challenges for energy-intensive sectors: an industrial ... brussels 2012/4 peter... · who is cefic...
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Challenges for energy -intensive sectors: An industrial consumer’s perspective
Peter Botschek, Cefic
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Who is Cefic
Cefic – European Chemical Industry Council� Forum and voice of the chemical industry in Europe� Founded in 1972� Brussels based office of 160 people working with over 4,000
industry experts across the industry� Represents 29,000 companies (96 % have less than 250
employees)� Direct employment of nearly 1.2 million people� 21% of the world’s chemical production
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Who is the Alliance?
The Alliance of Energy Intensive IndustriesEurope’s energy-intensive industries have an aggregated turnover of more than
1000 billion Euros per year and provide direct employment to over 3 million people . These industries are fundamental to Europe’s entire economic fabric and support downstream processing and employmentthrough the entire value chain. They also contribute to Europe’s R&D, innovation and technical excellence, as well as to European balance of trade and through economic value added and taxes to the economies of its Member States.
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EU chemicals industry in global competition
� China is the biggest chemicals producer� EU accounts for 21% of global sales
Source: Cefic Chemdata International
World chemical sales in 2010: € 2353 billion
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China and rest of Asia-Pacific attract the bulk of chemicals investment
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3000
1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007
En
erg
y u
se (
Mto
e)
Non-specified (industry)
Textile and leather
Construction
Wood and wood products
Food and tobacco
Mining and quarrying
Machinery
Transport equipment
Non-ferrous metals
Pulp, paper and printing
Non-metallic minerals
Iron and steel
Chemical and petrochemical
Global industry energy consumption
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Global energy demand increases by one-third from 2010 to 2035
� China and India account for 50% of the growth
Source: IEA World Energy Outlook 2011
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Otherindustries
Iron and steel
Cement
Chemicals
Chemical industry largest industrial emitter
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EU chemical industry has reduced its energy intensity by 54% since 1990
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Low -carbon economy 2050 roadmap
• “… a larger contribution by the sectors covered …would
continue to be cost-effective. Emission reductions o f
already nearly 50% by 2030 and around 90% compared to
2005 in 2050 would be achieved in the ETS sectors…”
• Poland vetoed the Commission Roadmap
Moving the agreed goalpost would create additional uncertainty ; adopt financial measures to compensate electro-intensive sectors; unilateral move by the EU would be ineffective as long as there is no global agreement.
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2050
Roadmap
for a
low carbon
economy
(Mar’11)
EU Energy Policy largely set by Climate policy
20-20-20 targets
“Towards a fully decarbonized energy
sector by 2050”
Industry : -40% 2030-87% 2050
Transport :-60% 2050
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2012-13 energy related EC initiatives
Time Title COM
15/12/11 Energy roadmap 2050 Oettinger
1Q/2012 Communication: Smart Cities and Communities
Initiative
Oettinger
June/2012 Communication on a Renewable Energy Strategy Oettinger
2Q/2012 Communication on the Internal Energy Market Oettinger
Q3/2012 Directive(?) on Nuclear Safety (legislative) Oettinger
Q3/2012 Communication on “Realising the CCS
demonstration programme”
Oettinger
2012 7th Environmental Action Programme Potočnik
2013 Communication on the EU Adaptation Strategy on
Climate Change
Heedegard
Q1/2013 Communication on Energy Efficiency (follow-up) Oettinger
1Q/2013 Energy Technologies in a future
European Energy Policy
Oettinger
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Europe’s “20-20-20” strategy
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• reduce greenhouse gase emissions at least 20% by 2020 (compared with 1990 levels),
• raise renewable energy's share of the market to 20% and
• increase energy efficiency by 20% (compared with projected trends)
On track √
On track √
Not on track !
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Energy Efficiency Directive (EED):
Cefic key messages
Key issues:
Mixing up efficiency with absolute savings: Proposal suggests binding energy saving target, binding measures, cap on energy consumption= cap on growth, obligatory introduction of CHP for installations exceeding 20MW …
‘set-aside’ (to be dealt with separately)
Key messages:
•No cap on energy consumption through binding absolute energy saving targets
•Avoiding administrative burdens and double regulation e.g. overlap with other measures like EU ETS
•Introducing incentives, combined with voluntary sector initiatives instead of binding targets and mandatory energy audits.
•Protecting current incentives in member states for existing CHP units and new investments and guaranteed priority access to grids.
•We oppose any intervention through EED in the EU-ETS.
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EU energy policy – Energy Roadmap
� EC Communication ‘Energy Roadmap 2050’ (15 December 2011, COM(2011) 885/2) considers how the EU can decarb onise its energy system while ensuring security of supply an d competitiveness… based on models and scenarios…
� Cefic comment: Modeling needs transparent methods , realistic assumptions and thorough impact assessments that compare scenarios with and without international action outside the EU are needed to ensurethe relevance for further policy discussions
Surprisingly, the Roadmap states that the results of the scenarios all assume that global climate action is taken
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EU energy policy – Energy Roadmap
EC Communication ‘Energy Roadmap 2050’ (15 December 2 011, COM(2011) 885/2) considers how the EU can decarbonise its energy system while ensuring security of supply and competitiveness…based on models and scenarios
Cefic comment: € trillions of investment towards electrified solutions: Electricity is not storable, costly both to electrify the fuel mix and to use a lots of renewables. More focus needed on storage or alternative energy vector solutions to avoid ‘regret costs’ in infrastructure
Roadmap offers little assurance that the measures proposed would help meet the objective of strengthening Europe’s industrial base through a secure supply of competitively priced energy
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Summary
� The EU chemcial industry supports the goal of decarbonising the EU energy system while ensuring security of supply and competitiveness.
� The EU chemcial industry is enabler and solution provider in terms of energy efficiency and ghg-savings for the society.
� The EU chemical industry is competing globally and has a proven track record of substantial energy and ghg efficiency improvements.
� Existing EU and national policies, global competition and high energy costs keep pushing the industry to further improve - wherever possible.
� EU policy initiatives need change: Growth and consumer orientation and competition, transparency and consistency, consideration of EU interaction in global environment, coordination of goals and objectives (i.e. cost-effectiveness), peer review involving stakeholders (i.e. of ‘impact assessments’).
