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    • I mentioned McKinsey Research earlier. Here is a figure McKinsey published in the 2007, showing the cost in 2005 dollars per ton of carbon dioxide abated by 2030. The options on the left fall below the Y axis, meaning they generate positive returns on investment. You’ll see that many of these options are efficiency improvements in commercial and residential buildings, electronics, and CFL and solid-state lighting. They truly represent the low-hanging fruit in carbon abatement.
    • Savings projections from programs’ Departmental scenario projections.
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    David E. Rodgers, DOE: Prioritization of Energy Efficiency

    David E. Rodgers, Deputy Assistant Secretary for Energy Efficiency, Office of Energy Efficiency and Renewable Energy, U.S. Department of Energy

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    1. Slide 1: Prioritization of Energy Efficiency Alliance to Save Energy International Policy Leaders Dialogue David Rodgers Deputy Assistant Secretary of Energy Efficiency U.S. Department of Energy September 25, 2008 1
    2. Slide 2: The Role of Energy Efficiency Energy efficiency is the fastest, lowest risk, most economical way to address climate and security concerns Energy efficiency means competitiveness for the U.S. economy Market-ready today at attractive rates of return with enormous unexploited potential Energy efficiency represents investments in energy not consumed, which mitigates risks associated with future price uncertainties. Robust and evolving pipeline of efficiency technologies McKinsey Global Institute identified energy saving sufficient to cut consumption growth in half using only existing technologies that offer at least a 10% IRR (MGI, Curbing Global Energy Demand Growth, May 2007) 2
    3. Slide 3: Efficiency: Carbon Abatement with a Positive Return on Investment 3
    4. Slide 4: Energy Efficiency Has the Technical Potential to Level U.S. Energy Demand Growth 130 • CAFE • RFS 125 EIA (Post-EISA) Business as • Appliance, Usual Projected Demand Bldg, Industrial Growth Motor EE 120 Energy Consumption (Quads) EISA • Lighting • Envelope EIA (Pre-EISA) Business as • ZEBs 115 Buildings Usual Projected Demand • Appliances Growth • Codes Industry 110 • Super Boilers Transportation • Nano Mfg 105 • Direct Steelmaking • Efficient Data Center • CHP 100 2015 2020 2030 Tech. Tech. Tech. Potential Potential Potential • Hybrids 95 Savings Savings Savings • Advanced 3 Quads 8 Quads 18 Quads Diesels • PHEVs 90 • Lightweight Materials 2020 2010 2030 2015 2025 2005 Source: DOE Scenario Projections 4
    5. Slide 5: Yet Non-market Forces Impede Energy Efficiency Market Penetration Dislocated Agency Inconsistent Real Estate Valuation Inconsistent use of Life cycle costing Deficit of Information Lack of Aggregation Misperceptions by Consumers Out of Date Utility regulation Inconsistant policies (e.g., Codes) 5
    6. Slide 6: U.S. Department of Energy Strategic Priorities for Energy Efficiency Priorities Recent Accomplishments Utility Efficiency National Action Plan for Energy Advanced Model Building Codes Efficiency Appliance Standards, Advanced Department of Energy 30% Vision Lighting Advocacy, and Commercial Buildings Initiative & ENERGY STAR Builders Challenge Energy Efficient Buildings Save Energy Now Industrial Efficiency Energy Independence and Security Vehicle Efficiency Act Fuel Economy Improvement Creating a National Energy Disney and Ad Council Efficiency Ethic Collaborations Accelerated R&D Advanced Energy Initiative International Partnership for Energy Efficiency Cooperation (IPEEC) 6
    7. Slide 7: Appliance Standards, Advanced Lighting Advocacy, and ENERGY STAR Modernizing ENERGY STAR • Update and expand the ENERGY STAR program to add new advanced technologies to the ENERGY STAR portfolio. Added or Updated since 2006: Clothes washer Advanced water heaters (5 categories) Dishwashers Solid State Lighting (7 categories) Refrigerators Expanded CFL categories • Develop deployment plans for marketing advanced technologies to consumers. • Talk to market stakeholders, gather information about market conditions, and develop strategies for building product availability and demand. 7
    8. Slide 8: Energy Efficient Buildings • Commercial Buildings Initiative The combined residential and commercial buildings sector is the Public-private partnerships working to enable market-ready net-zero energy largest energy consumer in the U.S. commercial buildings no later than 2025 in all climate zones 72% of U.S. Electricity  Commercial Building Energy Alliances  EnergySmart Hospitals  EnergySmart Schools • Builders Challenge 55% of U.S. Natural Gas Recognizing Leadership in Homebuilding EUI_Label_1_r6 8
    9. Slide 9: International Partnership for Energy Efficiency Cooperation (IPEEC) In coordination with other leading countries, DOE is working to establish IPEEC - a high-level forum for discussion, consultation and information exchange. IPEEC will advance global energy efficiency by facilitating actions that yield high energy efficiency gains Countries will join on a voluntary basis and participate in specific annexes that reflect each country’s greatest interest Scope Develop public-private partnerships Facilitate international trade of efficient products Support participating countries’ efficiency efforts & exchange information on: • Financial mechanisms • Effective policies • Public procurement • Best practices • Civic infrastructure and fleets • Building codes • Consumer/stakeholder education • Product standards • Measurement/verification protocols 9
    10. Slide 10: International Partnership for Energy Efficiency Cooperation (IPEEC) Potential Annex Topics 3. Technology Development, Transfer, and Deployment 4. Performance and Evaluation Methodology 5. National Efficiency Policy Options 6. Test Procedures & Standards 7. Energy Management Systems 8. Public Sector Efficiency Executive 9. Public Transportation Committee 10. Appliance Standards 11. Industrial Efficiency 12. Advanced Lighting Annex I Annex II Annex III = member countries 10
    11. Slide 11: For More Information David Rodgers David.Rodgers@ee.doe.gov http://www.eere.energy.gov/ 11