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8/3/2019 Asia Business-Policy Roundtable on Clean Energy Energy talk on Efficiency Dialogue: Policy and Regulatory Issues Facing Energy-Efficiency Businesses and Projects

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Asia Business-Policy Roundtableon Clean Energy

Energy-Efficiency Dialogue: Policy and RegulatoryIssues Facing Energy-Efficiency Businesses and Projects

Michael P. TottenSenior Advisor, CI Singapore

[email protected]

November 2, 2011


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Zero net cost counting efficiency savings. Not counting the efficiency savings theincremental cost of achieving a 450 ppm path is55-80 billion per year between 20102020 for

developing countries and4050 billion for developed countries, or about half the215billion per year currently spent subsidizing fossil fuels.

CO2 Abatement potential & cost for 2020

Breakdown by abatement type 9 Gt terrestrial carbon (forestry/agriculture)

6 Gt energy efficiency 4 Gt low-carbon energy supply


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$1.2 billion savings over

5 years on energy, water

& chemical costs.670% ROI

If the chief executive is

not totally committed, it

wont succeed,

Pasquale Pistorio, CEO,

STMicro, 1987-2005

So the financial incentive is there, but as CEO

Pasquale Pistorio stressed, its not enough.


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Dow slashed energy intensity by ~40%

between 1990-2005. $9.4 billion savings between 1994-2010

940% ROI

CO2 reductions at

negative cost


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Rob Walton, Chairman, Walmart Mike Duke CEO, Walmart


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Our Licenseto Grow isthreatened

2004 in the Bulls eye


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138 million customers every week

100,000 product lines60,000 suppliers in 70 countries

8,500-plus storesand clubs1.7 million associates

Walmarts World


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70% Walmart Imports from China 2008

25% from 14 other nations ( )


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Most ofWalmarts impact & cost is imbedded in products

Packaging

Agriculture

Water

Marine

Factories

Indirect Impact =

92%


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We are looking at innovative ways to reduce our GHG emissions. This used tobe controversial, but the science is in and it is overwhelming.

Lee Scott, CEO

21st

Century LeadershipPresentation Nov. 24, 2005

On Climate Change Action

We believe every company

has a responsibility to reduce

GHG as quickly as it can.

Wal-Mart can help restore

balance to climate systems,

reduce greenhouse gases,save money for our

customers, and reduce

dependence on oil.


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On Climate Change Action

We are committed to aggressively investing $500 million annually in

technologies and innovation to do the following:

Reducing GHG at our existing store, club and

Distribution Center base around the world by

20 percent w/in 7 years.

Designing and opening prototype stores 25-30% more efficient and 30% fewer GHG emissions

within the next 4 years.

Increasing fleet efficiency 25% in 3 years, and

doubling efficiency in the next 10 years.

Sharing all learning in technology with the world,

including our competitors (the more people who

can utilize this type of technology the larger the

market and more we can save our customers)


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Over 4000 Walmart stores with

white roofs, and standard

practice since 1990

Reflects away 80% of solar heat

SOLAR REFLECTORS


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Hashem AkbariArthur Rosenfeld and Surabi Menon, Global Cooling: Increasing World-wide Urban Albedos to Offset CO2, 5thAnnual California Climate Change

Conference, Sacramento, CA, September 9, 2008, http://www.climatechange.ca.gov/events/2008_conference/presentations/index.html

World of Solar Reflecting Cities$2+ Trillion Global Savings Potential, 59 Gt CO2 Reduction

100 m2
http://www.climatechange.ca.gov/events/2008_conference/presentations/index.htmlhttp://www.climatechange.ca.gov/events/2008_conference/presentations/index.html


14/28Amory Lovins & Imran Sheikh, The Nuclear Illusion, May 2008, www.rmi.org

nuclear coal CC gas wind farm CC ind

cogen

bldg scale

cogen

recycled

ind cogen

end-use

efficiency

CCS

Cost of new delivered electricity (US/kWh)

US currentaverage


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1/kWh

2 47

93 kg

Amory Lovins & Imran Sheikh, The Nuclear Illusion, May 2008, www.rmi.org

Coal-fired CO2emissions displaced

per dollar spent onelectrical services


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global cumulative electric utility

infrastructure investment needed

between 2007 and 2030.

US$26.3 trillion

Source: IEA, in 2007 US$; GEF & Global Smart Energy. 2008. The Electricity Economy,http://www.globalenvironmentfund.com/data/uploads/The%20Electricity%20Economy.pdf

12.7 trillion kWhAdditional generation by 2030
http://www.globalenvironmentfund.com/data/uploads/The%20Electricity%20Economy.pdfhttp://www.globalenvironmentfund.com/data/uploads/The%20Electricity%20Economy.pdf


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New York

California

USA minus CA & NYPer CapitalElectricityConsumption 165 GWCoalPowerPlants

Californians have

net savings of$1,000 per family

[EPPs]

For delivering least-cost & risk electricity, natural gas & water services

Integrated Resource Planning (IRP) & Decoupling sales fromrevenues are key to harnessing Efficiency Power Plants

California 30 year proof of IRP value in promotinglower cost efficiency over new power plants orhydro dams, and lower GHG emissions.

California signed MOUs with Provinces in Chinato share IRP expertise (now underway in Jiangsu).


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Now use 1/2 global power

30-50% efficiency savings achievable w/ high ROI

ELECTRIC MOTOR SYSTEMS


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Industrial electric motor systemsconsume 40% of electricity

worldwide, 50% in USA, 60% in China

over 7 trillion kWh per year.

Retrofit savings of 30%, New savings

of 50% -- @ 1 /kWh.

2 trillion kWh per year savings equal to1/4th all coal plants to be built through

2030 worldwide.

$240 billion savings per decade.

$200 to $400 billion benefits per decadein avoided emissions of GHGs, SO2 and

NOx.

Efficiency OutcomesDemand Facts

Support SEEEM

(Standards for Energy

Efficiency of Electric

Motor Systems)

SEEEM (www.seeem.org/) is a comprehensive markettransformation strategy to promote efficient

industrial electric motor systems worldwide

Motor Market Transformation

Path to Multi- Trillion Dollar Savings
http://www.seeem.org/http://www.seeem.org/


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Less Coal Power Plants

Less Coal Rail Cars

Less Coal Mines

More Retail Efficiency Power Plants -EPPsLess Need for Coal Mines & Power Plants


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Walmart is on the path to triplingits truck fleet efficiency.

Over the past 2 years Walmart

replaced ~2/3rd of their fleet with

more efficient tractors.

Achieved 65% reduction in fuel per ton km over

past 5 years.

In 2010, Walmart delivered 57 million more

cases, while driving 79 million fewer km.

Avoiding ~40,000 t/CO2 -- equivalent to taking

7,600 U.S. cars off the road.

Source; Building the Next Generation WalmartResponsibility,2011 Global Responsibility report


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2.7 km/l

529 million liters

[6.4 mpg

140 million gal]

121,000 hectares

Land required if

Wal-Mart Class 8

large truck fleet

Switched fromFossil Diesel to

BioDiesel from

Oil Palm

Plantations


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2.7 km/l 529 million liters

5.5 km/l 265 million liters

8 km/l 176 million liters

40,000 hectaresWhen the truck fleet achieves triple fuel efficiency

2004 2011


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$-

$10

$20

$30

$40

$50

$60

$70

biodiesel truck efficienc

$65

$15

pe

rbarrelcost

Cost Comparison Biodiesel vs Truck Efficiency

Land- & Water-Conserving, Oil-Reducing,

Emission-Preventing and Money Saving

d f


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Green

ATP

Michael P. Totten, [email protected]

Stay Tuned for Part 2

Accelerating & Scaling Best Opportunities
mailto:[email protected]:[email protected]


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Source: USAID ECO-Asia (2011).

Why Efficiency MUST be the First Fuel


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Finally Dont Forget about the Energy

Efficiency Gap

Efficiency measures account for two-thirds of the 3.8 Gt of abatement in2020, needed to meet the 450 ppm trajectoryCurrently Efficiency is only capturing a small percentage of reductionsinthe range of


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Can Development Assistance Fill the Gap?

Bilateral and Multilateral Support for Energy Sector Assistance, by Sector Area:

Comparison of Two Three-Year Periods (1997-1999 vs. 2003-2005)

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