honeywell global alliance save energy may 2009

8/9/2019 Honeywell Global Alliance Save Energy May 2009

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Driving Energy Efficiency Worldwide:

Alliances the Key to Success

Presentation to Honeywell Global Team

Tuesday, May 5, 2009

Kateri Callahan, President

Overview

The Alliance to Save Energy Defined

The How Tos of Unleashing the Power of EE

- Alliance Strategic Business Agenda

- Alliance Approach Partnerships and Collaborations withThe Need Investment in Energy Efficiency through

Building Tomorrows Agenda Today


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What is the

Alliance to Save Energy?

Polic

Mission:

To promote energy efficiency

The Alliance toSave Energy

Leaders

Environ-mentalGroups

BusinessLeaders

worldwideto achieve ahealthier economy, a cleanerenvironment, and greaterenergy security.

The Alliance is

Staffed by 50+ professionals

Academia

policy, research, education,communications, technologydeployment and markettransformation

Alliance Directors: Bi-Partisan

Elected Officials and Industry Leaders

Guided by an elected Board of Directors

Leaders of environmental, consumer, and tradeassociations; state and local policy makers; corporateexecutives

Jim Rogers, CEODuke Energy

Senator MarkPryor (D-Ark.)

Bi-partisan, bi-cameral Honorary Vice Chairs


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Forging Alliances: Business,

Government & Public Interests

Sponsorship and participation of more than 150 organizations

Involvement by businesses in all economic sectors

Headquartered in Washington, D.C. with operations in several USstates, Eastern Europe, South Africa, Mexico, and India

Why Energy Efficiency? Powering

the U.S. Economy for 30 Years

America'sGreatestEnergyResource

50

4

8

23

24

40

NuclearElectricPowerCoal

NaturalGasPetroleum

EnergyEfficiency andConservation

HaveReducedAnnualEnergyConsumptionby50Quadsin2007

1

3

0 10 20 30 40 50 60

Geothermal, SolarandWindConventional Hydroelectric

, ,

Quads

EnergyEfficiency andConservation 2007DomesticP ro du ct io n N etImportsAlliance to Save Energy,November, 2008


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Why Do More?

Growth in Energy Demand is Unsustainable

18 Other renewables18 Other renewables

6

8

10

12

14

on

tonnesofoilequivalent Hydro

Nuclear

Gas

Oil

Coal

6

8

10

12

14

on

tonnesofoilequivalent Hydro

Nuclear

Gas

Oil

Coal

Global demand grows by more than half over the next quarter of acentury, with coal use rising most in absolute terms

0

2

1980 1990 2000 2010 2020 2030

billi

0

2

1980 1990 2000 2010 2020 2030

billi

Why Do More?National Security Threat


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Why Do More?

Tackles Climate Change

Share of Global CO2 Emissions by Country (2003)

U.S. buildings

9%

U.S. other sectors

14%

China

Others

33%

14%

Russia

6%Japan

5%

India

4%

Western Europe

15%

Source: Energy Information Administration and 2005 Building Energy Data Book

WHY Do More?

Energy Use is a Pocketbook Issue

Increased Home Heating Costs in Washington

$-

$500

$1,000

$1,500

$2,000

$2,500

Natural Gas Heating Oil Propane Electrici ty

Alliance to Save Energy 2007

- -


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The First Solution: EE

Annual world-wide investment of $170 billionn energy e c ency roug cou :

- cut global energy demand growth by at leasthalf

- save 900 billion a ear in avoided enercosts

-dramatically reduce greenhouse gas emissions

Source: The McKinse Global Institute

Cost-Effective EE Investments

Identified in All Sectors

Source: McKinsey Global Institute


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EE: The No-Cost Way to

Reduce GHG Emissions

The Challenge? Market

Distortions

Principal Agent or Split Incentives

-

- Utility versus customer

Transaction Costs

- Lack of information on life-cycle cost for productsand/or paybacks for upgrades

more of the energy used in residential andcommercial markets (ACEEE/IEA report)

Public policies essential to overcome barriers


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How Do We Unlock the Potential

of Energy Efficiency?

Unleashing the Power of EE:

Alliance Strategic Plan End-Use & Supply Sector Focus

- Buildings Industry Transportation Utilities

Multi-Disciplinary Focus

- Policy Advocacy

- Communications and Education

- Market Transformation and Technology Deployment

- Research and Analysis

World-wide Reach

- Current Presence: Mexico, Eastern Europe, South Africa, India

-Coming Soon: Afghanistan, Costa Rica, Carribean Islands, China

- Possible Next Landings: EU, Australia

Identify Gaps and Next Steps

- EM&V

- Financing

- New Policy Agenda


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Unleashing the Power of EE:

Alliance Approach

Collaboration and Partnerships- Communications

Honeywell 100th Anniversary of the Programmable Thermostat

P&G Tide Coldwater Campaign

Drive $marter Challenge 39 Partners

Six Degree Challenge -- $1 Million Partnership Home Campaign

- Policy Advocacy

GELAT (Government Energy Leadership Action Team)

Led by Honeywell & Noresco

Energy Efficiency Codes Coalition

Focused on Dynamic Building Codes

- Market Transformation- Commercial Building Initiative

- Beijing 21 Initiative

- DOEs Save Energy Now Program

On the Horizon

More EnergyEfficiency?


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EISA 2007: The Details

In:-

- Appliance standards

- Federal energy management

- Certain building standards

- R&D program authorizations

u :-

Renewable/Efficiency electricity standard- Building energy code targets

- Tax incentives

A Look at President-Elect

Obamas Platform

On Energy Efficiency Reduce Electricity Demand 15% by

2020 Net-Zero Energy Buildings by 2030 Overhaul Federal Appliance Standards 45% Improvement in New Federal

Building Energy Use by 2014 25% Improvement in Existing Federal

Building Energy Use by 2014

Energy Use by 2015 Flip Incentives for Utilities Invest in a Smart Grid Weatherize 1 Million Homes Annually Invest and Incent Livable Cities


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Federal Investment:

2009 ARRA (Stimulus Bill)

Driving Private Sector Investment

New HomesBuilder tax credit - u to 2 000 if 50% more efficientcompared to 2003 IECC code; $1,000 for an Energy Starmanufactured home. (Through December 31, 2009)

Existing HomesHomeowner tax credit 30% of cost of installing buildingenvelope components consistent with IECC 2000; cappedat $1500. (Through December 31, 2010)

Commercial BuildingsDeduction up to $1.80/sq.ft. for buildings designed to use50% less energy than ASHRAE-90.1 (Through 2013)

Public Buildings: Assignablededuction!


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EE: Key Ingredient in Climate

Change Legislation?Estimated Allowance Allocation under Boxer Substitute

Amendment to Climate Security Act

$25

$29

$34

$38

$41

$44$45

$44

$11

$13

$15

$16

$18

$19$19

$19

$150

$200

$250

$300

$350

Bilion

Dollars

Allowance ValueAllocated To Renewables

Allowance ValueAllocated To EnergyEfficiency

$0

$50

$100

2015 2020 2025 2030 2035 2040 2045 2050

Year

Other Allowance Value

City as Champion

Cambridge rallies its businesses, universities, organizationsand citizens to reduce ener use and costs while makinits infrastructure more efficient- Reduce Cambridges energy costs- Reduce Americas dependence on foreign oil- Reduce Carbon and GHG emissions

City Levers:- Brand - credibility in Marketing and Investments-

-Trusted relationship with large and small companies, university andnonprofit sector and residents

City as a Natural Aggregator of:- Energy Demand- Public Incentives- Private Investment


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Local Leadership Pursuing our

New Manifest Destiny

The International Council for Local Environmental Initiatives (ICLEI) -Local Governments for sustainability

And its a Global Priority

European Union Activities- 20-20=-20 Initiative- EU Covenant of Mayors (20% reduction in GHG by 2020)

China Goals- Quadruple Economy by 2020 with only 2x Growth in Energy Demand- Reduce Energy Consumption per GDP by 20% by 2010


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And its a Global Opportunity to Build

Business and serve Mutual

Goals

European Union- Call for Establishment of an Alliance to Save Ener- Leadership by Government = Building Upgrades- Climate Works Foundation

China- Beijing Agenda 21 Center of Excellence- Strong Foundation and U.S. Government Interest

- Call for Establishment of Australia Alliance to Save Energy-

U.S. Government Leadership by Example- Expansion of Southeast Energy Efficiency Alliance- Clean Energy Efficiency Project- New Next Generation Policy Agenda

Think About it.

Energy Efficiency is

the quickest, cheapest,

world's energy supplies

the First Tool in the Arsenalfor Fighting Climate Change

the best investment we canmake

...So what are we waiting for?


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Thank you!

For More Information.

Kateri CallahanPresident

Alliance to Save Energy1850 M Street, NW

, . [email protected]

www.ase.org202.857.0666

honeywell global alliance save energy may 2009

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