Session 1: Global context and policy frameworks 2nd energy efficiency finance and investment forum - Dr. Marianne Osterkorn - REEEP

1. Session 1: Global context and policy frameworks
2nd energy efficiency finance
and investment forum
London
1-2 December 2008
Dr Marianne Osterkorn
REEEP CEO

2. Does the financial crisis threaten climate change momentum ?
quot;We're going to have to grow out of this and have to create growth
opportunities for long-term sustainable investment, and this is an area
which looks as though it could well grow strongly, and with the right
support could be one of the major engines of growthquot;
Lord Stern
of Brentford
quot;We will establish strong annual targets that set us on a course to
reduce emissions to their 1990 levels by 2020 and reduce them by
an additional 80% by 2050”
quot;My presidency will mark a new chapter in America's leadership
on climate change that will strengthen our security and create
millions of new jobs in the process.quot;
Barack Obama
At the same time, Barroso warned that the financial crisis
should not undermine the EU’s priorities on climate change
and sustainable development. He asked EU member states for
agreement on key climate change goals by December.
Manuel Barroso

3. The rise in energy demand may be slowed down by the current global
economic crisis, but will continue nonetheless.
China accounts for 15% of world energy demand, with 19% of the world’s
population. One half of the global cement production occurs in China as the
country leads in new buildings and roads.
Source: BP Yearbook, IEA

4. In 2007 China surpassed the US as the world's largest CO2 emitter
Projected annual CO2 emissions in million metric tons
However, China’s per capita emissions of 3.7 tons still remain far
below the US per capita figure of 19.7 tons.
Source: IEA

5. More than half of emission reductions could be achieved through
energy efficiency measures
Improved efficiency and de-carbonizing the power sector could bring emissions back
to current levels by 2030.
Source: IEA WEO 2008

6. The lost finances could have saved our planet
could have financed the reduction of
could have financed the reduction of
The cost estimates
The cost estimates the global GHG emissions
the global GHG emissions
of the financial
of the financial
could have financed the insulation of
crisis could have financed the insulation of
crisis all EU private homes
all EU private homes
vary from 6000
vary from 6000
could have turned the European
to 22 000 billion USD could have turned the European
to 22 000 billion USD
power and grid into aasmart network
power and grid into smart network
with exclusively green power
with exclusively green power

7. Energy efficiency allows emission reduction at negative costs
Source: Vattenfall

8. Market forces alone don’t deliver cost effective savings –
Supportive policies / incentives are also needed
A combination of policy mechanisms – reflecting nations’ varied circumstances &
current negotiating positions - this is what the Copenhagen COP15 should aim for.
Source: IEA WEO 2008

9. Example: Impact of building codes on energy efficiency in houses
Actual energy consumption in single family houses in Denmark, relative to energy
efficiency requirements in building codes
Example Denmark: The results of energy certification of more than 200,000 buildings
show that implementing building codes would still bring further improvements.
Source: IEA

10. The Obama “New Energy for America” plan underlines the
importance of policy-making
Target of making America the most energy-efficient country in the world
(currently ranked 22nd)
Set national building efficiency goals
Make all new buildings carbon neutral or zero emissions by 2030
Improving new construction efficiency by 50%, existing building efficiency
by 25%
Make the U.S. federal government (the world’s largest single consumer of
energy) a leader in green building
Retrofits to achieve a 40% increase in efficiency of federal buildings
within 5 years
All new federal buildings zero emissions by 2025
Weatherize one million low-income homes annually
More energy-efficient land use and development patterns

11. REEEP launching of its Energy Efficiency Assessment Report
will help to reduce the barriers to energy efficiency
Lack of comparable data, standards and information
Lack of awareness of potential for savings in each sector
Lack of comparable data, standards and information
Lack of best practices due to the complexity of energy efficiency matters
Emerging economies frequently consider energy efficiency a responsibility of
developed countries
Discrepancy between political talking and real implementation
Responsibility is scattered among governments and varied market players
Lack of financial interest because many energy efficiency measures are not
asset-based

12. Tackling the economic crisis and climate change all in one go –
turning a problem in an opportunity
Unique chance for governments to link financial support and regulations to
sustainable investments
Economic pressure can motivate companies to target their investments where
easy financial wins can be achieved – energy efficiency pays for itself
Governmental bail-outs for banks should be combined with obligations for the
banks to prioritise sustainable investments
Targeting investments into clean energy and energy savings can create new
jobs and increase future energy security
By using the global awareness of the economic crises, the emerging markets
can be attracted to re-target their investments away from energy-intensive
applications towards sustainable climate friendly solutions

13. REEEP International Secretariat
Vienna International Centre
Room D1732
Vienna, Austria
info@reeep.org
+43 1 26026 3425
www.reeep.org