U.N. Foundation report: Leading Industrial Countries Could Reduce Global Warming Carbon Levels to Near What is Needed, Simply by Cutting Energy Waste

Improvements would pay for themselves in just three to five years, and get close to a carbon level that would avert most serious climate effects; new business and non-profit partnership will work to promote implementation

WASHINGTON, D.C., Nov. 14, 2007—An analysis commissioned by the United Nations Foundation finds that the industrial nations can save enough energy through increased efficiency to move the world close to an acceptable CO2 level, at a cost that would be repaid by the savings in just three to five years.

A new task force led by The Dow Chemical Company, the Alliance to Save Energy, and the UN Foundation was announced to pursue such efficiency savings by the G8 and Plus 5 countries in particular, and to promote a new annual energy efficiency summit to measure progress.

The United Nations Foundation released the report, Realizing the Potential of Energy Efficiency: Targets, Policies, and Measures for G8 Counties, today at an industry conference in Washington, D.C., the “Energy Efficiency Global Forum & Exposition,” sponsored by the Alliance to Save Energy. Conference attendees from the more than 30 countries represented made commitments to help their countries double energy efficiency improvements to 2.5 percent a year, “to save energy, reduce waste, and make a major contribution to reducing global warming.”

The report, prepared by a distinguished international group of energy efficiency experts, finds that:

• Improving annual energy efficiency at 2.5% a year in just the G8 countries -- roughly double the historical average -- would reduce G8 energy demand by about 20 percent in 2030, returning it to 2004 levels and offsetting the equivalent of 80 percent of the increased energy supply needs currently projected by the International Energy Agency to be met by new coal-generated power plants between now and 2030.
• If energy waste was cut worldwide to that extent, annual carbon dioxide emissions would fall by the total amount that the United States and France together emitted in 2004.
• That would mean the amount of carbon dioxide equivalent in the atmosphere could be kept below 550 parts per million (ppm) before any additional measures. That would make more attainable the goal of keeping the carbon dioxide equivalent at 400-450 ppm, the range above which scientists predict unavoidable and catastrophic climate change effects.
• Globally, an investment of $3.2 trillion in energy efficiency programs and upgrades would avert the need for $3 trillion worth of new power plants and other energy supply investments. The $200 billion net global investment would be recouped by increased energy efficiency, improved business productivity and reduced consumer energy bills within three to five years, on average.

“Cutting down on wasted energy is the most powerful way to address climate change, far more than is commonly recognized,” said United Nations Foundation President Timothy E. Wirth in addressing the conference.

Wirth continued, “And energy efficiency improvements are something we can do right now. We save money by increasing efficiency with today's technology. And, doubling energy efficiency would avoid the need for an amount of energy equal to 2,000 coal-fired power plants. Businesses pay less to operate, consumers enjoy lower energy bills, and we avoid a great deal of global warming pollution.”

The United Nations Foundation joined The Dow Chemical Company and the Alliance to Save Energy in announcing they will bring together business and non-profit leaders to work with energy experts and the G8 and Plus 5 countries, in particular, and encourage them to:

• Pledge to improve energy efficiency 2.5% each year;
• Act to adopt plans to meet the goal; and,
• Review progress towards meeting the goals at an annual government summit. The groups also announced that they will review the progress of governments on energy efficiency at each annual EE Global Conference and Exposition. The next EE Global is scheduled for December, 2008, in Brussels, Belgium.

“I'm convinced that the cornerstone of any successful energy policy is to set strong efficiency goals,” said Andrew Liveris, Dow's chairman and CEO. “There is so much opportunity for the developed world to become more efficient, and for the developing world to leapfrog the business-as-usual development curve. We want to share what we've learned in the hope that we can accelerate progress around the world.” Dow's own energy efficiency program from 1994 to 2005 saved as much energy as all California homes use in a year.

“This exciting new business and non-profit partnership will focus the world’s leaders on deploying energy efficiency as the cheapest, cleanest, most plentiful and most readily available resource for both meeting global energy needs and tackling climate change,” said Kateri Callahan, President of the Alliance to Save Energy.

The report recommends governments make economy-wide improvements in energy efficiency. It contains a menu of 21 proven policy options that governments can use to improve energy efficiency in buildings and equipment, industry, transportation, and energy supply.