Raising efficiency standards can impact global emmisions
CO2 emissions could be cut by 6.9Gt per year by 2030, argues the report from the New Climate Economy (NCE), which also states the gas cuts would lead to economic savings in appliances, buildings, industry, and transport.
The paper highlights the International Energy Agency’s research, which estimates the global benefits of energy efficiency at $18tn (£650bn) in 20 years time, while also citing successful initiatives such as Japan’s ‘Top Runner Approach’ for appliances, which bases future efficiency standards on individual products with outstanding energy saving capabilities.
Helen Mountford, NCE Programme Director, believes that one of the best ways to overcome the barriers of misaligned incentives and other market failures is to set energy efficiency standards.
“Standards provide certainty for manufacturers and consumers, encourage technological innovation, remove inefficient technologies from the market, and reduce transaction costs,” Mrs Mountford commented.
“That’s why the paper recommends that the G20 raise and align global standards, and establish a global platform for greater alignment and continuous improvement of standards.”
The study emphasises the impact of G20 countries that, according to the research, consume 80% of the world’s energy and produce 94% of the world’s cars, along with having a major influence on the uptake of efficient technologies worldwide.
The report states that improving energy efficiency can also free up resources for other, more productive investments, and can create up to three times as many jobs as would be created by the same financial input into fossil fuel supply.
Benoît Lebot, Executive Director of International Partnership for Energy Efficiency Cooperation (IPEEC), the body that coordinates the implementation of the G20 Energy Efficiency Action Plan, welcomes the report.
“As ably shown by the NCE, standards are pragmatic and a proven way to maximize energy efficiency gains. Our world leaders need to know about this, and the G20 needs to act on it,” he said.
“The G20 is critical to energy efficiency. Energy efficiency is crucial for the G20.”
Felipe Calderón, former President of Mexico and Chair of the Global Commission on the Economy and Climate, argues that energy efficiency is an environmental and economic win-win and a clear leadership opportunity for the G20.
He commented: “In addition to being good for the environment, it is in the economic self-interest of consumers, businesses and governments, and should be the top of the agenda at the G20 meeting. What the G20 takes on today could be the global norm tomorrow.”
Author of the report, Russell Bishop, added: “Efficiency is an essential component of any strategy to deliver affordable energy and should be seen as the ‘first fuel.’ It can be especially beneficial for fast-growing economies trying to achieve universal energy access with limited resources.”
