With the Obama administration focusing on addressing some of the low-hanging fruit like conservation and energy efficiency to tackle our energy and climate challenges, energy efficiency has become a key issue in policy discussions in the United States. E&ETV traveled to Paris for the annual Energy Efficiency Global Forum and Exposition, hosted by the Alliance to Save Energy, for a series of interviews and panel discussions about the challenges to and potential of energy efficiency. Today's segment features remarks by Kateri Callahan, president of the Alliance to Save Energy; Jean-Pascal Tricoire, president and CEO of Schneider Electric; Claude Turmes, member of the European Parliament; and Lisa Raitt, Canada's Minister of Natural Resources and the member of Parliament for Halton, Ontario. The panelists discuss the energy efficiency policy strategies of the European Union, the United States and Canada.
Kateri Callahan: Good evening, if I could have everyone take their seats please we're going to get started. I'd like to begin the opening session of the Second Energy Efficiency Global Forum and Exposition, the theme of which is Implementing Energy Efficiency: An Investment That Yields Global Dividends.
My name is Kateri Callahan and I have the honor and the privilege of serving as the president of the Alliance to Save Energy, which is your host and the organizer for this seminal event today.
It's so good to see so many familiar faces in the audience and really quite inspirational to see the high level and caliber of thought leaders who have gathered here under one roof from six continents, 30 countries, and many disciplines.
It's really truly delightful and I think speaks volumes about the interest that there is in energy efficiency and driving it as our best, our cheapest, quickest and cleanest way to extend energy supplies and to tackle climate change.
We had our first EE global in 2007 in Washington, DC and when I think back to that first session and where we were in Washington, DC and in the United States, I really peg it as the dawning of the age of energy efficiency in my home country, the Alliance to Save Energy.
Already it was the age of energy efficiency in Europe, in Japan and other people were getting it, but in the United States we really were slower than others to realize the full potential of this energy resource.
What happened after EE global 2007, and we had all the leaders come from around the world and talk to our policymakers, we really began to see a confluence of issues and interests, or a perfect storm if you will that came together and awakened the sleeping giant of the United States to the potential of energy efficiency.
We had a number of studies by the McKinsey Global Institute and they are actually still doing more work and we're going to hear about that at the conference.
We had the enactment of the biggest energy efficiency legislation in the history of our country, The Energy Independence and Security Act, at the end of 2007.
We had a presidential campaign in 2008 where energy and climate were highlighted and were key platforms of all of the candidates, regardless of whether they were Republicans or Democrats.
We had climate change and an understanding and awareness hit the mainstream media and hit the conscience of the United States of America's people through the Inconvenient Truth movie by Al Gore and through a lot of media attention.
All of this has come together, and I believe that the United States is ready to step up under new leadership in our administration and in Congress to work together with the rest of the world to drive energy efficiency.
So, it brings us to today where I think there's an understanding, worldwide now, of the potential for energy efficiency and there's a laser focus on using it to meet our climate imperatives as well as our energy efficiency imperatives.
And I think what's really fascinating about it is that you see a shift, such a shift that even though there's been moderation in the price of energy worldwide, there's been a slackening in demand because of the economic spiral downward, there still is this razor-sharp focus on energy efficiency.
In the United States Barack Obama's economic stimulus bill that was enacted by the Congress has $26 billion are intended to be spent on energy efficiency and clean energy activities.
It is his goal to rebuild the U.S. economy on a foundation of energy efficiency that will set us on a path toward a clean and green energy future. And the same holds true in Europe.
I was looking at a quote by the European Commissioner Barroso who said that the financial crisis is not an excuse. We can make it a win-win situation, create more green jobs, promote more investment in the low-carbon future.
And even today as we gather and meet, President Obama has invited all of the leaders of the major economies to the United States and, yes, we're sorry about that on one hand because it did have an impact on us in terms of attendance.
But we are really heartened to see that the leaders are coming together to talk about energy and climate issues and we know that energy efficiency will be a central focus of that.
So, with that, let me just if I could, before we began what is going to be an incredible set of speakers today, spend just a couple of seconds on the Alliance to Save Energy because there are so many new faces.
The Alliance to Save Energy was formed three decades ago. We have a singular and a very important purpose and that's to advance energy efficiency.
We do that for the economic benefits, the environmental benefits, and also the energy security benefits that accrue from its use. We don't just promote energy efficiency within the United States.
We work all around the world. We've done work in the past 10 years in 30 countries and we have work under way now in places as far-flung as Mexico and India and Armenia and points in between.
We have a staff of 50 professionals scattered around the world, but mostly in our headquarters in Washington, DC. There are 20 of us here for this conference.
So, I hope during the course of the next couple of days that you will have an opportunity to meet with our policy matter experts who are doing work on policy advocacy, communications, education, market transformation and technology deployment.
The alliance is a unique NGO, nongovernment organization. We were founded by two to sitting members of Congress, a Republican and Democrat, so we are nonpartisan.
And we have continued to have leadership from an alliance of business interests, government interests, environmental interests, academia and others.
These are pictures that those of you from the United States may recognize, some from outside may not, that these are some of our congressional leaders.
And we have nine members of Congress and some of the key leading voices, Ed Markey, who is one of the co-authors of the climate legislation, climate and energy legislation that's working its way through the house.
And Senators Bingaman and Murkowski, who are the chair and the ranking member of our Senate Energy Committee and are, right now, crafting energy policy that has as its cornerstone energy efficiency.
We also are unique in that while we are led by a board and all of our policies are created by that board and by the staff that are working there, we enjoy the participation and the support in all of our efforts by a wide array of businesses and other interests.
We now have over 160 organizations, international organizations working with the alliance to drive its mission forward. So how does this conference fit into that?
When we were organizing EE Global we had several goals in mind and an approach and intended or hoped for outcomes.
First of all, we want to understand the opportunities, all of us together, identify the barriers that we need to overcome to deploy energy efficiency and to chart the course forward.
Our approach, and thanks to you you've made this work, to assemble the world's thought leaders, to share best practices and policies, to forge strategic partnerships.
So the outcomes we're hoping we will receive and you will take with you are winning business and policy plans to move forward, lasting and productive alliances.
And the most important thing and the theme of this conference, deployment, implement, implement, implement. What we're heading for is widespread and immediate deployment of energy efficiency worldwide and across all economic sectors.
We had a great deal of help in bringing you this conference. First and foremost I would like to thank an incredible set of our steering committee for this conference.
All of these folks will be speaking to you in plenary sessions over the course of the days ahead and beginning with the session here this evening.
But what they did was not only lend their time, their energy, their expertise to speaking, but they also helped us to shape the agenda, which we believe is utterly compelling and will have you leaving here with a greater and more in-depth knowledge of energy efficiency than perhaps any other show or forum or conference can offer.
The plenary sessions range from what we're starting with tonight, a perspective from the leading policymakers representing many regions of the United States and coupled with business perspectives.
Tomorrow morning we're going to hear about growing economies in a carbon constrained world and we'll talk with and have perspectives from business and the industrial sectors.
We have an awards luncheon that we will be doing on Wednesday afternoon where we will be recognizing the visionary leadership that we are getting in the regions of Asia, the Western Hemisphere, and of Europe.
And then a closing plenary session where we will take a look forward into the future. There have been a number of new reports, one of which was just unveiled this morning as part of the conference World Business Council for Sustainable Development charting the path forward.
So at the end of the conference we will close by looking at what lies ahead. We have a lot of people to thank for bringing this forward.
In addition to the International Steering Committee we have a wonderful array and I think you can see here, represented by the sponsors, the breadth of coverage of issues that you will see and you will hear about during this conference.
I particularly want to thank our founding sponsors, Danfoss, Schneider Electric, Siemens, and Whirlpool Corporation for their work.
In addition to those that provided financial support, time, and energy, we had a number of endorsing organizations and media partners. Media partners are very importantly.
They are going to help us carry the word far farther than the nearly 600 people who are registered here today and to make sure that others see and learn the good things that are going on worldwide in the area of energy efficiency.
I think I'd like to end there and close by saying that what we're doing and what we're about here today, we have a fellow on our staff, Jeff Harris, who's our building science expert.
And he always has a quote that he likes to use that the only way to predict the future is to invent it. And I think the work before us as conference participants, as organizers, and as speakers is really to commit to taking the learning that we get here, the partners, the understanding, back to work.
And for all of us to work on building and creating and inventing a clean energy future of tomorrow by implementing energy efficiency today. Thank you for joining us here and I really look forward to this great session that is about to be before us.
And so with that, I would like to introduce our first begin this evening. Jean-Pascal Tricoire is going to lead off the session here today.
And I mentioned our founding speakers and I just wanted to take a special note of Schneider Electric because we're based in the United States. We're putting a conference on in France.
That takes a lot of work and that takes a lot of boots on the ground if you will and Schneider Electric has really stepped up. They have an incredible team of folks from the U.S. and from France that have helped us to put this together.
And we are very appreciative of the enormous amount of work and support that they have put to bringing this conference to you. And Jean-Pascal Tricoire has the good fortune of leading that.
He has long been an advocate of energy-efficient practices in industry and he comes to us from a company that is leading this trend in markets worldwide.
He is the chairman of the Management Board and he is also the chief executive officer, a position that he has held since May of 2006.
He has a long and very illustrious career with Schneider, which actually began in 1986 when he joined Merlin Gerin to develop a partnership with a German company that later became known as Schneider Electric.
He's been the COO of the company as well as its executive vice president of the International Division. He served as head of Schneider Electric's Global Strategic Accounts and the 2000 plus program at Schneider.
He's also been on the move for Schneider. He's lived in Italy, China, and South Africa and we're hoping someday he might do a stint in the United States and we'll have him over there.
His competence and his ability in the technology and in energy efficiency, I think, you'll see will shine through. He has ideas and innovation to meet the challenges of a world that's becoming more energy intensive.
And I believe he serves as an inspiration to business worldwide. Please join me in welcoming Jean-Pascal Tricoire.
Jean-Pascal Tricoire: Good afternoon everybody. In this country and France are always heated debates about which language to use. Tonight I'm going to be speaking in English, but with a very heavy French accent.
So you're going to get the best of the two worlds. I'm probably I think tonight I realize the only native of this country and let me take the liberty to welcome you here in Paris.
We are very happy that each of you brought a piece of nice weather, so we're going to have ____ summertime week here that will be a nice heading to the productive meetings.
Let me thank you also Kateri for organizing this meeting in France. We are very proud to have this meeting set up here. And, by the way, it helps also my traveling agenda on my carbon footprint.
So it comes to me now as a responsibility to set the stage for these two days. I won't be speaking about Schneider Electric. Schneider is a company that has a turnover of 23 billion U.S. dollars.
Worldwide we operate in virtually every country of the world. Actually, our biggest businesses in the U.S. by very far. Actually I lived in the US, that was several years ago, and I keep an excellent memory of that.
But our second market is China and the third one is France and we are presenting in many of those countries. Our business is just energy management. We don't generate energy.
We don't consume products that consume energy, but we optimize the chain between the generation and the consumption. See, there's never been a better moment than having a conference like the one we have today, because the many factors.
The world is now aware that energy efficiency is a must. What I would like to do tonight is to scroll you very quickly through a certain number of ideas that try to summarize the landscape in which we are, where is dilemma?
Where are the reasons to hope in front of a huge dilemma? What is the energy equation, because it's far more complicated than the simple efficiency?
And I'd like to speak about___ and change. And probably in two hours I will be concluding, be expelled from this stage. So let's try to summarize what's happening.
The first thing that's happening, and I don't want to go into the details, but population growth is booming, so there will be far more people in this world and those people will be far more urban.
If you consider just China and project yourself in 2020, you will have 200 cities of more than one million people, 20 cities of more than 5 million people and seven cities of more than 10 million people.
So seven Paris and then I let you scroll through that. What do people do when they grow and they become urban? They start to gather energy. They get richer and they drink energy.
Traditional finger-pointing of the West is to go to the emerging countries and to say, "You are polluting now." Just forgetting one thing is that if we take 1000 people, today in the U.S. they own 800 cars, in the EU 500, in China 24 today, going to 40, 12 in India.
Is it legitimate that every people in the world has the same number of cars ___ for sure. Therefore, everybody has to change the way it lives if we want to accommodate this huge disparity of energy consumption.
What you have on the right is also the energy consumption per capita and you see clearly that North America is far above the average.
Europe and Japan are doing far better, but at the end of the day there is an all emerging world or new economies that need its fair share of access to energy.
And I'll just take this very simple image. I've been working in electricity for 20 years and between '93 to '94 till now China itself was every year building in terms of electricity generation, the equivalent of Australia to the equivalent of France.
Every year, which means that pressure on natural resources, that pressure on carbon emissions and it's legitimate. The only thing is that we are part of the same village and we have to make sure that everybody has the energy space in this village.
Third point is that there are still 1.6 billion people who are totally energy poor. They don't have access to electricity, to fresh food, to medicines, to education for their kids at night.
And what they use is fire or whatever that burns can burn their house, can put them in very difficult situations. Those people also deserve to enter in the energy competition.
So 2 billion where the fairly role of energy consumption, two billion will have to go from energy scarce to energy well cated and two billion will have to go outside of energy poorness and energy scarcity.
So the thing is very simple, if we don't do anything, energy consumption is to double by 2050 and probably that's an optimistic view of the situation.
And electricity only will be doubled in 2030, which means in very simple terms that in the next 20 years there will be more investment in electricity than there has been since the inception of electricity at the beginning of the 20th century.
What are the consequences? More people fighting for the same resources. That means the price of energy will skyrocket. So you find now people who say, whew, it was tough last year.
It went up to $140, but now we are saved. Well, it's still $50 out there and $50 if you come back six years ago that was considered as a very expensive price for energy.
And if you believe that we are saved ___ I would say, well, something is saving us for a very short time because the mechanics are you have more people fighting for the same resources for the same amount of energy.
It will be back to very high prices. So energy will be expensive. Energy has already created a lot of conflicts in the world, people fighting for the same resources.
Would it be on the stock market by acquisition? Would it be by wars? And security of access to energy will be a major issue for many countries in the world. It's already the case today.
The next point is that we now realize that global warming is a major issue for the world. We don't need to make the Al Gore movie again.
We, as a company, Schneider are sponsoring the first euro emission base on the South Pole with the Belgian scientists on what describes of the melting of the poles is more than some concerning.
So we've got to move, everybody's says. It's proven that we have to move fast. And the third point is that we are all addicted.
We are all drunkards with energy and there's good drunkards we are ready to move from very intensive alcohol to beer maybe. But the problem is that we are still addicted.
And the fact is that a smoother form of energy will not be the only solution. Renewables are not the solution. They are not the only solution. They are part of the solution.
Therefore we have to revert to energy efficiency. And when you take the projections of people who are far more competent than I am, they say that end-use efficiency represents 50 percent of the investment we have to do if we want to solve the energy equation.
The energy equation is multiplied by two divided by two to decrease the carbon intensity of everything we do by a factor of four.
Some ___ we are going to need to do everything. I mean we are going to need to extract more resources. That's part of the equation. We are going to need to deliver up renewables.
We are going to need to be energy-efficient and I think it's not opposing one word to the other one. It's more creating the coalition to be ready to resolve the energy equation.
EE is an imperative. Energy efficiency is an imperative. There are reasons to hope nevertheless. I mean you can get gloomy and you can say it's terrible or you can say I don't care because I'm going to be dead by the time it's becoming problematic.
But at the end of the day there are reasons to hope. First thing, legislative requirements are emerging to reduce consumptions and emissions.
It's now very easy, but I tell you, well, the U.S. was somewhat of a problem because it's clear that previous administrations were not the most vocal about energy efficiency.
But the recent turn of the administration is really a turn for the world because the U.S. is in a big part, a large part of the sword for the world.
And when a thought leader is starting to take such a bend as the one that has been taken and it's good news for everybody. The second thing is public pressure for companies like us.
Our customers are looking at us, our employees, and saying, "What do you do for the planet?" That can be one form of public pressure that I experience every day as a CEO in my company.
It's also under the form of my kids who are looking at me and saying, "Which kind of planet do you leave to me?" And they speak more and more about that because they've understood that it was important for them.
But public pressure is here. It was not here five years ago. And the last thing, if you don't do it for the policemen because of laws, if you don't do it for your kids and your customers, do it for your P&L, because you are sure of one thing is that energy price will be back up.
You don't need to be a great scientist or great economist to know that it will have been. The second reason to hope is that key geographies are taking steps.
I'm sure we're going to be speaking about that, but regulators have started really to grab the issue.
The U.S. re-started. Europe, we've got the official objective to reduce our consumption by 20 percent and that's a challenge and introduce 20 percent of renewables in our energy mix.
And people speak about China and sometimes make it a caricature about the pollution of China. China is taking very, very determined steps in the field of energy preservation.
We, as a company, spend a lot of time with Chinese authorities to develop better on the greener Chinese economy.
But it's true in other geographies, so I'm sure that Mr. Produe will be speaking about the case of India has been a long, long time crusader for more responsible energy consumption.
Why this money is going to green? It's not only a question of government speaking, but in times when you have to take the tough calls and understand where you invest your money, a significant part of the stimulus package is going into energy efficiency.
And finally, technologies do exist. There is a path for innovation here. New materials and systems, new architectural designs, that's for materials, but with different paths for passive energy efficiency.
I mean things consuming less energy due to the materials, but also communications, software at every level designed in the past for active energy efficiency. Technologies for storage also, which are essential in this field.
And what we see in our company that is very promising is a collusion of the IT, the information technology together with a clean tech creating a path for intelligent energy.
And making sure that everything gets measured, gets controlled and gets real-time possible to master. Intelligent energy will be a big potential that we can achieve right now because IT is mature for it and clean techs are also mature for it.
The other thing is that methodologies are using it. It's not only about technology. When you go into energy efficiency it's like going into a diet.
You need to go every morning on your scale to check what you are doing. You need to have fat-free things, so fat-free products that consume less energy.
When it comes to energy efficiency you can't trust me or I can't trust you, you don't switch off, you don't change your temperature. It has to be automatic. It has to be regulated. It has to be engineered for you and adapted to you.
And it is something that you do regularly. You come back in permanence on what you do to improve it, so a permanent improvement kind of approach.
Now, here I would gather that all of the people in this room are quite fundamentalist about energy efficiency. But as an older, Jurassic specialist of energy, I'd like to remind you that you can't summarize energy to energy efficiency.
It's far more complicated than this. Energy management, it would be too easy to say, "No, it's all efficient." Don't forget that the whole energy story started with safety. Energy is the source of electrocution.
It's a source of deaths. It's a source of fires. So the first thing you have to do before it's efficient is to make sure it's safe. Don't forget that in many countries a grid doesn't supply the energy that is needed. So the second thing is it has to be reliable.
When you guys go into a surgery room at a hospital you don't want the system to become efficient at the time that you get the surgery.
When you go on the Internet you don't want the supplier to tell you, "Sorry, we can't serve your demand because I don't know that you are saving energy."
So it has to be efficient and, again, you are all these fundamentalists of energy efficiency and I belong to that sect, so I'm with you. But it has also to be green because now there is a way to bring some more greenery into the energy mix.
And make no mistake, making sure that it's safe, reliable, efficient, and green, every of those directions are going into contradictory directions. So there is a new business, there is new innovation designed to make sure that we reconcile all those directions.
And there is almost no university in the world preparing people for that new business. When you speak about a complex equation and nobody in charge of reserving it that means also a business opportunity.
So we can, but time is of the essence. I mean the clock is ticking. So what do we have to do? I've seen governments have take a role.
I mean we can do everything, but the fact is that we have to do it now and we have to make sure that people take care and it will go far better if there is a regulation or incentive to make it because we have major, major problems of incentives in the value chain.
If you take Paris to be very simple, we are here. The guy who is building a building is not the same as the one who is operating, as the one who is occupying the building.
The guy who is interested to the savings is the guy who pays the bills. It is not the guy who is constructing. So if you don't have a regulation or incentive, that doesn't make it very attractive.
It's all a question of we don't like…I don't like personally too much regulation, but it's all a question of speed and making sure that we go fast enough.
The second thing is that coalitions have to happen more. It's coalitions between companies that work in different sectors. We work with material companies.
We work with energy resource companies to make sure that we are well integrating our…it's about public/private corporations. It's about company coalitions.
It's about regional regulation between countries where it's clear that if you want to avoid carbon, carbon travels over borders, so those regulations had better be consistent between borders. So the second point is about coalitions.
And the third point, which is for me the most important when you speak about companies you speak about people and business is people, competence is people.
You can do many things in a company but you won't replace people. And the biggest problem we have today in the field of energy efficiency is people.
Have we university schools that are training people to energy efficiency? The answer is no, you don't have that. You have people good at energy generation.
You have people good at electronics, very few people working efficiently on training people to education on energy efficiency. Do we have people in the company sufficiently aware of the energy issue?
Many CEOs, many CFOs will be unable to say what energy is costing them, because ___ time it was supposed to be infinite in terms of quantity and pretty low on cheap in terms of cost.
So we need to make that visible and to make it visible we have to measure it. And the last point is about behaviors and it's a bit of measurement, it's a bit of education, it's a bit of us putting pressure on people to do that but it's all that will drive the change.
So the equation is plain and simple. I think that we have things that we have to do. This is in simple ways a way to set the stage and now I'm happy to welcome onstage Kateri for the follow-up, thank you.
Kateri Callahan: It's an excellent way to open this and set the stage, thank you very much Jean-Pascal. It is next my honor to introduce to you the honorable Lisa Raitt.
She represents the Halton area of Ontario and is a member of the Parliament of Canada. She also is the minister of natural resources.
She's a Nova Scotia native whose engagement in social and environmental issues has made her a role model not only for her community, but for her country.
Prior to her post in the Parliament, Minister Raitt was the president and chief CEO of the Toronto Port Authority where she was responsible for leading the Canadian Federal Corporation and managing their commerce and transportation, including the Toronto City Center Airport.
She's a pillar of her community and she is an activist and she is an activist not only on energy efficiency, but one thing I found very interesting and admirable is that she also canvasses and does fund-raising for the Institute for the Blind.
She's a barrister with extensive knowledge of international trade, commerce, transportation and arbitration.
And she's only about a year into her job, but she's passionate about energy efficiency and she's already taken the battle against dwindling resources, economic obstacles, and pending climate change to the home front.
And I mean literally when I say that. There are grants under Canada's ecoENERGY Retrofit Homes Program and I think she'll probably talk about that, that were increased by 25 percent.
And Minister Raitt went to homeowners and she's urged them to take advantage of the excellent program. And she asserted in a quote that we've found about her something I know to be true and that we say at the alliance.
Quote, "As more people retrofit their homes, they will be generating economic activity and protecting and creating jobs in communities across the country. And, of course, as we become more energy-efficient, we're also reducing energy emissions."
At the Alliance to Save Energy we all know that homeowners are really the ground troops in the fight against climate change. And we heartily applaud Minister Raitt for what she is doing to mobilize the efforts in that country.
And we look forward to hearing more about her government's role in driving energy efficiency. Please join me in welcoming the Minister Lisa Raitt.
Lisa Raitt: Thank you everyone. As you can see Canada is in the house. Any other Canadians that are here? Yay! My home writing of Halton is interesting from an energy efficiency point of view as well because it's the home of Rocksil, which is an insulation maker in Canada.
I'm very proud of that too in Milton. But I have to say I listen to the introduction. One thing that wasn't mentioned is I am a true champion of energy efficiency because I have two little boys, J.C. and Billy.
They're seven and four, who are constantly leaving the doors opened, the windows open, and the heat leaving the house in Canada. And as you know it's quite cold in Canada so you're constantly battling that.
So I'm running around making sure that lights are turned off and that the doors are closed at all times and doing our part. The other part is I am very happy to sell energy efficiency to the Canadian people.
It's a great honor and I'm very happy to be representing Canada here today to the point where I went on our morning TV show called Canada A.M., which is much like Good Morning America.
But I figured that the best thing that we could possibly do to sell energy efficiency and reach the most homes is somehow we have to get on Oprah.
And if we can get on Oprah and talk to the housewives of America, and the people in Canada as well, that we'll be able to utilize that kind of medium.
And, indeed, in Canada when we did go on Canada A.M. and talk about home retrofitting and the importance of energy efficiency Canadian people get it. They understand it and they turn to energy efficiency as a way of life.
As well as knowing that it's going to save energy costs on their pocketbook, it's good for the environment. So those are just my opening comments regarding energy efficiency.
It's a great pleasure, as I said, to represent Canada here this afternoon and my very sincere thanks to the Alliance to Save Energy for the opportunity to be part of this forum.
I'd like to add my thanks and congratulations to the alliance for its ongoing campaign to keep energy efficiency front and center.
Promoting and encouraging energy efficiency is a priority for the Government of Canada and I'm sure that this is true for everyone here today. And I'm just as sure that we all know why.
Using energy more efficiently is probably the easiest, most affordable, and most effective way to control energy costs. It also increases energy security and, most importantly, it reduces greenhouse gases and other pollutants.
And that's why energy efficiency is an integral part of our government's plan to achieve an absolute reduction of 20 percent in greenhouse gas emissions from 2006 levels by 2020.
And that's an aggressive target for any country, but it's especially so for Canada. We are a very large country in terms of both size and scope, so we're moving people and goods and services over many thousands of kilometers each and every day.
Fortunately, we have a relatively abundant supply of energy. Canada is the fifth largest energy producer in the world. We have abundance, but we also have diversity.
Our oil reserves are second only to Saudi Arabia. We have extensive natural gas deposits and we have large reserves of coal.
We generate large amounts of hydro electricity and we are the biggest uranium producer in the world and these resources continue to serve Canadians well.
Our energy has helped us manage the economic disadvantages that come with small domestic markets, long distances, rugged geography and a somewhat harsh climate.
We are also the single largest supplier of oil to the United States. So Canada's resources also play an important role in both continental and global energy security.
The sheer abundance has encouraged the development of industries with a strong demand for energy and fossil fuel energy production itself is a major source of greenhouse gas emissions.
Energy production consumption accounts for 80 percent of our annual GHG emissions. And the reality for Canada, of course as it is for everyone else, is that we will be dependent on fossil fuels to meet most of our energy needs for some time to come.
We are moving quickly to increase our supply of clean energy in Canada. Our target is to meet 90 percent of our electricity needs with low-emitting sources by 2020.
And we already get almost 60 percent of our electricity from hydro and close to 15 percent from nuclear. We are one of the few countries with our own nuclear power technology.
Our new investments are focused on tapping our extensive renewable energy sources now, wind, solar, small hydro, and tidal, as well as increasing the pace at which we're developing and deploying clean energy technologies such as carbon capture and storage.
But notwithstanding these measures, there is no question that energy efficiency will play an even larger role in meeting our economic and our environmental goals.
In fact, we have recently increased our investments in energy efficiency as part of our government's economic action plan.
We want to stimulate the Canadian economy during the global recession and we want to strengthen the foundation for more sustainable growth in the future and promote energy efficiency.
Achieving sustainable growth is of course a challenge for all nations. Canada is committed to working with our international partners to meet this challenge.
From participating in multinational efforts to advance the development and demonstration of carbon capture and storage technology to our growing international cooperation on energy efficiency.
As examples Canada has a long history of cooperation on energy efficiency with both the United States and with Mexico as part of the North American Energy Working Group.
We have also recently opened a new clean energy dialogue with the United States. Cooperation on energy efficiency is one of the three priorities set out in that agreement.
On a broader scale, we co-chair the Energy Working Group established under the Heiligendamm dialogue process. That dialogue was created by the G8, as well as China, India, Brazil, Mexico, and South Africa.
And the Energy Working Group was asked to put special emphasis on energy efficiency.
Along with many of the countries represented at this forum Canada is also participating in the development of an international partnership for energy efficiency cooperation.
And we've recently begun working with eight other countries in European commission to develop an international energy management standard. And we remain open to new opportunities for cooperation.
I should emphasize that Canada is not a recent convert to energy efficiency and that we have developed a lot of expertise and a lot of technology that we are happy to share.
For example, over the past 30 years Canada's gross domestic product grew by more than 55 percent while end-use energy consumption increased by just 21 percent.
This progress has been founded on a combination of market-based programs and regulation, backed by strong research and development in equally strong commitment to partnership.
Certainly factors such as weather and a reduction in the share of GDP produced by energy intensive industries have had an impact. But energy efficiency has been the major driver.
The Canadian Industry Program for Energy Conservation, CIPEC, or CIPEC, is just one success story.
This unique, voluntary partnership between the Government of Canada and the private sector was founded in 1975. The GDP created by these member industries increased by a more than 44 percent between 1990 and 2006.
Yet the amount of energy consumed by these industries increased by less than 27 percent over the same period, a remarkable achievement considering that many of Canada's most energy intensive industries are partners in the organization.
We also support industry efforts in a variety of ways, from providing financial incentives for smaller companies to carry out energy efficiency retrofits to providing extensive technical support and training for larger companies.
Natural Resources Canada is a leader in the process integration, one of the most effective ways to improve efficiency in large industrial operations, achieving energy use reduction of up to 30 percent.
We've also developed new generation commercial refrigeration systems that are integrated with heating and ventilation systems.
Rather than wasting the heat generated by the cooling process, this energy is captured and directed to the heating and ventilation systems.
These integrated systems can reduce overall energy consumption for refrigeration, heating, and ventilation in supermarket applications by 25 percent.
And as much as by 50 percent in ice rinks, and for a hockey mad country like Canada, that's a real benefit.
In addition, compared to conventional refrigerating units these systems provide more stable temperature control and use a much smaller amount of synthetic refrigerant.
This reduces the cost of the system and provides increased environmental benefits. We are also supporting the energy efficiency efforts of individual homeowners as mentioned at the top.
In April of 2007 our government launched a program that offers grants of up to $5,000 to cover a portion of the costs for homeowners to retrofit their homes to be more energy efficient.
The popularity of this program speaks for itself. Including the small business component, we received more than 100,000 applications for grants in less than two years and we've expanded this program under our Economic Action Stimulus Plan.
We anticipate another 200,000 homeowners will participate over the next two years.
That means one in every 60 Canadian households will lower their energy costs, reduce their emissions, and, as an added benefit, create an estimated $2.4 billion in new economic activity over the next two years.
To date homeowners participating in the program have achieved an average energy saving of up to 23 percent and reduced annual household GHG emissions by an average 3.4 tons.
By partnering with our provincial governments who build on our programs incentives increase even more for Canadians. In addition to building retrofits we continue our other efforts to increase the energy efficiency of new buildings.
At the moment we are working with provincial governments to make the model national energy code for buildings 25 percent more stringent.
We're also working to develop integrated heating, ventilating and air-conditioning systems for residential applications.
By combining space heating, water heating and air ventilation into a single unit this integrated residential system offers homeowners 20 percent savings.
We're also experts in capitalizing on the energy efficiency of wood frame houses, expertise we export to the world. Our super e-houses are just one example. There are more than 500 of them in the United Kingdom alone.
In partnership with Canada's National Housing Agency and several private sector companies we are also supporting developments of a total of 15 equilibrium sustainable demonstration houses in various locations across Canada.
These homes are designed to take advantage of their specific environment, from solar, space and water heating to landscaping that reduces air-conditioning and water use.
Last fall a Canadian designed net-zero energy home was completed in Japan, a home that produces as much energy as it consumes. Most of its components from the triple pane windows to a geothermal heat pump were made in Canada.
We are taking what we have learned from these designs and from our ongoing research to continue to advance the state of the art to ensure we maintain Canada's reputation as the leader in energy-efficient housing and building technologies.
And we're also improving energy efficiency by using renewable energy at the community level. In our province of Alberta we have worked with our partners to build North America's first large-scale solar storage project.
This installation provides more than 90 percent of the space heating needs for the 52 energy-efficient R2000 homes in that community.
Canada's efforts to promote energy efficiency and our investments in cleaner and more efficient technologies are supported by a comprehensive regulatory regime as well.
In fact, Canada regulates the performance of a total of 43 energy consuming products, from automatic icemakers to industrial motors, more than any country.
Canada's Energy Efficiency Act came into effect in 1992 giving the government of Canada the authority to make and enforce standards for the performance of the energy using products and to set labeling requirements for these products.
And these regulations have been very effective. As an example, major household appliances were a prime focus of the legislation when it was introduced.
In the years between 1990 and 2005 the use of major appliances in Canada went up by 38 percent. During that same period, however, the total energy consumed by these appliances went down by 17 percent.
We are determined to be among the leaders in energy efficiency standards.
Among other recent developments we have introduced new performance standards for most types of lighting that will come into effect in 2012, making us one of the first countries in the world to do so.
And we're also expanding our capacity to regulate in the future. In addition to setting standards for products that use energy we have introduced changes to the Energy Efficiency Act that will allow us to set standards for more products that affect energy consumption.
This will cover products such as windows and doors as well as thermostats and other energy system control devices.
The changes will also enable the creation of future standards to regulate standby power, as well as pave the way for improvements to the energy rating labels to ensure that they are as useful to consumers as possible.
Many of the changes reflect the simple fact that a lot has changed since the act was introduced in 1992. Our knowledgebase has expanded, new technologies have been developed and there have been big changes in the marketplace.
Just think of the number of electric gadgets in our homes today compared to 15 years ago. The basic principles of the act are the same, to create a national system of regulated energy-efficiency standards in labeling.
To ensure consistency between federal standards and those set by our provincial and our territorial governments, since in our federation these governments have substantial jurisdiction in terms of energy and other natural resources.
And, finally, to harmonize Canada's standards with others in the international community. And this last point of harmonization is very important to Canada, particularly in relation to our closest neighbor and our largest trading partner.
For example, we're currently developing regulations to limit emissions of carbon dioxide from cars and light duty trucks to take effect with the 2011 model year.
Increasing fuel-efficiency of vehicles will certainly play a large part in meeting these new emission standards.
And due to the integrated nature of the auto manufacturing sector in Canada, the U.S., and Mexico these regulations will be benchmarked against the dominant North American standard.
This type of cooperation is important today and it will be even more important as we move forward with our efforts to build a truly sustainable global economic recovery.
The benefits of energy efficiency are clear. Energy efficiency is one of those rare issues on which almost everybody can agree. It is also something on which I believe we can agree that we can always do more. That is our priority in Canada.
We are always ready to share our expertise and our experience and to benefit from the expertise and experience of our international partners.
At the same time, as more and more nations increase their emphasis on energy efficiency it will be very important to continue our international efforts, not just in terms of sharing knowledge, but to ensure an appropriate degree of harmonization of standards.
Any effort to enhance that type of cooperation is welcome and I thank you very much again for the opportunity to be with you today.
Kateri Callahan: Thank you. The Alliance to Save Energy's mission to advance energy efficiency is a statement that can be translated into countless languages and understood worldwide and so too can its implementation.
We're going to move now to a discussion in another and a very important region of the world and I'm just delighted to invite to the stage the Honorable Suresh Prodhue ...
Kateri Callahan: Thank you Dr. Millea, that was excellent. Our next speaker is a really remarkable individual. He has a professional career that he has knitted together political sensibilities with a deep concern for the environment.
He actually years ago was a political activist for a Friends of the Earth in Luxembourg where he rallied for a positive action on a number of issues including climate change and energy.
Today the Honorable Claude Turmes is minister of the Green and the EFA group in the European Parliament and this is a position that he's held since 1999.
Since the year 2002 he's been the group's vice president and in that role he's coordinated energy policy within the group.
He's launched the concept of energy intelligent Europe to promote European initiatives in the area of energy efficiency and he's also worked to establish a European agency for energy efficiency.
For citizens of the world who hope that their elected leaders can initiate positive change in the environmental arena I think Mr. Turmes proves to be a particularly inspiring figure.
It's his ready engagement of climate change, his sensitivity toward the nuances of energy efficiency and technology advancement in economies of various strengths.
Those attributes place him among the world's leaders who are helping to drive energy efficiency and put us on a globally equitable path toward a sustainable future.
Please join me as it is my very great honor in welcoming the Honorable Claude Turmes to the stage.
Claude Turmes: Probably the best would be not to speak because I can probably only deceive you after this introduction. And I must admit that I'm jealous.
I'm jealous because in the United States there is an Alliance to Save Energy. In Europe we have a very weak lobby for energy efficiency. We have set it up and there are some of the players here, ___ others. It's called the Energy Efficiency Watch.
We have one study here, which is not well paid, which tries to bring together the insulation industry, the glass industry, the other manufacturers around efficiency.
And I think we, as Europeans, we really have to catch up with the U.S. on bringing ahead such an organization.
Second, I'm pleased with the CCO of Schneider, Jean-Pascal Tricoire, because I think it's encouraging to see that business leaders are highly aware of the system crisis we are in.
We have built up a system where we have huge inequalities when it comes to energy use and as long as we in the developed world are at 10, 15, 20 tons per CO2 we have very little lessons to give to our friends from India.
And it's really encouraging that top business people are now integrating this, not only in their personal belief, but also in the management of major companies. Three, I'm humble.
I'm humble because I thought that with my 500 road shows on energy in Europe I would be really experienced. And really, it's incredible and I see also the professionalism of Honorable Suresh Prodhue.
And it's not a surprise because he has done 5000 road shows, so I think I have to be really humble in speaking up here.
And I think I'm proud because Johannes Milder from Siemens technology is basically advocating my political program, which is the new Green deal which is, listen, because you may be even more close to me afterwards, because I think we are really…and one of my deep conventions is we need to build an industrial green policy just discussing about climate change.
Climate change is too abstract a concept. It is extremely brutal in consequences, but it's extremely abstract in doing today's politics and building today's bargaining and power games.
And, therefore, I think one thing which we have well developed is when we are able today at European levels to get such ambitious renewable energy legislation as we did in December that's because we have been able to show that renewable energy is industry, it's modern industry policy.
And one of the reasons I'm here is that we have to join forces because another part of the new economic paradigm is resource intelligence and energy intelligence.
The efficient use of energy must be a cornerstone, a life motive for our policies. So now I will try to open my slideshow. So, the COO of Schneider has already said that we are in a system crisis.
I do not need to insist on this. I think my role here is to give you a bit of the European perspective. What does it mean 20/20, 20 in 2020?
So we have a political decision to have 20 percent more energy efficiency, 20 percent renewables, 20 percent reductions of CO2 in Europe alone going to hire reductions if in Copenhagen hopefully we will get an international agreement and all this 20/20 will be done in 2020.
And that's important to understand, so I will not go to the detailed figures. But it means that in Europe at least solids, which is coal, will go down by more than 50 percent and nuclear will also go down in Europe by more than 50 percent.
And there is no reason that after 2020 our efforts in renewables will stop because the cost will be lower, the grid infrastructure will be there and there is no reason at all that we will stop also on improving on energy efficiency.
So, where do we stand and what are our next important steps to be done at the European level? So, first one of the key issues for the next 20 years is to transform the energy-efficiency standard into a binding standard and to break it down to the national governments.
We have an existing legislation which is called the Energy Services Directive. We will have to recast it, to redo it, and that is the perfect platform to come up with this binding new target and binding also at national level.
On legislation I think we are quite a dynamic machine and the civil servants from your commission plus the positive cross party alliance which we have in Parliament, I think we really drive ahead to show when it comes to legislation.
So last Thursday we voted on our position on the buildings. We have zero and plus energy buildings in 2018.
We have a common methodology for renovation of buildings and we want to force the commission and the European Investment Bank to come up with new financing also from buildings, so that's quite good news.
On appliances and office equipment, we have a framework directive for minimum standards which we passed through in 2003, 2004. Now it is producing results so we have minimum standards on standby.
On lighting we have phased out the incandescent light bulbs in Europe. So this decision has taken. Now we are in the phase of discussing refrigerators, TVs.
Then we'll come to much more funny areas like boilers, maybe electric heating. So Jean, you can already get prepared for this. So this is really legislation which moves ahead and which makes a big difference.
On labeling Europe is, in all academic writings everybody gives ___ about the A to G label.
But we are now in a big fight between part of the industry, a lot of governments on the one hand which wants to destroy it, the label, and on the other hand the parliament who wants to keep it.
So we will have a big battle. So next week, Tuesday or Wednesday, go on your Internet, go to your Parliament website and then you will follow the vote we will take.
So we are fighting to keep the A to G label because we think that it is a very easy way for consumers to understand what is a good product, an A product, and what is a bad product and we do not want to drop this.
On industry and small and medium enterprises, and I will come back to this, personally I'm a defender of the ETS and CO2, but it is too volatile and it is not bottom up enough. So we need other instruments also to drive efficiency in that industry.
Transport is the really difficult bit. Almost nobody cares emotionally about energy and almost everybody cares emotionally about a big car.
And the car industry, the car professionals they have I think really moved at least the European consumers. I don't know how it is in the U.S. or in other places. In Europe the car is probably the highest status symbol of being arrived or of being rich or not.
And it is incredibly difficult to get this back, to scale this back to what would be something normal, a vehicle to get me from A to B and to do it the most efficiently. So transport is really, really difficult in Europe.
Horizontal issues is where Europe is not good enough today. So unfortunately Mr. Barroso has announced in October or November that the European economic recovery plan would be green.
But then in January he proposed zero euro from 4.5 billion for energy efficiency. We have zero euro, whereas, civil servants from the European commission and in the parliament we had a majority for example a program for energy efficient cities.
So 500 million co-financed by the European investment banks. So we would have got one billion to get cities much more involved into energy efficiency and transport efficiency.
And that was basically defeated by the German and the French government, by President Barroso from the commission, and now our budget is so we have not a single fresh euro between now and the first of January 2013.
And all the money goes to the energy supply industry and no money to energy efficiency. We have a second structure problem in Europe, which is we have no obligations from the energy retailers to save energy.
And so we are, in a certain way, in collision course between the incentive of large energy and electricity utilities to sell more and more electricity or energy and those who try to diminish.
And personally one of the workshops which I am most interested in this conference is the U.S. experience of imposing efficiency targets for energy companies and thus helping them to improve their business model.
A third issue and I think that was addressed, human resources matter. We have today in Europe, less experts working on energy efficiencies than we had in the 70s and 80s.
And we have a huge problem to get young people interested in energy efficiency. Today I'm a bit encouraged. I see more women than normally in such a meeting and I see more young people than normally in such a meeting.
And basically we should be in a situation where those of you who have 25, 30, 35 years of experience the fact that we need you now in the universities and in the companies and in the governments to train young people.
We need an energy efficiency community to be as fancy as renewables. When you go to a renewable conference the average age is 30 and there is, today, almost more women in the room than men.
And that's a sign that renewables is hype and we have to work on this, because otherwise we are an aging community. Aging, maybe even dying.
Lobbying and that's one of my favorite cartoons, it is a highly respected cartoon because when I draw it in 2002 I anticipated all the mergers which happened afterwards.
And in RWE, which is one of the big power companies, they are extremely nervous about the fact that I don't see them in the last picture.
We have a problem of this business model, of earning money by selling energy is in collision course with the efficiency. And efficiency is what I call an empty consensus.
Everybody is for efficiency, but in the moment where you phase out electric heating the utilities will fight it until the very end. And therefore, lobbying and also changing this business model is…if we are not able to do this we will never be successful.
I will speed up a bit because the referee is already nervous I see and I was a football player, I got a lot of these cuts, so I have to be careful.
I will give you a quick to do list of what I intend to do in the next five years and so take note. First, education of leaders. It is not true that leaders in society have understood the urgency of energy efficiency.
And you have a big responsibility. When I go to Mr. Sarkozy he will say, "This is a bloody little Green from Luxembourg. What should he tell me?"
If you go to him he will say, "This is a major company from France. I have to listen to the CEO of Schneider."
So you have a huge responsibility as companies to educate your political leadership because these people are not deep enough into energy and they don't have a clear priority when it comes to energy.
Second, I mentioned already we need the Alliance to Save Energy branch Europe. Three, McKenzie is extremely clear in all their studies.
Energy efficiency is above all about targets, targets, targets and standards, standards, standards.
And we need to take the opportunity of this economic crisis, which is a crisis of deregulation to build quickly and more powerful coalitions in society and politics for re-regulation.
We need to regulate and especially we need to have clear standards on efficiency. Fourth, and that is one of the key issues, there is too much talk about technical innovation and not enough talk about organizational innovation.
We are not good enough in having an analysis of the whole chain of decisions. And we must invest more in bringing sociologists, psychologists, people who are knowledgeable on intelligence and learning organizations together with the technicians.
Because otherwise we have good technology and it is not penetrating into the core of the market and that's something really important. And last, sexy is a bit…I hope that I don't overstep my American colleagues.
I know you have tougher discussions on this end because we are still influenced from May '68, so we have a more libertarian approach. But I discuss it until, yes, today we stress we need to sit down with communication experts.
It is much more easy to integrate a wind turbine and a solar panel than an intelligent management system of a building. But we need good stories about this. So quickly, on buildings, there is two key issues.
We have basically won the technology issue around buildings, on new buildings in Europe, but we must build it cheaper. So we need demonstration programs for cheap, cheaper or optimized new buildings.
And we must transfer this technology as mentioned before to emerging economies. If Morocco and Algeria and Turkey develop inefficient, they will need enormous amount of air conditioning and all the hopes about Nabuko and gas from Algeria are dead.
Even from a pure security of supply issue be selfish, give these economies our knowledge on your buildings. And so the cooling, this must be a key device in the intelligent building of tomorrow.
It is stupid to use electricity based cooling. That's dinosaur technology. Solar cooling, that's what we need now. The second challenge for building is deep renovation.
There is still too many politicians and experts who believe that we can…stop? Okay, so I will come to an end. So, this easy renovation, some replacement of windows, some replacement of a roof is just not enough. So we need to do 30, 40, 50, 60 percent cuts.
And I like very much what the Austrians are doing, which is renovating whole streets, taking off the roof, putting one or two wooden floors on these houses, sitting in the solar devices, selling these new square meters to finance the rest of renovation.
This is the concept we feel we need. On appliances I will not go into too much detail. On this probably I have not the time neither. One issue on electric car, we had the hype for agri-fuel and we will now have the hype for electric cars.
Electric cars and agri-fuel dome replaced transportation policies. You need first to get a holistic view of where you want. And one of the most important issues is we have to get rid of ownership of cars and to move to usership of cars.
So car sharing as a key component, using hybrid and electric that is absolutely important. Goods transport is, again, something where we are not strong enough in Europe, so we need new concepts on this.
I have mentioned the importance of a new business model for the energy utilities and one last word. We need a hierarchy in energy policy if we want efficiency to be dealt with.
So low-carbon concept is nonsense because it has no priority and then you have the supply side who takes over. There is a very easy hierarchy in energy policy, end-use efficiency, renewable energy, efficient use of fossil energy.
That is the biggest potential. It has the lowest risk and is often much more competitive than the other issues.
It's amazing to see the billions going to carbon sequestration when you know that today gas-based CHP is more efficient in CO2 than the best ever built CCS.
So we have a real distortion of perception on these issues. Global, we have to go global. The energy efficiency is per excellency area where we can have global networking on setting standards on organizational innovation.
The cities, you are right, the future of this world will probably be more influenced by the mayors of the largest world cities than by legislators like me. So we need a global alliance of progressive mayors.
And we need to rethink the CDM mechanisms to make it possible to make sector approach in complement to project approach. So the change we need, resource intelligence as the new economic paradigm.
Second, more focus on the long-term and then I'm a big fan of present Obama. Why? Because he has said something which I think is the real shift in paradigm in society.
Under Bush it was go shopping.
So basically consume and don't get involved. Under Obama it is get involved and we are in a crisis situation. We have very little time, so all of us have a responsibility to get involved.
And I can just tell you from my personal experience, being involved for 25 years to push efficiency and renewables, that was a lot of fun. Thank you very much.
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