Germany's perspective: Climate change & energy transition: two sides of the same coin?

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1 Germany's perspective: Climate change & energy transition: two sides of the same coin? Franzjosef Schafhausen Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety

2 Facts and History 1950/60 s: Coal and steel society Resource-poor dependence on raw material and energy imports Economic backbone: Engineering and Trade Strong dependence on exports and international ties Geographical location in the centre of Europe

3 Primary Energy Consumption and Import Others Renewables Imports Nuclear Domestic Oil Brown coal Gas Primary energy Hard coal Oil Gas Hard coal Brown coal Nuclear Renewables

4 Energiewende an old story in Germany Enquete Kommission on Nuclear Energy 1979 Enquete Commission Protecting the Earth s Atmosphere Enquete Commission Protecting the Earth s Atmosphere Enquete Commission Sustainable Development

5 Germany is shifting its society from the use of fossil fuels and nuclear towards renewable energy and low carbon systems Long tradition and strong public support for Climate Policy (National Climate Strategies, imlementation of Kyoto Protocol). 2007: Integrated Energy and Climate Package 2020 climate target (minus 40% versus 1990). 2010: Energy concept - Long-term climate and energy policy up to 2050 aimed at fundamentally restructuring the energy system, but also other sectors -> 2010: Energy Concept -> 2011: Energiewende. Transition towards a highly efficient renewable energy system also as an economic and social opportunity. Focus on innovation and advanced technologies, on effective and cost-efficient measures in line with market and competition principles.

6 Germany has a 25 years tradition in building the institutional framework for shifting the society towards low-carbon production and climate friendly living. Domestic climate targets set out in government decisions, supported by legislation on individual climate and energy policies Latest coalition agreement (Dec 2013) confirms 2020 and 2050 targets, interim targets for 2030 and 2040 confirmed through monitoring process for the Energiewende EU legislation includes overall cap for emissions under emissions trading scheme (about 50% of GHG emissions in Germany) Legally binding target for 2020 for non-trading sectors in Germany in EU effort sharing scheme

7 Climate Action Programme 2020 Target 40% reduction in GHG emissions by 2020 (vs. 1990) Gap With current policies: 33-34% GHG reduction by 2020 (uncertainty of +/- 1%) CAP Climate Action Programme 2020 adopted in Dec 2014 by Cabinet

8 Germanys ambitious targets

9 Climate Action Programme 2020 All sectors contribute to emissions reduction Energy sector Transport Other emission s (waste ) Industry Commerc e Trade Services Private Household s

10 National Action Plan on Energy Efficiency (NAPE) 12/2014 Target: 20 per cent reduction in primary energy consumption by 2020 compared with 2008 and halve it by 2050; Approach: NAPE will motivate all social actors to make more economical use of energy - local authorities, enterprises Energy/Energy- Efficiency/nape,did= htm l Focus: Incentives (soft loans) for efficiency measures in residential buildings; obliges large-scale enterprises to conduct energy audits and sets standards for new installations and buildings. (500 energy-efficiency networks) top-runner strategies for appliances 10

11 Main federal-level energy efficiency measures Buildings Energy consulting KfW progammes for construction and renovation MAP (Market Incentive Programme) Energy saving legislation Products and appliances Energy consulting (Energy Efficiency Campaign) NTRI: National Top Runner Initiative Energy Efficiency Labelling Ordinance Ecodesign Directive (eff. classification) Industry and business Energy consulting services KfW credits and loans (Effizienzprogramm, BAFA) Obligatory energy audits European emissions trading (ETS) Transport Labelling (EU Directive Fuel Economy) Regulation of consumption Motor vehicle taxation E-mobility strategy Mobility and fuel strategy Source: Ecofys 2015 A balance of consultation and information, incentives and regulations.

12 Climate Action Programme 2020 Cabinet decision of 3 December 2014 Key policy measures National Action Plan on Energy efficiency (NAPE) (not including measures in the transport sector) Climate-friendly building and housing strategy (contains NAPE measures specific to buildings) measures in the transport sector reduction in non-energy-related emissions in: industry, the commerce/trade/ services sector and waste management agriculture dependent on decisions at eu level on structure Further measures, especially in the electricity sector Total: Contribution to greenhouse gas emission reduction (Mio tonnes of CO2 equivalent) approx Mio. t in total approx Mio. t approx Mio. t Mio. t 3.6 Mio. t dependent on decisions at eu level on structure 22 Moi. t Mio. t

13 Next Steps Climate Action Programme 2020 Monitoring the implementation of the measures Federal Government's annual climate action report (First Report to the Cabinet ) Climate Action Alliance with representatives of all groups of society Long-term Climate Policy Plan 2050 Anchoring interim reduction targets between now and 2050 First Stakeholder consultation June 2015 Setting out specific steps for mitigation Following a regular schedule starting in 2016 Organise a dialogue on the climate action plan

14 Long Term Perspective: Climate Policy Plan 2050 Climate Action Programme 2020 is important milestone for reaching 2050 climate target Building on CAP 2020, a Climate Policy Plan 2050 will be elaborated until 2016 Process for elaboration of the Plan is outlined in climate action programme 2020 Climate Policy Plan focusses on long-term climate targets and on designing the transformation of society Climate Policy Plan will be underpinned by a broad dialogue and participation process during 2015/

15 Effects

16 Germany managed to decouple its international competitive industry production and high living standard increase from GHG emissions

17 Changing the Power Generation Power production in Germany by source (percent) Hydro Waste Bio mass Wind PV Natural gas Nuclear Hard coal Brown coual Mineral oil Others

18 Public acceptance of the Energiewende is high The energy transition enjoys a high level of approval among the German public and businesses. The increased development of renewable energy is "important" or "extremely important" Phasing out nuclear energy by 2022 is the right decision The energy trasition is "important" or "very important" 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100% 71% Percentage of people that agree or strongly agree with the given 92% 89% Sources: BMWi 2014, TNS Emnid 2014, Institut für Demoskopie 2014, BMUB 2014, BDEW 2014, Forsa 2013, BDI

19 Gross job creation in the German renewables sector The renewables sector has created 360,000 jobs in Germany 450 employees (in 1,000) geothermal hydro solar biomass wind Source: adelphi 2013, DLR/DIW/ ZSW/GWS 2013, BMU

20 Gross avoided fuel costs due to the use of renewables Renewable energy reduces the demand for fossil fuel imports billion Source: ISI, DIW, GWS, IZES

21 Trends worldwide

22 Quelle: IEA, WEO 2015 World s carbon budget is shrinking

23 Quelle: IEA, WEO 2015 A new chapter in China s growth story

24 Quelle: IEA, WEO 2015 Power is leading the transformation of the energy system

25 Thank you for your attention! Franzjosef Schafhausen Director General Climate Change, Europe and International Affairs