30%• Facts on bikes in Copenhagen 2011

– 50 % of all Copenhageners commute to work or study by bike. – 63 % of all members of the Danish parliament, located in the middle of Copenhagen, commute daily by bike.

Avedøreværket, Copenhagen, a combined heat and power plant

Opportunities- examples

Financing facilitation– EU: Mobilised €600 million for investments in the initiative. Between 2014 –

2020, €3.5 billion of grants expected to leverage sustainable energy investments of up to €30 billion in generation, transmission and access

– $300 billion committed to Sustainable Energy for All during and since RIO+20

Global Activities

• Modelling of pathways

• Collaborative work and support to GFT

• Knowledge Management Platform to support energy efficiency stakeholders

Regional Activities

National Activities

Analytical and technical support to some accelerators

Secretariat to the global EE accelerator platform

What we do

4 Regional Reports on EE

•Barriers and opportunities to energy efficiency improvement•Recommended future action in selected countries

www.energyefficiencycentre.org

14 5

24 10

13

C2E2

International Organisations e.g. UNEP, IEA,

IRENA

Development Banks e.g.

World Bank, ADB, IADB,

EBRD

Regional Partners e.g.

UN RegComm, Cenef,

AIT

National Governments

OtherStakeholders

e.g. Universities,

IFIs

SE4ALL Global EE Accelerator

Platform

Who do we work with?

Thank You

Contact: jypa@dtu.dk

Global Activities

• Supporting UNEP in championing SE4ALL Energy Efficiency goal

• Modelling of pathways to achieve SE4ALL's objective of doubling improvement rate of energy efficiency by 2030 at the global and regionals

• Supporting the global tracking efforts by World Bank & IEA

• Examining synergies between RE & EE targets in collaboration with IRENA

• Supporting the GFT on global events like the SG CC Summit where EE was one of the focus areas

• Knowledge Management Platform to support energy efficiency stakeholders

What we do

• Studies of barriers and opportunities to accelerate energy efficiency in four regions; • Latin America and Caribbean - Bariloche Foundation • Asia - Asian Institute of Technology • Africa - University of Cape Town• CIS - Centre for Energy Efficiency (CENEf)

• In-depth assessment of high potential and best practice in pilot countries followed by regional outreach workshops

• Regional training workshops in collaboration with the IEA

• Engagement with UNECE on EE standard work with outreach and links to other regional UN Commissions

Regional Activities

Engagement with regional development banks/regional SE4ALL Hubs on national pilot-level support on EE - e.g. with a few countries in each region

Analysis of EE activities in SE4ALL rapid assessment studies

Support to engagement of EE Accelerators at national and city levels.

National level activities

Hub Support to Platform and Accelerators

Analytical support to accelerators Assessments of best practices and policy options Analysis of tools and instruments Tracking progress

Support establishment of new accelerators Concept development support to the new accelerators Initial support to conveners on establishing baselines, estimating

potential etc. Secretariat for the Global Platform

Coordinating activities across accelerators Establishing and maintaining a common online Platform Support the Accelerators in engaging Partners Tracking commitment and engagement across Accelerators Promotion and fundraising activities for the Accelerator Platform

LightingTransport and Motor Fuel Efficiency

Appliances & Equipment Building Efficiency

District Energy

Global market transformation to efficient lighting

Improve the fuel economy capacity of the global car fleet

Promote sustainable building policies & practices

worldwide

Support national & municipal governments to develop or

scale-up district energy systems

Industrial Energy Efficiency Implementing

Energy Management Systems, technologies & practices

Global market transformationto efficient appliances &

equipment

Power Sector FinanceImproving the efficiency of generation, transmission,

distribution & end-use

Accelerating investment in energy efficiency

The Accelerator Platform was established to support specific sector-based energy efficiency accelerators

Global Energy Efficiency Accelerator Platform

SE4All’s Goal for COP 21

Energy Day – Monday 7 December 2015Organised by SE4All and IRENA

Prior to COP 21, SE4All is seeking GHG emission-reduction commitments from:

100 jurisdictions100 companies100 banks

Over 70% of the world’s CO2 emissions come from cities. and hence cities important to address global climate challenge.

Arcadis Sustainable Cities Index 2015, that explores three demands from cities; Strong financial returns, an attractive place to live and work, also limit damage to the environment, Copenhagen was placed 3rd.

Among the top 10 energy efficient cities in the World (http://www.nasdaq.com/article/the-worlds-10-most-energyefficient-cities-cm368630) .

UN CityCopenhagen

Copenhagen City

Since 1990, carbon emissions reduced by 40% with real economic growth of 50%

In 2009 adopted first Climate Plan up to 2015, achieved CO2 reduction by 21% by 2011 (against target of 20% by 2015).

Goal between 2010-2015; 20% CO2 reduction Six Action Areas (75%, 10%, 10%, 4% and 1%)

50 initiatives – 6 major, referred as "Lighthouse Projects" Six Action Areas

Recent experiences

Carbon Neutral by 2025

Energy consumption7%

Energy Production 74%

Green mobility11%

City adm initiatives2%

New initiatives

6%

Share of total carbon reduction

Taken the challenge to be the first capital city to be carbon neutral by 2025- will need to be achieved through increased energy efficiency and integration of low quality and fluctuating renewable energy.

City of Copenhagen, Denmark– 560,000 inhabitants (2015)– Summer 20/13°C and winter 2/-2°C

ENERGY DEMAND– Heating: 4,000 GWh/year– Cooling: 75 GWh/year

COVERAGE– District Heating: 98%– District Cooling (projected): 30%

Fuel mix: 50% natural gas, 14 % renewables, 10% oil

CO2 reduction/year due to District Heating:Equivalent to 140.600 cars

Avedøreværket, a combined heat and power plant

Source: http://www.cowi.com/menu/NewsandMedia/News/Newsarchive/Documents/Case%20stories%20from%20central%20Copenhagen.pdf

District Energy

Municipal Strategy 2009– For all trips ”on wheels” at least 1/3 must be by public transport, at least

1/3 by cycle and less than 1/3 by car. – The City of Cyclists- the world’s best city for cyclists, 50 % of people cycling

(achieved)– Improved public transport, Traffic calming and parking restrictions – Environmental efforts like low emission zones, possible congestion charging

and environmentally friendly vehicles

Facts on bikes in Copenhagen 2011– 50 % of all Copenhageners commute to work or study by bike. – 35 % of all who work in Copenhagen – including people who live in the

suburbs and neighbouring towns but work in Copenhagen - commute to work by bike.

Transport Policy

– 63 % of all members of the Danish parliament, located in the middle of Copenhagen, commute daily by bike.

– Copenhagen was elected Bike city 2008 – 2011 by ICU.(http://denmark.dk/en/green-living/bicycle-culture/copenhageners-love-their-

bikes/ )

Biking- Infrastructure– 400 kilometers of biking lanes; the worlds busiest biking lane with up to

40.000 cyclist passing daily.– Green biking lanes– Traffic lights especially for bikes– Policies to reduce cycling traveltime, increasing cycling safety, and increasing comfort on cycling paths

Transport

City-wide bike sharing program, innovative parking structures.

Improved public transport – Local S-trains, the Metro and the high-frequency A-bus network– Bus lanes with traffic-light priority for buses– Real-time information about bus arrivals. – 98 % of Copenhageners have less than 350 m to public transport

Transport