Daring to Commit
July 16, 2007
Posted by: johnsoncontrols 06:13 PM
Branko Terzic
Global Regulatory Policy Leader, Energy Resources Group, Deloitte Services LP
Edited remarks at the 18th annual Energy Efficiency Forum
Energy efficiency is a moral obligation. Children understand this. It was evident in the acceptance comments of this year’s national Igniting Creative Energy Challenge, which awards grade, middle and high school student winners for innovation.
But, do we adults dare to commit?
One third of the world’s population of six billion souls still does not have any electricity service. Another third is poorly served. The remaining third which has adequate electric service has filled much of the atmosphere’s greenhouse gas holding capacity in creating its current standard of living. As this standard continues to grow, so does the extravagant use of energy.
Can we, in the developed world, tell those in lesser developed countries that the earth has no capacity to support their aspirations for a better standard of living? I think not.
The speakers at the 18th Annual Energy Efficiency Forum gave guidance as to where and how we can find solutions to the problem.
- Jim Rogers, the CEO of Duke Energy, called for a "new paradigm" in the regulation of electricity services and for commitments from each individual. Rogers called on regulators to adopt regulations which will "engage incentives" for utilities to implement energy efficiency programs, and he called for an "individual commitment to take action."
- U.S. Rep. Jim Sensenbrenner (R-Wis.), ranking Republican on the House Select Committee on Energy Independence and Global Climate Warming and former chairman of the House Science Committee, called energy efficiency a priority in any global warming policy. Energy efficiency, according to Sensenbrenner, meets the standard of climate change solutions which must be "realistic, affordable, globally inclusive, and produce tangible results." Sensenbrenner reflected on differences among members of Congress on climate change issues but found common ground in supporting more energy efficiency measures.
- Kateri Callahan, president of the Alliance to Save Energy, reminded the audience that consumer concerns about global warming and energy security were now matters covered regularly by the popular press. Recent issues of fashion, entertainment, health and business publications magazines had all featured cover stories on these topics. This public recognition may well be a factor in her optimism that currently pending energy efficiency and renewable energy legislation could be passed by Congress this session.
- Omar Siddiqui, chief strategist for energy efficiency at the Electric Power Research Institute, provided estimates of the savings possible from a variety of market enabled energy efficiency programs supported by public policies, technology and the proper incentives.
- German Ambassador Dr. Klaus Scharioth stressed the global aspect of the "linked issue of energy security and global climate." He called it "the most important issue of the 21st century." Reporting on the recent Group of Eight (G8) meeting, Scharioth said that energy efficiency was recognized by the G8 leaders as the "fastest way" to achieve green house gas reductions. Looking ahead, he anticipates the creation of a new international agreement of energy efficiency.
- Dr. Samuel Bodman, Secretary of the U.S. Department of Energy (DOE), discussed his agency’s recent programs in energy efficiency, including the DOE’s role in the implementation (at the department level) and monitoring (at the cabinet level) of the President’s January 25, 2007 directive on energy efficiency for federal government departments and agencies.
Thus the 18th Annual Energy Efficiency Forum included discussion of private, national and international efforts to address the linked issues of climate change and energy security through the application of energy efficiency programs. However, these programs are only the first and most immediately effective of the various programs needed to fully address these issues. But at what cost?
The United Kingdom’s report "The Economics of Climate Change: The Stern Review," released earlier this year, estimates that a 1 percent annual expenditure, starting today, would reduce the risk and cost of damages if we have the science right. If we do not have the science right, well, then we would still benefit. We would have hedged our risk. Some or much of the 1 percent expenditure will lead to the development of new technologies. These new technologies will likely have expected benefits in terms of energy security, jobs creation and even unforeseen benefits.
Thus energy efficiency expenditures today, most immediately producing economic benefit, become imperative. Expenditures on other programs would prudently need to follow. The 1 percent expenditure thus becomes an insurance premium we pay on a policy to protect our children and future generations. This is our moral responsibility. It is as simple as that.
We must "Dare to Commit!"
