GLOBAL ENERGY EFFICIENCYACCELERATOR PLATFORM

APPLIANCES AND EQUIPMENTThe global transition to efficient appliances and equipment will significantly contribute to achieving the UN Secretary-General's Sustainable Energy for All (SE4All) goal of doubling the global rate of energy efficiency. High-impact appliances and equipment, such as residential refrigerators, air conditioners, electric motors, and distribution transformers will account for close to 50% of global electricity consumption by 2030. For example, the world market for room air conditioners is growing at 6.5% per year since 2009, with emerging economies such as Brazil and Indonesia growing above 20% and 10% per year, respectively. While, the refrigerator stock in developing countries is expected to more than double by 2030 to 1.6 billion units. Similarly, the installed stock of transformers in developing countries is expected to nearly triple by 2030.

MARKET BARRIERS

MARKET SECTORS

The potential reductions in electricity consumption could be achieved if the gap between the highest and the lowest energy e�cient products sold were decreased. However, this potential remains under-exploited due to several reasons: while most developed and a few developing countries have adopted standards and labelling programs, their level of ambition and their e�ectiveness varies widely due to di�erent a) baseline conditions,

b) local manufacturing capabilities,

c) consumer awareness and ability or willingness to incur upfront costs for higher e�ciency equipment,

d) energy prices, �nancing costs and incentive mechanisms, and

e) a lack of adequate market surveillance mechanisms and testing.

A lack of consensus on test methods and harmonisation between national markets impedes global progress. Adopting harmonized test methods (between and among regions) would allow for greater comparison of products, trade of goods between countries and, therefore, greater ease in implementing e�ciency measures.

Accelerating the market transformation to e�cient appliances and equipment o�ers an opportunity for highly e�ective action and signi�cant global impact. As per-capita incomes rise in the developing world, the demand for appliances and equipment are expected to grow ex- ponentially, as witnessed in China from 1990 to 2008, during which urban ownership of room air conditioners increased from less than 1 % to 62 %. Growing populations, urbanization, and a�ordability of equipment will drive this growth.

A global transition to e�cient appliances and equipment would save more than 1,500 TWh in electricity consumption per year by 2030. This is equivalent to 8 per cent of today’s global electricity use, the equivalent of 350 large power plants. CO2 emissions will be reduced by 1Gt annually and the savings in electricity bills will add-up to more than $200 billion per year. Further, the avoided investments in power generation are $300 billion.

The proposed accelerator on appliances and equipment will support countries and regions to implement a successful global transition to e�cient products through an integrated policy approach, including:

- Minimum energy performance standards (MEPS) that remove the least e�cient products from the market and thereby encourage innovation and rapid adoption of higher e�ciency products. To achieve the greatest impact mandatory MEPS will be the recommended option;

- Supporting policies and mechanisms, such as: labels, �nancial and behavioral incentives, non-grant funding tools, climate �nance (e.g. NAMAs) and electric utility market transformation programmes;

- Environmentally sound management including best practices for manufacturing, materials and spent products, to minimize environmental impacts; and,

- Monitoring, veri�cation and enforcement (MVE) to deter market spoilage by non-compliant products and to ensure the delivery of energy, �nancial and climate bene�ts.

Taking the local baseline conditions into account, these solutions will be integrated and adapted to the speci�c situation, barriers, risks, and policy gaps of each market. The accelerator will assist countries to leveraging funding for national and regional projects.

DID YOU KNOW?

In 2014 the EU adopted a regu lat ion that requ i res new power t ransformers , put in to serv ice in the EU interna l market f rom 01 Ju ly 2015, to fu l f i l l min imum energy per formance s tandards. The Commiss ion est imates the resu l t ing energy sav ings to be 16 TWh/year f rom 2020 onward, equ iva lent to sav ing ha l f o f the annua l e lect r i c i ty consumpt ion of Denmark. Th is equates to 3.7 mi l l ion tonnes/year of avo ided CO2 emiss ions. The Copper A l l iance ôs Promot ion Par tnersh ip for H igh Ef f i c iency Transformers (PROPHET) report i s used by regu lators wor ldwide as the bas is to s t imulate the set t ing of s tandards, and was cr i t i ca l to th is EC regu lat ion. Power t ransformers are genera l ly very ef f i c ient dev ices , but smal l , cost -ef fect ive improvements in the i r e f f i c iency can y ie ld substant ia l energy sav ings, espec ia l ly g iven the i r typ ica l serv ice l i fe of 30 years or more. The number of insta l led t ransformers in Europe is expected to increase by 30 percent to a lmost 4 .7 mi l l ion by 2025.

EU INTERNAL MARKET

Minimum Energy performance standards

350

High impact app l iances and equipment , such as res ident ia l re f r igerators , a i r condi t ioners , e lect r ic motors , d is t r ibu-tion t ransformers wi l l account for c lose to 60% of g loba l e lect r ic i ty consumpt ion by 2030. A g loba l t rans i t ion to ef f i c ient app l iances and equipment would save the equiva lent of 8% o f today ’s g loba l e lect r ic i ty use .

the equivalent of

large power plants

KEY STAKEHOLDERS

SUPPORTING ORGANIZATIONS

COMMITMENTS

Through a UNEP-GEF led public-private partnership the Appliance and Equipment E�ciency Accelerator will engage key stakeholders to develop a roadmap to double the rate of e�ciency improvements. The following are representative stakeholders, which should be involved in the planning and implementation process.

GOVERNMENT

Energy and environment ministers, e�ciency agencies, regional integration organizations, regional standard setting bodies, testing laboratories, surveillance, energy program managers, utility

commissions.

IGOS/NGOS

Energy e�ciency advocates, including international agencies, academia, and initiatives dedicated to promoting energy e�ciency.

BUSINESS

Regional or national appliance/ equipment manufacturers, globally leading appliance manufacturers, manufacturer organizations, energy services providers, �nancial institutions and utilities.

There are already signi�cant networks, resources and tools that have been deployed globally to support the transition to energy e�cient products. The United Nations Environment Programme, the United Nations Development Programme, the Global Environ- ment Facility (GEF), the International Copper A Association (ICA), and the Natural Resources Defense Council (NRDC) have launched the Global Partnership ‘United for E�ciency’ to develop global, regional and national actions to accelerate the global transition to e�cient products. Additional contributors include public organizations who strive for the same goals, such as the Super-E�cient Equipment and Appliance Deployment Initiative (SEAD), the World Bank, major regional development banks and private banks, the Latin American Energy Organization (OLADE), the Centre for Renewable Energy and Energy E�ciency (ECREEE – ECOWAS), the Southern African Power Pool (association of Southern African Utilities), Proyecto Mesoamerica (Central America), the International Partnership for Energy E�ciency Cooperation (IPEEC), the International Energy Agency - Energy E�cient End-use Equipment initiative (IEA 4E), bigEE, Top10 International Group, and Lawrence Berkeley National Laboratory.

United for E�ciency o�ers best practices, information resources and knowledge on existing policies and experience from the implementation of earlier e�ciency improvement projects in countries. Manufacturers and industry associations play a crucial role providing industrial expertise and market knowledge on policy development. Several private sector companies have already joined the initiative (ABB, AB Electrolux, Arçelik, BSH Group, MABE) and others have expressed their interest to join ). Utilities and utility organisations are also encouraged to join as they play a key role in end user �nancing schemes to incentivize user investment in energy e�ciency.

The key near-term milestone is securing a commitment from 30 governments, to participate in the

Appliance and Equipment E�ciency Accelerator by the COP 21 in December 2015

This commitment will be part of setting of a public goal by COP21 to double the rate of energy e�ciency

improvement of these products by 2020, and include the commitment to implement and upgrade MEPS for appliances and equipment by2020 through a collaborative process with public and private sector stakeholders. Particular regions with a rapidly increasing demand for appliances and equipment are encouraged to participate. Partner institutions and private sector are invited to contribute policy knowledge, resources and expert assistance.

Financial institutions, both public and private, will support funding for policy roadmap development, implementation, project execution and performance tracking. Finally, global and local manufacturers will participate in collaborative policy roadmap development and participation in country and regional support projects.

MARKET BARRIERS

MARKET SECTORS

The potential reductions in electricity consumption could be achieved if the gap between the highest and the lowest energy e�cient products sold were decreased. However, this potential remains under-exploited due to several reasons: while most developed and a few developing countries have adopted standards and labelling programs, their level of ambition and their e�ectiveness varies widely due to di�erent

a) baseline conditions,

b) local manufacturing capabilities,

c) consumer awareness and ability or willingness to incur upfront costs for higher e�ciency equipment,

d) energy prices, �nancing costs and incentive mechanisms, and

e) a lack of adequate market surveillance mechanisms and testing.

A lack of consensus on test methods and harmonisation between national markets impedes global progress. Adopting harmonized test methods (between and among regions) would allow for greater comparison of products, trade of goods between countries and, therefore, greater ease in implementing e�ciency measures.

Accelerating the market transformation to e�cient appliances and equipment o�ers an opportunity for highly e�ective action and signi�cant global impact. As per-capita incomes rise in the developing world, the demand for appliances and equipment are expected to grow ex- ponentially, as witnessed in China from 1990 to 2008, during which urban ownership of room air conditioners increased from less than 1 % to 62 %. Growing populations, urbanization, and a�ordability of equipment will drive this growth.

A global transition to e�cient appliances and equipment would save more than 1,500 TWh in electricity consumption per year by 2030. This is equivalent to 8 per cent of today’s global electricity use, the equivalent of 350 large power plants. CO2 emissions will be reduced by 1Gt annually and the savings in electricity bills will add-up to more than $200 billion per year. Further, the avoided investments in power generation are $300 billion.

The proposed accelerator on appliances and equipment will support countries and regions to implement a successful global transition to e�cient products through an integrated policy approach, including:

- Minimum energy performance standards (MEPS) that remove the least e�cient products from the market and thereby encourage innovation and rapid adoption of higher e�ciency products. To achieve the greatest impact mandatory MEPS will be the recommended option;

- Supporting policies and mechanisms, such as: labels, �nancial and behavioral incentives, non-grant funding tools, climate �nance (e.g. NAMAs) and electric utility market transformation programmes;

- Environmentally sound management including best practices for manufacturing, materials and spent products, to minimize environmental impacts; and,

- Monitoring, veri�cation and enforcement (MVE) to deter market spoilage by non-compliant products and to ensure the delivery of energy, �nancial and climate bene�ts.

Taking the local baseline conditions into account, these solutions will be integrated and adapted to the speci�c situation, barriers, risks, and policy gaps of each market. The accelerator will assist countries to leveraging funding for national and regional projects.

DID YOU KNOW?

U n d e r t h e i n i t i a t i v e a n d l e a d e r s h i p o f t h e C o p p e r A l l i a n c e , a p l a t f o r m o f b o t h p r i v a t e a n d p u b l i c p a r t n e r s c a r r i e d o u t a s u c c e s s f u l p i l o t p r oj e c t f o r s l u m e l e c t r i f i c a t i o n i n t h e P i k i n e d i s t r i c t o f D a k a r, S e n e g a l . F o l l o w i n g t h i s p r oj e c t , t h e C o p p e r A l l i a n c e w a s a s k e d t o b e c o m e a p a r t n e r o f t h e C e n t r e f o r R e n e w a b l e E n e r g y a n d E n e r g y E f f i c i e n c y ( E C R E E E ) o f T h e E c o n o m i c C o m m u n i t y o f W e s t- A f r i c a n S t a t e s ( E C O WA S ) . T h e i n t e n t i s t o e x t e n d t h e p i o n e e r i n g p r oj e c t i n t o a b r o a d e r u r b a n e l e c t r i f i c a t i o n p r o g r a m m e f o r s u b -S a h a r a n A f r i c a , i n t h e f r a m e w o r k o f E C O WA S . T h i s w i l l i m p r o v e t h e l i v e s o f s o m e 1 5 m i l l i o n h o u s e h o l d s a n d o v e r 1 1 0 m i l l i o n p e o p l e . T h e r e l a t e d e n e r g y e f f i c i e n c y i m p r o v e m e n t s w i l l r e a c h 7% o f t h e r e g i o n ’s e l e c t r i c i t y c o n s u m p t i o n a n d a v o i d 7 m i l l i o n t o n n e s o f C O 2 e m i s s i o n s .

PIKINE DISTRICT DAKAR, SENEGAL

Urban Electrification Programme

350

H i g h i m p a c t a p p l i a n c e s a n d e q u i p m e n t , s u c h a s r e s i d e n t i a l r e f r i g e r a t o r s , a i r c o n d i t i o n e r s , e l e c t r i c m o t o r s , d i s t r i b u -t i o n t r a n s f o r m e r s w i l l a c c o u n t f o r c l o s e t o 6 0 % o f g l o b a l e l e c t r i c i t y c o n s u m p -t i o n b y 2 0 3 0 . A g l o b a l t r a n s i t i o n t o e f f i c i e n t a p p l i a n c e s a n d e q u i p m e n t w o u l d s a v e t h e e q u i v a l e n t o f 8 p e r c e n t o f t o d a y ’s g l o b a l e l e c t r i c i t y u s e

t h e e q u i v a l e n t o f

l a r g e p o w e r p l a n t s

KEY STAKEHOLDERS

SUPPORTING ORGANIZATIONS

COMMITMENTS

Through a UNEP-GEF led public-private partnership the Appliance and Equipment E�ciency Accelerator will engage key stakeholders to develop a roadmap to double the rate of e�ciency improvements. The following are representative stakeholders, which should be involved in the planning and implementation process.

GOVERNMENT

Energy and environment ministers, e�ciency agencies, regional integration organizations, regional standard setting bodies, testing laboratories, surveillance, energy program managers, utility

commissions.

IGOS/NGOS

Energy e�ciency advocates, including international agencies, academia, and initiatives dedicated to promoting energy e�ciency.

BUSINESS

Regional or national appliance/ equipment manufacturers, globally leading appliance manufacturers, manufacturer organizations, energy services providers, �nancial institutions and utilities.

There are already signi�cant networks, resources and tools that have been deployed globally to support the transition to energy e�cient products. The United Nations Environment Programme, the United Nations Development Programme, the Global Environ- ment Facility (GEF), the International Copper A Association (ICA), and the Natural Resources Defense Council (NRDC) have launched the Global Partnership ‘United for E�ciency’ to develop global, regional and national actions to accelerate the global transition to e�cient products. Additional contributors include public organizations who strive for the same goals, such as the Super-E�cient Equipment and Appliance Deployment Initiative (SEAD), the World Bank, major regional development banks and private banks, the Latin American Energy Organization (OLADE), the Centre for Renewable Energy and Energy E�ciency (ECREEE – ECOWAS), the Southern African Power Pool (association of Southern African Utilities), Proyecto Mesoamerica (Central America), the International Partnership for Energy E�ciency Cooperation (IPEEC), the International Energy Agency - Energy E�cient End-use Equipment initiative (IEA 4E), bigEE, Top10 International Group, and Lawrence Berkeley National Laboratory.

United for E�ciency o�ers best practices, information resources and knowledge on existing policies and experience from the implementation of earlier e�ciency improvement projects in countries. Manufacturers and industry associations play a crucial role providing industrial expertise and market knowledge on policy development. Several private sector companies have already joined the initiative (ABB, AB Electrolux, Arçelik, BSH Group, MABE) and others have expressed their interest to join ). Utilities and utility organisations are also encouraged to join as they play a key role in end user �nancing schemes to incentivize user investment in energy e�ciency.

The key near-term milestone is securing a commitment from 30 governments, to participate in the

Appliance and Equipment E�ciency Accelerator by the COP 21 in December 2015

This commitment will be part of setting of a public goal by COP21 to double the rate of energy e�ciency

improvement of these products by 2020, and include the commitment to implement and upgrade MEPS for appliances and equipment by 2020 through a collaborative process with public and private sector stakeholders. Particular regions with a rapidly increasing demand for appliances and equipment are encouraged to participate. Partner institutions and private sector are invited to contribute policy knowledge, resources and expert assistance.

Financial institutions, both public and private, will support funding for policy roadmap development, implementation, project execution and performance tracking. Finally, global and local manufacturers will participate in collaborative policy roadmap development and participation in country and regional support projects.

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ENERGY EFFICIENCY ACCELERATOR

F o r m o r e i n f o r m a t i o n o n t h e G l o b a l E n e r g y E f f i c i e n c y A c c e l e r a t o r P l a t f o r m p l e a s e c o n t a c t :

Monika Froehler P r o g r a m m e O f f i c e r a n d C o m m u n i c a t i o nm.froehler@se4all.orgTe l : + 43 ( 1 ) 2 6 0 6 0 8 3 4 0 9

Rahel SteinbachU N E P E E A c c e l e r a t o r s P r o g r a m m e O f f i c e r rahel.steinbach@unep.orgTe l : + 3 3 ( 1 ) 4 43 7 1 43 4

www.se4all.org

The Global Energy E�ciency Accelerator Platform is a partnership comprised of a large number of institutions, businesses and governments which include among others:

Accenture, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, ICLEI (Local Governments for Sustainability), International Copper Association, International Energy Agency, Johnson Controls, Philips, UNDP, UNEP, UN Foundation, World Business Council for Sustainable Development, World Bank (ESMAP), World Resources Institute.

UNEP co-lead accelerator