Energy Efficiency:
A Strategy at the heart of the G20
Benoit LEBOT & Zoe LAGARDE
DSM University Webinar 16 June 2016

2
http://www.ipeec.org/
Benoit LEBOT
Executive Director
benoit.lebot@ipeec.org
Zoe LAGARDE
G20 Adviser & Project Manager
zoe.lagarde@ipeec.org

IPEEC is a high level international forum
• Provides global leadership on energy efficiency by
identifying and facilitating government implementation
of policies and programs that yield high energy-efficiency
gains.
• Aims to promote information exchange on best practices
& facilitate initiatives to improve energy efficiency.
• Formally established in 2009 at the G8 summit in
L'Aquila, Italy and resulting from successive
meetings of the G8 + 6 economies.

IPEEC Members are Major Economies
Australia
Brazil
Canada
European
Union
France
Germany
India
Italy
Japan
Mexico
China
Republic
of Korea
Russian
Federation
South
Africa
United
Kingdom
United States
of America
Turkey

IPEEC Member Countries weight >75% of
World Energy Consumption
Global Energy Consumption (Source: IPEEI)
Rest of
world, 2887
China, 3041
USA, 2201
EU, 817
India, 751
Russia, 702
Japan, 450
Germany
Brazil
South Korea
France
Canada
UK
Mexico Italy South Africa
Australia

IPEEC’s Vision
A world where key national policy makers view
energy efficiency (EE) as a resource and
implement cost effective policies to promote it.
6

IPEEC’s Vision
A world where key national policy makers view
energy efficiency (EE) as a resource and
implement cost effective policies to promote it.
7
IPEEC’s Mission
Accelerating the adoption of EE policies and
practices through international cooperation and
information sharing on policy analysis, programs,
tools, and proven practices.

IPEEC Task Groups
• BEET – Building Energy Efficiency Task Group
• EMAK - Energy Management Action Network for Industrial Efficiency
• EMWG – Energy Management Working Group
• IPEEI - Improving Policies through Energy Efficiency Indicators
• SEAD - Super-efficient Equipment and Appliance Deployment
• Top Tens Best Practices – Top 10 Energy Efficiency Best Practices and
Best Available Technologies
• WEACT - Worldwide Energy Efficiency Action through Capacity
Building and Training

© OECD/IEA 2016
Energy Efficiency – The 1st Fuel
*IEA-11: Australia, Denmark, Finland, France, Germany, Italy, Japan, Netherlands, Sweden,
United Kingdom, United States
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
1973 1978 1983 1988 1993 1998 2003 2008
Mtoe
Savings
Oil
Gas
Coal
Electricity
Other
Total Final
Consumption
Hypothetical energy use
had there been no
energy efficiency
improvements
Source: IEA, Energy Efficiency Market Report 2014

Energy Efficiency #1 in GHG Mitigation
*Source: IEA (2015) WEO Special Report on Energy and Climate Change

*Source: IEA (2015) WEO Special Report on Energy and Climate Change
Energy Efficiency #1 in GHG Mitigation

© OECD/IEA 2016
Energy efficiency potential
remains untapped
20%
40%
60%
80%
100%
Industry Transport Power
generation
Buildings
Realised energy
efficiency potential
Unrealised energy
efficiency potential
Two-thirds of the profitable investments to improve energy efficiency
remain untapped in the period to 2035
Energy efficiency potential used by sector in the WEO
2012 New Policies Scenario
Source: IEA, World Energy Outlook
2012

© OECD/IEA 2016
Efficiency measures on the rise,
but significant potential still exists
Share of global mandatory efficiency regulation of final energy
consumption
Energy efficiency policies are introduced in more countries and sectors;
they continue to slow demand growth but more can be done
10%
20%
30%
40%
2005 2014 2040
Industry
Steam boilers
Process heat
Motors
Buildings
Heating/Cooling
Lighting/Appliance
Transport
Cars
Trucks
Ships
Source: IEA, World Energy Outlook 2015

…and the $ $ $ needed
*Source: IEA (2014) WEO

• A favorable International context
• Pool together experiences and expertise
• Work together and have an impact
• Lower costs for EE Policies : i.e. harmonization of
EE Standards contribute to:
– Greater Market Transparency
– Reduced Costs for Product Testing & Design
– Enhanced Prospects for Trade & Technology Transfer
– Reduced Cost for developing Government & Utility
Efficiency Program
Why bother with international
collaboration?

A favorable global policy context for
energy efficiency
• EE on numerous local agenda (cities, regions)
• UNFCCC (TEC, COP21 Paris Agreement)
• UN Sustainable Energy for All (SE4All)
www.se4all.org/
• Major Economies Forum (MEF)
www.majoreconomiesforum.org/
• Clean Energy Ministerial (CEM)
www.cleanenergyministerial.com
• G7
• G20 www.g20.org
• WEC
• IPEEC www.ipeec.org16

17

1
2
3
4
Today
Tomorrow
Four wedges for a low carbon development

The G20 Energy Efficiency Action Plan
• Opportunity for G20
action
• Benefits of Voluntary
Collaboration

The G20 EE Action Plan
Accelerating 3 Existing Collaborations:
• EE in Buildings: Improving Metrics and
Performance
• Industrial Energy Management
• EE in Electricity Generation
21

3 New Areas of Collaboration:
• Transport: Heavy Duty Vehicles
• EE Finance: Enhancing Capital Flows
• EE in networked devices
22
The G20 EE Action Plan

• Transport - efficiency can be improved by 30-35%
• Networked Devices - more than 14 billion devices today are
always connected, it could reach 50 billion by end decade
• Finance - energy efficiency investments need to be multipled by
5 by 2030, compared to by 2 for renewables to stay in 2 C sc
• Buildings - efficiency can be improved by about 30%
• Industry - 30% of the world’s energy is consumed by industry,
60% could be saved cost effectively
• Electricity Generation – electricity is rising in the global energy,
it is essential to use best available technology
Main Reasons for the 6 priority sectors

• G20 countries identified opportunities for
policy improvements
• G20 countries committed to adopt or
strengthen policies for transport energy
efficiency by developing policy roadmaps
Transport

• Connected Devices Alliance: 300 organisations and
19 governments
• Agreed to a goal:
maximise energy savings & minimise consumption
• Work on targets, design and policy principles,
awards, protocols & standards
Connected devices

• Established a global certification scheme for energy
management standards
• Policy Exchanges and Case Studies
• New initiative: ISO 5001 Collaborative
Industry

Electricity generation
• Two workshops on clean coal technology and
policies, finance and technologies
• Support Research, Development and
Demonstration.
• Collaboration on technical and financial barriers and
solutions.

Two major financial flows are needed:
1. Financing EE Enabling Environment
2. Scale up of EE Investments

• G20 Energy Efficiency Investment Principles that
guide G20 nations to shift capital towards energy
efficiency investments
• Developing Policy Framework for Implementation
Finance

Proposed Energy Efficiency
Investment Principles I
1. Recognise Importance of Energy
Efficiency as an Economic and
Development Priority.
2. Encourage countries to consider
both supply and demand side
investments in a balanced way

Proposed Energy Efficiency
Investment Principles II
3. Country-level review of measures
and policies that stimulate demand
for energy efficiency investments
4. Collaboration to unlock barriers that
prevent the supply of finance for
energy efficiency investments

Proposed Energy Efficiency
Investment Principles III
5. Build Capacity within Public and
Private Financial Institutions for
Energy Efficiency Investments.

G20 Energy Efficiency & Finance
Regulations and their stability are the key drivers for the
demand of and the supply for energy efficiency investments

Over 100 banks mobilized globally at COP21
to increase the financing of energy efficiency
Shinhan Bank
Slovenska Sporitelna
Societe Generale Group
Societe Generale Banka AD Beograd
State Export Import Bank of Ukraine
Sudameris Bank
Sumitomo Mitsui Trust Holdings
Tatra banka
Triodos Bank
TuranBank
Türkiye İş Bankası
Türkiye Sinai Kalkinma Bankasi
UK Green Investment Bank
Ukrsibbank
Unibank
Unicredit Bank DD Mostar
Unicreditbank Serbia
Unicredit Bulbank
Unicredit Tiriac Banka
United Bulgarian Bank
Vakiflar Bankasi
VTB Georgia
Xac Bank
Yapı ve Kredi Bankasi
YES Bank
Zagrebacka Banka
Industrial Bank
ING Group
Kyrgyz Investment and Credit Bank
La Banque Postale
Megabank
Microinvest
Minsk Transit Bank
Mobiasbanca
Moldincombank
Moldova Agroindbank
Mutualista Pichincha
National Bank of Egypt
NLB Tutunska Banka A.D. Skopje
NRW Bank
Ohridska Banka A.D. Ohrid
OTP Bank Romania
Pireaus Bank
Procredit Group
Raiffeisen Bank Aval
Raiffeisen Bank D.D. Bosnia and
Herzegovina
Raiffeisen Bank Romania
SEF International Universal Credit
Organization
Şekerbank
BRAC Bank Limited
BRD - Groupe Societe Generale
CASA DE Economii SI Consemnatiuni
CenterInvest Bank
CIBanco
Connecticut Green Bank
Crédit Agricole
Crédit Coopératif
Crédit Foncier
CREDO
Daegu Bank
Demir Kyrgyz International Bank
Demirbank
DenizBank
Desjardins Group
Ecobank
Erste & Steiermarkische Bank
Eurobank
Firstrand
Garanti Bankasi
Garanti Leasing
Halkbank Skopje
Hana Bank
HSBC Bank Armenia
Humo MDO
IDLC Finance Limited
Imon International
ABN AMRO
ACBA - Credit Agricole Bank
ACCESSBANK
Agjencioni Per Financim NE Kosove
AKBank
Ameriabank
Armswissbank
ASN Bank
Bai Tushum & Partners
Banamex
Banca Transilvania
Bancolombia
Bancompartir
Bank Eskhata
Bank Millennium
Bank of Georgia
Bank of India
Bank of Valletta
Bank Republic
Basisbank
BBVA
Belgazprombank
Belvnesheconombank
BMCE Bank of Africa
BNP Paribas
Bpifrance
BPS-SBERBank

Investors managing close to USD 4 trillion signed the
Energy Efficiency Investor Statement

Energy Efficiency Investor and Bank
Statements
• Remain open for additional signature
to accompany the G20 work, and
until COP22,
• 2016: Increasing the number of
institutions involved, and developing
content

G20 Energy Efficiency Leading Programme
June 29 & 30, 2016
The G20 Energy Ministerial in Beijing, China

Conclusion: EE is no longer an option
• EE to become systematic, everywhere & at scale to meet
Paris Agreement
• All levels to be mobilized, in all economies;
• Significant public $ is necessary on EE fundamentals, but
returns are high
• Green Climate Funds could finance EE
• National versus local: experiment, validate, raise EE
ambition
• International Cooperation can enhance EE deployment .
39

Thank You !
Follow IPEEC on:
Benoit LEBOT
Executive Director
benoit.lebot@ipeec.org
Zoe LAGARDE
G20 Adviser & Project Manager
zoe.lagarde@ipeec.org