Download Increased energy efficiency - The UN Regional Commissions

Energy Efficiency’s Contribution to Reducing World
Poverty: The Role of the Regional Commissions
Marek Belka
Executive Secretary
Economic Commission for Europe
Energy Efficiency’s Contribution to
Reducing World Poverty: The Role of
the Regional Commissions
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Continued Economic Growth Will Further
Contribute to Global Warming
Global Warming Will Have a Particularly Large
Impact on Tropical Agriculture
As a Result, the World’s Poorest Bottom Billion
Will Be Negatively Affected to a Significant
Degree
Improved Energy Efficiency Can Significantly
Reduce Energy Needs and CO2 Output
The Regional Commissions Can Make a
Significant Contribution to Increasing Energy
Efficiency
Global Trends in Energy Use
1980-2006
Between Now an 2045 Energy Use Likely
to Double
250
Annual
Growth
3.2%
200
1.9%
150
1.5%
100
-1.3%
50
19
80
19
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
0
World Population
World Energy Use BP
World GDP PPP Constant 2005$
Energy per GDP
World Energy Sources
Over 80% of energy is produced from CO2
producing fossil fuels, and without major policy
or technological change this is unlikely to change in
the next 25 years
Source:IMF
Effects of Global Warming on
the Poorest “Bottom Billion”
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The damages greatest for those closest to the equator
and on the poor who are be less able to adapt with
irrigation and increased use of fertilizers.
Sub-Saharan Africa is the region most vulnerable to
climate change followed by south, southeast, and
central Asia, and the Middle East.
Increased temperatures, and increased seasonal
variability in rainfall are likely to cause agricultural
yields of some crops to fall by 50% as soon as 2020.
Agricultural subsistence farmers, which are a majority
in some LDCs, will be impacted the worst.
Conflicts over scarce water resources and increased
poverty will increase intra and possibility inter-state
conflicts; migration out of these regions will intensify.
The spread of numerous diseases will increase.
The Economic Losses from
Global Warming Are Greater for
the Tropics and the Poor
Estimated GDP Loss from 2.5oC
Increase in Global Temperature
Derived from Nordhaus and Boyer 2000
The Tide of Global Growth Is
Producing an Environmental
Undertow on the Bottom Billion
GDP
Growth
CO2
World Distribution of Income in Dollars per Day
Addressing Global Warming
Has Four Pillars:
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Alternatives to fossil fuels: biofuels,
waste products, wind, solar, tidal, nuclear
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Switching to less CO2 intensive fossil fuels
& carbon capture and sequestration
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Resource limits and experimental technology
Increased energy efficiency
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These are increasingly becoming cost effective
Many cheap, reliable, easy and efficient existing
options; many are self-financing
Adaptation to climate change
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Most difficult for the poorest
Stern Report generally concluded that adaptation
was more expensive than mitigation
Kg. of Oil Equivalent per $1 GDP
The Cross-Country Variation in
Energy Efficiency Is Quite Large:
Energy Savings If All
Countries Reach at Least the
Average: 19.6%
1
Energy Savings If All
Countries Reach the Energy
Efficient Frontier : 42%
0.8
0.6
0.4
0.2
0
0
10000
20000
30000
40000
50000
60000
Per Capita Income PPP $ 2005
70000
80000
Increasing Energy Efficiency (In Green) Is
Not Only The Least Costly Way to Reduce
CO2, but Often Has Actual Negative Costs
Adopted from Enkvist, Naucler, and Rosander
The Role of the ECE in
Promoting Energy Efficiency
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The market economies were twice as efficient
as the transition economies in using energy
It was therefore recognized that this
technology, expertise, and experience could
be shared
An Energy Efficiency Program was established
in 1991
Has provided technical co-operation and
financing to 24 ECE countries
Projects financed in four countries during
1999-2005 are now reducing CO2 by the
equivalent of 68,000 automobiles a year
The Basic Objectives of the ECE’s
Energy Efficiency 21 Project:
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Identify and Develop Investment Projects
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Policy Reform: Strengthen energy efficiency and
renewable energy policies by assisting municipal and
national authorities in introducing economic,
institutional and regulatory reforms that support
investment projects
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Technical assistance in preparing bankable project proposals
Broad Analysis of Policy Reforms and Case Studies
Senior Decision Maker Seminars
Policy Advisory Services
Financing Energy Efficient Investments: Promote
opportunities for banks and commercial companies to
invest in energy efficiency projects
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Creation of the €354 million SwissRe/Conning Investment
Fund for EU projects which, for example, financed a €35mil.
wind farm in Germany & France
Energy Efficiency 21 Project for 2008-2012:
Creation of an Investment Fund for 12
Former Transition Economies
$10.55 million for
Technical
Assistance from:
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$2 million UNF
$2.5 million
MAE/French FEM
$3 million UNEP
GEF
$250,000 European
Business Congress
$ 400,000 / year
UNECE In-Kind
$50,000 / year
National In-Kind
Will be $250 million Publicused to
Private Equity
create
Investment Fund
Which with co-financing will
Finance $2 Billion in
Energy Efficient
Investment Projects
Eliminate 5 Million Cars Worth
(10 mil tons) of CO2 a Year
Regional Commission
Co-operation in Promoting
Energy Efficiency
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The ECE has received a grant to help expand its
Energy Efficient Financing Project to the other
Regional Commissions
Together these could serve as regional hubs for
a UN system of information and capacity building
services for promoting energy efficiency in
developing countries
A possible side event on energy efficiency in the
different regions during the COP-14 in Poznan in
December 2008
Summary: Promoting energy efficiency will
contribute not only to the goal of sustainable
development but will help avoid increased
poverty for the poorest
THANK YOU
Presentation available at:
www.un.org/regionalcommissions