making energy efficiency in europe more effective · making energy efficiency in europe more...

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european council for an energy efficient economy Making energy efficiency in Europe more effective Nils Borg, eceee Executive Director Motor Summit ‘16, Zürich, 11 October 2016

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Page 1: Making energy efficiency in Europe more effective · Making energy efficiency in Europe more effective • Coined “first fuel” as a concept • Lots of energy efficiency resources

european council for an energy efficient economy

Making energy efficiency in Europe more effective Nils Borg, eceee Executive Director Motor Summit ‘16, Zürich, 11 October 2016

Page 2: Making energy efficiency in Europe more effective · Making energy efficiency in Europe more effective • Coined “first fuel” as a concept • Lots of energy efficiency resources

Making energy efficiency in Europe more effective

About eceee • More than 70 member organisations • 300 individual members • Secretariat based in Stockholm • European expert efficiency NGO: evidence-

based knowledge, information and analysis • eceee Summer Study every odd year in

Southern France – 450 people meet for five days (29 May–3 June 2017)

• Industrial Efficiency event since 2012 2

Page 3: Making energy efficiency in Europe more effective · Making energy efficiency in Europe more effective • Coined “first fuel” as a concept • Lots of energy efficiency resources

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“there is no realistic or affordable

energy and climate change policy without

a sizeable and vigorous energy efficiency component”

IEA 2016 Energy Efficiency Market Report (10 Oct 2016)

Page 8: Making energy efficiency in Europe more effective · Making energy efficiency in Europe more effective • Coined “first fuel” as a concept • Lots of energy efficiency resources

IEA: Energy efficiency markets keep growing

Making energy efficiency in Europe more effective

• Coined “first fuel” as a concept • Lots of energy efficiency resources in all

countries (only resource every country has) • Global energy efficiency gains are

accelerating, even in the current low price environment.

• Energy efficiency will influence global energy markets.

• Energy efficiency is becoming more central in climate change responses.

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And IEA’s most important conclusion:

Making energy efficiency in Europe more effective

Policy matters! Policy delivers!

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No time to celebrate

Making energy efficiency in Europe more effective

• Policies are working, but we are in a hurry

• 70% of global energy use is outside of any mandatory efficiency requirements

• Stronger policies required

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The economic-man delusion

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Page 12: Making energy efficiency in Europe more effective · Making energy efficiency in Europe more effective • Coined “first fuel” as a concept • Lots of energy efficiency resources

Homo economicus vs homo sapiens

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Taxing energy is not a sufficient energy policy – EEOs vs taxes

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Page 16: Making energy efficiency in Europe more effective · Making energy efficiency in Europe more effective • Coined “first fuel” as a concept • Lots of energy efficiency resources

Energy efficiency is invisible and need institutional support

• Markets are important, but they don’t exist in a vacuum

• Energy efficiency is not seen as a commodity or a resource

• If we rely on market forces alone, we miss opportunities

• Yes, things happen autonomously, but too slowly

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Policy integration

• Public sector can set energy performance requirements – Products – Buildings – Industrial processes

• Innovation procurement • Energy efficiency obligations • Competitions • Energy management • Investment structures, energy services

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Integrating multiple benefits can help make efficiency attractive

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Source: WSP/Swedish Energy Agency

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Minimum energy performance standards very important

Making energy efficiency in Europe more effective

• They work “silently” • Ecodesign/labelling EU’s most successful

policy half of 2020 savings target • More must be done on test standards • More must be done on compliance • They cannot specify the very best

technology, but are still not ambitious enough

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LED lamps developed much faster than ecodesign predicted

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Page 21: Making energy efficiency in Europe more effective · Making energy efficiency in Europe more effective • Coined “first fuel” as a concept • Lots of energy efficiency resources

TVs hurt by low ambition and delays

• A+, A++, A+++ gradual phase in • A+++ label mandatory 2020 (most stringent

level) • But most TVs are A+++ already now! • Ecodesign standards are at 2009 levels • New proposal stalled

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Source: Cool products

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Very damaging delays in motor ecodesign process.

Since 2014: • No progress on motors

– scope – abandon IE2 – start with MEPS for losses of VFD

• Fan regulations stalled… • water pump regulations stalled… • Compressor regulation stalled… • all product groups at stand-still

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Weak standards and delays costly and dangerous

• High penalty in CO2 and TWh • Hard international competition Other

producers or regions take market shares (MEPS as “sparring partners”)

• We are less productive • Poor air quality • Climate imperative to move ahead • We need to free up resources to other areas

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What we need?

Making energy efficiency in Europe more effective

Visions Ambitions Courage

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Page 26: Making energy efficiency in Europe more effective · Making energy efficiency in Europe more effective • Coined “first fuel” as a concept • Lots of energy efficiency resources

There are new low hanging fruit on the tree every year!

Thank You! www.eceee.org [email protected]

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Skip the obsession with cost optimality