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Trends in Efficiency Markets and Forces that Shape Them. Marina Ploutakhina UNIDO. Introduction. Rapid growth in energy demand Low energy efficiency (global - 37 %) Economic opportunities (espec. for developing countries and EIT)
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Trends in Efficiency MarketsandForces that Shape Them Marina Ploutakhina UNIDO
Introduction • Rapid growth in energy demand • Low energy efficiency (global - 37 %) • Economic opportunities (espec. for developing countries and EIT) • High potential for energy savings = Significant energy efficiency market • Driving forces for energy efficiency market?
Energy, GDP & Population Trends (Source: EIA/DOE, 1993; 1996; UN, 1994)
OECD & Non-OECD Energy Intensities (1970 - 2015) (Source: EIA/DOE, 1993; 1996; UN, 1994)
Economic & Environmental Incentives • Provide significant opportunities and scope for the deployment of energy efficiency technologies in developing countries • Provide an opportunity to consider a new GHG emissions control strategy - EFFICIENCY
Capital Requirements for the Energy Sector • Developing countries will require investments over $100 billion per year for the next thirty years to meet electricity demand • Only US$12 billion is available from external sources
Capital Requirements for the Energy Sector(cont’d) (Source: IIEC, 1991)
The CDM Market • OECD: 580-1160 Mtc in 2010 in excess of the reduction target • Hot Air supply: 100-300 Mtc • Reductions needed to meet the target : 440-830Mtc
Money Matters • The ODA flow to developing countries is US$50 billion per year • A CDM of US$10 billion comprises the addition of 20% • The FDI flows are around US$240 bn and in this context the CDM is only 4%
Conclusion: A Question • How energy efficiency can become a strategy for GHG emissions reduction and control and how such a strategy can be deployed by developing countries and economies in transition to enable their participation in CDM and JI?