Enigin Update - $26 Trillion Cut in Energy Costs through Energy Efficiency
COP16, aims to cut $26 trillion energy costs by 2030, according to a new World Economic Forum report today, which was presented today at the Green Solutions Event at COP16, UN Climate Change Forum, in Cancun, Mexico.
‘The Energy Efficiency: Accelerating the Agenda’ report emphasises the urgency for energy efficiency to be at the forefront of the global agenda.
The report states that energy demand is expected to increase by 40% by 2050. The estimated capital required to meet this projected energy demand through to 2030 amount in cumulative terms to $26 trillion.
Of all the energy options, energy efficiency is able to provide the largest capacity for cutbacks in energy demand in the medium term. This potential can be measured in energy savings, cost savings and reductions in greenhouse gas emissions.
Research identified that of the carbon abatement required, 57% could be achieved through the implementation of energy efficiency measures by 2030.
Despite the commitments to energy efficiency made so far, there is a substantial gap between policy and implementation, challenging the concept of energy efficiency as “low hanging fruit”.
‘The Energy Efficiency: Accelerating the Agenda’ report sought the expertise from over 20 stakeholders across the public and private sectors to create a pulse check on where energy efficiency stands today and address solutions to bridge the gap.
The report reveals reasons behind this gap, ranging from market to institutional failures, which need to be overcome if energy efficiency is to be used to effectively meet rising energy demand, support economic development and meet the critical challenges of climate change, energy security and economic competitiveness.
Pawel Konzal, Head of the Oil & Gas Industry, World Economic Forum, said:
“Tapping into the largely unrealised potential of energy efficiency will be critical for us to meet growing energy demand of the 21st century without leading to water, food or social crises.”
The report focuses on the roles that the different stakeholder groups can play rather than on identifying industry-specific recommendations so as to provide cross-sector market clarity while identifying market accountability.
Mark Spelman, Accenture’s Global Head of Strategy explained:
“Energy efficiency remains a big prize, but it cannot be delivered by one set of stakeholders.
“To create a step change and capture the potential of energy efficiency, we must ensure a more systematic and rigorous dialogue between the public and private sectors.
“The private sector can do more for its part by beginning to forge more innovative global alliances. New business models combined with new financing mechanisms to support global scale-up will demonstrate the positive business case for energy efficiency.”
Enigin Distributors globally are working with both the private and public sectors to help organisation save on their energy costs and reduce their greenhouse gas emissions by turning to Enigin Plc's energy saving technology, to manage and control energy use and costs.
The report’s findings formed an integral part of the private sessions co-hosted by the World Economic Forum and the Mexican Government at Green Solutions alongside the COP16 negotiations in Cancun, with the ultimate objective to inspire concrete action across stakeholder groups throughout 2011.
Picture by re-ality
