Capitol Visitor Center Shaping a Low-Carbon World: Lessons from Denmark The Future Energy Challenge is today

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1 Capitol Visitor Center Shaping a Low-Carbon World: Lessons from Denmark The Future Energy Challenge is today Washington, DC, October 21 st, green is the new black Jes B. Christensen Managing director, DBDH Copenhagen Accord small step or just insufficient? Total number of Parties committed are 114, thus recognizing the scientific view that the increase in global temperature should be below 2 degrees Celsius = 2-5 GT CO2 emissions short of 2020 target! COP ONLY TOOK NOTE OF IT no legal standing within the UNFCCC process! 1

2 Climate Commission Denmark Fossil Free 2050 Fossil Fuels create challenges of geopolitical nature security policy, economics, security of energy supply Climate Changes are real!!! Because fossil fuels are running dry as resource for energy oil: 41 years, gas: 60 years: coal: 133 years (Source: BP Statistical Review of World Energy 2008) 50% chance to stop irreversible climate change if CO2 emissions top in 2015 and be reduced by 80% in 2050 (source: EU 40/80) DHC Law # 1: REduce 2/3 of the fuel we use to produce power is wasted CHP can more than double this efficiency, Executive Director Mr. Nobou Tanaka, IEA Source: IEA, CHP: Evaluating the Benefits of Greater Global Investment (2008). 2

3 DHC Law # 2: REcycle 100% 80% CHP-share: Electricity: 55% District heating: 80% CHP-contribution to total production 60% 40% 20% 0% 1980 '85 '90 '95 '00 '05 '08 District Heating Source: Danish Energy Agency Electricity 100% DHC Law # 3: REplace 80% 60% District Heating = Heat supply for 62 pct. of all buildings 46 % of all houses in Denmark are heated from renewable energy & waste Biomass exempted from energy tax 40% 20% 0% 1980 '85 '90 '95 '00 '05 '08 Renewable Energy and Waste Coal Natural Gas Oil Source: Danish Energy Agency 3

4 The Energy & Climate Fairy Tale De-linking Economic Growth from Energy Consumption: Financial Crisis GDP, fixed prices CO2-emissions, adjusted Gross energy consumption, adjusted 31) reasons: REDUCE, 1) 2) Energy RECYCLE, Savings, 3) 2) REPLACE CHP/DH, 3) Renewable Energy Source: Danish Energy Agency What triggered the energy revolution? oil crisis 2 countries were 99% dependent on imported energy: Japan and Denmark (oil and coal) Supply situation exacerbated by inefficient energy use Sharply rising oil prices caused severe economic crisis and high unemployment. A matter of national security and top economic priority to embark on new sustainable solutions Show car free Sundays in Denmark as a result of the oil crisis in

5 Energy Efficiency an important part of the solution Kaya Identity Energy Efficiency an important part of the solution 5

6 The Case of Denmark Political Leadership before anything else Energy Legislation 1976 Electricity Supply Act DECIDED THAT WASTED ENERGY IS BAD AND REACTED! 1979 Heat supply act 1986 decentralized CHP to promote domestic fuels, e.g. biomass 1990 increase use of biomass by building new CHP and converting existing coal and oil fired CHP s to e.g. biomass 1993 Concrete measures to increase use of biomass to 20 PJ/Year 2008 Further increase use of biomass by tons 6

7 From Centralized to Decentralized Solutions Centralized production in 1985 Decentralized production of today Legend: Decentralized CHP Centralized CHP Wind mill park Today 35 Years Later Main Results - Denmark: Net exporter of oil and gas (since 1997) Lowest energy consumption per GDPunit in EU Highest contribution to electricity from new renewables (non-hydro RE) in the world Most efficient clean coal technology world wide Leading nation of advanced energy solutions (district heating and CHP, wind turbines, biomass plants, energy saving technologies ) Front Cover of Hot Cool 3/2009 (Focus: System Integrator on Urban Infrastructure) 7

8 One significant path to a green and safe future Today and Tomorrow s Smart Energy Infrastructure Solar Wind 8

9 Consumer Prices for District Heating (2009) District heating is significantly cheaper than alternative supply: 97% of all district heating consumers pay less for their heat compared to heat from individual household-based oil stoves Compared to the cost of heat from an individual natural gas boiler, 95% of DH customers pay less --- o O o --- DH consumer price averages 2,300 USD (18.1 MWh/year) = about 3% of HH income. Source: Danish District Heating Association Photo: Energy Viborg District CHP Plant (Architectural Design Matters) The share of energy tech. exports from EU , Denmark exported energy technologies and equipment at a value of USD 11 billion, corresponding to 11.6 % of total Danish goods exports. Source: DEA and DI 9

10 Denmark Green and Competitive Economist Intelligence Unit , Business Environment Rankings Denmark no. 1 out of 82 countries Forbes, The Best Country for Business 2009 Denmark no. 1 out of 127 countries IMD, World Competitiveness Scoreboard 2009 Denmark: no. 5 out of 57 countries DI - Global Benchmark Report 2010 Denmark no. 6 out of 29 OECD countries World Economic Forum s Global Competitiveness Report Denmark no. 5 out of 134 countries World Bank, Doing Business Index 2010 Denmark no. 6 out of 183 countries Denmark Happiest Nation University of Cambridge, April 2007, Faculty of Economics Denmark No. 1 in EU University of Michigan, July 2008, Institute for Social Research Denmark no. 1 out of 97 countries OECD Report, May 2009, Source: Gallup, IMF and CIA Denmark no. 1 out of 140 countries Gallup World Pole, Aug. 2010, Journal of Personality and Social Psychology Denmark no. 1 out of 132 countries 10

11 Thank you for your attention The world hates change, yet it is the only thing that has brought progress." Mr Charles F. Kettering 11