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Discussion on EU Green Paper on Energy Efficiency Product Policy: Elements for a Discussion Benoit Lebot Climate Change - UNDP-GEF [email protected] E-Conference - 19 October 2005

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Page 1: Energy labels & standards

Discussion on EU Green Paper on Energy Efficiency

Product Policy:

Elements for a Discussion

Benoit Lebot

Climate Change - [email protected]

E-Conference - 19 October 2005

Page 2: Energy labels & standards

Professeur Kaya (World Summit 1992)

GHG =GHGTOE

TOEX

GDPGDP

X POPPOP

X

Greenhouse Gas

Emission=

Carbon ContainEnergy x Energy

Intensity xWealthx Population

Page 3: Energy labels & standards

Professeur Kaya (World Summit 1992)

GHG =GHGTOE

TOEX

GDPGDP

X POPPOP

X

½In 2050

= ? x ? x 8/3x 3/2

Page 4: Energy labels & standards

Professeur Kaya (World Summit 1992)

GHG =GHGTOE

TOEX

GDPGDP

X POPPOP

X

1/2= x1/4 1/2 x 4by 2050

3%/year 2%/year

Page 5: Energy labels & standards

Professeur Kaya (World Summit 1992)

GHG =GHGTOE

TOEX

GDPGDP

X POPPOP

X

1/2= x1/2 1/4 x 4by 2050

2%/year 3%/year

Page 6: Energy labels & standards

33%

10%

5% <1.5 % !

Page 7: Energy labels & standards

>110 TWh/year <40 TWh/year

Page 8: Energy labels & standards

CO2

Page 9: Energy labels & standards

Standby Power Waste = 2.5% World Electricity

= 1% World CO2 Emission

Page 10: Energy labels & standards

884775 747

615 558 519439 411

345 325

10

20

11

01

11

05

11

75

12

79

17

40

242 234 213

0

500

1000

1500

2000

2500

7 17 10 2 6 18 20 12 16 3 14 15 13 8 9 5 27 4 11Household ID

kWh/an

Source : SAVE/Ecodrôme 98

Average annual Savings: 723 kWh/an/house

ADEME - Cabinet O. SIDLER

Energy saved after replacing Fridges & Freezers

Consumption after replacing Fridges & Freezers

Metered Energy Saved with Efficient Refrigerators & Freezers in 20 Households

Page 11: Energy labels & standards

Metered Energy Saved with Efficient Lighting of 20 Households

209

247

104164185

187195196197246

250

283

286

309

383

799

5362

71

101

0

200

400

600

800

1000

1200

2 18 10 20 5 16 15 8 14 9 19 4 11 17 6 7 12 27 13 3

Household ID

kWh/anEnergy saved after replacing bulbs

Consumption after replacing bulbs

Source : SAVE/Ecodrôme 98

Average Savings : 244 kWh / (an.house)

ADEME - Cabinet O. SIDLER

ADEME CEE

Page 12: Energy labels & standards

Demand outlook - residential appliances – IEA-Europe

0

100

200

300

400

500

600

700

800

900

1000

1990 1995 2000 2005 2010 2015 2020 2025 2030

Other

Circulation pumps

PCs

Standby

Television

Dishwashing

Clothes-drying

Clothes-washing

Refrigeration

Lighting

Cooking

Water heating

Space cooling

Space heating

TWh

Projections for 17 European Member Countries

Source: IEA 1997 “Cool Appliance: Policy Strategy for Energy Efficient Homes”

Page 13: Energy labels & standards

Impact of more progressive appliance policies – IEA Europe 17

0

200

400

600

800

1000

1200

1990 1995 2000 2005 2010 2015 2020 2025 2030

NoPolicies

Currentpolicies

LLCCfrom 2005

TWh/year

-31% -38%

Source: IEA 1997 “Cool Appliance: Policy Strategy for Energy Efficient Homes”

Page 14: Energy labels & standards

Projected savings by end-use IEA - 17

0

50

100

150

200

250

300

350

400

1990 1995 2000 2005 2010 2015 2020 2025 2030

Other uses

Circulation pumps

PCs

Standby

Television

Dishwashing

Clothes-drying

Clothes-washing

Refrigeration

Lighting

Cooking

Water heating

Space cooling

Space heating

TWh/yr

Projections for 17 IEA European

Countries

Source: IEA 1997 “Cool Appliance: Policy Strategy for Energy Efficient Homes”

Page 15: Energy labels & standards

How to bring energy efficient end-equipment

to the market?

Page 16: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

Market Transformation: A Model

0

Page 17: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

Market Transformation: A Model

0

Page 18: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

CurrentSupply

2002

Market Transformation: A Model

0

Page 19: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

CurrentSupply

2002

0

Supply2010

Policy Objective

Market Transformation: A Model

Page 20: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

0

In the EU, 7 Energy Efficiency Categories

Market Transformation: A Model

Page 21: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

0

A B C D E F G

In the EU, 7 Energy Efficiency Categories

Market Transformation: A Model

Page 22: Energy labels & standards

Energy

350

More efficient

Less efficient

AB

CDE

FG

A

ManufacturerModel

LogoABC123

Energy consumption kWh/year(Based on standard test results for 24h)

Actual consumption willdepend on how the appliance isused and where it is located

Further information is contained

in product brochures

Fresh food volume IFrozen food volume I

20080

40(dB(A)re 1 pW)Noise

Norm EN 153 May 1990Refrigerator Label Directive 94/2/EC

The European Appliance Energy

Label

Page 23: Energy labels & standards

Does the label work?

Page 24: Energy labels & standards

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

A B C D E F GEnergy label class

Sh

are

of

mo

del

s/m

ark

et

More Efficient Less Efficient

Transforming the Equipment MarketImpact of EU Label on Market of Cold Appliance

B ECA D F G

Page 25: Energy labels & standards

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

A B C D E F GEnergy label class

Sh

are

of

mo

del

s/m

ark

et

EU Market 1992

More Efficient Less Efficient

Transforming the Equipment MarketImpact of EU Label on Market of Cold Appliance

B ECA D F G

Page 26: Energy labels & standards

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

A B C D E F GEnergy label class

Sh

are

of

mo

del

s/m

ark

et EU Market 1996

EU Market 1992

More Efficient Less Efficient

Transforming the Equipment MarketImpact of EU Label on Market of Cold Appliance

B ECA D F G

Page 27: Energy labels & standards

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

A B C D E F GEnergy label class

Sh

are

of

mo

del

s/m

ark

et

EU Market 1999

EU Market 1996

EU Market 1992

More Efficient Less Efficient

Transforming the Equipment MarketImpact of EU Label on Market of Cold Appliance

B ECA D F G

Page 28: Energy labels & standards

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

A B C D E F GEnergy label class

Sh

are

of

mo

del

s/m

ark

et

EU Market 1999

EU Market 1996

EU Market 1992

More Efficient Less Efficient

EU Market 2003

Transforming the Equipment MarketImpact of EU Label on Market of Cold Appliance

B ECA D F G

Page 29: Energy labels & standards

Evaluation of efficiency trends: EU clothes-washers

0

10

20

30

40

50

60

70

80

A B C D E F G NA

Mar

ket

Sh

are

April 2003

1996

Page 30: Energy labels & standards

Evaluation of efficiency trends: EU dishwashers

0

10

20

30

40

50

60

70

A B C D E F G NA

Mar

ket

Sh

are

April 2003

1994

Page 31: Energy labels & standards

4 Main Methods used in the World for setting Energy

Efficiency Targets

Page 32: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

CurrentSupply

0

Transforming the Equipment MarketSetting Minimum Energy Performance Standards: 1

Page 33: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

Transforming the Equipment Market

0

Setting Minimum Energy Performance Standards: 1

Method 1:Statistics Analysis

Page 34: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

Transforming the Equipment Market

0

Setting Minimum Energy Performance Standards: 1

Method 1:Statistics Analysis

Cold appliance 1999

Page 35: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

CurrentSupply

Transforming the Equipment Market

0

Setting Minimum Energy Performance Standards: 2

Page 36: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

CurrentSupply

2000

Transforming the Equipment Market

0

To

p R

un

ner

Setting Minimum Energy Performance Standards: 2

Page 37: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

Supply2008

Transforming the Equipment Market

0

To

p R

un

ner

Setting Minimum Energy Performance Standards: 2

Method 2:Top Runner

Page 38: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

Supply1989

Transforming the Equipment Market

0

Setting Minimum Energy Performance Standards: 3

ME

PS

199

0

Page 39: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

Supply1990

Transforming the Equipment Market

0

Setting Minimum Energy Performance Standards: 3

Method 3:Minimum

Life-Cycle Cost

ME

PS

199

0

Page 40: Energy labels & standards

Elements of a life-cycle analysis

500 kWh/yr500 €

E

Page 41: Energy labels & standards

500 kWh/yr500 €

400 kWh/yr550 €D

E

Improved

Insulation

Elements of a life-cycle analysis

Page 42: Energy labels & standards

500 kWh/yr500 €

400 kWh/yr550 €

350 kWh/yr520 €

D

E

C

Improved

Insulation

ImprovedCompressor

Elements of a life-cycle analysis

Page 43: Energy labels & standards

500 kWh/yr500 €

400 kWh/yr550 €

350 kWh/yr520 €

280 kWh/yr570 €

2.5 year payback

D

E

C

B

Improved

Insulation

ImprovedCompressor

+

Elements of a life-cycle analysis

Page 44: Energy labels & standards

0

200

400

600

800

1000

1200

1400

0 50 100 150 200 250 300 350 400

Lif

e-C

ycle

Co

st €

Energy Savings in kWh/year

Life-Cycle Cost Analysis

Page 45: Energy labels & standards

0

200

400

600

800

1000

1200

1400

0 50 100 150 200 250 300 350 400

Lif

e-C

ycle

Co

st €

Energy Savings in kWh/year

B

A++

E CA

Purchase Price

Life-Cycle Cost Analysis

Page 46: Energy labels & standards

0

200

400

600

800

1000

1200

1400

0 50 100 150 200 250 300 350 400

Lif

e-C

ycle

Co

st €

Energy Savings in kWh/year

Purchase Price

Life-Cycle Cost

B

A++

E CA

Life-Cycle Cost Analysis

Page 47: Energy labels & standards

0

200

400

600

800

1000

1200

1400

0 50 100 150 200 250 300 350 400

Lif

e-C

ycle

Co

st €

Energy Savings in kWh/year

B

A++E

CA

Purchase Price

Life-Cycle Cost

Life-Cycle Cost Analysis

Page 48: Energy labels & standards

0

200

400

600

800

1000

1200

1400

0 50 100 150 200 250 300 350 400

Lif

e-C

ycle

Co

st €

Energy Savings in kWh/year

Life-Cycle Cost Analysis

Minimum Life-Cycle Cost

ME

PS

Page 49: Energy labels & standards

0

200

400

600

800

1000

1200

1400

0 50 100 150 200 250 300 350 400

Lif

e-C

ycle

Co

st €

Energy Savings in kWh/year

Life-Cycle Cost Analysis

+5% energy cost

-10% energy costMinimum Life-Cycle Cost

Page 50: Energy labels & standards

0

200

400

600

800

1000

1200

1400

0 50 100 150 200 250 300 350 400

Lif

e-C

ycle

Co

st €

Energy Savings in kWh/year

Life-Cycle Cost Analysis

+5% energy cost

-10% energy cost

Page 51: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

Supply1990

Transforming the Equipment Market

0

Setting Minimum Energy Performance Standards: 3

ME

PS

199

3Method 3:Minimum

Life-Cycle Cost

ME

PS

199

0

Page 52: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

Supply1994

Transforming the Equipment Market

0

Setting Minimum Energy Performance Standards: 3

ME

PS

199

3

ME

PS

200

1

Method 3:Minimum

Life-Cycle Cost

ME

PS

199

0

Page 53: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

Supply2001

Transforming the Equipment Market

0

Setting Minimum Energy Performance Standards: 3

ME

PS

199

0

ME

PS

199

3

ME

PS

200

1

Method 3:Minimum

Life-Cycle Cost

Page 54: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

Supply2001

Transforming the Equipment Market

0

Setting Minimum Energy Performance Standards: 3

ME

PS

199

0

ME

PS

199

3

ME

PS

200

1

Method 3:Minimum

Life-Cycle Cost

Page 55: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

Transforming the Equipment Market

0

Setting Minimum Energy Performance Standards: 4

CurrentSupply

Method 4:World’s

Best Practice

Page 56: Energy labels & standards

% of Market

Energy Efficiency Scale Less Efficient

MoreEfficient

Transforming the Equipment Market

0

Setting Minimum Energy Performance Standards: 4

US

ME

PS

200

4

Supply2004

Method 4:World’s

Best Practice

Page 57: Energy labels & standards

Beyond the Energy label

Page 58: Energy labels & standards

European Car Label

In application of EU Directive 99/94/EC, Several Countries (Denmark, NL, BE...) have selected the above format for Car Labelling

G

C

Page 59: Energy labels & standards

Energy Label also used for Buildings

B

In Austria, UK, Denmark, France…. private homes are being labeled

FD

Page 60: Energy labels & standards

www.display-campaign.org

Page 61: Energy labels & standards

Expanding EU Labels to Other Human Activities

• Building Materials : Windows, Insulation, Boilers, Pumps,

• Renewable Energy System: Photovoltaics, Solar Panels, Biomass System

• Food products: Fresh Food, Meat, Cooking Preparation

• Leisure: Air-Travel

Page 62: Energy labels & standards

EU Product Policy can enhance other Energy

Efficiency Policies

Page 63: Energy labels & standards

EU Energy Efficiency Standards & Labels

• Bring transparency to the market

• Help stakeholders work on energy efficiency

• Enhance market forces to address energy efficiency – for instance in commercial materials, advertisement

• Facilitate market based mechanisms: White Certificate, Energy Service Directive,…

Page 64: Energy labels & standards

Questions for Green Paper

EU Product Policy require sustainable resources:

• To collect data, understand the current situation, set baseline;

• To analyze, to consult stakeholders, to run test facility

• To monitor impact and update policy

• In the USA, $1M/year/end-use an average study last 3 years

• What are the resources available in Europe?

Page 65: Energy labels & standards

Appliance Energy Efficiency Standards in the US

• Over the last 15 years, US DOE spent $200 Millions on appliance programmes

• That is $2 /US Household

Page 66: Energy labels & standards

Appliance Energy Efficiency Standards in the US

0

100

200

300

400

500

600

700

US DOE EE Investment Energy Savings Net Savings

$2/Home

$150/Home

Page 67: Energy labels & standards

Appliance Energy Efficiency Standards in the US

0

100

200

300

400

500

600

700

US DOE EE Investment Energy Savings Net Savings

$2/Home

$150/Home

$600/Home

$450/Home

Page 68: Energy labels & standards

EU Product Policy: an Example to Numerous

Economies

Page 69: Energy labels & standards
Page 70: Energy labels & standards

B

Page 71: Energy labels & standards
Page 72: Energy labels & standards

Benefits of International Policy Co-ordination

• Greater Market Transparency

• Reduced Costs for Product Testing & Design

• Enhanced Prospects for Trade & Technology Transfer

• Reduced Cost for developing Government & Utility Efficiency Programs

Page 73: Energy labels & standards

Reasons for a Global Product Strategy

• CDM may address large GHG emitters, not the end-use sector

• S&L: a structure to Energy Efficiency efforts

• Most appliances evolved in International Market: S&L can easily be duplicated

• S&L can start on appliances, then expand to cover other sectors (buildings & vehicles)

Page 74: Energy labels & standards

Proposed Vision for an EU Product Policy

• Let´s get rid of obsolete technologies:– Incandescent and kerosene lighting – Electromagnetic ballast for fluorescent lighting– Standby power waste– Inefficient electric motor drive, air conditionners

appliances, …

• Safety norms as a model for Energy Efficiency norms• Partner with key International businesses• Work towards an International declaration for G8,

CSD, UNFCCC… set a Global Strategy

Page 75: Energy labels & standards

Inefficient Products to Museum

All over the World!

Page 76: Energy labels & standards