Public Private Partnerships for Energy Efficiency Parallel Session Barriers for Realizing EE and Counter Policy and Measures for Activating PPP Kazuhiko HOMBU TAISEI Co. Ltd.

Barriers 1.Misunderstanding of the opportunity cost 2 2.Difference in country and sector The Stern Report & the McKinsey’s MAC curve Investment for EE is profitable under low discount rate Reality in developing country Opportunity Cost of EE > Opportunity Cost of production WEO 2014 Energy demand grows Power >> Industry > Transport > Building New Fossil Power plants in developing countries Need BATs for EE Change in Energy Demand: , New Policy Scenario Industry Transport Building Other Power Other Energy Final Demand

Policies & Measures for Activating PPP 3 2.Adequate regulation for introducing BATs >> Clear criteria to the engineers for choosing technology 3.Financial support to the incremental increase of investment for the use of BATs >> Cooperative finance by government and international organization >> Risk reduction of private-sector’s investment 1.Strong Political Commitment on EE improvement >> Clear message to the top management of both power companies and financers

Public Private Partnerships for Energy Efficiency Parallel Session Climate Financed Public Private Partnership for Energy Efficiency Andy Wehkamp

Biomass Energy NAMA Burkina Faso Government, GIZ, UNIDO, Perpectives, SNV, SME’s, financial institutions; NAMA facility. Beer brewers until 2015: 4350 efficient appliances, 67,000 T fuel wood saved. 78,000 T GHG reduced NAMA expected 2020: 12,150 efficient appliances 460,000 T fuel wood saved 710,000 T GHG reduced 3,600,000 T GHG reduced 5 years

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Public Private Partnerships for Energy Efficiency Parallel Session United For Efficiency: SE4ALL Appliances Accelerator Steve Kukoda International Copper Association

New Brand Launched May 2015

Goals achieved through market transformations based on mandatory Minimum Energy Performance Standards (MEPS) in: Motors Distribution transformers Air conditioners Refrigerators Lighting Information technology Program Goals

MEPS in 2013: mostly in OECD Countries Our goal: MEPS in all countries by 2030 Program Goals

The global growth in energy demand will happen in developing countries and emerging markets Overall energy consumption in developing world will more than double (1) Global middle class grows from 2 billion to 5 billion people by 2030 (2) Stock of Cooling Appliances (AC & Fridges) [in million units] Energy Consumption (AC & Fridges) [in TWh] 107% Increase (1) International Energy Agency; (2) Brookings Institute Action is Critical

Regional Focus

$1.5M start-up funding from Global Environment Facility (GEF) $3M additional GEF funding pending $8M in additional commitments Manufacturing partners are joining Discussions with World Bank and all regional development banks Working on country-level commitments (6 joined, 26 pending) Latin America/Caribbean Developing Asia Africa Island States Building the Partnership and Funding It

Public Private Partnerships for Energy Efficiency Parallel Session Public, Private Partnerships to Accelerate Efficiency Jennifer Layke World Resources Institute

SUPPORTING EFFICIENCY MARKETS: WHAT DRIVES DECISION-MAKING? Johnson Controls Institute for Building Efficiency

Copyright 2012 – Johnson Controls Institute for Building Efficiency Page 16 Johnson Controls Institute for Building Efficiency Global Energy Efficiency Indicator. TOP BARRIERS TO ENERGY EFFICIENCY

ACTION FOR BETTER BUILDINGS New partnerships to enable implementation of ambitious policy and market development strategies are required to address barriers, bridge the efficiency gap, and avoid lock-in of inefficient and unhealthy building stock. Source: Institute for Building Efficiency, Johnson Controls Inc.(2011 )

BUILDING EFFICIENCY ACCELERATOR: MEXICO CITY PARTNERSHIP ACTIVITIES TO DATE City Commitment – SE4All Implement local energy code Retrofit city buildings Engage leaders in local market around key goals identified by city National and City departments/agencies Businesses Financial institutions Technical experts Multi-stakeholder working groups chaired by city and a co- chair: common process, shared learning Barriers: finance, administrative protocols, ESCO market/funding options, local process for building energy code adaptation, adoption, implementation

Public Private Partnerships for Energy Efficiency Parallel Session Public, Private Partnerships for Energy Efficiency Wim Jonker Klunne Energy and Environment Partnership (EEP)

PPPs for Energy Efficiency ► Substantial opportunities for energy efficiency and renewable energy exist within operations & infrastructure of government agencies ► Often perceived as outside their core activities / responsibilities  PPPs could be used to exploit these opportunities

► Financial viability alone not enough ► Need to educate government ► Need to create awareness at high level  well chosen pilot & demonstration projects needed, including dissemination component and grant / concessional funding PPPs for Energy Efficiency

Public Private Partnerships for Energy Efficiency Parallel Session Thank You….