ENERGY EFFICIENCY Sudhir Sharma UN Environment programme

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1 ENERGY EFFICIENCY Sudhir Sharma UN Environment programme SDG 7 Implementation in Asia and Pacific, March, 2019 Bangkok, Thailand

2 Energy Efficiency Contribution to global goals SDG 7 EE goal - By 2030, double the global rate of improvement in energy efficiency. EE is the cheapest form of clean energy contributes to affordable energy. Reduces cost of implementing RE projects. Energy Efficiency key contributor to addressing Climate Change. Over 80% of NDCs mention EE as key measures for achieving GHG reductions. 2

3 Energy Efficiency across sectors Making the Paris Agreement a reality Energy Efficiency gains comes from all sectors, Industry, buildings, transport sector. Transport sector offers the maximum gains. EE led de-coupling has positive impacts on reducing air pollution. 3

4 Push and Pull measures for EE Policy push has been the key factor behind energy efficiency in all the sectors. Incentive push by governments has complemented the policy push. Subsidies for fuel and electricity have better use as incentives for energy efficiency 4

5 5 Energy Efficient Appliances

6 United For Efficiency Programme Labelling Schemes Procurement Policies Tax incentives Utility Mandates 6

7 U4E Product Coverage Use >50% of Electricity Room Air Conditioners Can improve efficiency by 30% Indoor & Outdoor Lighting Can improve efficiency 40-60% Residential Refrigerators Can improve efficiency by 60% Distribution Transformers Can improve efficiency by 30% Electric Motor Systems* Can improve efficiency 20-30% Sources: International Energy Agency; Lawrence Berkeley National Laboratory; UN Environment Method: Approximate savings in 2030 in emerging & developing economies if today s best available technologies are adopted *Electric motors systems use over half of global electricity, some of which is accounted for in ACs and Refrigerators

8 The Success of Standards Source: NRDC

9 MODEL REGULATION GUIDELINES U4E worked on Model Regulation Guidelines: intended as a guideline to help inform regulatory authorities and policy makers in developing and emerging economies. sets a minimum efficiency floor to prohibit future sales of inefficient products from the market. A range of stakeholders, including governments, manufacturers and environmental groups contributed to the document. Supporting Global Market Transformation:

10 U4E Model Regulations Light Bulbs Linear Lamps Residential Refrigerator s Room Air Conditioners Available now! Spring 2019 Spring 2019 Spring 2019

11 Lighting MEPS Map Mandatory Voluntary / Unknown In Progress No Data Found

12 Refrigeration MEPS Map Mandatory Voluntary / Unknown In Progress No Data Found

13 Air Conditioning MEPS Map Mandatory Voluntary / Unknown In Progress No Data Found

14 Key Challenges in Scaling Efforts up The challenge is the coverage and the enforcement of the S&L programmes in the countries. Human resources to operationalize the system. Allocation of financial resources by the Governments in operating the systems. 14

15 Country Assessments ADDITIONAL TOOLS & PRODUCTS 5 Policy Guides for selected products Monitoring, Verification and Enforcement Guides

16 16 Energy Efficient Buildings

17 Buildings and Energy Consumption Residential sector accounts for 36% of direct and in-direct final energy consumption and 39% of GHG emissions. It is a key sector in developing countries as most of the building stock is yet to be built hence, a great opportunity. Global Initiative on Resource Efficient Cities, the Cities Alliance and the UN Environment- UN Habitat Greener Cities Partnership. 17

18 Buildings and Energy Consumption Energy efficiency in buildings arises from three factors Building Envelope (insultation, improved windows, etc.); Energy used by systems (heating, cooling, ventilation, etc); and components (cooking equipment, lighting, etc.) 18

19 Buildings and Energy Consumption Building Energy Efficiency is highlighted as key element in a number of INDCs, including developing countries. 19

20 Buildings Codes 20 A key policy instrument to push the energy efficiency in Buildings in Building Energy Codes cover both the building envelope and building systems. Most of the big countries in Asia have Building energy codes. The coverage and enforcement are not adequate to get the benefits.

21 Buildings Certification Building certification schemes, generally run by a number of private initiatives (LEEDS, GBC, etc) evaluate the performance of the buildings and its energy systems, includes operations. Most countries using it use it for high end commercial buildings. Still used as voluntary system in most countries. 21

22 22 Efficiency in Transport Sector

23 UN Environment Promoting Sustainable Low Emissions Transport Key reduction in Emissions come from: Public and Non-motorized transport; Fuel Efficiency; and, Electric Vehicles are more efficient than ICEs. Key support initiatives Share the Road (StR) promote and develop nonmotorized transport policies. Global Fuel Economy Initiative (GFEI) double vehicle fuel efficiency by E-Mob supporting electrification of the vehicle fleet. Partnership for Clean Fuels and Vehicles (PCFV) reduce emissions from light-duty vehicles. Climate and Clean Air Coalition - Reducing Emissions from Heavy-Duty Diesel Vehicles including Soot-Free Buses Initiative.

24 Liters per 100 kilometers (L/100km) normalized to NEDC Test Cycle Fuel economy fiscal policies work Baseline Light-Duty Vehicle Fuel Economy and Trends Bahrain Chile China Costa Rica Cote d'ivoire Egypt Ethiopia EU Ghana Georgia Indonesia Japan Kazakhstan Kenya Mauritius Montenegro Morocco Peru Philippines Sri Lanka Tunisia Uganda Uruguay US Source: UNEP, 2017 (unpublished). 24 Algeria

25 Fuel Economy Policy Options focusing on fiscal measures VEHICLE FUEL EFFICIENCY STANDARDS Introduce and regularly strengthen mandatory standards Establish and harmonize testing procedures for fuel efficiency measurement. FISCAL MEASURES MARKET-BASED APPROACHES Fuel taxes and vehicle taxes to encourage the purchase of more fuel-efficient vehicles. Infrastructure support and incentive schemes for very fuel-efficient vehicles. Voluntary programs such as U.S. SmartWay and other green freight programs INFORMATION MEASURES Vehicle fuel economy labels Improving vehicle operational efficiency through eco-driving and other measures. Source: ICCT

26 Thank you Sudhir Sharma