Energy Efficiency – Energy Efficiency – Australia’s National and International Australia’s National and International

ApproachApproach

James ShevlinJames ShevlinHead, International and Strategies Head, International and Strategies

Department of the Environment and HeritageDepartment of the Environment and HeritageAustralian Greenhouse OfficeAustralian Greenhouse Office

• Australia’s mitigation strategy covers all sectors and include a range of different approaches, including: – Voluntary programs for industry and local governments – Market measures e.g. tradable renewable energy certificates – Incentives e.g. competitive abatement grants – Information for industry and consumers– Regulatory measures e.g. minimum energy performance standards

• Energy efficiency is a central element of many parts of our mitigation strategy – current measures are projected to deliver about 40% of expected energy sector abatement in 2010

Energy efficiency – a core Energy efficiency – a core mitigation measuremitigation measure

• Energy efficiency offers all countries the potential to:

– Reduce energy use - and peak demand– Reduce greenhouse emissions– Save money

• Significant untapped potential remains – for example, recent studies indicate that Australia can:– reduce energy use by 3-7% - varies across sectors – reduce greenhouse emissions by 10 Mt per year – increase GDP by $US750 million a year

even by implementing only 50% of opportunities with a payback period of 4 years or less

A ‘win-win’ opportunity for allA ‘win-win’ opportunity for all

But there are barriers to energy efficiency … But there are barriers to energy efficiency … why the $20 notes are not always picked upwhy the $20 notes are not always picked up

• Lack of awareness– Poor understanding of potential – Lack of clear information – including price signals

• Lack of access to necessary expertise or tools– No internal expertise to identify or implement opportunities– Perceived risk of new technologies and processes

• Lack of sufficient incentives– Split incentives - landlords pay costs, tenants get benefits– Energy efficiency seen as cost rather than an investment– Energy costs are small component of total costs for many

businesses

Increasing the uptake of cost-effective Increasing the uptake of cost-effective opportunities – key areas and new measuresopportunities – key areas and new measures

• Residential and commercial buildings • Minimum energy performance standards • Mandatory disclosure of performance

• Commercial/industrial energy efficiency• Mandatory energy efficiency opportunity assessments• Training and accreditation of energy auditors and energy

performance contractors

• Financial sector • Increasing awareness – and reducing perceived risk• Standardised evaluation tools

Key areas and new measures - continuedKey areas and new measures - continued

• Appliance and equipment energy efficiency• Minimum standards - to eliminate poor products • Energy performance labeling – to encourage both purchase and

production of better products

• Consumer awareness • Benchmark data on bills

• Government energy efficiency• Targets and public annual reporting of energy use• Minimum standards for new buildings and leases

• Solar Cities trials• Combining renewables, energy efficiency and price signals

Case study: Appliance standards and labellingCase study: Appliance standards and labelling

• Greenhouse reductions of 134 Mt in 2003-2018 – at average savings of $130 per tonne

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

Mt

CO

2-e

be

low

BA

U (

ma

rgin

al c

oe

ffic

ien

ts)

16 Standby 04

7 Misc WH 05

6 Large WH 05

11 Motors 04

10 Motors 01

5 Small WH - label

4 Small WH 05

15 Com Ref 05

14 Trans 04

13 Lamps 07

12 Ballast 03

8 PAC 01

9 PAC 07

3 AC 06

2 RF 05

1 Apps 99

StandbyPower 2004

Motors

CommercialRefrigeration

Transformers

Lamps &Ballasts

Air ConAppliances1999

Benefits of international cooperationBenefits of international cooperation

• Sharing information on opportunities, barriers and solutions – to inform national approaches

• Access to tools, information resources and expertise – avoids ‘re-inventing the wheel’

• Common performance standards & testing – Reduced costs and improved access to markets

and economies of scale in production of traded goods

Bilateral and multilateral cooperationBilateral and multilateral cooperation

• Supplying efficient products that meet each others’ requirements

• China –harmonized lighting and testing standards • NZ – common standards and labelling program• APEC – standards for air conditioners and standby power

• Learning from each other• Fiji – Possible adoption of Australian standards and

labelling• EU and USA – exchange of information on tools and

approaches