Download 1. Feasibility Study as a Basis for Investment Financing Arto Nuorkivi

Importance of Stronger Reaction to
Climate Change
Arto Nuorkivi
ESCOBALT Projektledare,
Helsingfors
Sundsvall, Dec 12, 2006
Finally, USA reacts to climate change –
Hummer cabriolet!
But seriously: USA is coming…
• A number of states and major cities have already
committed to Kioto Protocol even though the federal
government has not yet.
• CO2 recovery from the flue gases of thermal (fossil fuel)
power plants shall materialize. The U.S. Department of
Energy plans to have the first zero-emission coal fired
power plant by year 2013:
• "Today I am pleased to announce that the United States
will sponsor a $1 billion, 10-year demonstration project
to create the world's first coal-based, zero-emissions
electricity and hydrogen power plant..."
President George W. Bush
February 27, 2003
Latest about Climate Change (1):
• A large number of indications from the nature tell us
that serious processes are going on in our climate.
The Inconvenient Truth movie moderated by the
ex-vice-president Al Gore
• The climate change may be the worst threat ever
faced by the human mankind.
UN Climate Change Conference in Nairobi, Nov
2006
• The GDP may drop even 20% in case the societies do
not react on global warming in time. On the contrary,
the GDP may increase by 1% if the reaction will take
place in appropriate way and soon.
Mr. Nicolas Stern, ex chief economist of the World
Bank appointed by the British Government
Latest about Climate Change (2):
There are barriers to the efficient use of energy, which isolate
consumers from the consequences of their energy choices.
Those include:
• Lack of information on, or the low priority given to the
energy performance of appliances, buildings and
automobiles.
• Tax incentives and subsidies that promote wasteful
energy use (e.g. tax breaks that encourage car use).
• Split incentives between investors and end-users with
regard to the performance of energy-using equipments
(e.g., for building technology choices).
• Failure to incorporate fully the energy security risks in
market prices”
The International Energy Agency - IEA
Targets of EU
• Energy conservation 20% by 2020, which requires
strong measures by ALL member countries; and,
• Dependence on energy import in EU: now 50% but
will be 70%. By means of domestic and renewable
energy independence should be fought back.
Technological opportunities of ES
• Heat recovery
• Low-energy devices: bulbs, led-lighting, low-energy
TVs, hybrid cars with smaller engines,…
• Re-insulation of building envelopes
• Low energy houses (total concepts)
• Extensive use of RES: wind, bio, hydro, wastes
• Rehabilitation of energy systems in transition
economies
Incentives and taxes to ES
• Energy taxation: collected revenues of taxes to
be used for supporting ES measures -> creates
new business (Nick Stern);
• Taxation must be designed in such a way that
the barriers faced by the end user are low, if
any, to adopt energy efficient technologies;
• Investment subsidies to promote ES
technologies
• New habits in energy use have to be adopted
by creating incentives.
Next presentations:
• Financing of energy savings
• Models to energy saving
• Planning and analyses towards energy
savings
• Programme for energy saving
• Example of waste incineration in Sundsvall