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How would climate negotiations run under the assumption of a fivefold increase of energy productivity? Ernst Ulrich von Weizsäcker, Dean emeritus Bren School of Environmental Science and Management University of California Santa Barbara Let us dramatize the nature of the climate challenge Correlation between CO2 (blue) and (Antarctic) temperatures (red) over 650.000 years The third parameter going with CO2 concentrations is the sea level Italy during the last Ice Age (20 000 years ago) .... and during the last Hot Age (2 million years ago) Also the US is vulnerable. Sea level rise can take catastrophic speed! (after Michael Tooley. Global sea-levels: floodwaters mark sudden rise. Nature 342 (6245), p 20 - 21 1989) Freshwater lakes on Greenland during Summers 1992 and 2002 . Stern Review: BAU (blue) vs. stabilising at 450 ppm CO2 (red) The longer you wait, the more radical changes are needed Source: Investing in Cimate Change 2009 (Deutsche Bank, October 2008) Noah‘s Arch, 2009 Why are so many people thinking we should first become rich and deal with climate problems later? It is the convenient paradigm of the Kuznets curve of pollution Conventional wisdom: More wealth, more carbon intensity Escaping from this logic means we need a „Kuznets Curve“ of decarbonization! „rich and carbon free“ How do we get there? Three options exist: •Reduce carbon intensity of energy •Reduce energy intensity of wealth •Reduce wealth Conventional thinking suggests •70% Reduce carbon intensity of energy (renewable energies, nuclear, CCS) •15% Reduce energy intensity of wealth •15% Reduce wealth (“we all have to pay a painful price”) I suggest this distribution: •30% Reduce carbon intensity of energy •65% Reduce energy intensity of wealth •5% Reduce wealth (such as weekend hopping to Teneriffa or Bahamas) The EU, of course, embraces renewables. But (realistically) they foresee flattening after 2020 (EU Vision 2050) Source: EU-27 Renewable Energy Growth, Dec. 2007 The same EU Vision 2050 envisions a threefold increase of energy productivity Source: Vision2050 for the EU 27, Brussels Dec. 2007 Let me now explain why I am so optimistic about energy efficiency - which is the meaning of “reduce energy intensity of wealth”. The win-win options relate to efficiency, not renewables Source: MacKinsey & Vattenfall 2007 Imagine a bucket of water weighing twenty pounds. How many kilowatthours would you need to lift that bucket from sea level up to the top of Mount Everest? 1 kwh Assuming that one Wattsecond (Ws) is equivalent to one Newton-meter, (1 Joule) the answer is: One quarter of a kilowatt-hour! (= 900.000 Ws) “Factor Four” (1995) offered fifty examples of quadrupling resource productivity Amory Lovins‘ Hypercar is up to seven times more fuel efficient than today‘s cars Hypercar 1,2 l/100km Today‘s cars 6-10 l/100km Energy efficiency House in the Alps Amory Lovins‘ Rocky Mountain Institute Heating efficiency Solar „passive houses“ save 90% of heating costs Refurbishing existing buildings Upper row: Photographs Lower: Thermograms Energy efficiency in office buildings The Donald Bren School, a Platinum LEED building Energy & water efficiency From incandescent to fluorescent lightbulbs Energieeffizienz And from fluorescent light bulbs to solid state lighting Energy efficiency From rotten trains to high speed trains Typically, however, a factor of four is unattainable if we look at efficiency of simple processes. Bigger gains come in when optimizing complex systems. Here, we talk about productivity „Productivity“ is much richer than „efficiency“ Productivity is about networks and cascades Efficiency is inside a box (e.g. mpg) Strawberry yoghurt logistics: 1500 instead of 8000 kilometres From urban sprawl to high density cities Space and energy efficiency Seasonal diets, organic farming, a little less meat Video conferences can replace some business travel Energy- and material efficiency The real problem is the rebound effect It was first described by William S. Jevon’s in his 1865 book, The Coal Question, where he observed that England's consumption of coal soared after James Watt introduced his coal-fired steam engine, which greatly improved the efficiency over earlier steam pumps. Since the 1980s, the rebound effect is often called the Khazzoom-Brookes Postulate. Rebound effect in the USA: Energy intensity down, total energy consumption up. SUV‘s, urban sprawl, electronics boom. Overcoming the rebound effect with economic instruments Regulation Economic Instruments Technological efficiency gains, Adding a price tag on consumption: networks and cascades get leaner mostly inside the box Efficiency Changing technological paradigms Old: Increasing labour productivity New: Increasing resource productivity If labour productivity has increased twentyfold since 1850, it is not utopian to think of resource productivity increasing tenfold in 100 years and fivefold in 50 years! What was the main driving force for the steady increase of labor productivity? Economists would say it was labor cost. And what was the main driving force for the twentyfold increase of wages? Economists would say it was labor productivity Labor productivity rose in parallel with labor costs Labor poductivity rose in parallel with labor costs This suggests a strategy of actively elevating energy prices in parallel with energy productivity increases Because market prices of resources do the opposite: the decline! (Industrial commodity & energy prices, in constant dollars) The last 5 years Ecotaxes can reverse the trend in transport emissions +18 Percent changes against 1994 14 3 2 2 5 4 2 5 3 13 11 11 7 7 9 4 15 13 15 +15 14 12 Eco lo g ica 5 l Ta xR 3 efo rm 1 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 -2 Reference: UNFCC 2005 The sequel to Factor Four will be published in 2009 and will be called Authors: Ernst Ulrich von Weizsäcker, Charlie Hargroves and Michael Smith (Brisbane) Main features of Factor Five: • updated • more ambitious • focus on Asia • renewable energies • focus on systems and cascades • appropriate steering instruments • vision of a new Kondratiev cycle The sixth Kondratiev: Resource productivity (after Charlie Hargroves, Brisbane, Australia) Biotech IT TV, aviation, computers, Electricity, chemicals,cars Steel & railroads Mechanization Resource productivity, renew. energy, system design, remanufact., biomimicry Cinese PM Wen Jiabao: Energy efficiency and environment at the heart of technology and growth As one consequence, an international Task Force Economic Instruments for Energy Efficiency and the Environment was established at the China Council, - which I am co-chairing . And last week, I was learning that China will now go agead with an Ecological Tax Reform! 3 options of climate diplomacy 1. Voluntarism 2. „Kyoto Plus“ 3. Per capita equal emission rights 1. Voluntarism: The Bush White House NonStrategy. Ridiculous! 2. Kyoto Plus: The EU strategy, a good-will package of eight points to demonstrate to the world that well-being can be decoupled from CO2 emissions. And some money for the poor. This was essentially agreed as the basis for Copenhagen 2009 3. Per capita equal emission rights Promoted by the Indian PM Manmohan Singh. In my view the only strategy that has a chance really to mitigate global warming. It means we from the North would have to go shopping for emission rights in the South. This would make it instantaneously profitable in China and India and elsewhere to become very energy efficient. Hundreds of powerplant plans would be scrapped. PM Manmohan Singh favours per capita equal emission rights German Chancellor Angela Merkel, 30.8.07, at the Nikkei Symposium in Tokyo, and later in New Delhi supported the idea! But the idea never made it to the negotiating table. Contraction and Convergence could bring developing countries on board So let me end by saying: if all countries were already sold to the idea of Factor Five improvements of energy efficiency, there would be no fear of per capita equal emeission rights.
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