Importance of Stronger Reaction to Climate Change Arto Nuorkivi ESCOBALT Projektledare,

1. Importance of Stronger Reaction to Climate Change Arto Nuorkivi ESCOBALT Projektledare, Helsingfors Sundsvall, Dec 12, 2006

2. Finally, USA reacts to climate change – Hummer cabriolet!

3. But seriously: USA is coming… • A number of states and major cities have already committed to Kioto Protocol even though the federal government has not yet. • CO2 recovery from the flue gases of thermal (fossil fuel) power plants shall materialize. The U.S. Department of Energy plans to have the first zero-emission coal fired power plant by year 2013: • "Today I am pleased to announce that the United States will sponsor a $1 billion, 10-year demonstration project to create the world's first coal-based, zero-emissions electricity and hydrogen power plant..." President George W. Bush                                February 27, 2003

4. Latest about Climate Change (1): • A large number of indications from the nature tell us that serious processes are going on in our climate. The Inconvenient Truth movie moderated by the ex-vice-president Al Gore • The climate change may be the worst threat ever faced by the human mankind. UN Climate Change Conference in Nairobi, Nov 2006 • The GDP may drop even 20% in case the societies do not react on global warming in time. On the contrary, the GDP may increase by 1% if the reaction will take place in appropriate way and soon. Mr. Nicolas Stern, ex chief economist of the World Bank appointed by the British Government

5. Latest about Climate Change (2): There are barriers to the efficient use of energy, which isolate consumers from the consequences of their energy choices. Those include: • Lack of information on, or the low priority given to the energy performance of appliances, buildings and automobiles. • Tax incentives and subsidies that promote wasteful energy use (e.g. tax breaks that encourage car use). • Split incentives between investors and end-users with regard to the performance of energy-using equipments (e.g., for building technology choices). • Failure to incorporate fully the energy security risks in market prices” The International Energy Agency - IEA

6. Targets of EU • Energy conservation 20% by 2020, which requires strong measures by ALL member countries; and, • Dependence on energy import in EU: now 50% but will be 70%. By means of domestic and renewable energy independence should be fought back.

7. Technological opportunities of ES • Heat recovery • Low-energy devices: bulbs, led-lighting, low-energy TVs, hybrid cars with smaller engines,… • Re-insulation of building envelopes • Low energy houses (total concepts) • Extensive use of RES: wind, bio, hydro, wastes • Rehabilitation of energy systems in transition economies

8. Incentives and taxes to ES • Energy taxation: collected revenues of taxes to be used for supporting ES measures -> creates new business (Nick Stern); • Taxation must be designed in such a way that the barriers faced by the end user are low, if any, to adopt energy efficient technologies; • Investment subsidies to promote ES technologies • New habits in energy use have to be adoptedby creating incentives.

9. Next presentations: • Financing of energy savings • Models to energy saving • Planning and analyses towards energy savings • Programme for energy saving • Example of waste incineration in Sundsvall