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The EU has set itself ambitious targets with regards to a significant reduction of its greenhouse gas emissions and has presented roadmaps depicting an overall decarbonisation of its economy by the middle of the century. In this context European policymakers and stakeholders are currently discussing the targets and the level of ambition of the 2030 climate and energy policy framework. The Commission is expected to present its own vision for the further development of the energy and climate policy framework in its White Paper "For a 2030 climate and energy policy framework". At this decisive point in the political debate the Wuppertal Institute presents a brief working paper that analyses some of the analytical work - particularly the underlying energy and GHG emission scenarios - behind the Commission's proposals to be presented in the forthcoming White Paper.
Although the anticipated "end of cheap oil" has boosted the interest in energy efficiency as a cornerstone of energy and climate strategies, it is usually taken into account on the basis of rather narrowly defined cost-benefit considerations. As a consequence, substantial ancillary benefits are usually barely considered.
In a recent study for the European Parliament (EP), the authors assessed two enhanced climate strategies compared to a more conventional strategy. One enhanced climate policy scenario relies, in particular, on raising the annual pace of energy efficiency improvement. The other aims at a radical boost of the market share of renewable energy forms, which, however, presupposes an equally radical improvement of energy efficiency.
The present article presents the scenario results and places them in the context of risk characterisation of the considered climate policy scenarios. Risks of international turmoil and energy price hikes could be reduced if dependency rates for fossil fuel imports went down. A more ambitious climate policy can also strengthen the EU position in post-Kyoto global climate agreements and a moderated need for emission trading can, for example, reduce conflicting pressures on clean technology transfer.
On the other hand, the implementation of the efficiency strategy will entail increased domestic risks because it will involve a re-prioritisation of resource allocation and will thus affect the current distribution of wealth in both the energy sector and some other closely related sectors.
The article outlines the main drivers behind the ambitious energy efficiency scenario and it attaches tentative price tags to the ancillary effects, with special emphasis on the above sketched swapping of risks. It will, therefore, strongly argue for a more holistic view, which underscores the need for political action and the benefits of such proactive policies in favour of energy efficiency.
Several low-carbon energy roadmaps and scenarios have recently been published by the European Commission and the International Energy Agency (IEA) as well as by various stakeholders such as Eurelectric, ECF and Greenpeace. Discussions of these studies mainly focus on technology options available on the electricity supply side and mostly omit the significant challenges that all of the scenarios impose on the energy demand side.
A comparison of 5 decarbonisation scenarios from 4 of the most relevant recent scenario studies for the EU shows that all of them imply significant efficiency improvements in traditional appliances, usually well above levels historically observed over longer periods of time. At the same time they assume substantial electrification of transportation and heating. The scenarios suggest that both of these challenges need to be tackled successfully for decarbonising the energy system.
With shares of renewable electricity reaching at least 60 % of supply in 2050 in almost all of the decarbonisation scenarios, the adaptation of demand to variable supply becomes increasingly important. This aspect of demand side management should therefore be part of any policy mix aiming for a low-carbon power system.
Based on a quantitative analysis of 5 decarbonisation scenarios and a comparison with historical evidence we derive the (implicit) new challenges posed by the current low-carbon roadmaps and develop recommendations for energy policy on the electricity demand side.
The greenhouse gas balance
(2013)
There is an extensive potential for GHG emission reductions in the new EU member states and the EU accession countries by improving energy efficiency, investing in renewable energy supply and other measures, part of which could be tapped by JI. However, the EU Emissions Trading System (EU ETS) and especially the recently adopted "Linking Directive" is probably going to have a significant impact on this JI potential. Especially two provisions are important:
The baseline of a project has to be based on the acquis communautaire, the environmental regulations of which are substantially higher than the Accession Countries' existing ones. Projects, which directly or indirectly reduce emissions from installations falling within the scope of the EU ETS, can only generate certificates if an equal number of EU allowances are cancelled. JI is thus put into direct competition with the EU ETS. In this paper we analyse the impact of these provisions first in theory and then country by country for six Central and East European countries that recently acceded the EU or are candidates for accession. As a result, we give an overview of the potential and the limitations of JI as an instrument for achieving emission reductions in the selected Accession Countries and provide important overview information to policy makers.
In October 2014, the European Council agreed on a target of improving overall energy efficiency by at least 27 per cent by 2030. According to the European Council's conclusions, this target should not be translated into nationally binding targets. Nevertheless individual Member States are free to set higher national objectives if desired. However, it is difficult to assess the degree of ambition of a national target because so far not much light has been shed upon the exact size of the untapped efficiency potentials.
This paper provides an in-depth analysis and comparison of existing studies on energy efficiency potentials in the European Union's (EU) Member States by 2030. It includes a structured overview of the results, information on the quality of the available data and suggestions for improvement.
The review shows that comprehensive studies on national energy efficiency potentials are rare and hardly comparable. The existing studies agree on the existence of significant potentials for energy efficiency. Their outcomes, however, vary significantly in terms of national levels. Assuming low policy intensity, energy savings between 10 and 28 per cent could be realised by 2030 compared to a baseline development, in the case of high policy intensity 7-44 per cent. Technical energy efficiency potentials in the different EU Member States are estimated at 14-52 per cent. On average, energy savings of 27 per cent by 2030 appear to be feasible with significant policy effort. We conclude that the deviation in Member States' energy efficiency potentials resulting from different studies represents an indication of the so far poor quality of underlying data. In order to allow for a concretisation of efficiency potential estimates, the comparability and detail of information sources should be improved.
Energy used in buildings is responsible for more than 40% of energy consumption and greenhouse gas (GHG) emissions of the EU and their share in cost-efficient GHG mitigation potentials is estimated to be even higher. In spite of its huge savings potential of up to 80%, achievements are very slow in the building sector and much stronger political action seems to be needed. One important step in this direction has been the recast of the Energy Performance of Buildings Directive (EPBD) in autumn 2009. However, strong national implementation including powerful packages of flanking measures seems to be crucial to really make significant progress in this important field. In order to directly improve political action, we provide a differentiated country-by-country bottom up simulation of residential buildings for the whole EU, Norway, Iceland, Croatia and Liechtenstein. The analysis provides a database of the building stock by construction periods, building types, as well as typical building sizes. It includes a simulation of the thermal quality and costs of the components of the building shell for new buildings as well as the refurbishment of the existing building stock. Based on this differentiated analysis, we show in detail what would be needed to accelerate energy savings in the building sector and provide a more precise estimate of the potentials to be targeted by particular policies. We demonstrate, e.g. that the potential of building codes set via the EPBD would be located mainly in those countries that already have quite stringent codes in place. We show as well the high relevance of accelerating refurbishments and re-investment cycles of buildings. By providing a clear estimate of the full costs related to such a strategy, we highlight a major obstacle to accelerated energy-efficient building renovation and construction.
International consensus is growing that a transition towards a low carbon society (LCS) is needed over the next 40 years. The G8, the Major Economies Forum on Energy and Climate, as well as the Ad Hoc Working Group on Long-term Cooperative Action under the United Nations Framework Convention on Climate Change, have concluded that states should prepare their own Low-emission Plans or Low-emission Development Plans and such plans are in development in an increasing number of countries.
An analysis of recent long-term low emission scenarios for Germany shows that all scenarios rely heavily on a massive scale up of energy efficiency improvements based on past trends. However, in spite of the high potential that scenario developers assign to this strategy, huge uncertainty still exists in respect of where the efficiency potentials really lie, how and if they can be achieved and how much their successful implementation depends on more fundamental changes towards a more sustainable society (e.g. behavioural changes).
In order to come to a better understanding of this issue we specifically examine the potential for energy efficiency in relation to particular demand sectors. Our comparative analysis shows that despite general agreement about the high importance of energy efficiency (EE), the perception on where and how to achieve it differ between the analysed scenarios. It also shows that the close nexus between energy efficiency and non-technical behavioural aspects is still little understood. This leads us to the conclusion that in order to support energy policy decisions more research should be done on energy efficiency potential. A better understanding of its potential would help energy efficiency to fulfil its role in the transition towards a LCS.
To combat climate change, it is anticipated that in the coming years countries around the world will adopt more stringent policies to reduce greenhouse gas emissions and increase the use of clean energy sources. These policies will also affect the industry sector, which means that industrial production is likely to progressively shift from CO2-emitting fossil fuel sources to renewable energy sources. As a result, a region's renewable energy resources could become an increasingly important factor in determining where energy-intensive industries locate their production. We refer to this pull factor as the "renewables pull" effect. Renewables pull could lead to the relocation of some industrial production as a consequence of regional differences in the marginal cost of renewable energy sources. In this paper, we introduce the concept of renewables pull and explain why its importance is likely to increase in the future. Using the examples of direct reduced iron (DRI) and ammonia production, we find that the future costs of climate-neutral production of certain products is likely to vary considerably between regions with different renewable energy resources. However, we also identify the fact that many other factors in addition to energy costs determine the decisions that companies make in term of location, leaving room for further research to better understand the future relevance of renewables pull.
Iran is one of the largest oil producers and natural gas owners globally. However, it has to struggle with domestic energy shortages, economic losses through energy subsidisation and inefficient energy infrastructures. Furthermore, GHG and other energy related emissions are rapidly increasing and posing a growing threat to local environment as well as global climate. With current trends prevailing, Iran may even become a net energy importer over the next decades. Resource allocation is therefore a crucial challenge for Iran: domestic consumption stands versus exports of energy.
The energy transformation sector clarifies Iran's dilemma: soaring electricity demand leads to blackouts, and power plant new builds are far from using most efficient technologies (e. g. CHP), therefore keeping energy intensive structures. But fossil fuels could be sold on international markets if spared by having more efficient energy infrastructures.
As shown by the high energy intensity of its economy, Iran has large potentials for energy saving and efficiency. In order to highlight and better identify this potential the paper contrasts a high efficiency scenario in all sectors of energy transformation and consumption with a possible "business as usual" development.
Using a bottom-up approach, the analysis provides a sector-by-sector perspective on energy saving potentials. These can be utilised on the demand side especially in the transport sector (fuels) and in households (electricity for appliances, natural gas for heating). Electricity generation bears efficiency potentials as well.
We conclude that Iran, but also the international community, would benefit on various levels from a more energy-efficient Iranian economy: Energy exports could increase, generating more foreign currency and reducing the pressures on international oil and gas prices; energy consumption would decrease, leading to lower needs for nuclear energy and for subsidies to Iranian people, as well as to a reduction of the high external costs entailed by fossil fuels combustion (smog in cities, environmental stress).
Based on a comprehensive scenario analysis of the EU's GHG emissions by 2020, we show that the 20% energy savings target set in the Action Plan "Doing more with less" in 2006 is still the most significant and thus indispensable strategy element within an ambitious EU climate and energy strategy targeting at a 30% reduction of GHG emissions by 2020.
The scenario analysis provides a sector by sector projection of potential future energy use and GHG emissions, combined with a detailed policy analysis of the core policies on energy efficiency by the EU and its Member States taken from current research results by the authors and others.
Consequently the paper identifies and quantifies the current implementation deficit in the EU and shows that, despite of sufficient targets, implementation is still significantly lacking in almost all fields of energy efficiency. Some, e.g. transport sector and buildings, are still substantially far from receiving the necessary political impetus. The paper also demonstrates co-benefits of a strong energy efficiency strategy, e.g. the achievability of the targets of the RES directive, which crucially depends on a strong efficiency policy.
We conclude that the efforts of the energy efficiency policy of the EU and its Member States have to be significantly intensfied. As proposed by the EU in case that other developed and key developing countries take up comparable targets in order to fulfil its role in the climate and energy strategy. To achieve this, we offer an analysis of the current weaknesses of EU energy efficiency policy and derive recommendations on how the EU can still reach its targets for 2020.
Energy-intensive processing industries (EPIs) produce iron and steel, aluminum, chemicals, cement, glass, and paper and pulp and are responsible for a large share of global greenhouse gas emissions. To meet 2050 emission targets, an accelerated transition towards deep decarbonization is required in these industries. Insights from sociotechnical and innovation systems perspectives are needed to better understand how to steer and facilitate this transition process. The transitions literature has so far, however, not featured EPIs. This paper positions EPIs within the transitions literature by characterizing their sociotechnical and innovation systems in terms of industry structure, innovation strategies, networks, markets and governmental interventions. We subsequently explore how these characteristics may influence the transition to deep decarbonization and identify gaps in the literature from which we formulate an agenda for further transitions research on EPIs and consider policy implications. Furthering this research field would not only enrich discussions on policy for achieving deep decarbonization, but would also develop transitions theory since the distinctive EPI characteristics are likely to yield new patterns in transition dynamics.
This study intends to provide a comprehensive overview of the water-energy nexus' relevance to the Iranian electricity sector, by illustrating key trends, analysing water-related challenges and identifying knowledge gaps. It summarises the results of a workshop, and a series of dialogues with Iranian energy and water experts, in which both the current situation and future water-related risks and impacts on the Iranian power sector were discussed. Based on those results, it highlights research needs and further options for scientific collaboration.
There's no decarbonisation without energy efficiency : but take care of the "rebound effects"
(2013)
Toothless tiger? : Is the EU action plan on energy efficiency sufficient to reach its target?
(2007)
Motivated by, inter alia, the increasing energy prices, the security of energy supply and climate change, the new EU "Action Plan for Energy Efficiency: Realising the Potential" (EEAP), sets out the policies and measures required to be implemented over the next six years to achieve the EU's goal of reducing annual primary energy consumption by about 20 % by 2020. By increasing energy efficiency, the security of energy supply and the reduction of carbon emissions are also improved.
The paper will analyse the 20 % target of the new EEAP for the energy demand side by comparison with different recent energy scenarios for the EU. It will therefore review the recommended policies and measures and examine, in which energy demand sectors energy efficiency may be increased and to which extend. The main focus is whether the recommended policies and actions will be sufficient and which additional measures may be useful, if additional measures are needed.