Importance of Stronger Reaction to Climate Change Arto

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

Finally, USA reacts to climate change – Hummer cabriolet!

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. • CO 2 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

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

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

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.

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

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 adopted by creating incentives.

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