Presentation by Dr Mike Allen, Finance Advisor to the Renewable Energy and Energy Efficiency Partnership (REEEP)

Sustainable Development and Energy Efficiency

Dr Allen began the session by citing a powerful statistic: energy efficiency can reduce energy demand by up to 50 per cent. He laid out the key issues which were to be covered by the panel, namely policy issues, the potential for using energy efficiency to achieve energy security and cost competitiveness, opportunities for energy efficiency in buildings and industries, and standards and labels.

Presentation by Dr Richard Bradley, Head of Division at the International Energy Agency (IEA)

Energy Efficiency: The Indispensable Component in any Energy Policy

Dr Bradley, speaking first, noted that energy efficiency is an essential component of any energy policy. Given the reality of climate change, there was a need to reduce emissions to net zero, which meant that the capital structure for energy needed to change. Governments would thus need to factor externalities into energy policy.

Dr Bradley stated that a successful carbon emissions policy must address four aspects, namely:

1. • The ensuring of energy security,

2. • Maintaining strong economic growth,

3. • Implementing environmental protection, and

4. • Bridging the welfare gap.

Dr Bradley commented that the IEA was committed to the view that energy efficiency was a large resource that can be tapped. He pointed to the example of the 1973 oil embargo, when the supply shock resulted in a movement towards improving energy efficiency. Under IEA projections, current energy demand would have been 50 per cent higher if the energy efficiency movement had not occurred. IEA predicted that current policies in energy efficiency would reduce energy demand by 15 per cent by 2030.