Keisuke Sadamori Director, Energy Markets and Security

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© OECD/IEA 2016 © OECD/IEA 2015 Energy efficiency and reducing GHG emissions Keisuke Sadamori Director, Energy Markets and Security Barcelona, 19 September 2016

Transcript of Keisuke Sadamori Director, Energy Markets and Security

Page 1: Keisuke Sadamori Director, Energy Markets and Security

© OECD/IEA 2016 © OECD/IEA 2015

Energy efficiency and reducing GHG emissions

Keisuke Sadamori – Director, Energy Markets and Security

Barcelona, 19 September 2016

Page 2: Keisuke Sadamori Director, Energy Markets and Security

© OECD/IEA 2016

Overview

1. Energy efficiency trends in EU countries

2. How efficiency reduces GHG emissions

3. The Paris Agreement and its effect on efficiency

4. The IEA 2 Degree (2DS) and Bridge scenarios and the role of energy efficiency

Page 3: Keisuke Sadamori Director, Energy Markets and Security

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1. Efficiency trends: concerted progress in the EU

Efficiency levels in residential buildings improved by 25% since 2000

Lack of policy in freight sector has coincided with worsening efficiency

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transport

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buildings

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transport

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buildings

Change in efficiency levels by sector in Europe

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Buildings efficiency showing progress

EU efficiency policies implemented in 2002, 2006, 2012 drawing down energy demand

Building efficiency indicators in France, Germany, Italy, UK, 2002-2013

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Space heating energy per household

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Natural gas consumption per floor area

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In 2014, the avoided total primary energy supply generated by energy efficiency improvements since 1990 was 32 EJ (765 Mtoe)

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Avoided TFC Avoided TPES (electricity) Avoided TPES

EJ

Electricity Nuclear Renewable Natural gas Coal Oil Heat

Avoided TFC and TPES in 2014 in IEA countries from efficiency investments made since 1990

Efficiency gains lead to large energy savings and GHG emissions

End-use efficiency leads to substantial fossil fuels energy savings

Page 6: Keisuke Sadamori Director, Energy Markets and Security

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3. Post-COP21: Policies and investment shifting to GHG reduction potential

One third of NDCs have efficiency targets/policies but a large share of GHG reductions are still ‘unallocated’

Energy efficiency is the most cost-effective measure to reduce GHGs and is increasingly viewed as a no-carbon fuel

GHG reduction Scenarios with high efficiency penetration are USD 2.5 trillion less costly

IEA Scenarios show that INDCs will boost efficiency

investment, with most early effort in the buildings sector

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4. Efficiency is a critical action in 2DS

Efficiency and renewables make up 2/3rds of GHG mitigation in 2DS

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2013 2020 2030 2040 2050

GtC

O2

Energy efficiency 32%

Renewables 32%

Fuel switching 10%

Nuclear 11%

CCS 15% 2DS

4DS

Contribution of technology area to global cumulative CO2 reductions in 2DS

Page 8: Keisuke Sadamori Director, Energy Markets and Security

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GHG reductions from efficiency are spread across all end-use sectors

In each end-use sector efficiency is the most important action for direct GHG emission reduction

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Power

Industry

Transport

Buildings

Other transformation

GtCO2

Cumulative reductions by sector and technology

Renewables

CCS

Fuel switching

Energy efficiency

Nuclear

Contribution of technology area to global cumulative CO2 reductions in 2DS

Page 9: Keisuke Sadamori Director, Energy Markets and Security

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Efficiency is a major fuel “source” in 2DS

Avoided electricity consumption from efficiency (top) in 2DS is larger than the generation of any one low carbon source

Contribution of technology area to global cumulative CO2 reductions in 2DS

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GtC

O2

Cumulative CO2 reductions

Page 10: Keisuke Sadamori Director, Energy Markets and Security

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Crossing the Bridge to 2 degrees

IEA developed the Bridge Scenario which peaks GHGs by 2020 and puts us on a 2 degree pathway by 2030

Energy efficiency is an even larger part of the bridge

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Efficiency at the core of EU GHG reductions in the Bridge

World Energy Outlook Climate Special Report 2015

Energy-related GHG emissions reduction in Bridge scenario relative to INDC Scenario

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Efficiency actions focused on buildings in the EU

In the EU over half of the GHG reductions are in buildings

World Energy Outlook Climate Special Report 2015

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Conclusion

Energy efficiency improving in the EU driven by policy

These improvements are leading to significant energy and GHG savings

The Paris Agreement is likely stimulate to another round of policies to boost efficiency

In the EU, efficiency is the prime mover of GHG reductions in IEA scenarios