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On December 14, 2009, the Alliance to Save Energy and the Renewable Energy and Energy Efficiency Partnership (REEEP) held a side event at the COP15 climate conference in Copenhagen, Denmark, entitled, "Paradox to Paradigm: The Role of Energy Efficiency in Creating Low Carbon Economies."
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Frances G. BeineckePresidentNatural Resources Defense Council
Alliance To Save Energy Side EventCopenhagen, DenmarkDec 14, 2009
Unlocking Energy Efficiency in China
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Energy Efficiency in China—Key Solution to Climate Change
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China’s Remarkable Progress in Cutting Energy IntensityDuring its 11th Five Year Plan (2005-2010)
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China’s Focus To Date: Industrial Energy Efficiency
• Ambitious energy efficiency goal–reduce energy intensity 20% from 2006 to 2010
• Revised Energy Conservation Law - officials’ career now dependent in part on energy-saving performance
• Initiated “Top-1000” program to target largest enterprises
• Incentives to reward energy saving in large enterprises
• Phasing out obsolete production capacity in 13 energy-intensive sectors
• Establishing efficiency requirements for obtaining loans, insurance and listing on stock exchange
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Impressive Results from Top-1000 Program
• Launched by the central government in April 2006
• Improve energy efficiency of the biggest energy industrial users in 9 industrial sub-sectors
• The selected enterprises jointly consumed 33% of national energy use and 47% industrial energy consumption
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Further Unlocking China’s Efficiency Potential—Demand Side Management (DSM)
• DSM means utility-sponsored programs that use ratepayer funds to help customers upgrade to more efficient technologies such as commercial lighting, industrial motors and commercial and residential air conditioners
• Uses tools such as rebates, investment incentives and energy audits
• Stringent monitoring and verification of energy savings
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NRDC Has Pioneered DSM in China
• NRDC brokered cooperative agreements between California and Jiangsu on Energy Efficiency and Climate • Our work over the last 4 years has helped Jiangsu
• Develop China’s first large-scale DSM program
• Allocate $35 million in government incentives
• Save 2 billion KWh of electricity annually• Cut 1.84 million tons of CO2 emissions
• Jiangsu’s DSM program was promoted as a national model by China’s Premier Wen Jiabao• The partnership between CA and Jiangsu was cited by Secretary Hilary Clinton as a model for US-China cooperation• We are now scaling up our DSM programs nationwide
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Building Sector: Key to Climate Change Globally
Source: The Kyoto Protocol, the CDM and the buildings and construction sector, UNEP/SBCI Report
The building sector has the greatest potential of any sector for reducing GHG…We can’t meet the climate change commitment without addressing building energy performance
The potential exists in both developing and developed countries, as well as in economies in transition 。
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Greening all China's buildings would avoid 2 billion tonnes of CO2 emissions annually, equivalent to any of the following every year:1
Potential of Chinese building sector: best scenario
EfficientBuildings2
Halting all air traffic
globally for three years5
Building 20 Three
Gorges Dams
Filling 50,000
Tiananmen Squares
with rainforest3
Shutting down
current world steel production
Building 370,000
wind turbines4
Avoid building
550 500 MW coal-fired
power plants
Removing all cars from the
UK, Spain and Italy
Turningoff all the lights in
America for 12 months
Source: BCG/NRDC Joint Research Paper, “From Gray to Green: How Building Energy Efficiency Can Help Make China’s Rapid Urbanization Sustainable”, 2009
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Halting all air traffic
globally for 4 months6
Building two Three
Gorges Dams
Filling 4,000 Tian'anmen
Squares with
rainforest3
Shutting down
current world steel production for 5 weeks4
Building 30,000 wind
turbines5
Avoiding building 50
500 MW coal-fired
power plants
Efficientbuildings2
Removing all cars
from Sweden,
Norway and Denmark
Turningoff all the lights in
America for 1 month
Source: BCG/NRDC Joint Research Paper, “From Gray to Green: How Building Energy Efficiency Can Help Make China’s Rapid Urbanization Sustainable”, 2009
Potential of Chinese building sector: moderate scenarioCut energy use by 50% in 5% of existing buildings and 60% of new buildings by 2015 would avoid 170 million tonnes of CO2 emissions annually, equivalent to any one of the following1
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Solution 1: Fully implement building energy label in new and existing buildings
1. Ministry of Housing, Urban-Rural DevelopmentSource: MOHURD; interviews; literature search; BCG analysis
Credible building energy rating system will helpcreate a market for green buildings
MOHURD1 introduced building energy rating and labeling system in April 2008MOHURD1 introduced building energy
rating and labeling system in April 2008
5-star energy rating system for both residential and commercial buildings
Building label can play a key role in driving building efficiency
improvements
Building label can play a key role in driving building efficiency
improvements
Drive awareness and understanding among end-users
Serve as a marketing tool to sell high energy efficiency buildings
Reinforce power of incentives• Credible system of building energy
certificates will distinguish best performers from others
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Solution 2: An integrated and comprehensive incentive system
Tax incentivesTax incentives
Tax benefits for:• Windows, doors and roofs
conforming to certain requirements
Tax exemptions for purchase of approved energy-efficient technology and appliances
Accelerated depreciation for energy efficient products
Higher tax for heating oil for buildings
Tax exemption on 111 energy efficient products
Low interest loansLow interest loans
Cash refunds and low interest loans for owners purchasing energy efficient buildings
Interest-free loans of 10 mn GBP for energy-efficient buildings
Special fund providing guarantees for SMEs for energy efficient investments
Low interest loans for retrofitting projects
• Interest rate: 1-3%• Total loans <75% of total
investment
Government subsidiesGovernment subsidies
Cash subsidies to buyers of "Energy Star" products
Cash subsidies to local government for energy efficient retrofitting
Subsidies for retrofitting projects
50% subsidies to household owners installing solar energy equipment
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Solution 3: Strengthen building code enforcement
Pre-constructionConstruction
permitConstruction
Building “check and accept”
Sales
Local administration for urban planning
Submitted reports and files
Building construction plan and building energy efficiency design plan
Local administration for urban planning
Local administration of building efficiency
Results of pre-construction inspection and verification of execution of energy saving standards
Filing and registration for Beijing residential building energy efficiency inspection
Local administration of building efficiency
Construction supervision company
Materials quality
Construction quality
Materials and construction completed according to design
Local MOHURD bureau
Administration for building quality supervision
Specific “check and accept” on energy efficiency measures
Various energy efficiency inspection reports
Local administration of building efficiency
Buyers
Energy efficiency information at sales site and disclosure of energy efficiency measures in contracts
Residential quality warrant and residential manual
Buyers
Source: Beijing municipal construction bureau, "Energy Efficiency Rules for Civil Buildings", lit search
Inspection content
Reporting and
submission
Inspector
Submit to...
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AGENDA21 is an example of a green building in China...
AGENDA21 is an example of a green building in China...
• An eight-floor office tower; home to China’s Ministry of Science and Technology in the heart of Beijing
• A model of cooperation between US and China promoting energy efficiency, sustainable technologies and integrated design
...which earned China's first LEEDcertification in 2005
...which earned China's first LEEDcertification in 2005
Note: LEED stands for Leadership in Energy & Environmental DesignSource: NRDC
1999• NRDC coordinated the project jointly
sponsored by the U.S. Department of Energy and China's Ministry of Science and Technology
2002• Project broke ground
2004• Building's official opening ceremony took
place
2005• Earned LEED Gold certification• NRDC obtained top award in 1st National
Green Building Awards• Led to adoption of China's first green building
standard
Successful example: Agenda 21 BuildingThe first LEED-certified building in China
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Conclusion
• Energy efficiency is the largest, cheapest, fastest, and greenest resource available to address both China’s growing energy demand and global warming.
• China has made great progress in reducing its energy intensity. However, more can and should be done.
• Now is the time to build on the momentum that has been gathering and propel energy efficiency to the front and center of China’s energy agenda
• By significantly improving the efficiency of its energy use, China will be able to reap the benefits of energy efficiency, meet its rising energy demands, and join the global community in the fight against climate change.