Thinking on Low Carbon Energy Sources - Erlet Shaqe

7/28/2019 Thinking on Low Carbon Energy Sources - Erlet Shaqe

1/25

28 March 2013

AEA Albania Energy Association

PO Box 2424/1, Tirana, Albania, 1001

P: +355 672043806| E-mail: [email protected]

www.aea-al.org

Erlet Shaqe

Chairman Albania Energy Association


2/25

Overview

Purpose : Enables every business whether it is a small, medium or

large enterprise, to play a role in addressing climate change.

Why reduce emissions?

2

The Business Case: Risks and Opportunities.

Albania emissions?

We propose a six step approach.

Where Do Albanian CO2 Emissions Come From ?

Data for CO2, NOx, SOx emissions

Every business has a role to play in addressing climate change.


3/25

Why Do We Need to Reduce Emissions?

Greenhouse gas emissions (GHG) in the

atmosphere are reaching a critical level. If

the increase in emissions continues there is a

high risk that this will create catastrophic, or

so called runaway warming of the planet.

3

The Intergovernmental Panel on Climate

Change (IPCC) estimate that we have ten

years in which to stabilize emissions to a

maximum of 450 parts per million (they are

currently at 430ppm) so as to stabilize global

temperatures to a safe level at or below 2

degrees of warming.


4/25

What is the Difference Between Air Pollutants &

Greenhouse Gases? Albania air pollution is a local and regional problem caused by air pollutants such as considers

three direct GHGs (CO2, CH4 and N2O) and indirect GHGs (CO, NOx, SOx and NMVOC).

Air pollutants tend to have a short lifetime & impacts occur relatively close to emission source.


5/25

What Does this Mean for Albania?

Air pollution

Causes poor air quality, which has human health and monetary impacts.

The data inventory of greenhouse gas (GHG) for the years 2005-2007, show that total

net release of greenhouse gases (CO, CH4 and N2O5) for the reporting period is about 8.5

million / ton / year of CO2

5

Ranks Albania in countries with low pollution compared to other European countries.

Mean temperature increase of 4.8 degrees expected by 2100.

Year

CO2 m3 ton percap


6/25

The Business Case. The Risks & Opportunities

Avoids Costs of

Reduced Risk &

Stranded AssetsCost Savings

6

Improved

Energy

Efficiency

Enhanced

Reputation and

Leadership

Reduced

Risks from

Legislation

Competitive

Advantage

Six Reasons Why Reducing

Emissions Makes Good

Business Sense


7/25

What Are the Risks for Business?

Companies will need to consider the impact

on their business of having to pay for GHG

emissions. While this is not an immediate

prospect in Albania - other countries are

moving rapidly towards introducing charges/

penalties for GHG emissions.

7Every business has a role to play in addressing climate change.

Companies need to consider

- Additional expenditure on infrastructure

and other adaptation measures

- Likelihood of tougher buildings standards

- An increase in carbon regulations

- Penalties/ charges for greenhouse gas

emissions


8/25

The Risks

1. From legislation

- Tightening regulations around energyefficiency, building standards, waste andemissions are occurring worldwide; it is only amatter of time before Albania gets hit with thesame regulations.

2. Costs of physical risk & stranded assets

- Costs of damage as a result of extremeweather events, or stranded assets as loans

get more expensive because of the higher riskassociated with high emission assets.

8


9/25

The Opportunities. Less Energy = Cost Savings

3. Energy efficiency

- Energy saving initiatives such asbuilding insulation, heat pumps, waterchillers, solar heating and efficient

appliances substantially reduce theenergy consumption in our buildings.

4. Cost savings- According to the Carbon Trust, a 20%cut in energy costs represents the samebottom line benefit as a 5% increase insales in many businesses.

9

Opportunities


10/25

The Opportunities

5. Climate Leadership mattersCompanies are being ranked on theirclimate performance and commitment.

6. Competitive advantage- y respon ng ear y o em ss ons,companies have the opportunity toinfluence and shape policy developmentand therefore have more control over thefuture business environment.

10


11/25

How Can Businesses Reduce their Emissions?

11


12/25

Three key elements of an emissions management strategy: Establish an explicit policy direction for emissions reduction

Assign responsibility and accountability

Set out reduction targets and timelines

Step 1. Prepare an Emissions Management Strategy

12


13/25

Step 2. Measure Energy Use and Emissions

13

The GHG Protocol provides an

international standard in

accounting for GHG emissions.


14/25

Set targets that work by ensuring that they are

SMART:

Specific

Measurable

Step 3. Set Targets and Compare

c eva e

Realistic

Time-related

- Benchmark your performance by comparing your

operations over time, different departments or your

company with other companies.

14


15/25

Step 4. Implement Initiatives

- Identify easy wins and implement. These can be low cost and simple actions, but

will demonstrate your commitment to emissions reduction.

- Identify energy intensive activities and start reducing immediately

- Identify medium term and long-term actions and commit to doing the most

appropriate for your business.

- Establish green procurement, including energy efficient equipment, premises and

vehicles.

15


16/25

Step 5. Offset to Become Carbon Neutral

Carbon neutrality is when anorganisation cuts/and or

offsets its emissions to zero.

Some of the most popular carbon offset

projects from a corporate perspective are

energy efficiency and wind turbine projects .The worlds first major bank to achieve

carbon neutrality since 2005. The bank

offsets its remaining emissions

through investing in third-party

verified projects that generate

credible carbon credits from both thecompliance and the voluntary

markets.

16


17/25

Results on performance should be

The trend will be that carbon reporting

will become compulsory

Step 6. Track Progress, Audit and Report

should include how targets havebeen met and ways to improveperformance in the future.

17

The UK government recently amended the

Climate Change Bill to strongly encourage

all UK listed companies to include details of

GHG emissions in their annual reports.


18/25

Where Do Albanian CO2 Emissions Come From?

The GHG inventory, emissions per sector

18


19/25

Where Do Albanian N2O Emissions Come From?

The GHG inventory, emissions per sector

1919


20/25

CO2 Emissions in Albania

The GHG inventory, emissions per type CO2 metrics ton per cap

CO2 metrics ton

20

Year

per cap


21/25

SO2 Emissions in Albania

The GHG inventory, emissions per typeThe main source of air pollution by SO2 and NO2 is especially transportsector, especially used cars without converters (ug/m3)

21


22/25

NO2 Emissions in Albania

The GHG inventory, emissions per typeThe main source of air pollution by SO2 and NO2 is especially transportsector, especially used cars without converters (ug/m3)

22


23/25

The Business Case for Green Buildings

Energy efficiency is one of the quickest, cheapest,

cleanest ways to address reducing emissions.

Energy saving initiatives such as building insulation, heat

pumps, solar heating and efficient appliances can

23

su s an a y re uce e energy consump on o

buildings.

Many of these can be installed with little or no cost

through building design and good managementpractices of building operators and occupants.


24/25

The Business World is Changing

Legislation and

regulation mean

sustainability is

more than a

nice to have

Consumers

expects brands

to take action on

global issues not

just on brand

issues

Consumers want

to know whatsbehind yourcompany image

In the global

economic crisis,

everyone is

focusing on their

bottom line

24

New business

environment

New brand

landscape

New consumer

culture

93% of Chinese

people would

rather buy fromcompanies that are

trying to reduce

their contribution

to global warming(Havas 2008)

85% of Americans

would switch to

another company'sproducts or

services if they

found out about a

company's poor

corporate

responsibility(National Geographic

Greendex Survey 2008)

New EU legislation

on carbon

emissions, energyefficiency, waste,

recycling and water

is out in 2009;

other countries will

follow soon

New economic

environment

Environmentally

focused companies

have performed upto 33% better that

their peers in the

financial markets(AT Kearney 2009)


25/25

Thank You.

Please contact the AEA if you have any further questions.

25

www.aea-al.org

Documents

Thinking on Low Carbon Energy Sources - Erlet Shaqe