Enigin PLC the Energy Saving People

10.5 Trillion Needed For Energy Savings

November 12th, 2009 by Severine Leave a reply »

The IEAThe International Energy Agency (IEA) has calculated that a 10.5 trillion dollar global investment is required to counterbalance the effects of the recession and keep climate change threats at a distance.

This colossal investment would be assigned to developing new low-carbon technologies and funding energy efficiency breakthroughs. While energy consumption has decreased for the first time since 1981, the money invested in new low-carbon technologies has been significantly cut due to the financial crisis.

While fossil fuel demand is predicted to peak by 2020, the focus has to be put on energy efficiency, which would achieve in itself 50% of the energy savings by 2030.

That is when the crucial quality of energy saving implementations becomes blatant. Professionals all over the world, regardless of their sector of activity, all have increasing incentives to adhere and adopt cost reducing energy saving tools, as all function and operate using energy in some form (lighting, motors, refrigeration, air conditioning…).

This confirms the un-matchable business opportunity currently seized by the professionals of the energy saving industry! The profit being made by companies, such as Enigin PLC namely, is not only monetary but also ecological and of moral value, in tangibly impacting on global climate change.

The 450 Scenario, outlined in a report issued by the IEA, aims to restrict greenhouse gas concentration to 450 parts/million, and global temperature rise to 2°C above pre-industrial levels.

Should the current trend of global energy consumption prevail as it is, energy demand and carbon emissions are forecast to rise of 1.5% per year until 2030..

This report therefore simultaneously advocates optimism and alarm because solutions to act upon climate change exist, but should the efforts to achieve these solutions be insufficient, the scenario promises to be bleak. The financial crisis has undeniably triggered a decrease in global energy use this year, but consumption will take off again inevitably if government policies don’t evolve.

It is predicted that demand will be enhanced by an alarming 40% between now and 2030, equating to 16.8 billion tonnes of oil, while fossil fuels represent over 3/4 of the incremental demand.

To reverse the trend in terms of climate change, the energy sector needs to be analytically transformed, via aggressive surgical strikes, in order to contain greenhouse gas concentration and temperature rise. To succeed in realising the 450 Scenario, fossil-fuel demand would need to peak by 2020 and energy-related carbon dioxide emissions to fall to 26.4 gigatonnes in 2030, from 28.8 Gt in 2007.

Low-carbon energy technologies play a crucial role. Around 60% of global electricity production comes from renewables (37%), nuclear (18%) and plants fitted with carbon capture and storage (5%) in 2030.

The report also points out the various prerequisites and elements that need to be taken into account in order to progress positively in favor of the environment. For instance, higher oil prices, associated to the depletion of oil sector investment, is identified as a serious threat to the global economy, just as it starts to emerge from a crisis.

2010 should see oil demand recover to reach 88mb/d in 2015 and 105 mb/d in 2030. Natural gas should also continue to play a bridging role in meeting the world’s sustainable energy needs – its demand is expected to rise by approximately 25% in 2030, as opposed to a previously forecast 41%, due to more efficient use, lower electricity demand and using non-fossil energy sources as a preferred alternative.

The focus is also put on Southeast Asia, as it becomes increasingly influential on energy markets – an expansion of 76% is expected on demand from 2007-2030.

The global energy landscape is slowly but surely being re-centered towards Asia, as China and India especially undergo strong growth.

On the brighter side, the IEA is placing the emphasis on switching to hybrid, pulg-in hybrid and electric vehicles by 2030. These ‘clean’ vehicles are estimated to represent an impressive 60% of total sales by 2030, as opposed to only 1% today!

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2 comments

  1. Ian says:

    10.5 Trillion is a huge investment by any benchmark, however on a pure risk to benefit ratio the cost of doing nothing could be significantly greater. Furthermore… Energy Efficiency will always deliver a 100% return on investment in a short space of time.

  2. francis says:

    Good information-thanks. I am keeping watch on all the latest developments in geothermal pumps-makes a lot of sense to me.

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