1. © OECD/IEA 2015 Energy Efficiency Today: Mobilizing investment through Markets and Multiple Benefits Tyler Bryant International Energy Agency

2. © OECD/IEA 2015 Energy efficiency is huge opportunity going unrealised Two-thirds of the economic potential to improve energy efficiency remains untapped in the period to 2035 unless policy activity increases

3. © OECD/IEA 2015 Getting to 2 degrees: Doubling the rate of improvement in energy intensity

4. © OECD/IEA 2015 Cumulative Investment in the New Policies and 450 Scenarios, 2014-2035 Spending on energy efficiency is $6 trillion higher in the 450 (2DS) scenario 102030405060 Trillion dollars (2012) 22611 450 Scenario 2677 New Policies Scenario Fossil fuelsPower T&DLow-carbon 14 8 Energy Efficiency WEO 2013 Special Report Long term investment landscape for 2 degrees

5. © OECD/IEA 2015 Mobilizing investment in energy efficiency: The IEA’s strategy  Current program of work includes (but not limited to): World Energy Outlook Energy Efficiency in Emerging Economies Energy Efficiency Market Report (EEMR) Multiple Benefits of Energy efficiency Energy Technology Perspectives

6. © OECD/IEA 2015 EE generates multiple benefits

7. © OECD/IEA 2015 Optimising energy delivery  Benefits for utilities: in resource-constrained operating context  Benefits for consumers (indirect benefits for utilities): increased affordability reduces customer default and associated costs Supporting a changing business model

8. © OECD/IEA 2015 Boosting industrial productivity Competitiveness Ability to enter new markets; reduced production costs etc. Production Capacity utilisation; improved product quality etc. Operations and maintenance Improved operation; reduced need for maintenance etc. Working environment Site environmental quality; worker health and safety etc. Environment Air pollution; solid waste; wastewater; reduced input materials etc. Generating strategic value for businesses

9. © OECD/IEA 2015 Boosting industrial productivity Example: Glassware company involved in Ikea’s supply chain energy efficiency programme Output of one product increased from 900 to 1,050 pieces and the quality rate increased from 75 to 80 percent Output for another product output increased from 1,200 to 1,350 pieces which reduced the product cost by 12.5 %. The initiative reduced greenhouse gas emissions by 35% between 2009 and 2010

10. © OECD/IEA 2015 Energy efficiency: Warmth as healthcare Carefully executed energy efficiency can deliver USD 99 billon in annual savings for Europe’s public health sector by 2020

11. © OECD/IEA 2015 Macroeconomic impacts Moving away from the traditional view that economic performance is always linked to increased energy consumption – the reverse can also be true!

12. © OECD/IEA 2015 Energy efficiency can help drive economic prosperity Cumulative investments in energy efficiency of $12 trillion are more than offset by fuel savings & trigger economic growth of a cumulative $18 trillion GDP in Efficient World Scenario versus New Policies Scenario, 2035 1% 2% 3% 4% Japan & KoreaOECD EuropeUnited StatesChinaIndia

13. © OECD/IEA 2015 Energy Efficiency Market Report 2015 Available to download for free at: http://www.iea.org/bookshop/709-Energy_Efficiency_Market_Report_2015 Focus of the 2015 edition:  The multiple benefits of energy efficiency investments  Buildings efficiency market  Relationship between energy efficiency and electricity markets

14. © OECD/IEA 2015 Decomposition of Total Final Consumption (TFC) in IEA countries, 1990-2014 Energy efficiency is driving sustainable growth Economic growth is pulling demand up Total energy consumption is declining Structural change is having some impact Energy efficiency is responsible for two thirds of downward pressure on consumption

15. © OECD/IEA 2015 EE generates multiple benefits

16. © OECD/IEA 2015  Avoided consumption generated by energy efficiency increased by 10% in 2014 10% Avoided TFC in IEA countries from energy efficiency investments made since 1990 Avoided consumption topped 22 EJ (520 Mtoe) in 2014 Consumers saved USD 550 billion in 2014; USD 5.7 trillion since 1990

17. © OECD/IEA 2015 IEA consumers are saving hundreds of billions of dollars each year  IEA countries saved USD 550 billion in 2014 as a result of energy efficiency investments since 1990 Cumulative savings = USD 5.7 trillion Avoided expenditure in IEA countries from energy efficiency investments made since 1990 Annual savings are greater than the EU’s fuel import bill

18. © OECD/IEA 2015  In 2014, IEA countries avoided primary energy imports totalling 190 Mtoe, saving USD 80 billion in energy import bills and improving trade balances Avoided imports in 2014, as a result of energy efficiency investments in IEA countries since 1990 Efficiency’s domestic production substitutes for fuel imports Domestically produced, efficiency supports energy security

19. © OECD/IEA 2015  Energy efficiency investments since 1990 have helped to reduce IEA country emissions to below 1996 levels  In 2014 alone, 870 Mt CO 2 were avoided Almost one year’s worth of end-use sector emissions have been avoided by efficiency investments since 1990 in IEA countries Cumulative savings = 10.2 GtCO 2 Cumulative savings = 10.2 GtCO 2 A clean energy source, efficiency reduces emissions IEA emissions from fossil fuel combustion and emissions savings from energy efficiency investments since 1990

20. © OECD/IEA 2015 ELECTRICITY: Energy efficiency investments have helped stall the growth of electricity demand in IEA countries IEA countries saved 2 200 TWh in 2014 from energy efficiency improvements since 1990, 24% of total electricity demand, Hypothetical savings in electricity consumption from energy efficiency improvements in IEA countries, 1990-2014 3% Growth 2% Decline  Low growth is pushing various energy utilities to shift from traditional generation to sale of energy efficiency services

21. © OECD/IEA 2015 ELECTRICITY: Efficiency challenging business models of many utilities but investment in efficiency expected to continue Actual share of renewable electricity generation in select countries in 2012, with adjusted share in the absence of energy efficiency improvements since 2001  Energy efficiency is facilitating the achievement of renewables targets by decreasing the amount of additional GWh required

22. © OECD/IEA 2015 The multiple benefits approach Three key recommendations: Apply the multiple benefits approach to energy efficiency policy development Consider which benefits are relevant in country context Pay more attention to impact assessment; take an innovative approach Engage a range of stakeholders; community level experts Adapt existing tools to capture hard-to-measure impacts Build consensus on methods for data collection and assessment so that results are comparable across countries and experience can be meaningfully shared

23. © OECD/IEA 2015 For more information contact: tyler.bryant@iea.org, lorcan.lyons@iea.org tyler.bryant@iea.orglorcan.lyons@iea.org THANK YOU