Yearbook 2016/17 by Manos Konstantopoulos

The Energy

Y EARBOOK 2 0 1 6 /1 7

geothermal

solar

water

bio

wind

The Energy [R] EVOLUTION: YEARBOOK 2016/17

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Global Sustain

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Yearbook 2016/17 – The Energy [R]evolution

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This publication contains general information only and should not be used as a basis for any decision or action that may affect your finances or your business. No guarantee or warranty, either expressed or implied, is given with regards to the accuracy or completeness of the information and data in this publication. The information provided herein does not constitute investment advice. The inclusion of company names and/or examples does not constitute an endorsement of the profiled companies by Global Sustain. Global Sustain shall not assume responsibility for any consequences or damages resulting directly or indirectly from the use of this publication.

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Annual Publication Published in May 2017 by Global Sustain.

"The shift to a cleaner energy economy wonâ&#x20AC;&#x2122;t happen overnight, and it will require tough choices along the way. But the debate is settled. Climate change is a fact." Barack Obama, American politician and the 44th President of the United States (1961- ).

PUBLISHER’S NOTE

Michael Spanos Managing Director Global Sustain Group The Energy (R)EVOLUTION

Facts & Stats

KEYNOTE ARTICLES

22 30

Rachel Kyte Chief Executive Officer Sustainable Energy for All Special Representative of the UN Secretary-General Rethinking Energy

LI Yong

Director General United Nations Industrial Development Organization (UNIDO) Industrial Energy Efficiency: Picking the Low-Hanging Fruit

Dr. Mukhisa Kituyi Secretary-General United Nations Conference on Trade and Development (UNCTAD) Energy, Smart Cities, and Urban Adaptation

Facts & Stats

INSTITUTES & NETWORKS

40 44

Yannis Salavopoulos Chief Executive Officer, CAPITALS Circle Group Chief Executive Officer, Global Sustain GmbH Need to Strengthen Energy Security in EU with New Risk Management and Continuity Concept

Facts & Stats

Prof. Dr. André Faaij

Distinguished Professor Energy System Analysis, University of Groningen Academic Director, Energy Academy Europe A Dynamic Research, Education and Innovation Ecosystem to Support the Energy Transition

Claire Roumet Executive Director Energy Cities Exhaustless Sources of Energy Will Fuel our Future

Τable of contents 48 56

Prof. Yannis Maniatis Member of Parliament Former Minister of Environment, Energy & Climate Change Greece as an Energy Hub for EU

Jill Duggan

Facts & Stats

EDUCATION & RESEARCH

Director The Prince of Wales’s Corporate Leaders Group (CLG) Ambition Over Frustration: More Companies Looking for Strong EU Leadership on Energy Policy

Dimitris Sarantopoulos Founder & President Energy & Sustainability Club, MBA International Sustainable Energy for a Sustainable World: A Luxury or a Necessity?

Magdalena Andreea Strachinescu Olteanu

Head of Unit New Energy Technologies, Innovation and Clean Coal DG ENER, European Commission

Gwennaël Joliff – Botrel Head of Strategy Unit Energy Directorate, DG RTD, European Commission

Stathis Peteves Head of the Knowledge for the Energy Union Unit Joint Research Centre, European Commission Strategic Energy Technology (SET) Plan - Transforming the European Energy System through Innovation

Roberto Bocca Head of Energy Industries Member of the Executive Committee World Economic Forum The Future of the Energy System: A Story of 3s

Prof. Simon Mercado Director ESCP Europe Business School Energy Curriculum in Business Schools: The case of ESCP Europe

Jason Bordoff Founding Director Center on Global Energy Policy Columbia Universityâ&#x20AC;&#x2122;s School of International and Public Affairs The New Geopolitics of Energy

Dr. Kostas Andriosopoulos

Executive Director Research Centre for Energy Management (RCEM) ESCP Europe Business School Research and Education for the Energy (R)evolution

Joseph C. Stagner

76 82

P.E., Executive Director Sustainability & Energy Management Stanford University Stanford Energy System Innovations Combined Heating & Cooling: District Energy for the 21st Century

Facts & Stats

Ged Davis

Executive Chair World Energy Scenarios Flagship Study World Energy Council World Energy Council Scenarios: The Music of Change

Dionissis Christodoulopoulos

Facts & Stats

CORPORATE

Facts & Stats

Managing Director MAN Diesel & Turbo Hellas Ltd MAN Diesel & Turboâ&#x20AC;&#x2122;s Decarbonisation Strategy

Î¤able of contents 92

Olaf Schulze Director Energy Management METRO AG Wholesale & Food Specialist Company The Carbon Reduction and Energy Strategy 2030 of the METRO GROUP

Dr. Dominic Emery

Interim CEO Oil and Gas Climate Initiative (OGCI) Investments The Oil and Gas Climate Initiative Industry Collaboration to Reduce Carbon Emissions

100

Facts & Stats

110

Facts & Stats

124

About Global Sustain Group

128

List of tables, graphs, figures, facts and stats

Cyril Perducat

102

Stuart Reigeluth Founder, Revolve Media Vice-President, Revolve Water Water and Energy Driven Competition

106

Executive Vice President IoT & Digital Transformation Schneider Electric How to Power a Sustainable Future: Energy Efficiency, Connectivity, and Distributed Energy Hold the Key. Making Them Work Together Takes a Platform

Ornella Barra

112 125

Co-Chief Operating Officer Walgreens Boots Alliance, Inc. Happier and Healthier Lives Everywhere How Walgreens Boots Alliance Drives Sustainable Development Goals Across its Business and the Globe

About Yearbooks

118 126

Facts & Stats

Acronyms and abbreviations

Michael Spanos Managing Director Global Sustain Group

The Energy (R)evolution

n the face of rising global population and increasing demand for energy, one of the most important challenges of the 21st century is meeting our energy needs in a sustainable way. There is no doubt that the energy (r)evolution has begun, triggering a global transformation in the way nations and organisations create, manage and sustain energy. The transition from the current energy system towards a long - term decarbonisation for affordable, reliable and clean energy, leads to the emergence of new technologies and innovations, while fast - paced changes in energy security issues impact on geopolitics. Global Sustain, for the 10th year in a row, raises awareness and triggers a global discussion regarding critical issues, through a high-end international publication. This yearâ&#x20AC;&#x2122;s edition is entitled â&#x20AC;&#x153;The Energy (R)evolutionâ&#x20AC;? and focuses on the evolution and challenges of the energy market that impact on the climate and the world economy, aiming to navigate and better understand our energy future. Supply and demand of energy commodities, the impact of climate change, energy policies, challenges and opportunities, innovation and development of clean energy

technologies, are only some of the topics included in this publication. This energy (r) evolution is giving us the opportunity to address the dynamics of a changing energy world in ways that can make nations more secure, our economies more prosperous, and the planet more sustainable. The UN Agenda 2030 as defined by the 17 Sustainable Development Goals as well as the milestone COP 21 Paris Agreement, two historical pledges for mankind, raise the bar very high with regard to expectations for the energy sector. The Energy (R)evolution is integrated. The energy (r)evolution requires interdisciplinary cooperation and should and must be associated with integrated thinking. In other words, the production, usage and retrieval of energy should be linked to the creation of value not only to pure financial capital, but also to other forms of capital such as manufactured capital, human and social capital and of course natural capital. This is the one and only way to justify sustainable use of resources for producing and using energy as well as the value created for all forms of capital. This turnaround in

EMERGENCE

thinking but also in practise will ensure the sustainability of the energy systems for the generations to come. The Energy (R)evolution is life itself. Bearing in mind the planetary boundaries and the new era that Earth has entered, the so-called Anthropocene, the energy demands of almost nine billion people in the very near future as well as the fast increase of the middle class, pose threatening questions about our energy future. Energy production is highly interlinked to climate change. Hardly can anyone actually predict how many trillions of dollars of investments should be needed in investments to transform our energy mix from conventional coal-based sources to renewable sources in order to reduce substantially CO2 and other greenhouse gas emissions. Innovation, research and development, public policy work, investment incentives, infrastructural transformation, technological breakthroughs, market regulations, business models re-evaluation and of course change of behavioural thinking are among some of the issues we should consider for the energy (r)evolution.

The Energy (R)evolution leaves no one behind. Energy poverty should be eradicated and everyone must have access to clean and affordable energy. The transition to a low â&#x20AC;&#x201C; if not zero â&#x20AC;&#x201C; carbon economy requires the reconciliation of the nations and the collaboration of all stakeholders involved in making this happen. The scientific revolution to meet this goal has been phenomenal and every day we are witnessing the advent of cutting-edge discoveries that change the way we perceive, produce, use and retrieve energy in our everyday lives. For the energy (r)evolution to succeed, every entity on this planet should consider its/his/her own responsibility. This task is not only for governments to ratify the proper regulation, or the corporations to utilise renewables into their operations, or multilateral financial institutions to make the respective investments. It starts first and foremost with our individual responsibility and accountability as citizens of this planet to do everything in our powers to be the enablers and agents of the energy (r)evolution.

World Energy Outlook 2016 Source: “Fact Sheet World Energy Outlook 2016”, International Energy Agency, 2016. The energy transition is redefining energy security. Deployment of renewables and energy efficiency play an important role in moderating oil and gas imports, providing an extra tool to mitigate traditional energy security concerns. On the other hand, the increased role of electricity in all economies and the rising share of variable renewables (wind and solar) in power generation put electricity security under the spotlight. The pledges made as part of the Paris Agreement have accelerated the pace of change in the energy sector. Low-carbon fuels and technologies, mostly renewables, along with natural gas, win the race to meet the growth in energy demand, accounting for more than 80% of the increase to 2040. The share of oil and (especially) coal, the largest fuels in today’s global energy mix, falls back. Although developing countries account for almost all of the 30% increase in energy demand to 2040, many millions are still set to be left without basic energy services. The new UN Sustainable Development Goals include a commitment (in SDG 7) to universal access to modern energy services by 2030. But, despite increased efforts, this target is missed in our projections: more than half a billion people, increasingly concentrated in rural areas of sub-Saharan Africa, are still without access to electricity in 2040 (down from 1.2 billion worldwide today). Other elements of SDG 7 are though met in our main scenario, including the target to double the rate of global improvement in energy efficiency. Investment is shifting towards lower-carbon sources of energy. Over the last 15 years, some 70% of the money going into energy supply projects went to fossil fuels. Of the USD 44 trillion in investment in energy supply over the period to 2040, the share

going to fossil fuels declines to 60% and an increasing share of this goes to natural gas. The amount for low-carbon investment rises, a significant shift in spending given the anticipated cost reductions for key renewable energy technologies, as does spending on electricity networks. A two degree pathway would require a much deeper and faster reallocation of capital, including much greater spending on improvements in energy efficiency. Implementation of the climate pledges slows the projected rise in energy-related CO2 emissions from an average of 2.4% per year since 2000 to 0.5% per year to 2040. This is a major achievement (that is accompanied by reduced emissions of the main air pollutants), limiting the rise in global average temperature by 2100 to around 2.7 °C. But it is not enough: the goals of the Paris Agreement require not just a slowdown in growth, but an early peak and decline in emissions. In our main scenario, the entire carbon budget for a 2 °C future is used up by the early 2040s. The value of subsidies to fossil fuels fell sharply in 2015 to USD 325 billion, down from almost USD 500 billion in 2014. Lower fossil-fuel prices were the main reason for the drop, but lower prices have also given additional impetus to pricing reforms in many countries, both fossil fuel importers and exporters. Even with the drop in 2015, the amount going to subsidise fossil fuels is still more than double the USD 150 billion spent on subsidies to renewable energy. Renewable energy is the growth story of WEO-2016. In our main scenario, nearly 60% of all new power generation capacity to 2040 comes from renewables and, by 2040, the majority of renewables-based generation is competitive without any subsidies. In a scenario compatible with 2°C, significantly faster growth means that,

Global Sustain Yearbook 2015/16 Sustainable Production & Consumption | Visionaries

in the four largest power markets (China, the United States, the European Union and India), variable renewables become the largest source of generation. The operation and design of power systems need to be transformed to integrate high shares of wind and solar. System integration measures are essential to give power systems sufficient flexibility: these include stronger grids, the availability of plants ready to dispatch power at short notice, incentives for system-friendly deployment of renewable technologies, demand-response and energy storage. Without such measures, variable renewables risk being idled in times of abundant generation and lose effectiveness as decarbonisation options. Another year of low upstream oil investment in 2017 would risk a shortfall in oil production in a few yearsâ&#x20AC;&#x2122; time. The conventional crude oil resources (e.g. excluding tight oil and oil sands) approved for development in 2015 sank to the lowest level since the 1950s, with no sign of a rebound in 2016. If there is no pick-up in 2017, then it becomes increasingly unlikely that demand (as projected in our main scenario) and supply can be matched in the early 2020s without the start of a new boom/bust cycle for the industry. Almost all of the projected growth in oil demand to 2040 comes from freight, aviation and petrochemicals, sectors where alternatives are scarce. Growth in oil consumption slows but reaches 103.5 mb/d by 2040. Even though the total vehicle stock almost doubles, fuel demand for passenger vehicles declines because of fuel efficiency gains, biofuels and electric vehicles. Sales of electric vehicles rise rapidly, gaining consumer appeal as more models appear on the market and the cost gap with conventional vehicles continues to narrow.

A more flexible global gas market, linked by a doubling of trade in LNG, supports an expanded role for natural gas in the global mix. Gas faces strong competitive pressures, from coal in some markets, from renewables in many. The development of a more globalised market and its status as the least-polluting of the fossil fuels helps gas gain ground, overtaking coal in the global mix. Changes in market operation, business models and pricing arrangements are catalysed by a new diversity among suppliers, with North America, Australia, East Africa all emerging as major exporting regions. Coal has fueled Chinaâ&#x20AC;&#x2122;s rise, but it is now stalling as a result of Chinaâ&#x20AC;&#x2122;s transition. There are sharp regional contrasts in coal use, from the declines seen in many OECD economies to the continued rises seen in India and Southeast Asia. China remains by far the largest coal consumer and producer, and the projected fall in coal consumption to 2040 transforms the global outlook: barring an unexpectedly dry year for hydropower, Chinese coal use is likely to have peaked in 2013. The links between energy and water use are set to intensify. The energy sector is a major water user, mainly for power generation and biofuels but also for fossil fuel production, requirements that are set to grow to 2040. The water sector is a major energy user (quantified for the first time in WEO-2016) for water supply and treatment, and energy consumption for water supply more than doubles to 2040, with the largest increase coming for desalination. Managing these energywater linkages is pivotal to the prospects for successful realisation of a range of development and climate goals.

Investment to 2040 in Renewable Electricity Generation Source: “RE 100, Growing Market Demand for Renewable Power”, RE100 Annual Report, The Climate Group, 2016.

CHART: PROJECTED INVESTMENT TO 2040 IN RENEWABLE ELECTRICITY GENERATION (BY TECHNOLOGY)

CHART: RE100 TOTAL AND RENEWABLE ELECTRICITY CONSUMPTION (BY SECTOR, 2014)

$1.5 trillion large-scale photovoltaic projects

$2.4 trillion onshore wind

$1.1 trillion hydro-electric

Electricity use in MWh (millions)

$464 billion offshore wind

Retail

$2.2 trillion small-scale photovoltaics

Food & drink

IT, Manufacturing telecommunications, technology

Total electricity concuption

Financial, professional services, buildings & property

Pharmaceutical & healthcare

Apparel

Renewable electricity consumption

RE100 Company - Average Progress against 100% Coal

Percentage of electricity from renewables, 2014

Source: â&#x20AC;&#x153;RE100 Growing Market Demand for Renewable Powerâ&#x20AC;?, RE100 Annual Report, The Climate Group, 2016.

IT, telecommunications, technology

Retail

Financial, professional services, buildings & property

Manufacturing

Pharmaceutical & healthcare

Apparel

Food & drink

"If you want to find the secrets of the universe, think in terms of energy, frequency and vibration." Nikola Tesla,

Serbian-American inventor, electrical engineer, mechanical engineer, physicist, and futurist (1856-1943)

"A nation that cannot control its energy sources cannot control its future." Barack Obama,

American politician and the 44th President of the United States (1961- )

"We are using resources as if we had two planets, not one. There can be no ‘plan B’ because there is no ‘planet B’."

"The energy of the mind is the essence of life." Aristotle,

Ban Ki-moon,

South Korean statesman, politician and the eighth Secretary-General of the United Nations (1944- )

Greek philosopher and scientist (384-322 B.C.)

f Energy re o utu The F

Key note a r ti c l e s

Rethinking Energy Energy enables.

Rachel Kyte CEO Sustainable Energy for All Special Representative of the UN Secretary-General for Sustainable Energy for All

rom job creation to economic development, from security concerns to the full empowerment of women, energy lies at the heart of the Sustainable Development Goals (SDGs) agreed by the world’s leaders in September 2015. How we produce and use energy is pivotal to the Paris Agreement on climate change, in which 195 nations agreed to act to keep the increase in the global average temperature well below two degrees Celsius.

Yet more than one billion people in the world today have no access to electricity, and nearly three times that number depend for cooking on solid fuels, whose smoke is killing more than four million people a year.

We need to rethink radically the way we produce, distribute and use energy, if we are to meet the dual challenge of reducing the carbon intensity of energy while making it available to everyone.

energy access is critical in delivering not only SDG 7, but all the SDGs. Without sustainable energy, development that lifts up all people, while protecting the planet is simply not possible.

Reflecting that need, SEforALL is working towards three ambitious objectives for 2030:

But as a global community, we are not moving fast enough to meet the challenge.

• ensuring universal access to modern energy services, • doubling the share of renewable energy in the global energy mix, and • doubling the global rate of improvement in energy efficiency.

It’s possible to secure sustainable energy for all by 2030 but we are not on track. Our rate of progress must increase. We must all go further, faster - together.

These objectives foreshadowed are embodied in Sustainable Development Goal 7, which calls for “affordable, reliable, sustainable, and modern energy for all”. Ensuring sustainable

Progress on energy efficiency is at two-thirds the required rate. We need to double the share of renewables in the energy mix. And finance flows are at one-third of the USD 1.0-1.2 trillion per year required to meet all three of

Global Sustain Yearbook 2016/17

The Energy [R]evolution | Keynote Articles

SEforALL’s objectives by 2030. Affordable renewable energy technologies can bring modern energy services to rural communities where extension of the conventional power grid is prohibitively expensive and impractical. Efficiency and renewable sources, combined, offer us an energy system that takes up less planetary space and keeps emissions to levels that allow us to fulfil the Paris Agreement. Bolstering energy efficiency can provide substantial cost savings to governments, businesses and households, while freeing up power for other more productive uses. Decentralised clean energy business models powering super-efficient devices mean that the “last person” can now be the first person we reach

with energy services. Energy is also the dominant contributor to climate change. SEforALL exists to meet this dual challenge: reducing the carbon intensity of energy while making it available to everyone on the planet. This will require a radical rethink of the way we produce, distribute and consume energy. Building the movement In September 2011, Secretary-General Ban Ki-moon shared his vision for making universal access to sustainable energy a reality by 2030. He launched Sustainable Energy for All as a global initiative that would mobilise action from all sectors of society in support of its three interlinked objectives. With a mandate that sent a clear signal about the central role of energy in ending

poverty and halting the precipitous changes in climate, SEforALL embarked on uncharted territory and rapidly generated momentum. Operating under the leadership of its first CEO and Special Representative of the Secretary-General for Sustainable Energy for All, Kandeh Yumkella, SEforALL has brought multiple stakeholders together-governments, development banks, the private sector, investors, civil society, and international institutions-under a single umbrella. Many formal and informal partnerships have formed - Regional and Thematic Hubs, Advisory Board Committees and the Global Energy Efficiency Accelerator Platform - as SEforALL’s structure has evolved. Among these, the Knowledge Hub, hosted by the World Bank in collaboration with other partners, has been instrumental in benchmarking

progress towards SEforALL’s objectives through its Global Tracking Framework and other knowledge products, providing valuable contributions to the intergovernmental process of setting indicators to measure SDG 7. More than 100 countries have engaged with SEforALL, providing financial or inkind contributions or working on tailored national strategies and investment plans to deliver on SEforALL’s objectives. SEforALL’s high-level advocacy and coalition-building played a core role in putting universal access to modern energy services at the heart of the SDGs and Paris Agreement. Going further, faster - together We have reached an inflection point. The world’s leaders have stepped

up and agreed to an agenda that will achieve sustainable development while tackling climate change – and SEforALL is responding. Advocacy for SEforALL’s goals sparked a movement, and brought together governments, companies, investors, communities, cities and people to call for action.

Results 2016-21, titled ‘Going Further, Faster - Together’, marks a new phase where the emphasis is on helping partners to take rapid, tangible action on SDG7 and the Paris Agreement.

Now SEforALL is working to turn this movement into a driving action. We will empower leaders to go further, faster by brokering partnerships and unlocking finance. This will help us secure an energy transition that is clean, affordable and just.

Sustainable Energy for All is developing ‘heat maps’ based on data from its Global Tracking Framework - developed by a coalition led by the World Bank Group and the International Energy Agency - to help focus resources where they can have most impact. While every country, region or town matters, the heat maps offer a framework for identifying those places where action is most needed, and where successes

In 2016, SEforALL has become an international organisation in its own right. Its new Strategic Framework for

Key elements of the Strategic Framework include the following:

can inform solutions elsewhere. We will work to mobilise the huge investment needed to achieve the three objectives, estimated to be at least one trillion dollars annually - a tripling of current flows. We will work with others to help develop robust pipelines of bankable projects, an enabling policy climate, ways to address investor risk and financing approaches that can unlock the right type of capital at the right time. We will catalyse action on energy access through both grid connections and decentralised solutions. We will encourage governments to take an ‘energy efficiency first’ approach in

policy planning, making this so-called first fuel an integral part of holistic energy systems. We will help leaders to scale up renewable energy by leveraging the work of our partners and celebrating success stories. We will help leaders to make the right choices on energy policy and action, supporting the exchange of ideas, data, evidence and best practice. We will take an inclusive, peoplecentred approach, ensuring that the voices of the energy poor are heard and that women are full participants and beneficiaries.

Global Sustain Yearbook 2016/17

The Energy [R]evolution | Keynote Articles

info

As a global platform, we will create a space where new partnerships can be created, questions can be aired, solutions explored and successes celebrated. The Charter of the United Nations begins with “We the peoples…”

Rachel Kyte is Chief Executive Officer of Sustainable Energy for All (SEforALL), and Special Representative of the UN Secretary-General for Sustainable Energy for All. She is the point person in the UN for action towards the recently agreed global goal on sustainable energy. Ms Kyte served until December 2015 as World Bank Group Vice President and Special Envoy for Climate Change, leading the Bank Group’s efforts to campaign for an ambitious agreement at the 21st Convention of the Parties of the UNFCCC (COP 21). She was previously World Bank Vice President for Sustainable Development and was the International Finance Corporation Vice President for Business Advisory Services. Recipient of numerous awards for women’s leadership, climate action and sustainable development, she is a Professor of practice in sustainable development at Tuft’s Fletcher School of Law and Diplomacy. She holds a master’s degree in international relations from Fletcher, and a bachelor’s degree in history and politics from the University of London.

We the peoples have determined that there should be affordable, reliable, sustainable and modern energy for all. We the peoples understand that “all” means everyone. And we the peoples know that together we can go further, faster.

Sustainable Energy for All (SEforALL) empowers leaders to broker partnerships and unlock finance to achieve universal access to sustainable energy, as a contribution to a cleaner, just and prosperous world for all. We connect stakeholders, marshal evidence, benchmark progress, amplify the voices of our partners and tell stories of success. As a global platform, SEforALL lifts up the great work of others. It demonstrates the art of the possible. It makes connections and investments happen. It produces measurable results. Strategic guidance is provided by SEforALL’s Advisory Board, a unique body cochaired by the UN Secretary-General and the President of the World Bank Group. It comprises more than 40 ministerial-level or chief executive-level leaders selected from key government or international organisations, relevant energy businesses and civil society organisations, global leaders in energy finance, investments and authorities in policy, technology and other strategic issues.

Because no one must be left behind.

www.SEforALL.org

Energy, Smart Cities, and Urban Adaptation Dr. Mukhisa Kituyi Secretary-General UNCTAD

urrent estimates suggest that by 2030 over 60 per cent of the global population will be living in cities, increasingly concentrated in Africa, Asia and Latin America. This fraction could rise to two-thirds by 2050. Comparing the projected rate of growth of urban populations across regions, it is clear that developing countries, particularly the least developed countries, will confront far more rapid urban population growth than developed countries. Recent estimates suggest that the growth of urban areas in the first three decades of the twenty-first century will be greater than the cumulative urban expansion in all of human history, especially given the fact that 2008 is the first time in human history where there were more urban dwellers than rural. Rising urbanisation exerts pressures

both within the urban environment and on the planet. Within cities, rising energy prices, energy security and theft, depleting energy sources and the global warming caused due to the impact of energy usage are some of the key issues that city managers face in their path towards sustainable development. And despite cities occupying only five per cent of the Earthâ&#x20AC;&#x2122;s land mass, they contribute approximately 70 per cent of global energy use and greenhouse gas emissions. Growing energy demands in the context of increasing urbanisation is accompanied by an unprecedented increase in demand for water, land, building materials, food, pollution control measures and waste management. Cities are therefore under constant pressure to provide better quality services, promote local economic

competitiveness, improve services delivery, increase efficiency and reduce costs, increase effectiveness and productivity and address congestion and environmental issues. Such pressures are motivating cities to turn to smart solutions and experiment with various smart infrastructure applications. Technological innovations, and specifically information and communication technologies (ICTs), are enabling the development and deployment of â&#x20AC;&#x153;smart cities.â&#x20AC;? Smart, sustainable cities are innovative cities that use ICTs to increase the efficiency of urban services and operations and improve quality of life in ways that ensure economic, social, and environmental sustainability. Recently, the United Nations Commission on Science and Technology

Global Sustain Yearbook 2016/17

The Energy [R]evolution | Keynote Articles

for Development explored how smart cities offer opportunities for developing countries to not only provide adequate urban infrastructure to meet the increasing pace of urbanisation but also create pathways for technological leapfrogging in infrastructure. Two key infrastructure components of smart cities, among others, that can help address urban, energy-related challenges are smart energy systems and smart buildings. Smart energy management systems use sensors, advanced meters, renewable energy sources, digital controls and analytic tools to automate, monitor and optimise energy distribution and usage. Such systems optimise grid operation and usage by balancing the needs of the different stakeholders involved (consumers, producers and providers). A key component of smart energy

infrastructure is smart grids which integrate ICTs with electricity delivery systems to enhance grid operations, provide customer services, and improve environmental benefits. Smart grids have been implemented worldwide, in both developed and developing countries. For example, the Kashiwano-ha smart city project in Japan uses a smart grid based on an area-wide energy management system combining home-energy management systems, real-time monitoring of energy supply and demand and self-sustained energy management with the optimal allocation of generated and stored energy. In Brazil, smart grids use smart meters to combat fraud in the power grid. Smart buildings have the potential to serve as an important component of smart grids, contributing to a more robust and reliable electric grid. Smart

building management systems can improve building energy efficiency, reduce waste and ensure an optimum usage of water, with operational effectiveness and occupant satisfaction. It is estimated that implementing smart building solutions could save as much as 30 per cent of water usage and 40 per cent of energy usage and reduce overall building maintenance costs by 10 to 30 per cent. For example, in Austria, Plus-Energie-BĂźrohochhaus (Plus-Energy Office High-Rise Building) is widely recognised as the first smart office building that feeds more energy into the grid than it uses. Implementing smart infrastructure for increasing energy demands, especially in developing countries, requires a number of factors, including: digital infrastructure, local adaptation, talent development, financial investment,

suitable governance models, and inclusive design principles. Digital infrastructure can support smart cities at a number of different layers, including the urban layer, sensor layer, connectivity layer, data analytics layer, and automation layer. The UN Commission on Science and Technology for Development and UNCTAD have extensively analysed the technological, financing and policy options available to developing countries to enable broadband digital connectivity for the Information Society. Local adaptation can ensure that smart infrastructure components are locally relevant and respond to context-specific urban needs. For example, in South Africa, collaboration between a local university and city administration led to the design of smart shacks, which

address urban housing in informal settlements. There is a need for local talent to implement, deploy, and manage smart city infrastructure, including in planning and design, digital citizenship, data literacy, implementation and management. In fact, smart cities can induce communities to develop capacity in science, technology, engineering and mathematics, as illustrated by the Science of Smart Cities Programme and Urban Data School initiatives. UNCTAD assists countries in their efforts to enhance the availability and quality of their human resources in science and technology through Science, Technology, and Innovation Policy Reviews. Sustainable urban development including the application of smart

infrastructure - may require significant financial resources. Public-private partnerships, creative financing vehicles, and a favorable enabling environment can play a role in this respect. In the case of smart infrastructure, technology-driven outcomes-based payments may also serve as a viable financing tool. For example, in Germany, the KfW Group development bank developed a scheme to monetise the energy efficiency gains of residential buildings. Smart cities call for new governance models that effectively balance both topdown and bottom-up approaches. They also require an integrated approach that breaks down ‘silos’ across different government departments through the aggregation of various data streams or the colocation of different infrastructure

components. An example of such an approach is in Gujarat International Finance Tec-City in India, where multiple utilities are provided through a single tunnel, resulting in huge cost savings and a better management of urban space. In the spirit of “leaving no one behind”, smart city applications should be inclusive and enable access to mainstream basic utilities that are often inaccessible to the poor. Smart infrastructure has the potential to promote inclusive development in cities by helping to generate data on informal settlements, informal sectors, and marginalised groups in society. Such data can then be used to design infrastructure that specifically addresses the needs of such groups. For example, companies

like M-KOPA Solar in East Africa use mobile technology and solar power to make available affordable high-quality solar power solutions to people without access to the main power grids. Ensuring sustainable urbanisation is not only the work of cities but is the responsibility of all stakeholders advancing sustainable development. In this context, international organisations play a critical role in promoting the development of technical standards for smart cities, conducting pilot projects, and creating relevant indicators and benchmarks on smart cities. Intergovernmental bodies like the UN Commission on Science and Technology for Development, which UNCTAD is proud to service, will continue to provide a platform to exchange lessons

Global Sustain Yearbook 2016/17

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info learned, best practices and experiences in policy approaches in harnessing science, technology, and innovation towards promoting smart cities and infrastructure. UNCTAD’s analysis and technical cooperation work also supports the development of national capacities in science, technology, and innovation policy-making and implementing capacity to ensure that such frameworks are conducive for smart city innovations, including the challenges of energy. With the international community working together with cities and countries to address our most pressing energy and urban development challenges, we can collectively make cities and human settlements inclusive, safe, resilient, and sustainable by 2030.

Dr. Mukhisa Kituyi, of Kenya, who became UNCTAD’s seventh Secretary-General on 1 September 2013, has an extensive background as an elected official, an academic, and a holder of high government office. He also has wide-ranging experience in trade negotiations, and in African and broader international economics and diplomacy. He studied political science and international relations at the University of Nairobi and at Makerere University in Kampala, Uganda, receiving a BA in 1982. He went on to earn an MPhil in 1986 and a doctorate in 1989 from the University of Bergen, Norway. Mr. Kituyi served as a researcher at Norway’s Christian Michelsen Institute from 1989 to 1991, and as Programme Director of the African Centre for Technology Studies in Nairobi from 1991 to 1992. He was elected to the Kenyan Parliament in 1992, and was twice re-elected. He was Kenya’s Minister of Trade and Industry from 2002 to 2007. Mr. Kituyi is married and has four children. United Nations Conference on Trade and Development (UNCTAD), which is governed by its 194 member States, is the United Nations body responsible for dealing with economic and sustainable development issues with a focus on trade, finance, investment and technology. It helps developing countries to participate equitably in the global economy. Its work can be summed up in three words: think, debate, deliver. UNCTAD carries out economic research, produces innovative analyses and makes policy recommendations to support government decision-making. UNCTAD is a forum where representatives of all countries can freely engage in dialogue, share experiences and tackle critical issues affecting the global economy. It promotes consensus at the multilateral level. UNCTAD turns research findings into practical applications and offers direct technical assistance to help countries build the capacities they need for equitable integration into the global economy and improve the wellbeing of their populations. www.unctad.org

Industrial Energy Efficiency: Picking the Low-Hanging Fruit LI Yong Director General United Nations Industrial Development Organization (UNIDO)

cross the globe, industry is a large consumer of energy. Today the industrial sector accounts for almost 40% of the world’s total final energy consumption. And, over the next two decades, industry’s demand for energy is expected to further increase, at a rate of 1.3% annually. Industry is also the single largest source of greenhouse gas (GHG) emissions, accounting for nearly one third of total global emissions. The good news is that the adoption of energy efficiency measures could reduce industrial energy use by over 25%. The potential for energy efficiency in the industrial sector is substantial. Not only does industrial energy efficiency reduce overall energy consumption – thereby reducing many countries’ dependence on energy imports – it also encourages

development, creates jobs and decreases pollution. Indeed, efforts to improve industrial energy efficiency are critical to achieving the 2030 Agenda for Sustainable Development and the Sustainable Development Goals, especially those related to climate change and sustainable energy.

System is a series of processes that enables people of varied responsibilities across an organisation to use data and information to maintain and improve energy performance, while improving operational efficiencies, decreasing energy intensity, and reducing environmental impacts.

One of the main barriers to energy efficiency in the industrial sector is that industrial companies focus on driving production and most are not aware of the multiple benefits of implementing energy efficiency activities or of the array of available technologies. But, over the last two decades, Energy Management Systems (EnMS) have emerged as a proven best practice methodology to ensure sustainable energy efficiency and continually improve industrial performance. An Energy Management

The globally accepted and recognised standard for EnMS is ISO 50001 and its implementation can assist industry in developing strategies and processes to manage energy use, increase efficiency, reduce costs, and improve environmental performance. Policies and market mechanisms that encourage the uptake of EnMS within industry can be highly effective for improving efficiency. This is because an energy management system

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establishes closer linkages between energy efficiency and core industry values, such as cost reduction, increased productivity, environmental compliance and global competitiveness. Over the past decade, the United Nations Industrial Development Organization (UNIDO) has been supporting enterprises in developing countries and emerging economies with the implementation of EnMS, thereby helping them improve their energy performance, productivity and environmental sustainability. For companies in developing countries that are new to it, energy management can yield energy savings of five to 15% in the first one to two years of implementation. EnMS are so effective in achieving significant and sustainable reductions in energy consumption that many governments require large energy

end users to implement them. Most countries in Europe have already made energy management central to their energy efficiency programmes. Governments wanting to create the conditions to facilitate the adoption of energy management and implement ISO 50001 need to put in place policies and mechanisms that promote its uptake. In developing a policy mix that best suits the industrial sector, it is important to analyse the instruments and schemes that are in use across the world and to present relevant considerations to policymakers in developing countries. Setting energy performance standards for industrial equipment is another area that holds significant potential for energy savings in industry. Many developed countries already have mandatory Minimum Energy

Performance Standards (MEPS) in place for a range of energy consuming equipment within industry, while many developing countries are also moving towards the introduction of mandatory MEPS for industrial equipment such as motors and boilers. Efficient components may bring about gains in the range of two to five per cent, but systems optimisation measures can attain average efficiency gains of 20 to 30% with a payback period of less than two years. Therefore, efforts to address the obstacles for optimising energy efficiency in the design, operation and maintenance of industrial energy systems will have to be made in order to capture the full economic and environmental potential of energy efficiency.

Looking ahead to the future of energy efficiency in industry, the other key driver/factor to achieve a transformational change to lower-carbon and higher-productivity development paths is innovation â&#x20AC;&#x201C; and by that I mean innovation in technologies, applications, production processes and business models. Technology innovation has reached the top of policymakersâ&#x20AC;&#x2122; agendas in many countries, including many member states of UNIDO. However, substantial work remains ahead for governments, industry, the private sector, investors and organisations like UNIDO in order to effectively promote, support and accelerate the development of innovative clean technologies and solutions, especially in and for the industrial sector. Governments need to

create ecosystems to identify innovative solutions for the technical challenges faced by industry and to work with industry and the broader research and development community to solve them. Government support for green manufacturing, small and mediumsized enterprise (SME) innovation competitions, and incubators and accelerators for innovation has risen over the past few years. This is a very positive sign. UNIDO, together with key partners like the Global Environment Facility and the Cleantech Open, has been able to develop the UNIDO-GEF Global Cleantech Innovation Programme for SMEs, now covering seven countries

and expected to be expanded to additional ones, to help unlock the full potential of energy efficiency in industry. A new area of focus for UNIDO in terms of innovation for industrial energy efficiency is Big Data and the Internetof-Things. Recent reports from the McKinsey Global Institute have provided a very interesting insight into the potential for productivity and innovation that Big Data and the Internet-ofThings offer to industry. A study performed by one of Europeâ&#x20AC;&#x2122;s leading digital businesses has found that the implementation of information and communications technologies (ICT) and the digitising of business processes

can help remove 7.6 gigatonnes (GT) of carbon emissions across six industrial sectors, including 2.2 GT from utilities and 0.7 GT from manufacturing. Most companies are still capturing only a fraction of the potential value of data, analytics and ICT application, and the manufacturing sector is one of the sectors where progress has been particularly slow. Interestingly, the study also highlights the fact that the biggest barriers companies face in extracting value from data and analytics are organisational; many struggle to incorporate data-driven insights into day-to-day business processes.

At UNIDO we have started to look at some of these opportunities and their associated barriers, and we are now working in several countries, including Russia and Iran, on the application of state-of-the-art internet-based solutions for energy efficiency analysis and monitoring in industry, allowing for instant tracking of energy performance and a real-time measurement of energy use and savings. Other innovative solutions that have very good potential for industrial energy efficiency include services related to remote monitoring and control of energy utilities, especially for SMEs, and automated systems to monitor and

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info LI Yong, Director General of the UNIDO since 2003, has had an extensive career as a senior economic and financial policy-maker. As Vice-Minister of Finance of the People’s Republic of China and member of the Monetary Policy Committee of the Central Bank for a decade, Mr. Li was involved in setting and harmonising fiscal, monetary and industrial policies, and in supporting sound economic growth in China. He pushed forward financial sector reform, and prompted major financial institutions to establish corporate governance, deal with toxic assets and strengthen risk management. Mr. Li gave great importance to fiscal and financial measures in favor of agricultural development and SMEs, the cornerstones for creating economic opportunities, reducing poverty and promoting gender equality. He played a key role in China’s cooperation with multilateral development organisations, such as the World Bank Group and the Asian Development Bank.

report on energy performance. Industrial companies and innovative entrepreneurs working in collaboration with the UNIDO industrial energy efficiency programme have experienced multiple benefits beyond pure energy cost savings, including increased productivity and competitiveness, reduced exposure to volatile energy prices and greater operational reliability. Yet, most countries still have substantial unrealised opportunities to improve their industrial energy efficiency.

The United Nations Industrial Development Organization (UNIDO) is the specialised agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalisation and environmental sustainability. UNIDO’s mission is to promote and accelerate inclusive and sustainable industrial development (ISID) in developing countries and economies in transition. The relevance of ISID as an integrated approach to all three pillars of sustainable development is recognised by the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). UNIDO’s mandate is fully recognised in SDG9: “Build resilient infrastructure, promote inclusive and sustainable industrialisation, and foster innovation”. The relevance of ISID, however, applies to all the SDGs. The Organisation’s programmatic focus is structured in three thematic priorities: • Creating shared prosperity • Advancing economic competitiveness • Safeguarding the environment Each of these fields of activity contain several individual programmes, which are implemented in a holistic manner to achieve effective outcomes and impacts through UNIDO’s four enabling functions: (i) technical cooperation; (ii) analysis and research, and policy advisory services; (iii) normative functions and standards, and quality-related activities; and (iv) convening and partnerships for knowledge transfer, networking and industrial cooperation. www.unido.org

Renewable Energy Employment Source: “Renewable Energy and Jobs”, Annual Review, IRENA, 2016.

Renewable Energy Employment by Technology Source: “Renewable Energy and Jobs”, Annual Review, IRENA, 2016.

"We live in a world bathed in 5,000 times more energy than we consume as a species in the year, in the form of solar energy. It is just not in usable form yet." Peter Diamandis,

Greekâ&#x20AC;&#x201C;American engineer, physician, and entrepreneur best known for being the founder and chairman of the X Prize Foundation (1961-)

"The use of solar energy has not been opened up because the oil industry does not own the sun." Ralph Nader,

American political activist, author, lecturer, and attorney, noted for his involvement in consumer protection and environmentalism (1934-)

"Energy is neither created nor destroyed. It just changes shape." Sheri Reynolds,

author of contemporary Southern fiction (1967-)

"I would put my money on the sun and solar energy. What a source of power! I hope we do not have to wait until oil and coal run out before we tackle that." Thomas Edison,

American inventor and businessman (1847-1931)

I n s ti tu tes & N e t w o rk s

Need to Strengthen Energy Security in EU with New Risk Management and Continuity Concept

T Yannis Salavopoulos CEO, CAPITALS Circle Group CEO, Global Sustain GmbH

he transition to a low carbon economy in the European Union (EU) with cleaner energy requires energy security. Important elements of energy security are the EU itself, competent authorities in the member states and energy providers (state, semi state or private energy companies). Holistic Risk Management, Continuity and Crisis Management Plans as well as better functioning, coordination and intelligence exchange mechanisms between member states are essential in order to be able to prevent or mitigate all possible risks in the energy supply and thus safeguard energy security. The EU Energy Security Strategy EU launched its energy security strategy in 2014. EU conducted energy stress tests to analyse the ability of Europe's energy system to cope with severe gas disruptions. To help protect against gas disruptions, the EU reinforced its security of supply laws with the adoption of the Security of Gas Supply and Regulation in 2010. EU countries must ensure that gas is supplied even 1 2

under demanding conditions such as a disruption of main gas infrastructure lasting for 30 days. They must also prepare Preventive Action Plans and Emergency Plans to prevent and deal with potential crises. EU countries are further required to maintain oil stocks equal to at least 90 days of their average daily consumption under the Minimum Stocks of Crude Oil and/or Petroleum Products Directive. European Commission proposed on February 2016 an update to these rules. EU also tries to strengthen emergency/solidarity mechanisms including coordination of risk assessments and contingency plans and protecting strategic infrastructure. Energy Conspumtion Mix in EU Energy Source Percentage Petroleum 33.4% Gas 23.2% Solid Fuels 17.2% Nuclear Energy 13.6% Renewable Energy Sources 11.8% Non-renewable waste and electricity 0.8%

Risk Management and Continuity Planning for Securing Energy Supply in the EU Energy risks are transnational, multiple and complex, therefore there is a need for better coordination prevention and exchange of intelligence mechanisms. The main categories of risks across energy supply chain, which should be prevented and mitigated in order to avoid disruptions and have energy security are the following: • Political / Geopolitical Risks (e.g. political instability or tension between countries from which a pipeline (or grid in general) goes through; could be considered also as transit risks in case a country is used as transit country. For instance, the case of Russia vs. Ukraine crisis with a strategic risk for EU energy supply security. • Technical Risks (e.g. Cyber Attacks, technical failures etc.). • Environmental Risks (e.g. Accidents –oil and gas, nuclear power plants accidents, natural disasters etc., which can threat or even disrupt the

EU Energy Security Strategy (European Commission) Chatham House, Europe’s Energy Union, Foreign Policy Implications for Energy Security, Climate & Competitiveness, March 2016

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info supply of energy for a period of time). • Security Risks (e.g. Terrorism attacks against infrastructures, pipelines etc.). • Economic Risks (e.g. Price shocks etc.).

steps should be considered: • Gap Analysis, • Risk Assessment, • Impact Analysis, • Disaster Recovery Plan, and • Continuity Plan.

All above threats could occur in the different stages of the supply chain (e.g. source, production, transit, distribution, consumption etc.). There is a need for risk and incident management plan for all above categories of risk with the transit and technical risks to be considered perhaps at the moment as the most critical ones.

With the above holistic approach, we achieve sufficient strategic and operational preparedness. There is a need for better cross – border cooperation, exchange of intelligence schemes and implementation of EU stricter common energy security standards (for all energy sources) for Risk Management, Continuity Plans and Crisis Management among all EU member states in the energy supply.

In the Risk Management Concept, there is a need for a phase to phase approach which includes: • Gap Analysis, • Risk Assessment (Identification, Prioritisation), • Impact Analysis & Evaluation, and • Proposals for Risk Treatment. In the Continuity Plan, part of which is also the risk management, the following

Yannis Salavopoulos (MBA) is Founder and CEO, CAPITALS Circle Group (CCG) GmbH (Berlin), CCG is an Int. Strategy Advisory with focus on Public Affairs/Policy, Enterprise Risk Strategy and Economics. He is also Managing Director, Global Sustain GmbH (Berlin), an international Advisory in Sustainability. He is also Guest Lecturer at SRH Berlin Int. Management University. He has extensive experience In the fields of Public Affairs and Policy, Enterprise Risk Management, Economics, Strategy. Before he served as Economic and Commercial Counselor of Greece for over 10 years at the Embassies of Greece in Berlin, Dubai and in Athens. Before entering the Diplomatic Corps, he had worked for a few years as corporate Lawyer. CAPITALS Circle Group • CCG GmbH is a Berlin based international “Boutique” Strategic Advisory with focus on Public Affairs / Policy, Enterprise Risk Management / Continuity, Economics and Strategy. • CCG has a multilingual and multicultural team of advisors, working closely with a network of diverse consulting firms as strategic partners per segment and region (Germany, Greece, Brussels). • CCG GmbH has expertise among others in following main sectors: public sector and policy, new economy, ICT and digital technologies, energy, new industry, finance and banking, mobility, food and beverages. • CCG GmbH offers an int. network of consulting firms and strategic partners. www.capitalscirclegroup.com www.globalsustain.org/el

A Dynamic Research, Education and Innovation Ecosystem to Support the Energy Transition

T Prof. Dr. André Faaij Distinguished Professor Energy System Analysis University of Groningen & Academic Director Energy Academy Europe

he challenges posed by the global ambition to avoid the worst of climate change, and the fundamental transformations this requires of energy systems worldwide, are daunting. Trillions of dollars of investment will be needed over the coming decades to realise the transitions in energy systems. The impacts on energy technologies and infrastructures industries, transport and the built environment, but also on business models, markets and governance will be profound. Environmental, economic and social implications need to be understood to optimise investment and design effective policies for implementation. This, combined with limitations on availability of various natural resources, time pressure and unprecedented technological possibilities that are and will increasingly become available, makes the energy transition, and thus energy research, a formidable area to work in.

Technological learning - i.e. combining R&D efforts with large scale market deployment of new available technologies and thereby triggering a decline in costs of these technologies - is crucial and can under the right circumstances accelerate; the striking examples delivered in the field of wind off-shore and solar PV illustrate this and many more may follow. The costs of the energy transition are tremendous, but so are the potential revenues. To harvest these revenues, it is key to understand the synergy between rapid development and large scale deployment of renewable energy techniques and energy efficiency measures, which will lead to cost declines for these techniques, and the resulting reduced dependency on fossil fuels, in turn leading to lower prices for oil, gas and coal. In total, this can deliver a cheaper and more diverse and robust energy system in the medium to longer term. But such an ‘end’ result is not a given. Many hurdles and questions need to

be tackled along the way: How can we manage the rising share of fluctuating renewable energy production through a combination of flexible, state-of-theart technologies and demand side management? How much (expensive) energy storage capacity do we need, and how can we limit such need by creating more flexibility in energy generation? How to create more interconnection between energy networks (electricity, gas and heat)? How can the desired changes be responsive to end users’ interests, needs and perspectives? How does the behavior and interaction of different actors drive the observed and desired changes in the energy system? And what are the drivers of these behaviors and interactions? How should we adjust and design markets in the changing system, and how do we create more market coupling and integration of renewable energy policies? What policies do we need to meet social, legal, institutional and economic feasibility conditions, and which policies are most effective to

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make the new technological systems become reality? How are incumbent industry players affected by the transition, and what role can they play in the transition? These questions and changes in the energy system involve different spatial levels (from continental to regional and local) and are strongly interlinked. Optimal solutions and pathways will differ from country to country and setting to setting. This challenges the scientific community to develop the interdisciplinary knowledge needed to better understand the possibilities and impacts of energy system changes, thereby linking analyses of energy technologies, infrastructure and systems with policy approaches, actor behavior and business models. Similar challenges arise for the education system that should deliver the professionals and ‘human capital’ to drive the energy

transition as well as the entrepreneurs that are the core of new and profitable businesses. The Energy Academy Europe (EAE) is set up as a center of excellence and public-private partnership to support and accelerate the energy transition over the coming decades. The EAE is a cross-cutting strategic priority for two universities in Groningen, The Netherlands, and its other partners, which include the energy sector, research institutes and the regional government – pooling over 1,000 scientists from natural to social science. Under its umbrella, the EAE offers a state-ofthe-art infrastructure that combines interdisciplinary research on energy transitions, an education portfolio from vocational to post-academic level that is relevant for the energy and adjacent sectors and a ‘living’ ecosystem that fosters entrepreneurship for the energy system of the future. The EAE is ready for business and its doors are open for collaboration in every respect.

André Faaij is appointed as Academic Director Energy Academy Europe and Distinguished Professor Energy System Analysis at Groningen University. Prior to this position he was Professor and scientific director of the Copernicus Institute of Utrecht University. His research covers, amongst others, bio-based economy, carbon capture and storage, renewable energy, alternative transport fuels, energy system and scenario analysis, technological learning and energy policies. He works as an advisor for governments, the EC, IEA, the UN system, GEF, OECD, WEF, WEC, the energy sector and industry and NGOs. He contributed to various IPCC reports, the World and Global Energy Assessment and IEA’s World Energy Outlook. Furthermore, he was appointed Young Global Leader by the World Economic Forum and awarded the Linneborn Prize for outstanding contributions to the development of energy from biomass. He published over 600 titles in scientific journals, reports, books and proceedings, qualifies as ‘highly cited researcher’ (top 1% of research field) by criteria of Thomson Reuters ISI Web of Science and is frequently lecturing across the globe. As an international center of excellence, Energy Academy Europe (EAE) brings together initiatives, partners and networks to facilitate the acceleration of the energy transition. Energy Academy Europe concentrates on three pillars: education, research and innovation. Market, laws, policies, rules and regulations, society at large are part of the energy system. Our energy future depends on integrating the elements of this system. Through diverse projects Energy Academy Europe aims to move towards system integration with the goal of transitioning to a more sustainable energy system. The cooperation with top quality educational and research institutions and a vast network within the energy industry ensure that all EAE programmes are relevant to the energy sector and at the cutting edge of energy technology. EAE aims to build leadership of The Netherlands in energy expertise and to contribute to the transition towards a sustainable, reliable and commercially viable energy economy. www.energyacademy.org

G20 Global Reduction Efforts of CO2 Source: “Global Energy Scenarios to 2040 – Understanding our Energy Future”, Enerdata, 2016.

RUSSIA

-25% to -30% GHG emissions by 2030 vs 1990

EU-28

USA

min. -40%

-26% to -28% 20%

CHINA

GHG emissions by 2030 vs 1990

GHG emissions by 2025 vs 2005

-60% to -65% (CO2 intensity) by 2030 vs 2005

40%

60%

80%

INDIA

-33% to -35% (carbon intensity) by 2030 vs 2005

* CO2 intensity of GDP: ratio of CO2 emissions to GDP, excl. LULUCF

BRASIL -43% GHG emissions by 2030 vs BaU

CO2 Emissions per Capita Source: “Global Energy Trends”, Enerdata, 2016. Energy-related CO2 emissions per capita (tCO2/cap) 20 18 S.Arabia: 16,8 16

USA: 15,8

tCO2/cap

12 Russia: 10,8 10 Germany: 9,0 Japan: 8,9

China: 6,5 EU: 6,3 G20: 5,7

France: 4,6 World: 4,4

4 2 0

India: 1,7

2000

2005

2010

2015

Exhaustless Sources of Energy Will Fuel our Future

I Claire Roumet Executive Director Energy Cities

n 2015, the fifth Global Energy [R] evolution scenario was published by Greenpeace International. The ecologist activist organisation initiated this exercise in 2005 with a striking hypothesis: it was announced that the renewables production prices would fall. At that time, detractors had decided that the conclusions of the report were completely wrong, utopic. Each report was indeed wrongâ&#x20AC;Ś in that they did not catch the speed of the trend. Renewable production forecasts were always underestimated. Greenpeace has been visionary in catching the appetite for changes and to look for solutions to act on the origin of climate change: the energy system. It was also visionary to call it the Energy [R]evolution, because it is nothing less that we are currently experiencing. [R]evolution like what? Like a change of a political system or more like The Copernican Revolution which was a change of how we

represent the world. Most probably it will be both. How to see the earth (in blue) in the universe after Copernic and before:

source: WikipĂŠdia def of copernican revolution

I am not sure if we can compare the current energy [R]evolution to the complete change brought by the Copernican Revolution in the 16th century, which shifted the representation of the universe, but the revolution we are in is radical. It is also about what we put in the centre, the forces to develop our economies, our societies. Since

the industrial revolution, our economic growth is based on exogenous, finite and extractive energy, the discovery of the amazing power of oil and coal, the invention of electricity radically changed what was possible to produce by human beings and the international trade changed accordingly. Geopolitical power games created a new world order (or disorderâ&#x20AC;Ś). The energy [R]evolution we are experiencing is the shift from these exogenous sources of energy to exhaustless, endogenous, non-extractive sources of energy on which our entire society wealth will be founded. It represents an amazing opportunity for local prosperity and renewed solidarity between territories. It is possible today because the digital technologies, the renewable production methods and storage found their business models. Now, it is to be seen if this energy [R] evolution will also be political. The energy is not always greener on the

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other side of the fence. The geothermal power under your feet, the waste heat from the subway or supermarket next door, the solar roof potential of your children’s schools, your nonrecyclable waste, the list is so long it is mind blowing. Local authorities are the frontline protagonists of this new ’resource consciousness’ and as such they need to take full control over the energy architecture of the future. A growing number of cities across Europe are eager to take firm control over their energy future. Strategic actions taken by cities to reach these objectives include: • Remunicipalising energy generation, distribution, services and supply • Getting an overview of emissions and mapping resources for long-term action plans • Building local alliances of energy transition stakeholders • Inventing new financing solutions

It is the entire energy system which is becoming different. With energy cooperatives being created almost every day in Europe and a forecast that 50% of the energy needs in 2050 could be produced from decentralised sources. The question is whether the value created by endless energy sources will be captured by a handful of companies which will continue to run the energy markets or whether this will be the opportunity to share the wealth in local communities. So, we have not yet done the ‘Copernican revolution’ of changing the way we consider energy in our society, but this is underway; the political revolution is the potential of how the new energy system can empower local communities; it is well understood by pioneers Mayors but not yet at the centre of the debate of which Energy transition we want to have. It has to be discussed and experienced by more than the convinced.

Claire Roumet joined three years ago, the team of Energy Cities as Director, after having served for 12 years as the Secretary General of Housing Europe, the Federation of social, public and cooperative housing providers. She is French and has graduated in economics. She has done a post-graduate in European policies in Strasbourg after a year of econometrics in Mainz, Germany. She has been member of the board of the EU coalition for energy savings and Vice-President of the Social Platform. Energy Cities, the European association of local authorities in energy transition aiming at accelerating cities’ transformation, with the example of its pioneer 1,000 members located in 30 countries. Its mission is to facilitate the transition of European towns and cities to low energy territories with a high quality of life for all. This will be achieved by widening the political debate, opening up new horizons, engaging cities and/or facilitating local action through a three-pronged approach: DEMOCRATISATION - Reinventing energy democracy by developing new modes of local governance and new technologies that involve society as a whole. DEVOLUTION - Transferring competences (especially in the energy field) to the local and regional levels and establishing a new energy production hierarchy: first local, and then regional and national. DIVESTMENT - A new way of investing and rethinking local financing based on the exclusion of fossil energy sources and the promotion of local projects with social, environmental and economic benefits. www.energy-cities.eu

Greece as an Energy Hub for EU

Prof. Yannis Maniatis Member of Parliament Former Minister of Environment, Energy & Climate Change

ince 1990, Europe has increased its GDP by 50% and reduced its pollutants by 22%. This constitutes an unprecedented achievement towards realising a Sustainable, Circular and Fair development creating new jobs. The world's development energy future belongs to a model which is decentralised, low-carbon, democratic, smart, creating new jobs and inclusive. Greece is following the same path as the European Strategic Energy Technology Plan (SET-Plan) aiming at lowering the costs of RES, enhancing smart homes and grids, energy efficient buildings, industrial efficiency and energy transmission, competitive energy storage, carbon capture and storage, nuclear safety. We are on the brink of an energy revolution in which Greece can become a leader. We have a healthy energy mix of which renewables account for more than 15%. We have achieved 85% of our energy efficiency targets. However, we have high energy prices, ranking 23rd and 18th for electricity and natural gas prices in the EU. Greece can take advantage of the recent negative effect of investments in global oil and gas exploration activity in order to prepare and organise adequately its relevant administration

to take advantage when prices rebound and the market recovers. Since 2012, three international tenders for Greece’s hydrocarbon exploration and exploitation were launched and six submitted offers are currently being evaluated. I am convinced that Greece can become part of the so-called “East Mediterranean Hydrocarbon Eldorado”. All the available data indicate that in the coming years Greece as well as Cyprus will join the group of EU Member States which contribute positively to Europe’s energy security through the promotion of indigenous energy resources. We succeeded in turning the EU’s diversification strategy into a great opportunity for Greece. We did this by ensuring that Caspian gas enters Europe via Greece, through Trans Adriatic Pipeline (TAP) making it the EU’s gateway for the Southern Corridor, upgrading the country’s geo-strategic importance. Discoveries in offshore Cyprus, Israel, Egypt, and potentially Lebanon will continue to be catalysts for deeper economic and political cooperation, via the development of infrastructure interconnections, energy exchanges

and integration. Following the discovery of Tamar, Leviathan and Aphrodite, Zohr has confirmed the region’s importance for energy security. In this context, Greece has been developing, particularly since 2011, regional energy cooperations with Cyprus, Israel and Egypt. Their consolidation must continue. The EastMed pipeline is unique. It envisages connecting the natural gas resources of Cyprus and Israel to Italy -and beyond to other European markets via Crete and mainland Greece. Apart from enhancing European diversification of sources and routes, this project creates a completely new and secure energy path consisting exclusively of EU States, avoiding over-dependence on the route used for Caspian gas via Turkey. At first, views of this pipeline project were received with skepticism. Personally, I always believed in it. And last summer we received confirmation. The results of the pre-FEED study proved conclusively, that the project is technically feasible, economically viable and commercially competitive.

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Thanks to advanced technology its capacity has been increased to 10 bcm and can be upgraded to 16 bcm. There are other significant opportunities we must grasp and act on more dynamically: I am referring to the favorable LNG market which allows Europe to access to well-priced volumes. We should develop the necessary infrastructure: the floating LNG terminal in Northern Greece and the Greek Bulgarian natural gas Interconnector (IGB Pipeline) can fundamentally enhance the energy security of South East Europe, providing valuable sources of diversified gas and forming the first part of the Vertical Corridor. These projects, together with the upgrading of the Revythousa LNG terminal and the development of the South-East Europe Energy Exchange, form part of a solidly based energy security which aims at the emergence of Greece as an energy hub. We have many opportunities for energy security, including resource exploitation. Many of the challenges are not geological. They are over-ground, made by men and politics. Energy cannot solve them but it provides incentives for cooperation and ambitious regional solutions.

info Dr. Eng. Yannis Maniatis is a Rural and Surveying Engineer (National Technical University of Athens). He is an Associate Professor at the University of Piraeus since 2002 and a Visiting Professor at the Institute of Economic Geography of the University of Bonn (1995). Dr. Maniatis was elected as a Member of the Hellenic Parliament for the prefecture of Argolida for the Panhellenic Socialist Movement (PASOK) for the first time in the 2004 elections and re-elected in 2007, 2009, May 2012, June 2012 and September 2015 elections. He has been: • Minister of Environment, Energy and Climate Change (25.6.2013-26.01.2015) • Secretary of PASOK Parliamentary Group (05.7.2012-25.6.2013) • Deputy Minister of Environment, Energy and Climate Change (2009 -2012) • Secretary General of the Ministry of Transport and Communications (1998 -2001) • Chairman of the Athens Urban Transport Organisation (OASA) (2001 -2002) • Chairman of the Postal Savings Bank (1998 -2000) His main academic fields include: Geographic Information Systems (G.I.S.), Energy and Transportation Policies and Systems, Environmental Management and Monitoring, Innovation Management. Dr. Maniatis has participated with more than two hundred (200) scientific papers and lectures in international congresses and scientific magazines. Moreover, he is the author of the following books: “Structural Reforms and Progressive Patriotism” (PAPAZISIS Eds, 2016), “Energy and Natural Resources: National Pillars for Development” (A.A.LIVANIS Eds, 2012), “The Challenge of Green Development” (Α.A.LIVANIS Eds, 2009), “Geographic Information Systems and Environmental Monitoring” (ZITI Eds, 1995). Hellenic Parliament is the supreme democratic institution that represents the citizens through an elected body of Members of Parliament (MPs). The Plenum decides by an absolute majority of the MPs who are present. The Greek Constitution and the Parliament’s Standing Orders provides for the cases that require special or qualified majority voting. The legislative work, namely voting of Bills and Law Proposals and the exercise of parliamentary control over the Government, are the core Parliament activities. Bills and Law Proposals are debated and voted in principle, by article and as a whole. Furthermore, the Government is submitted to Parliamentary control according to the Constitution, following the procedure set out in the Parliament’s Standing Orders. www.hellenicparliament.gr/en

Ambition Over Frustration: More Companies Looking for Strong EU Leadership on Energy Policy

B Jill Duggan Director The Prince of Wales’s Corporate Leaders Group (CLG)

ack in 2008 the Member States of the European Union set themselves the targets of reducing greenhouse gases by 20% on 1990, increasing energy efficiency by 20% on 2005 and increasing the use of renewable energy by 20%. There was much wailing and gnashing of teeth over some of these targets but it looks likely that the EU and most Member States will achieve them by 2020. By 2014 the share of renewable energy across Europe had almost doubled from 8.7% in 2005 to 15.2%, ahead of the trajectory needed to meet the 2020 target. Over the same period, energy consumption in Europe had dropped from 13% below 2005 levels and most Member States were well on track to meet their greenhouse gas targets. This demonstrates a remarkable turnaround in thinking and practice that was, some would justifiably say, hastened by the global financial crisis of 2008 and consequent downturn in demand and production. That downturn, however, accelerated a process that

has been sustained – where energy intensive production is being squeezed out by changes in demand and supply and by competition from overseas. Only the most efficient can prosper in such an environment. This progress was driven by a European target that was distributed amongst Member States dependent on a variety of factors but largely by their economic development and resources. The more recent targets to deliver Europe’s contribution to the Paris Agreement are now in the process of being fixed in legislation for a new climate and energy package for 2030. The key defining difference between 2020 and 2030 is the absence for these latest targets of binding Member State goals for renewable energy. The question is how much this will matter. In an attempt to answer this key question The Prince of Wales’ Corporate Leaders Group (CLG) has interviewed a variety of businesses and business

groups such as Philips Lighting, BT and DSM. Our discussions, which were published by the CLG in Spring 2017 looked at what companies would like the new legislation to contain, based on their own experiences of EU renewables policy. Companies hold a variety of views depending on their position in the energy chain. But a consistent and overriding message that came out in these conversations was that the move away from binding Member State goals was a backward step from an investment point of view. There was a demand from business for tougher renewables targets to act as a catalyst to attract investment and help accelerate the transition to a low carbon economy. Setting these at a European level lost the transparency of the Member State targets, making it harder to track progress and see where investment is needed. For companies to make the switch to renewables, either self-generated

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or purchased, they must have a clear understanding of the overall direction and speed of travel to a zero carbon economy. The companies interviewed for our report are at the most progressive end of the spectrum and are well aware and committed to the need to take action to address climate change. They are acting to future proof their companies and to avoid the volatility of swings in incentives and supplies. But all are clear that the EU can help speed the change. It can only achieve this by being more rather than less ambitious. Many businesses see not including individual Member State obligations in the 2030 Renewables targets, as a backward step which risks the EU falling behind. It provides no incentive for countries such as France, the UK, Hungary, Poland or the Netherlands that are not on course to meet their 2020 targets to develop their renewables portfolio, as other States can meet the target on their behalf. Member States could address this backward step by taking on tougher individual state targets voluntarily, recognising the incentive and transparency for business investment. As part of the EU’s attempt to build an Energy Union, Member States are being asked to complete National and Energy Climate Plans (NECPs). It will be

crucial that Member States do not view this governance activity as a simple compliance exercise. Used properly, the NECPs offer the potential to unlock investor confidence, whilst also helping to anticipate and manage the socioeconomic impacts of the transition. Certainty of targets, visibility of policies, and an expectation of EU intervention to ensure countries meet those targets are vital if investors are to divert funds into renewable energy in the long term. A common EU framework that includes standard market design, templates for regional co-operation and measures for enforcement is also needed to ensure the consistent implementation of renewable energy policies by EU countries. The companies we interviewed have been on a journey to understand the best ways to decarbonise their businesses and many have learned valuable lessons along the way. Their message is clear and EU policy makers should take note; in order for the EU to maintain its position as leader in the renewable energy market it needs to encourage the right investment in the coming decades. This will only be possible by setting clear specific targets and taking a further, faster, higher approach which enables companies to plan for the future.

info Jill Duggan is the Director of The Prince of Wales’s Corporate Leaders Group (CLG), which is convened by the University of Cambridge Institute for Sustainability Leadership (CISL). She has been a Senior Associate of CISL for two years and brings with her extensive experience of international climate and energy policy from both government and industry perspectives. Ms. Duggan has been deeply involved in the development of climate policy in the UK and Europe as well as working extensively in the United States and Canada. She was previously the Director of Policy for Doosan Babcock before running her own consultancy, Carbon Policy Associates. She has been a board member for various organisations – from the European Power Plant Suppliers Association to Sandbag, a global climate think tank. Ms. Duggan has experienced the climate and energy arena from a variety of perspectives and has a broad understanding of the opportunities and obstacles that face business and policymakers. The Prince of Wales’s Corporate Leaders Group (CLG) brings together the Chief Executives of some of Europe’s most prominent companies to respond to the defining challenges of our time. Through collaboration, innovation and bold strategic thinking, the CLG advocates forward-looking solutions to climate change and environmental pressures to policymakers and business peers. CLG members are dominant players in a range of sectors, including retailing and consumer goods, transport and infrastructure, construction, finance, and power generation. Together, they have headquarters in most EU Member States but their footprint extends far beyond Europe. The group was established in 2005 by HRH The Prince of Wales and is convened by the Cambridge Institute for Sustainability Leadership. www.corporateleadersgroup.com

Roberto Bocca Head of Energy Industries Member of the Executive Committee World Economic Forum

The Future of the Energy System: A Story of 3s

hen we plug an appliance into a wall socket, or fill our cars with petrol, we probably donâ&#x20AC;&#x2122;t stop to reflect on the remarkable changes in energy technology over the past century that have made this possible. Energy in the coming decades will look very different. But how? The concept of the â&#x20AC;&#x153;energy triangleâ&#x20AC;? is now well known. One side of the triangle: the energy system must deliver access to safe, secure and reliable energy. Another side: the price must be affordable. The final side: the environmental impact should

be sustainable. A modern energy system must deliver on all the three dimensions. The energy system that evolved during the last century has largely achieved its primary goal of enabling substantial economic growth. However, the triangle is out of balance for different reasons in different places. For about two billion people, access to progressive energy solutions is still not available. In several geographies across the globe, affordability is still an unresolved issue. And in most countries the environmental impact is beyond what we can sustain,

especially as world population heads towards a projected nine billion. The effort we are now putting into developing energy technologies is typically directed at least as much at reducing environmental impact as improving affordability and access. Renewables and electric vehicles, in particular, offer an opportunity to strengthen the third side of the triangle. However, in thinking holistically about how we want our future energy system to look, we need to look beyond the energy triangle at another set of three

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critical considerations. First, what will be the social impact of future changes in the energy sector? Part of this question is related to affordability. New technologies for distributed energy generation – along with new financial models to reduce the risks of investing in them – could finally bring cheaper, cleaner energy within the reach of everyone on the planet. The changing nature of jobs in the energy sector will also bring about social transformations. As with many

sectors, we can expect automation to put some people out of work. But higher-skilled jobs should also be created – for example, in programming and operating more intelligent energy systems. These new jobs should also offer better health and safety: remotely supervising robots as they perform dangerous tasks that were previously done by humans. The location of jobs in the energy sector is changing. This reflects changes within specific sectors – for example, as the balance of oil production becomes more

spread around the world, jobs are being created beyond the traditional regions. Meanwhile, deployment of renewable forms of energy is enabling local job creation in the many geographies where the new installations are being built and maintained. It will also reflect the battle for competitive advantage in emerging sectors. China has already established a lead on solar production, and the race is on to become the global leader in battery technology that will enable grids to make more use of renewables.

Alongside global shifts in job creation will come the second critical consideration – differing financial impacts around the globe. Initiatives like Saudi Vision 2030 reflect how oil-producing countries have recently appreciated the urgency of reducing their budget dependency on energy revenues. The trend towards there being more sources of energy in more places around the world looks likely to continue. It is not only governments of energyproducing countries that will have to

rethink their budgets, though. Some OECD countries bring in more tax revenue by taxing sales of petrol at the pump than OPEC countries make from producing the petrol. As electric vehicles take over from petrol-powered cars, these governments will need to adapt. Finally, future changes in the energy sector will be inextricably bound up with broader advances in the Fourth Industrial Revolution – the convergence

of rapidly-advancing technologies that are blurring the lines between the physical, digital and biological spheres, from automation to artificial intelligence, from big data to biotech. Bringing reliable, affordable energy to poorer and more remote regions is a necessary step towards closing the digital divide – which, in turn, will offer opportunities for those regions to leapfrog to the newest, digital-enabled technologies.

The opposite is also true – the rolling out of new technologies to poorer areas will be needed to achieve 100% coverage of reliable, affordable energy. The future energy system should therefore become a key enabler of a society conducive to inclusive and equitable economic and social growth. Much depends on what policies are pursued by China, India and Africa.

Currently, about two-thirds of power in China still comes from coal. If the big emerging markets prioritise coal power for future development, they will address two sides of the energy triangle – affordability and access – but at the expense of environmental sustainability. However, cleaner technologies will become more competitive the more they are embraced by the biggest, fastestgrowing energy markets, as recent falls in solar costs have demonstrated.

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info Roberto Bocca is the Head of Energy Industries of the World Economic Forum since August 2009. In this role, he leads a dynamic team that focus on the critical issues the national, regional and global energy systems are facing. To this extent, Mr. Bocca engages with the leaders of relevant companies, policy makers, civil society, academia and broader stakeholders in the sectors of oil and gas, energy utilities and energy technology including renewable. The activity led by Mr. Bocca includes research, publications and coalitions building on the topics of energy efficiency, energy access, human capital, climate change as well as the role of energy in society and the evolution of the energy architecture across countries in this period of significant transformation. Before joining the Forum, Mr. Bocca was a Group Leader in BP where he had a 14 year career in Downstream and Alternative Energy in different businesses in India, South Africa, China, Vietnam, Indonesia and across Europe and Northern Africa including France, Poland, UK. As the Director of the Emerging Consumer Markets for BP Alternative Energy, between September 2004 and January 2009 he has led the development of an innovative business to provide access to cleaner, safer and affordable energy solutions to a large number of emerging consumers across the developing world. Mr. Bocca has worked extensively with international and local NGOs and academic institutions. Mr. Bocca is an Italian National. He graduated in 1993 from the Turin University of Business and Economics. He practices several sports activities. He is a qualified ski instructor and a marathon runner. He also enjoys playing the piano.

As the Fourth Industrial Revolution creates faster change and more risks and opportunities, the future of the energy system is more open than ever before to being shaped. That will require foresightful collaborations between the public and private sectors.

The World Economic Forum, committed to improving the state of the world, is the International Organisation for Public-Private Cooperation. The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas. It was established in 1971 as a not-for-profit foundation and is headquartered in Geneva, Switzerland. It is independent, impartial and not tied to any special interests. The Forum strives in all its efforts to demonstrate entrepreneurship in the global public interest while upholding the highest standards of governance. Moral and intellectual integrity is at the heart of everything it does. Our activities are shaped by a unique institutional culture founded on the stakeholder theory, which asserts that an organisation is accountable to all parts of society. The institution carefully blends and balances the best of many kinds of organisations, from both the public and private sectors, international organisations and academic institutions. We believe that progress happens by bringing together people from all walks of life who have the drive and the influence to make positive change. www.weforum.org

Global Energy Related CO2 Emissions Between Today and 2050 Source: “Rethinking Energy 2017”, IRENA, 2017.

Reference Case

NDC Level

42Gt 35Gt 30Gt

2010

35Gt

2014

2030 Scenarios

7,4Gt to 8,4Gt

Energy Efficiency

12,4Gt to 13,6Gt

Use of Renewable Energy

20Gt

Pathway to

+1,50C - +20C 2050

Factors that Shaped World Energy Source: â&#x20AC;&#x153;The Grand Transition - World Energy Scenariosâ&#x20AC;?, World Energy Council, 2016.

Growing Middle Class

Efficiency

Mass Consumption Public Perception New Competition (Solar, wind battery, HC)

Digital

Population & Labour Force

Economic Reform

Energy Storage

Technology Development

Developing Countries Climate Change Russia

Environmental Priorities

Energy Drivers

New Tech & Productivity

Autonomous Everything

Investment

Distributed Systems MENA

Latin America SubSaharan Africa

New Market Entrants International Governance

OECD

Global Institutions

Machine Learning

Globalisation

Rise of China and Asia

New Market Entrants

Energy Supply

GeoPolitical Tensions

Market Fragmentation

Migrant Crisis Regional Policies

New technologies and productivity

Environmental priorities

Population and labour force growth

International governance and geopolitical relationships

New geographic demand centers

"The environmental problems of developing countries are not the side effects of excessive industrialisation but reflect the inadequacy of development." Indira Gandhi,

Indian politician, central figure of the Indian National Congress party, and to date the only female Prime Minister of India (1917-1984)

"There is no crisis of energy, only a crisis of ignorance." Richard Buckminster ,

"Bucky" Fuller, American architect, systems theorist, author, designer, and inventor (1895-1983)

"We simply must balance our demand for energy with our rapidly shrinking resources. By acting now, we can control our future instead of letting the future control us." Jimmy Carter,

American politician and the 39th President of the United States (1924- )

"The future will either be green or not at all." Bob Brown,

Australian former politician, medical doctor, and environmentalist (1944- )

Ed u c ati on & Re s e a rc h

Sustainable Energy for a Sustainable World: A Luxury or a Necessity?

O Dimitris Sarantopoulos Founder & President Energy & Sustainability Club MBA International

ver the past three decades, economic growth increased the living standards for more than one billion people and has raised the income levels of millions, but many times this came at the expense of nature. Due to a variety of market, policy, and institutional inefficiencies, natural capital has been used in ways that were economically wasteful, without counting the true costs of resource depletion and the pollution levels. By all account, the energy sector is a key driver of economic growth and it poses a particular challenge for the nations’ sustainable development. In essence, the usage of fossil fuels for energy production supported the past rapid growth for decades but it has also provoked dangerous consequences with negative influence on the environment. In parallel, the modern development models failed to create sustainable growth leaving hundreds of millions of people worldwide behind and faraway of the developed countries’ living levels. According to the United Nations1, more than 1.3 billion people still have no access to modern electricity services, 2.8 million people spend several hours every day building fires, fetching water

and collecting fuel for their cooking and heating stoves and more than 4 million premature deaths occur each year as a result of household air pollution caused by burning solids. In addition, based on International Energy Agency data2, 17% of the global population lack access to electricity and 38% lack clean cooking facilities. Therefore, it is more than obvious that without access to sustainable energy sources, sustainable growth will remain a dream for a significant part of world population. So what has to be done? A realistic solution to the above situation is the deployment of sustainable energy on a scale equivalent to that of the industrial revolution. Clean and sustainable energy enables opportunities for new green industries, new jobs and new technologies, promoting a real transition to a sustainable economy improving the living standards of the “poor” countries significantly. In particular, the term “Sustainable energy sources” contains all those forms of energy for which their transformation to electricity does not cause any damage to the environment and simultaneously are widely available without any cost of fuel. Indicatively, sustainable energy sources are all renewable energy sources, such as

solar, wind, wave or geothermal energy. Therefore, the transition to sustainable growth requires drastic measures and policies that will guide the energy sector into the abovementioned sustainable modes of energy production which are efficient, green, and secure with a very low environmental impact. These production modes recognise that development must be both inclusive and environmentally sound in order to eliminate energy poverty, create more jobs and build shared prosperity not only for today’s population but also for future generations. Now, especially for Europe but also for Greece, there are reasons for optimism in pursuing a sustainable future the following years. Policy-makers, academia and businesses are making “sustainability commitments” and put in place ambitious targets and policies to support sustainable energy and development. Two of these ambitious targets which are key drivers of this transition to sustainable growth through sustainable energy are the “green” research and the “sustainable” innovation. Indeed, over the last decade a substantial turn to sustainable energy research has taken place in Europe

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info and numerous energy institutes have been established creating inclusive, multidisciplinary centers designed to bring together researchers, students, and partners from academia, industry and government, with the goal of promoting the sustainable energy concept by providing special courses and seminars. Investing in education and “green” research, with focus to sustainability, will enable us to constructively and creatively address present and future global growth challenges creating high level professionals, entrepreneurs and policy makers with solid knowledge of modern sustainable energy production technologies affordable and suitable for all. Following this concept of sustainable energy, in 2012, the MBA International Program of the Athens University of Economics and Business became a pioneer in the education linked to sustainability in Greece, establishing the Energy & Sustainability Club/Institute and offering two innovative courses the “Entrepreneurship & Sustainable Energy” and the “Energy Economics & Management”. The iMBA Energy & Sustainability Club/Institute was the first academic based initiative focused

on topics related to energy, environment and sustainability in Greece. The club has successfully organised five international conferences with emphasis on the promotion of sustainable energy policies in Greece and South Eastern Europe. It has also invited numerous speakers for executive presentations and lectures regarding sustainability from numerous organisations such as the European Investment Bank, the Ministry of Energy and the Regulatory Authority for Energy. To conclude, it is clear that the countries which consider sustainable energy, “green” education and innovation as main engines for new sources of growth and prosperity, will be more likely to pull out of the economic difficulties, creating a better future for its citizens and for the entire planet. Therefore, sustainable energy and development are not a luxury but a necessity for our societies because each generation inherits the Earth temporarily and we must take care and use the natural resources reasonably by ensuring that economic growth is not based on harmful usage of nature and that energy production along with the technological progress will not harm irreversibly the life on Earth for the decades and centuries to come.

Dimitris Sarantopoulos is the Founder and President of the Energy & Sustainability Club in the MBA International Program of the Athens University of Economics and Business. Mr. Sarantopoulos gained extensive international consulting and project management experience in the development and construction of energy and environmental projects in USA and Europe. He has worked for some of the biggest energy companies in the world, such as General Electric Energy, GDF SUEZ, Qatar Petroleum, J&P Avax, GEK TERNA within a diverse and multicultural environment in various countries (USA, UK, France, Portugal, Spain, Austria, Italy, Belgium, Cyprus and Greece). Dimitris holds an Electrical Engineering diploma (Major in Energy) from the National Technical University of Athens, an MBA International from the Athens University of Economics and Business and a Bachelor in Economic Sciences from the National Kapodistrian University of Athens. The AUEB Energy & Sustainability Club was established in 2011 and it is the first knowledge exchange and networking platform among academia, market and policy makers in topics related to energy, environment and sustainable development. It operates under the fervent support and umbrella of the MBA International Program (www.imba.aueb.gr) of the Athens University of Economics and Business. The Club successfully created the first academic institute in Greece accelerating the knowledge osmosis among research, market and government. It has organised with great success five International Energy Conferences, hosting top researchers, business executives, policy makers, ministers, bankers and consultants. The Energy & Sustainability Club has over 500 members so far which are executives from energy, construction, shipping and financial companies, researchers, academics, policy makers along with MBA students. www.imbaenergyclub.gr 1

Sustainable Energy - Energy Access: www.undp.org/content/undp/en/ home/ourwork/climate-and-disaster-resilience/sustainable-energy/ energy-access.html International Energy Agency - Energy Access: www.iea.org/topics/ energypoverty/

Strategic Energy Technology (SET) Plan Transforming the European Energy System through Innovation

he Strategic Energy Technology (SET) Plan is the key coordinating and implementing pillar of the Energy Union in terms of Energy Research and Innovation (R&I). Energy Union is one of the flagship policies of the Juncker Commission designed to achieve, in a cost-effective way, a fundamental transformation of Europe's energy system, moving to more sustainable, secure and competitive ways of producing and delivering affordable energy to the consumer. The SET Plan was established in 2007 to better align public and private, European and national research and innovation agenda in the field of lowcarbon energy technologies with the aim to trigger investments on common

R&I priorities, to avoid unnecessary duplication of efforts, whilst creating greater synergies, as well as stimulating joint activities. In September 2015, the European Commission presented a new strategy for the SET Plan1 with 10 actions structured around the Energy Union R&I priorities2. The new approach responded to new needs to accelerate the transformation of the European energy system enabling a competitive low carbon economy with the consumer at the centre. This strategy builds on two main elements: a more integrated approach by going beyond a 'technology silos' concept to tackle the needs of the energy system as a whole, and a

strengthened partnership 1) between the European Commission and the SET Plan countries3 2) among the countries themselves and 3) with the stakeholders from both industry and research. In 2016, the SET Plan community agreed on ambitious targets4 in terms of its 10 R&I actions through a wide participatory process involving national governments, industry and research actors representing 16,700 entities under 154 umbrella organisations. These targets are focused on integrating cost efficient low-carbon technologies into the energy system, whilst involving and boosting the role of the consumer. Examples of such targets relate, among

Strategic Energy Technologies Information System website https://setis.ec.europa.eu/system/files/Communication_SET-Plan_15_Sept_2015.pdf Energy Union http://eur-lex.europa.eu/resource.html?uri=cellar:a5bfdc21-bdd7-11e4-bbe1-01aa75ed71a1.0003.01/DOC_1&format=PDF 3 All the EU Member States plus Iceland, Norway, Switzerland and Turkey 4 Actions towards implementing the Integrated SET Plan https://setis.ec.europa.eu/actions-towards-implementing-integrated-set-plan 1 2

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Description of the SET Plan 10 R&I actions To reduce the cost of renewables through increased performance and improvement in their integration, to develop smart homes, and more generally increase the smartness of our energy system, to enhance the uptake of energy efficient solutions for buildings, to improve the cost effectiveness of our industry, to strengthen our energy options for sustainable transport, to become competitive in the battery sector, and step up R&I activities in carbon capture, storage and use, and increase nuclear safety.

others, to cost reductions for offshore wind technology as well as to Li-ion batteries for electro-mobility and for stationary storage in homes and in utilities; to more integrated and flexible energy systems; to the deployment of solutions for Smart Cities and Communities; to a better management of the electricity consumption in homes; and to the development of holistic refurbishment packages for buildings. The SET Plan activities were further boosted by the Communication Accelerating Clean Energy Innovation (ACEI)5 which provides an enabling framework towards a faster market uptake of R&I output. In 2017, the focus is on the development of 5 6

implementation plans for achieving the agreed SET Plan targets as well as the actions defined by the ACEI Communication. The development of the implementation plans will be co-led by the SET Plan countries and industry representatives, in consultation with research stakeholders and the European Commission acting as facilitator. This process will create fruitful discussions between countries sharing similar strategic interests in specific energy sectors, together with industries. It is expected to lead to more coordinated activities between countries; to more coordination between public and private investors; and potentially even to new public-private partnerships.

Co-ordination and alignment in Europe is increasingly more essential. Since 2010, EU28 figures show an upward trend in the total investment (public and private), in the Energy Union R&I priorities amounting around EUR 27 billion6 (latest figures). The private sector is the main source of this increase, with the sustainable transport sector representing the highest share of all private investment â&#x20AC;&#x201C; a staggering 43%. By comparison though, public national investment has slightly decreased, except in the sector of smart energy systems, both in absolute terms and as a share of the Gross Domestic Product. In a sector where private investment represents almost 85% of the total investment versus 15% for the public

investment, and where among the total public investment, around 20% comes from the EU Research and Innovation Framework Programme Horizon 2020, it is of paramount importance 1) to coordinate national and European efforts not only to maximise the impact of public investments but importantly to ensure that public R&I policy contributes to speeding up the transformation of the energy system and 2) increase public-private partnerships to ensure that public investment will generate growth and jobs. Building on its experience under the SET Plan, the European Commission (EC) on behalf of the EU joined the global Mission Innovation initiative which was

Communication Accelerating Clean Energy Innovation http://ec.europa.eu/energy/sites/ener/files/documents/1_en_act_part1_v6_0.pdf These figures do not include ITER construction

launched in the margins of the 2015 Paris Climate conference COP21 by 20 leading world economies. Mission Innovation is a global endeavour to accelerate public and private investment in clean energy innovation. In the same spirit as the SET Plan, Mission Innovation having endorsed seven Innovation Challenges now aims at catalysing global research efforts in areas that could provide significant benefits in reducing greenhouse gas emissions, increasing energy security and creating new opportunities for clean economic growth. The European Commission, on behalf of the EU as a whole, is taking an increasingly leading role in this initiative offering a unique platform to EU Member States to collaborate with the leading players in

2017 marks a milestone in SET Plan's life, its 10th birthday. Since its inception, SET Plan major R&I achievements are two fold, its contribution 1) in driving down the costs of mature renewable technologies currently on the market, in particular on-shore wind and photovoltaic whilst increasing their performance, and 2) in preparing the pipeline of a next generation of renewable technologies. This was made possible due to progressive alignment between public and private, European and national research agendas in the field of low-carbon energy technologies. Today the agreement on common R&I

(from left to right): Mr Stathis PETEVES, Head of Unit DG JRC; Ms Andreea Strachinescu, Head of Unit DG Energy; Mr Maroš Šefčovič, Vice President of the European Commission; Ms Gwennaël JOLIFF-BOTREL, Head of Unit, DG RTD.

Success stories The European Framework Programme for Research and Innovation Horizon 20207 is instrumental to support the SET Plan R&I priorities of strong European added value. R&I projects supporting cutting edge technologies, produced significant results in 2016. For example in photovoltaics (PV), the R2M-Si8 project spin-off company is moving from demonstration to commissioning to produce highly efficient PV modules with the potential to address price and efficiency and reach above 20% efficient solar cells. The Fuel Cells and Hydrogen public-private partnership9 delivered the first publicly accessible hydrogen refuelling station in Belgium as a rollout of hydrogen mobility in Europe; the world's first proton exchange membrane 2MW fuel cell power plant; and the initiation of the roll-out of some 140 zero emission fuel cell buses across Europe, consolidating Europe's leadership in the sector.

European Framework Programme for Research and Innovation Horizon 2020 https://ec.europa.eu/programmes/horizon2020/ Roll to module processed crystalline silicon thin-films for higher than 20% efficient modules_FP7 R2M-Si .ignification reas to achieve eliver important results http://cordis.europa.eu/project/rcn/96068_en.html 9 Fuel Cells and Hydrogen Joint Undertaking projects http://www.fch.europa.eu/fchju-projects 7 8

this area worldwide and for maximising synergies between both Mission Innovation and the SET Plan.

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info Directorate The Strategic Energy Technology (SET) Plan is jointly co-ordinated in the European Commission by the Directorate-General for Energy (DG ENER), the Directorate - General for Research and Innovation (DG RTD) and the Joint Research Centre (JRC).

targets set in 2016 represents an additional step forward. We also see more co-ordination between SET Plan countries and the European industry whereby co-funded research networks exist in all the strategic sectors of energy. Additionally, we witness more ownership by the SET Plan countries and stakeholders as they have all unanimously volunteered to lead the various implementation plans to be developed in 2017. Keeping up the impressive work done so far the SET Plan ambition is now to place Europe at the forefront of the next generation of innovative low-carbon energy technologies and not only in relation to energy supply but to the energy system as a whole, including energy efficiency.

ÂŠ European Union, 2017. The content of this article does not reflect the official opinion of the European Union. Responsibility for the information and views expressed therein lies entirely with the authors. Reproduction is authorised provided the source is acknowledged.

Heads of Unit Ms Magdalena Andreea Strachinescu Olteanu is Head of Unit of New energy technologies, innovation and clean coal in DG ENER. Ms GwennaĂŤl JOLIFF - BOTREL is Head of Strategy Unit, Energy Directorate in DG RTD. Mr Stathis PETEVES is Head of the Knowledge for the Energy Union Unit in the Joint Research Centre. www.ec.europa.eu/jrc/en

Energy Curriculum in Business Schools: The case of ESCP Europe

019 is our bi-centennial year and we will soon be celebrating a life in three centuries! As we reach this milestone, we do so as Europe’s leading international business school.

Prof. Simon Mercado Director ESCP Europe Business School in London

No school within the top-band of European schools can match ESCP Europe’s cross-border educational experience enabled through a Europewide campus framework and panEuropean academy. As the continent’s truly international business school, ESCP Europe continues to connect and shape the business world by leveraging its international identity and expertise to advance international management learning and practice. We do this through our research and a teaching mission focused on the production of tomorrow’s international business leaders. Taking Europe as a laboratory for international business and communication, we blend humanities and management education to produce internationally minded and culturally intelligent managers, skilled and equipped to manage in a fast-paced and interconnected world. This is a

world where breakthrough technologies and socio-political transformations have far-reaching societal and economic consequences. More than ever, leaders need to share insights and innovations on how to best navigate the future. The Master in Energy Management programmes of ESCP Europe embrace this challenge and opportunity. Our programmes have become a force and forum for addressing the future of energy and energy-related business. By helping to develop the leaders of tomorrow’s energy businesses, the MEM and EMEM programmes are making an important contribution to our future societies. Providing a 360 degree view of energy markets and challenges, our programmes are setting the benchmark in energy-related management education and are rooted in a collaborative model and network that sees the School working closely with key industry players. Supporting this effort is the research power of our Research Centre for Energy Management (RCEM) and the creative

power of our student-led Energy Society. Both bodies have been instrumental in ensuring that the EMEM and MEM programmes remain innovative and research-driven. In our Energy Trading Challenge, our Electrical Vehicle Road Trips, and Industry Consulting Projects, the MEM and EMEM programmes are at the forefront of our pedagogic innovation and digital transformation. This is not simply an ESCP Europe tradition but a necessary response to a world in which socio-cultural and emotional intelligence will be amongst the core attributes of effective leaders. ESCP Europe is an essential contributor to the advancement of cross-border management. The School maintains close relationships with companies around the world, especially those with significant operations in our campus countries. Our students enjoy many opportunities to engage with the business world through internships, consultancy projects and participation in seminars run by host and

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visiting organisations. Guest speaker series and mentoring arrangements contribute to a rich picture. Critical too is the close association with our alumni community, which is something that keeps me very busy here in London. Career placement and career progression statistics tell a positive story and contribute to the strong ranking of some of our flagship programmes. In 2016, our Master in Management programme was ranked by the Financial Times at no. 4 in the world and our Master in Finance, no. 2. There is a great deal happening across the School as a part of the School’s “Cultures 4 Business” strategy being led by our Federal Dean, Professor Frank Bournois. This includes the launch of a Paris track on our Bachelor in Management (BIM), which takes its students to three campuses in three years. The BIM has started spectacularly with a London track that will launch its third cohort in the autumn. We also launch our new MBA in International Management

in September with that same ESCP Europe DNA of mobility, experience and innovation. Of course, the digital transformation of our societies and industries is placing big demand upon educators to enhance the digital intelligence of learners and the school is embracing that challenge. Whether it be through focus on data science and analytics in our marketing programmes or the development of new programmes such as our pending Executive Master in Automation and Digital Transformation, the school is demonstrating that it is not only the oldest business school in the world but one if its most pioneering. I’m particularly proud that many of the initiatives in this space have their root in London where we are building programmes and research centres with a strong emphasis on digital transformation and technology management as well as on “big ticket” subjects like health and energy. As managers and entrepreneurs, ESCP Europe's graduates must be equipped to lead and inspire in a globalised world that is volatile and connected.

Professor Simon Mercado is currently Director of ESCP Europe Business School in London (No.12 rank in Europe and No. 3 in the UK: Financial Times 2016). As one of ESCP’s six Campus Deans, he is a member of the School’s European Executive Board and a serving member of faculty. Prior to joining ESCP Europe in 2015, Simon was the Deputy Dean at Nottingham Business School, Nottingham Trent University, where he also held a number of other senior positions. Simon holds a PhD in International Political Economy (IPE) and a Masters’ in International Relations (IR) from the University of Nottingham. His primary research interest is in the internationalisation of higher education and commercial services and he has published on issues related to international management and education, including a widely adopted textbook on European Business (Pearsons). His teaching interests and history span international strategy, crosscultural management and European marketing. He has experience of teaching graduate and undergraduate programmes in the UK, France, and Poland. Simon has been involved in educational projects and collaborations all over the world and has worked collaboratively with a significant number of European institutions in joint/dual degree development and wider educational projects. A strong advocate of European market liberalisation and liberal education, his consultancy and advisory work is focused on the HE community, supporting internationalisation processes and accreditation. He is a regular speaker and commentator on education and management issues, presenting and convening at major international events and conferences under the auspices of the AACSB, CABS, EFMD, APAIE and EAIE. Simon currently serves at Steering Committee level for the EFMD; as Expert Resource to the Business Education (BE) Section of the EAIE; and as External Examiner for joint/dual international degree programmes at the University of Hertfordshire. He is an International Advisory Board Member for JAMK School of Business in Finland. As a regular media commentator on European education and management, Simon has been featured in numerous published articles, blogs and interviews (e.g. BBC News, Business Insider, Washington Post; the Guardian; EFMD News, Poets & Quants). Simon’s record of educational service and management is complemented by significant business development experience. He currently serves as Managing Director of ESCP Europe Corporate Services (UK), providing management development and consultancy to elite international organisations including NATO and several European MNEs. He is active within the French Chamber of Commerce in Great Britain (writing regularly in its INFO magazine), and other industry-education networks. www.escpeurope.eu

The New Geopolitics of Energy

F Jason Bordoff Founding Director Center on Global Energy Policy Columbia University’s School of International and Public Affairs

rom the growth of cost-competitive renewable energy sources and technological innovation to the shale revolution and a global commitment by nearly 200 nations a year ago to address climate change, the energy system is in the midst of an historic transition, which will have myriad economic, national security, and environmental consequences. Among the most significant implications of the energy transition will be in the realm of foreign policy and geopolitics, driven by historic shits in patterns of energy supply, use and trade.

Peak Oil Demand? Since the Oil Age began in 1859, oil has been intimately tied to global geopolitics, power and foreign policies. But this reality may change, given the prospect that oil demand may peak sooner than expected as a result of new international policy after the Paris climate agreement, technological innovations like electric vehicles, and structural economic shifts

in nations like China. Oil prices are set on the margin, so slight changes in demand expectations can cause big price shifts. As the recent oil price collapse reminds, low prices can cause recession or undermine stability and security in countries dependent on oil revenue-from Venezuela and Nigeria to Libya, Iraq, and others. Even Saudi Arabia, with flush fiscal reserves, is now running large deficits and has slashed spending and borrowing. Oil substitutes also raise new geopolitical risks. The potential for electrification of the transport sector raises new cybersecurity worries, or concerns could arise as the world grows more dependent on the small group of nations in the Andes that dominate the global lithium supply. Whither OPEC? In the past decade, the U.S. energy outlook has shifted from scarcity

to plenty. U.S. oil production nearly doubled between 2010 and 2015, posting the largest five-year ramp up of any country in history, and, as a result of the shale revolution, U.S. oil import dependence has declined from 60 to around 25 percent in the past decade. Shale is unique because it is a new “short-cycle” source of oil supply, meaning its production can move up and down relatively quickly. Moreover, breakeven costs have fallen sharply in the last two years. The magnitude and flexibility of U.S. shale poses a challenge to OPEC’s ability to manage oil markets, and to Saudi Arabia’s role as a swing supplier. OPEC’s November decision to cut output propped up prices, but also gave a new lease on life to U.S. shale supply, threatening to offset the impact of OPEC cuts and replace OPEC’s market share. In the face of this new source of supply, OPEC may either need to continue cutting output, which could exacerbate fiscal and geopolitical

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strains, or give up market management, which may increase oil price volatility, as a new book from the Center on Global Energy Policy by Bob McNally argues. A Global Gas Market? The U.S. shale revolution in natural gas has been even more remarkable than in oil. In 2005, the U.S. government projected that in 2017, the U.S. would import around 20 billion cubic feet per day of natural gas, almost twice what Qatar, the world’s largest exporter, puts on the world market. The U.S. is now on track to become a net exporter of gas towards the end of this year, and will be among the world’s three largest LNG exporters by 2020. By increasing liquidity and competition in the global market, flexible U.S. LNG supplies, indexed to a hub price, will lower prices, empower consumers, and create a more efficient and transparent global gas market. Already, traditional global gas superpowers like Russia,

Iran and Qatar, are struggling to maintain market share. Additionally, natural gas, which is less flexible to transport than oil, is largely moved by pipelines between fixed points, creating unique energy security risks for gas-consuming countries dependent on neighboring supplies. Increasingly integrated and flexible global gas markets boost energy security for gas importers like Europe and weakens the geopolitical leverage of suppliers like Russia. Over the coming decades, new policies and technological innovation promise to transform the energy system we know today, delivering lower carbon energy that mitigates risks from climate change and provides sustainable and better access to energy for billions of people. But this energy transition will not be without its own risks and challenges; geopolitical stability and diplomatic relationships are among the key issues.

Jason Bordoff is a professor of professional practice in international and public affairs and founding director of the Center on Global Energy Policy at Columbia University’s School of International and Public Affairs. Jason served as Senior Director on the staff of the National Security Council and as Special Assistant to President Obama, and as an advisor to the Deputy Secretary of the U.S. Treasury Department in the Clinton Administration. He was also the Policy Director of the Hamilton Project at the Brookings Institution. Jason is a member of the Council on Foreign Relations and the National Petroleum Council, and he serves on the boards of Winrock International and the New York Energy Forum. He graduated with honors from Harvard Law School and clerked on the U.S. Court of Appeals for the D.C. Circuit. He holds an MLitt degree from Oxford University, where he studied as a Marshall Scholar, and a BA magna cum laude and Phi Beta Kappa from Brown University. The Center on Global Energy Policy at Columbia University’s School of International and Public Affairs seeks to enrich the quality of energy dialogue and policy by providing an independent and nonpartisan platform for timely, balanced analysis and actionable recommendations to address today’s most pressing energy challenges. The Center convenes energy leaders, produces policyrelevant, accessible research and trains students to become the next generation of energy scholars, executives and policymakers. Based at one of the world’s great research universities, the Center leverages its location in New York City, proximity to financial markets, business and policymakers, and Columbia’s world-class faculty and global reach. Columbia University is Where the World Connects for Energy Policy. www.energypolicy.columbia.edu/

Research and Education for the Energy (R)evolution Dr. Kostas Andriosopoulos Executive Director Research Centre for Energy Management ESCP Europe Business School

nergy is an integral component of a modern economy as it is an important factor in the production of goods and services, and socio-economic development in general. Energy demand is growing significantly in most countries and is expected to continue to expandperhaps by 45% between now and 2030, and by more than 300% by the end of the century. In addition to the aforementioned, few would dispute the assertion that we are entering a new energy era: global demand for energy booms; price volatility and geopolitical instability are increasingly common, as are globalisation and market deregulation; and all the while environmental concerns grow. Both collectively and individually these factors call for a significant restructuring of the energy sector to improve efficiency and develop new sustainable energy sources. Furthermore, several events have

significantly impacted the global energy scene: the strong shock backlashes on oil prices, the geopolitical turmoil in the gas pipeline routes from Central Asia, the boom in the exploitation of unconventional oil and gas in North America, the development of the global LNG markets, the development of a rapidly growing electric vehicles market, the refining overcapacity in Europe and the accident at the Fukushima nuclear station. From a regulatory perspective, the decade was marked by the United Nations conferences on climate change, including conferences in Copenhagen (COP 15 in 2009) and Paris (COP 21 in 2015), and by the consequences of the Kyoto conference (COP 3) in 1992, with the establishment and corrections of the emissions trading system (EU ETS, in 2004 and 2008). During this period, the EU set strategic objectives to comply with the Kyoto Protocol, called the Energy

2020 goals (European Council, March 2007), reinforced by the 2030 Energy Strategy (European Commission, 2014). What is more, due to the fact that the transportation sector exerts a significant pressure on the environment and human health through air emissions, noise and the side effects of climate change, environmental policies are mainly aimed at switching the type of fuel used in vehicles to reduce emissions and thus lead to a low-carbon society, spurring the use of alternative fuels such as biofuels, natural gas and electricity. Indeed, many governments are now encouraging sustainable mobility and see alternative fuel vehicles (AFVs) as an important part of a technology portfolio targeted at reducing polluting emissions. However, consumers’ adoption of AFVs is complex due to a number of impediments, including

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technical and socio economic aspects. Bringing together the expertise of its faculty and its many external international associates, the objective of the Research Centre for Energy Management (RCEM) at ESCP Europe Business School is to cooperate with, and assist, key industry players to facilitate the integration of managerial and technological skills. The RCEM provides a platform for international dialogue through a wide range of events, publications and academic programmes, all of which feature contributions from leading international experts, as well as ESCP Europe faculty, students and Alumni. These include: the Executive Master in Energy Management (EMEM), the MSc in Energy Management (MEM), the RCEM invited talk series, the Views on Energy News forum and the publication

of papers and special issues in the most prestigious academic journals produced by top publishers such as Inderscience, Risk, and Elsevier. Furthermore, in 2014, the centre launched the ESCP Europe Energy Society with an aim to engage ESCP Europe students across our six campuses in industry related events, maximise networking opportunities, and help develop professional skills. Among its other public outreach activities, two main projects of the Society and the Centre stand out, such as the ESCP Europe Electric Vehicle Road Trip, in its 3rd edition visiting five of the School’s six campuses - Berlin, London, Paris, Madrid, and Turin - and the ESCP Europe Energy Trading Challenge, an oil trading simulation which was run during IP week in February 2017 at our London campus for the first time.

Dr. Kostas Andriosopoulos is the Executive Director of the Research Centre for Energy Management at ESCP Europe Business School where he holds the position of Associate Professor in Finance and Energy Economics. He is also the Academic Director of the two Masters in Energy Management. Kostas holds a PhD in Finance (Cass Business School, City University London), where he has been the recipient of the Onassis scholarship, an MBA and MSc in Finance (Northeastern University, Boston), and a bachelor’s degree in Production Engineering and Management (Technical University of Crete). He is a widely published author, has been presented in recognised conferences world-wide, edited special issues and acts as a reviewer for a number of recognised academic journals, and has organised numerous international conferences. Kostas was Vice-Chairman of the BoD of DEPA and currently is a board member of the Global Gas Centre of the World Energy Council, acts as Chairman of the Hellenic Academics Association of Great Britain, and also the Chairman of the Hellenic Association for Energy Economics, the official affiliate of the International AEE. Moreover, he was a member of the Energy Commission of the Industry and Parliament Trust in the UK (2012-13). He lives in London with his wife Chrysoula and his two children, Maria and Dimitris. The Research Centre for Energy Management (RCEM) is part of ESCP Europe Business School in London, United Kingdom. The RCEM’s mission is to build a strategic partnership between academia, industry and government, to debate the challenges of the new energy era. This is being achieved through the promotion of rigorous and objective empirical research on issues related to energy management, finance, energy policy, technology advancements and innovation, in order to support decision-making by both government and industry. www.rcem.eu

World Primary Energy Demand by Fuel Type Source: “World Oil Outlook”, Organisation of the Petroleum Exporting Countries (OPEC), 2016.

mboe/d

Levels ( mboe/d )

Growth ( % p.a. )

2014

2020

2030

2040

2014 - 2040

Oil

85.1

90.7

96.7

99.8

0.6

Coal

77.7

82.7

88.9

91.5

0.6

Gas

59.6

66.9

84.0

101.7

2.1

Nuclear

13.2

15.5

19.5

23.4

2.2

Hydro

6.6

7.6

8.9

9.9

1.5

Biomass

28.2

30.7

34.6

38.1

1.2

Other renewables

3.4

5.7

11.0

17.9

6.6

273.9

299.9

343.6

382.1

1.3

Total world

Unsubsidised Levelised Cost of Energy Comparison Source: “Lazard’s Levelised Cost of Energy Analysis”, Version 10.0, Lazard, 2016

Certain Alternative Energy generation technologies are cost-competitive with conventional generation technologies under some scenarios; such observation does not take into account potential social and environmental externalities (e.g., social costs of distributed generation, environmental consequences of certain conventional generation technologies, etc.), reliability or intermittency-related considerations (e.g., transmission and back-up generation costs associated with certain Alternative Energy technologies).

$138

Solar PV - Rooftop Residential $88

Solar PV - Rooftop C&I

$193

$78

Solar PV - Community Solar PV - Crystalline Utility Scale

ALTERNATIVE ENERGY

$222

$49

Solar PV - Thin Film Utility Scale

$61

$46

$56

$135 $92 $92

Solar PV - Thermal Tower with Storage

$119

$182

$106

Fuel Cell $76

Microturbine

$89

$79

Geothermal

$117

$77

Biomass Direct $32

Wind

$110 $118

$62

$212

Diesel Reciprocating Engine $68

Natural Gas Reciprocating Engine

$57

$165

$217

$94

IGCC

$97

Nuclear

$210 $136

$60

Coal $48

Gas Combined Cycle $0

$281

$101

Gas Peaking

CONVENTIONAL

$237

$167

$143 $78

$50

$100

$150

$200

Levelized Cost ($/MWh)

Denotes distributed generation technology.

$250

$300

$350

Stanford Energy System Innovations Combined Heating & Cooling: District Energy for the 21st Century

B Joseph C. Stagner P.E., Executive Director Sustainability & Energy Management Stanford University

uildings consume about 40% of US energy production and account for a like share of US carbon dioxide emissions1. Developing reliable, economic, and sustainable solutions for providing power, heating, and cooling for buildings is therefore a key challenge for the 21st century. District Energy offers many advantages for supplying energy to buildings, and there are over 700 such systems in the US already with opportunities for many more2. Expanding district energy and making it more sustainable would go far toward meeting this challenge. Improving upon and deploying natural gas fired Combined Heat & Power (CHP or cogeneration) in district energy may offer short term gains in

settings with high carbon intensity grid power, however, it falls well short of a sustainable solution and essentially locks in perpetual greenhouse gas emissions for another 30 years given the life of such systems. In settings where grid power is now or will be cleaner over time such as in California with a Renewable Portfolio Standard of 50% by 2030, gas CHP may actually emit more greenhouse gas than even a conventional Separate Heat & Power (SHP) system consisting of an on-site gas boiler for heat and grid electricity for power3. CHP falls even shorter in systems that include cooling because 100% of the cooling process would also be fossil fueled while in the SHP option the electricity powering the chillers would also be partially or all renewable.

Instead of perpetuating fossil fuel based CHP, or even SHP which relies on fossil fuel for heating, a more sustainable solution is Combined Heating & Cooling (CHC). CHC uses electric heat pumps for both heating and cooling by reusing waste heat in the cooling process to supply heating, augmented as needed by heat pumped from the ground or water bodies. The use of heat pumps increases system efficiency beyond the reach of any SHP or CHP system via the use of waste heat, and the resulting switch from fossil fuel to electricity for building heating and cooling opens a path to sustainability via the use of nonpolluting electricity sources. A study conducted by Stanford of SHP, CHP, and CHC systems between 2009

US Department of Energy Buildings Energy Data Book- http://buildingsdatabook.eren.doe.gov/default.aspx International District Energy Association Fact Sheet- http://www.districtenergy.org/assets/pdfs/White-Papers/What-IsDistrictEnergyEESI092311.pdf 3 Example- Balanced heating and power loads; natural gas fuel; SHP consisting of nominal 85% (HHV) efficient on-site boiler with grid power consisting of 50% gas power plants @ nominal 48% (HHV) efficiency + 50% renewables. SHP emissions would be 17% lower than a 100% gas fueled CHP of 75% (HHV) efficiency. 4 Stanford University- https://sustainable.stanford.edu/campus-action/stanford-energy-system-innovations-sesi 1 2

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and 2011 revealed that a CHC system was the most economical, efficient, and sustainable energy system for meeting the university’s power, heating, and cooling needs. Stanford transformed its district energy system from gas fired CHP to electric powered CHC between 2012 and 2015. The new system, known as the Stanford Energy System Innovations (SESI), immediately reduced campus greenhouse gas emissions by 50% and potable water use by 18% and is expected to save the university about USD 500 million over the next 35 years. New on-site and off-site solar photovoltaic power plants built for the university totaling 53% of its electricity use came on line by early 2017 and further increased the university’s greenhouse gas emissions reduction to 68% below previous levels4. Stanford is not alone in concluding that electrification of building heating

and cooling is the direction forward for sustainable district energy systems for the 21st century, or that electric heat pumps are the key to open that door. The International Energy Agency5, United States Deep Decarbonization Pathways Project6, United Nations Environmental Programme7, and others have concluded the same. While SESI may be the first large scale example of CHC the technology is widely transferable. Studies of district energy systems in vastly different climates, including central California, Illinois, and Massachusetts, all reveal that at least 50% of the annual heating demands of those systems could be served by waste heat recovered from their own cooling processes, and that heat pumped from the ground could supply most if not all of any remaining heating demands8.

International Energy Agency- Technology Roadmap: Energy-Efficient Buildings: Heating and Cooling Equipment- https://www.iea.org/publications/freepublications/publication/technology-roadmapenergy-efficient-buildings-heating-and-cooling-equipment.html 6 US Deep Decarbonization Pathways Project (USDDPP) Report- http://usddpp.org/downloads/2014technical-report.pdf 7 United Nations Environmental Programme District Energy In Cities Iniative- http://www. districtenergyincities.org/ 8 Stanford University- https://sustainable.stanford.edu/campus-action/stanford-energy-systeminnovations-sesi 5

info Joseph C. Stagner is the Executive Director of Sustainability and Energy Management at Stanford University where he is responsible for advancing sustainability in campus operations through leadership of the University’s Office of Sustainability, Facilities Energy Management, Utilities, and Parking & Transportation departments. Prior to joining Stanford in 2007 Mr. Stagner served on the facilities management team at the University of California, Davis for 14 years and spent 10 years in various engineering roles on nuclear, geothermal, coal, and hydroelectric projects with the Pacific Gas & Electric Company, Sacramento Municipal Utility District, and Morrison Knudsen Company. Stagner led development of SESI and created the Central Energy Plant Optimization Model software. He earned a bachelor’s degree in Civil Engineering from the University of Florida and is a registered Professional Engineer in California. Stanford University, located between San Francisco and San Jose in the heart of California’s Silicon Valley, is one of the world’s leading teaching and research universities. Since its opening in 1891, Stanford has been dedicated to finding solutions to big challenges and to preparing students for leadership in a complex world. www.stanford.edu www.sustainable.stanford.edu/campus-action/ stanford-energy-system-innovations-sesi

Ged Davis Executive Chair World Energy Scenarios Flagship Study World Energy Council

World Energy Council Scenarios: The Music of Change How can anyone make energy policy that lasts or invest intelligently in the energy business? The basic frameworks we think by are in flux. And those few truths we operate by such as, “low oil prices today will trigger large hikes in prices in the future”, “domestic coal developments are cheap and secure” or, “we need subsidies or high carbon prices to encourage investments in renewables”, do not seem to do justice to the needs of a complex global energy system. Since 1970, the world has seen rapid growth in energy demand, mainly satisfied by fossil fuels. The next 45 years will be different. Disruptive

trends are emerging that will create a fundamentally new world for the energy industry: lower global population growth, radical new technologies, greater environmental challenges, and a shift in economic and geopolitical power.

2060 which are titled Modern Jazz, Unfinished Symphony, and Hard Rock at the 23rd World Energy Congress.

These underlying drivers will re-shape the economics of energy. But will the energy sector be shaped by the power of digital technologies, the climate policies of coordinated governments or by countries pursuing a more domestic agenda?

Modern Jazz represents a ‘digitally disrupted’, innovative, and marketdriven world. Unfinished Symphony a world in which more ‘intelligent’ and sustainable economic growth models emerge as the world drives to a low carbon future. And finally, a scenario called Hard Rock, which explores the consequences of a more fragmented international system, weaker economic growth and inward-looking policies.

The World Energy Council launched three musically inspired scenarios looking to

These three scenarios parallel the dominant narratives found in many

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of the conversations in the world of energy, from government policymakers to enterprise strategists. There is no single consensus on the future; most tech entrepreneurs envisage a world of intelligent improvisation that works, like Modern Jazz. Many believe we are on an Unfinished Symphony pathway towards a low-carbon future, even if we have only fragmentary sketches from COP21, and others sense hard times and a world of lower growth and a national focus, as outlined in Hard Rock. Across all three scenarios we find that the worldâ&#x20AC;&#x2122;s primary energy demand growth will slow and per capita energy demand will peak before 2030 due to

unprecedented efficiencies created by new technologies, more stringent energy policies or lower economic growth. Also, demand for electricity will double to 2060. Meeting this demand with cleaner energy sources will require substantial infrastructure investments and systems integration to deliver benefits to all consumers. The phenomenal rise of solar and wind energy will continue at an unprecedented rate and create both new opportunities and challenges for energy systems. Notably these changes are strongest in Unfinished Symphony, where carbon and energy prices are highest and regulations toughest.

In Modern Jazz, we see more diversity in technology developments and lower energy pricing. Hard Rock reflects more historical trends but also recognises the security benefits of renewables and other domestic energies. Perhaps most challenging is that demand peaks for coal and oil will occur within decades raising the question of how states will cope with stranded fossil resources. This could be destabilising not just to their economies but have unforeseen geopolitical consequences. Carefully weighed exit strategies spanning several decades need to come to the top of global and national agendas. Economic diversification and

employment strategies for growing populations will be a critical element of navigating the challenges of peak demand. Transitioning global transport forms one of the hardest obstacles to overcome in the effort to decarbonise future energy systems. The diversification of transport fuels drives disruptive change that helps to enable substantial reductions in the energy and carbon intensity of transport. Oil share of transport falls from 92% in 2014 to 60% in Unfinished Symphony, 67% in Modern Jazz, and 78% in Hard Rock. Progress is made through differing mechanisms.

In Modern Jazz, consumer preferences and growing availability of vehicle charging infrastructure through distributed energy systems drive penetration of alternative transport solutions. Conversely, in Unfinished Symphony, government support schemes and integrated city planning result in fewer overall vehicles and penetration of alternative transport solutions, especially in urban areas. Hard Rock sees less infrastructure buildout and therefore less penetration of alternative fuels.

scenarios. Still, to reach global climate targets, the world needs an exceptional and enduring effort on top of already pledged commitments, and coordinated global action at unprecedented levels, with meaningful carbon prices. These characteristics are most apparent in Unfinished Symphony where the world comes closest to meeting climate targets. Joint strategic planning efforts, unseen over the last decades, drive global carbon emissions in 2060 to fall 61% below their 2014 value.

Substantial reduction in carbon intensity drives carbon emissions to peak between 2020 and 2040 across the three

A fragmented global economic and political system means Hard Rock sees an overall emissions increase of 5% to

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2060, despite lower upward pressure from economic growth. Without global commitment, reductions in carbon and energy intensity for Hard Rock are less than half of what is seen in the other two scenarios. Many lessons can be learned from the Modern Jazz, Unfinished Symphony, and Hard Rock scenarios. Each of these scenarios contributes to the debate on how environmental goals, energy security, and energy equity can best be achieved. So, when we set government policies, commit to long-term infrastructure

investments, such as new nuclear power plants, invest in new tech electric vehicles, do research on third generation biofuels or create new utility business models, which of the worlds are we planning for? Each of us should discover our preferred musical form! But it can be helpful to listen to other types of music and develop our own unique sense of changing musical styles. Understanding the logic of other possible futures allows us to better appreciate how risky our commitments are. And better capable of handling those risks if they transpire.

Gerald (Ged) Davis is the Executive Chair of the World Energy Scenarios flagship study. He is also the President and CEO of Forescene S.A., and has led many future-oriented projects during his career. He is experienced in global business, energy and sustainability, dealing with all regions of the world over the last 40 years, managing large teams, coordinating world-wide networks and designing and implementing large events. He is particularly knowledgeable on energy matters and has been a pioneer in applying sustainability concepts to the energy business and developing the use of global scenarios. Mr. Davis was Co-President of the Global Energy Assessment Council, which governed a network of some 300 energy researchers and 200 reviewers. He was the Managing Director of the World Economic Forum from 2003 to 2007 and conceived, developed and successfully implemented a world class Strategic Insights programme to underpin the Forumâ&#x20AC;&#x2122;s partnership activities. He was the Vice President of Global Business Environment at Shell International from 1999 to 2003, and head of Shellâ&#x20AC;&#x2122;s scenario planning team. He holds a first-class degree in mining engineering from the Imperial College, London, and postgraduate degrees in economics and engineering from the London School of Economics and Stanford University. The World Energy Council is the principal impartial network of leaders and practitioners promoting an affordable, stable and environmentally sensitive energy system for the greatest benefit of all. Formed in 1923, the Council is the UN-accredited global energy body, representing the entire energy spectrum, with more than 3,000 member organisations located in over 90 countries and drawn from governments, private and state corporations, academia, NGOs and energy-related stakeholders. The World Energy Council informs global, regional and national energy strategies by hosting high-level events, publishing authoritative studies, and working through its extensive member network to facilitate the worldâ&#x20AC;&#x2122;s energy policy dialogue. www.worldenergy.org

The Grand Transition Source: “The Grand Transition”, World Energy Scenarios, World Energy Council, 2016.

Pre - determind elements

Factors that shaped world energy 1970 to 2015

Pre - determind elements 2015 to 2060

• Global population grew 2 x (1.7%)

• Global population will grow by 40% (0.7%)

• ICT revolution

• Pervasive digitalisation

New Technologies

• Productivity growth rate of 1.7% p.a.

• Combinational impacts and productivity paradox • Water stress in high risk regions

Planetary Boundaries

• Four planetary boundaries already crossed

Population / Workforce

• 1,900 + GtCO2 consumed

Shifts in Power

•1,000 GtCO2 to 2,100 to avoid 2°C

• Rapid growth of non - OECD countries

• 2030: India is most populous country

• Growing role for global institutions e.g. UNFCCC, IMF, WTO and G20

• 2035 - 45: China is the world’s largest economy

Challenges Faced by Energy Leaders Source: â&#x20AC;&#x153;The Grand Transitionâ&#x20AC;?, World Energy Scenarios, World Energy Council, 2016.

Grand Transition 2015 - 2060 Challenges

1970 - 2015 Uplands

Lowlands

Energy Intensity Decline

0.9% p.a.

2.4 - 2.7% p.a.

0.5 - 0.9% p.a.

Carbon Intensity ( Decarbonisation )

1.1% p.a.

3.9 - 4.7% p.a.

0.9 - 1.2% p.a.

Fossil Fuel Share of Primary Energy

86% to 81%

50 - 63%

65 - 70%

Electricity Share of Final Energy

9% to 18%

27 - 29%

24 - 26%

% Internationally traded Energy

22%

15 - 16%

12 - 13%

No. of people without access to electricity

1.1 bn

0.0 - 0.5 bn

0.5 - 1.0 bn

"We are running the most dangerous experiment in history right now, which is to see how much carbon dioxide the atmosphere... can handle before there is an environmental catastrophe." Elon Musk,

South African-born Canadian-American business magnate, investor, engineer, and inventor (1971- )

"We assume that everything is becoming more efficient, and in an immediate sense that's true; our lives are better in many ways. But that improvement has been gained through a massively inefficient use of natural resources." Paul Hawken,

environmentalist, entrepreneur, and author (1946- )

"I would rather have a nuclear than a coal plant built, because one might kill you and the other one will for sure. But wind does not kill anybody." Ted Turner,

American media mogul and philanthropist (1938- )

"I think so long as fossil fuels are cheap, people will use them and it will postpone a movement towards new technologies." Paul Krugman,

Nobel Prize-winning Op-Ed columnist (1953- )

e P o we r of

rg e n E y

Co r por ate

Share of Renewable Energy in Gross Final Energy Consumption Source: Eurostat, 2014.

Legend

4.5 - 8.6 8.6 - 13.8 13.8 - 21.9 21.9 - 29.2 29.2 - 71.1 Not available Minimum value: 4.5 Maximum value: 71.1

Note: This indicator is calculated on the basis of data covered by Regulation (EC) No 1099/2008 on energy statistics. Reporting countries provide additional information on renewable source not covered by the Regulation. This indicator may be considered an estimate of the indicator described in Directive 2009/28/EC.

Investment Plan for Europe Source: Energy Union, European Commission.

Environment and resource efficiency

Transport

Digital

4% Social infrastructure Smaller companies

11%

SECTORAL COVERAGE (some projects cover several sectors)

RDI

20% Energy

22%

32%

MAN Diesel & Turboâ&#x20AC;&#x2122;s Decarbonisation Strategy Dionissis Christodoulopoulos Managing Director MAN Diesel & Turbo Hellas Ltd

AN Diesel & Turbo is the worldâ&#x20AC;&#x2122;s leading provider of large-bore diesel engines and turbomachinery for marine and stationary applications. It designs two-stroke and four-stroke engines that are manufactured both by the company and by its licensees. It manufactures gas turbines, steam turbines and compressors. The product range is rounded off by turbochargers, CP propellers, gas engines and chemical reactors, complete marine propulsion systems, turbomachinery units for the oil and gas as well as the process industries. Furthermore, MAN Diesel & Turbo is an EPC contractor for oil and gas fired power plants. Customers receive worldwide after-sales services marketed under the MAN PrimeServ brand.

Environmental protection is of paramount importance for MAN Diesel & Turbo and is a key success factor for the company. MAN Diesel & Turbo adheres to the

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following principles: 1. Environmental protection is a high priority corporate goal. It is both a prerequisite for the company's social recognition and acceptance as well as a basic responsibility of corporate responsibility. 2. We consider environmental protection in our planning and decision processes at the earliest possible stage. 3. We are aware that energy and natural resources are consumed to meet our economic goals. This applies in particular to product manufacturing and product development. Therefore, we set ourselves the goal of achieving the best possible efficiency and optimised emissions for new products. Furthermore, we assure that our products are made of environmentally compatible materials. We develop customer solutions to increase efficiency during operation as well as

to reduce energy consumption and emissions. 4. We design, build and operate buildings and infrastructure with the intention of keeping the unavoidable environmental impact, especially in regard to use energy, water and volatile organic compounds and generation of waste-water, solid wastes, emissions and noise to a minimum. 5. We develop production, testing and logistic processes for optimal and efficient resource consumption. 6. With the "MAN Code of Conduct for Suppliers and Business Partners" we assure that our guiding principles relating to health and safety or similar standards are applied by this group. More specifically almost half of the worldâ&#x20AC;&#x2122;s commercial goods are transported by MAN Diesel & Turbo engines, some 50,000 ships. This implies a huge environmental responsibility and,

Global Sustain Yearbook 2016/17

The Energy [R]evolution | Corporate

accordingly, decarbonisation is central to our long-term strategy. We strive to be a reliable partner that fulfils and exceeds customer requirements, especially in regard to environmentally friendly products and operations throughout the product lifecycle. As part of the MAN Group we are committed to the UN Global Compact. The UN Global Compact comprises 10 principles that ultimately state that corporate sustainability begins with a companyâ&#x20AC;&#x2122;s value system and a principled approach to doing business. This means operating in ways that, at a minimum, meet fundamental responsibilities in many areas, including the environment. Responsible businesses enact the same values and principles wherever they have a presence, and know that good practices in one area do not offset harm in another. By incorporating

the Global Compact principles into strategies, policies and procedures, and establishing a culture of integrity, companies are not only upholding their basic responsibilities to people and planet, but also setting the stage for long-term success.

Development of New Technologies MAN Diesel & Turbo invests a lot of effort in the development of new engines and technology that improve fuel efficiency and reduce CO2 emissions. Frequently, existing Diesel technology provides the basis for new propulsion possibilities.

Primary Measures The Diesel principle of self-ignition is the most efficient way of converting fuel into mechanical energy. We have continued to perfect this technology since its development by Rudolf Diesel and have steadily improved its efficiency advantage over other propulsion technologies through primary measures where the workings of the engines themselves and the refinement of the Diesel method are used to ever improve the already extremely high efficiency of our engines. The fuel savings deriving from primary measures deliver a commensurate reduction in CO2 emissions.

HyProp ECO is an innovative, fuel-saving, hybrid propulsion system that combines a diesel engine with a frequencyconverter-driven shaft-alternator/motor and features multiple operational modes. Hybrid Technology is another new field of interest for us. Hybrid vessel transports its passengers and vehicles with the aid of a six-cylinder MAN type engine and a new lithium-polymer battery system that has reduced fuel costs and the vesselâ&#x20AC;&#x2122;s environmental impact. The hybrid system reduces maintenance costs, fuel consumption, greenhouse gas emissions and noise production, while increasing

revenue and technical efficiency. Dual-Fuel Engines and Alternative Fuels Decarbonisation depends in great part on the fuel being used. In principle, our diesel engines can be operated with all manner of fuels. Cleaner alternatives can compete price-wise with oil and MAN Diesel & Turbo has already developed the appropriate dual-fuel technology. The dual-fuel engine uses gas injection. It dispenses with the need for power derating and eliminates the significant problem of methane slip and resulting CO2 emissions. The dual fuel engines gives ship-owners and energy producers the option of dual-fuel, using either HFO or gas â&#x20AC;&#x201C; predominantly natural gas but also LPG and methane, delivering significant reductions in CO2 emissions. http://gr.dieselturbo.man.eu/ http://www.corporate.man.eu

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Olaf Schulze Director Energy Management METRO AG Wholesale & Food Specialist Company

The Carbon Reduction and Energy Strategy 2030 of METRO GROUP1

ETRO GROUP, based in Düsseldorf/Germany, is one of the world’s largest and most international retailers and has made a name for itself globally as an environmental leader. The company operates at more than 2,000 locations in 29 countries and employs some 220,000 people. The performance of METRO GROUP is based on the strength of its sales brands, which act independently on the market: METRO/MAKRO Cash & Carry, the international leader in the self-service wholesale trade; Media Markt and Saturn, the European market leader in consumer electronics retailing; and

Real hypermarkets. 1. The Corporate Climate Target 2030 At the end of 2015, METRO GROUP set a new ambitious climate target to reduce the relevant specific corporate greenhouse gases per m2 sales area by 50% by 2030, compared to 2011. METRO’s previous climate target, to save 20% of emissions by 2020 compared to 2011, was nearly achieved at the end of September 2015 with 19.7%. Until the end of September 2016, we even increased our carbon reduction

to 23.4% vs. the 2011 baseline! The overall carbon emissions amount to 2.6 million tonnes CO2 yearly. Relevant sources of greenhouse gas emissions of METRO GROUP include energy, refrigerants, paper, business travel and company cars. Because energy and refrigerants alone have a share of METRO’s carbon emissions of nearly 90%, the corporate climate target 2030 will be achieved by: (1) Energy efficiency: Essential reduction of electricity and heating in our operations. The electricity demand of 1

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Status/copy deadline: March 2017

Global Sustain Yearbook 2016/17

The Energy [R]evolution | Corporate

METRO Cash & Carry will be reduced by 35% by 2030 (status 2016 = 20%), and the heating demand by 13%. In 2016, METRO GROUP used 2,964,000 MWh of electricity and more than 908,000 MWh of heating energy. (2) Refrigerants: Reduction of emissions from refrigerants to reduce the leakages from fluorinated gases by more than 90% by 2030 by changing to natural gases like CO2 or propane and implementing a sustainable leakage management. In 2016 we refilled 129,000 kg of refrigerants due to leakage and accidents.

(3) Renewables: Production and usage of renewable and zero-emission energy especially by using photovoltaic systems (PV), combined heat and power plants (CHP) or other green production. (4) GREENSTORE and ZEUS ZERO EMISSION UNIT STORE Initiative: When refurbishing or remodelling stores, we install the best available technology to reduce the energy and overall resource demand. All these elements are part of METROâ&#x20AC;&#x2122;s energy strategy. The paper, business travel and company car management

with 10% impact on the corporate emissions will be managed in other initiatives or projects. 2. Energy efficiency programmes In 2012, METRO Cash & Carry (MCC) and Real started a long-term energy saving programme (ESP) to invest in energy efficiency measures in our stores. Because the major part of energy by volume and costs is used as electricity for: a) the cooling equipment as the technical backbone of our food business and b) lighting, our ESP investments are focused on LED lighting, especially in

high racks and on ceilings (e.g. in MCC China, Poland, Russia, Germany, Real), and on the cooling equipment â&#x20AC;&#x201C; e.g. closed cooling units, ecological fans and LED in cooling shelf illumination (e.g. MCC Czech Republic, Hungary, Spain, Real). Every year, MCC invests nearly EUR 25m in such projects, including daylight illumination (MCC Pakistan), light and moving sensors in the store floors or warehouses (MCC Italy, Germany) or high speed doors to separate different temperature zones for cooling goods or in storage areas (MCC France, Germany, Austria). Our internal motto is: every kWh counts. And the more than 800 ESP projects we

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implement every year will substantially and consistently contribute to our energy target. In the ESP, we take into account profitability, energy efficiency and carbon reduction. To achieve profitability and energy efficiency and emission reduction, we also introduced a CO2 price as social return on investment for saved emissions as profit – with specific MCC country individual emission rates and a corporate carbon price. The 41 ESP best practices are published in so-called “ESP one pagers” to intensify and accelerate energy saving projects.

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The individual behaviour of our employees in the stores, warehouses and also in administrative functions has a huge impact on the energy demand. Therefore, we started an Energy Awareness Programme (EAP) in 2012, with training and educational advertising activities to increase employee awareness regarding energy and resources. A strong impact in this EAP comes from the implementation of an energy management system according to ISO 50.001, e.g. 2015 in MCC France and 2016 in MCC Germany and REAL. 3.The F-Gas Exit Programme (FEP) To operate our food business, we use

Global Sustain Yearbook 2016/17

The Energy [R]evolution | Corporate

cooling equipment and refrigerants, largely HFC refrigerants, partially with high GWP. The impact from refrigerants is approx. 15% of MCC’s corporate carbon foot print. To reduce the emissions from refrigerants, MCC started the FEP in 2013 to switch from HFCs to natural refrigerants when refurbishing and remodelling existing equipment or in new store openings. We are focused on transcritical technology, pure CO2. Where the climate conditions or the needed maintenance and repair is not available to reliably operate transcritical systems, we will install subcritical equipment, and

all refrigerants have to have a low GWP <2,500. The FEP is connected to a proper leakage reduction management. It is not the refrigerants in the cooling systems themselves that are problematic for the environment, but rather the emissions when leakages occur. We installed the first cooling equipment operating with CO2 in 2008 in the MCC Germany store in Hamburg-Altona and 2011 in Munich-Pasing and Schwelm, followed by Toulouse/ MCC France in 2012, Real Essen 2013 and Weifang/ MCC China in 2014. All stores were new openings.

The FEP is very capital-intensive and again, we strive to combine reasonable investments with a contribution to save the climate while also reducing maintenance costs, e.g. for refills. MCC operates between 57 transcritical and 66 subcritical cooling systems worldwide. Real operates 6 transcritical and 21 subcritical systems. When the existing equipment has the right technical specifications, depending on the technical life cycle, we change the existing refrigerant to a more climate friendly one with a max. GWP <2,500.

Due to our efforts, we have reduced the leakage rate and the climate impact year after year. MCC’s leakage rate in 2011 was 16%, and we were able to reduce it to 11.5% in 2015 and to 9.8% in 2016. Our sub-target is to reduce the climate impact by > 90% compared to 2011. 4. Renewables METRO’s first photovoltaic (PV) system as preferred green technology was installed in 2007 with a capacity about 220 kWp (kilowatt peak) in MCC Germany/ Düsseldorf. In the near future, we want to install our own green production at the METRO stores and increase the shares of green kWhs. Our plan is to install more

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than 50,000 kWp as PV capacity by 2030. Currently, we are operating 4,800 kWp PV in 14 stores including MCC China, Turkey, Italy and Spain. We are preparing many projects in 2017/2018 in MCC China, India and Germany to accelerate the use of renewables. Depending on the market conditions, we produce our electricity and heat in a highly efficient way by using natural gas in combined heat and power plants (CHPs), e.g. in MCC Russia, Germany. In 2017 we will start operating our next

96 96

800 kW CHP in Ivanovo/ Russia. If renewable energy is available in the vicinity of our stores we make use of it, e.g. in our four MCC stores in Bangalore/India from wind turbines or in Reichenbach/Germany from biomass. We put a focus on renewables, but until 2030, we will have to get the majority of our physical demand from the grid â&#x20AC;&#x201C; and we hope that in the future, the energy mix from the grids will also be greener. 5. GREENSTORE and ZEUS ZERO

EMISSION UNIT STORE Initiative To achieve our carbon reduction targets, we want to operate our existing stores in a sustainable way. When refurbishing our stores, we have the great opportunity, but also the challenge to integrate all elements of the technical measures described earlier to reduce the energy and resource demand by orders of magnitude. The pilot GREENSTORE is MCC Dongguan/China, opened in September 2016 after remodelling. Closed cooling

units, separated and highly insulated cooling rooms, full LED in-store and outside, daylight bands connected with light sensors to use the daylight from the store ceiling, highly efficient air conditioning with ventilation, subcritical cooling equipment, road lamps with small wind turbines, a 800 kWp PV system on the rooftop and integrated in the south facade, an AC/DC charger for electric cars plus a charging carousel for bikes are the main elements to reduce the energy demand by almost 50%.

Global Sustain Yearbook 2016/17

The Energy [R]evolution | Corporate

The GREENSTORE initiative is a MCC standard for refurbishing stores and, in Dongguan, also includes rainwater storage and a smart waste management system. But the dimension of the existing store, the foundation and the building materials cannot be changed and here we see additional potential for energy savings in new stores. Therefore, we started the ZEUS Initiative for new buildings: construction will be more strategic, we will take into consideration the building’s shape, the

building materials, technical equipment and also operational processes to make the store CO2-neutral. The pilot ZEUS store is currently under construction in MCC St. Pölten/ Austria and will be opened in 2017. We are using the characteristics of a wooden construction and concrete foundation with huge horizontal glass facades to use natural light, full LED and modern ventilation systems to reduce the electricity demand by more than 50% of good operating MCC standard. Although

the store is located in Austria with cold winters, we do not have a heating source: the heat comes from tubes in the foundation and from the heat recovery of the transcritical cooling system. The electricity needed on top of that will be produced by a 1,000 kW PV system.

2030 is the date that we have highlighted in our strategies as the day after tomorrow – and we aim to have achieved our METRO corporate climate target by then. www.metrogroup.de

Whenever we have the possibility and the right conditions, we will install the GREENSTORE and later the ZEUS as the new METRO standard to reduce our climate impact considerably.

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The Oil and Gas Climate Initiative Industry Collaboration to Reduce Carbon Emissions Dr. Dominic Emery Interim CEO OGCI Climate Investments

The ambitious agreement reached by the United Nations climate change conference (COP21) in Paris in 2015 is an important milestone in the attempt to transform our energy systems. The Oil and Gas Climate Initiative (OGCI), a group of 10 oil and gas companies representing one-fifth of the world’s oil and gas production, recognises that meeting the challenging aim the Paris Agreement set will require new approaches, new policies and practical action, both in the energy sector and elsewhere. Oil and gas producers account for more than half of the energy that powers our economies today. That means we also need to be key players in helping tackle

98 98

the challenge of climate change. Our sector accounts for about 5% of total manmade greenhouse gas emissions; in addition, the use of our products by other sectors including power, industry and transport accounts for an additional 32%. We are working with governments, international organisations and others to help reduce those emissions. OGCI is developing new strategic partnerships with others working to limit climate change. OGCI’s mission is to use our collective resources to accelerate actions that mitigate the greenhouse gas emissions from the oil and gas industry’s operations and the use of its products, while still meeting the world’s energy needs.

We have prioritised our collaborative initiatives based on a strategic assessment of their impact on greenhouse gas emissions, the ability of our industry to help shape the outcome and the urgency required. Our assessment concludes that improving efficiency must be coupled with a strong focus on reducing the greenhouse gas intensity of the energy our sector produces to reduce emissions on the massive scale required. To help us meet our ambition, we have launched OGCI Climate Investments, a partnership that will enable us to invest USD 1 billion over the coming years to support start-ups and help develop and demonstrate innovative technologies that have the potential to reduce

Global Sustain Yearbook 2016/17

The Energy [R]evolution | Corporate

greenhouse gas emissions significantly. Our aim is to multiply the impact of our investments by leveraging funds from other organisations and by deploying new technologies within our own companies [see diagram -multiplier effect]. Our focus is on the following priorities: • Reducing our methane emissions. Natural gas can play a role in the fight against climate change by substituting for coal in power generation, industry and heating. For gas to play its full role, however, we need to understand and control methane emissions more effectively. To do this we are working with expert partners to improve methane data and to select and deploy cost-effective methane management technologies.

• Accelerating the deployment of carbon capture, use and storage (CCUS). Strong action on CCUS is needed to succeed in delivering the long-term goals of the Paris Agreement. Although several pioneering projects are now in place, a number of obstacles must be overcome before CCUS can be deployed on a wide scale. These include high capital and operating costs, the lack of stable policy support or a clear business model, and uncertainty around world storage capacity. We are exploring solutions in each of these areas. • Improving industrial energy efficiency. Improving energy and other operational efficiencies, such as flaring reduction, can save both

greenhouse gas emissions and money, so there is a dual incentive. OGCI members are active individually, but our opportunity is to find technologies where collaboration between our companies and others within our industry can deliver a step change at a very large scale. Many solutions applicable in the oil and gas sector will also be relevant to other energy-intensive industries. • Contributing to transportation efficiency. The transportation sector currently uses around one fifth of the world’s primary energy and this share will rise as the number of vehicles grows. Our focus is to work closely with manufacturers in all modes of transportation, with the

aim of developing more efficient engines and advanced fuel-engine combinations. The OGCI is group of 10 oil and gas companies representing one-fifth of the world’s oil and gas production – BP, CNPC, Eni, Pemex, Repsol, Reliance, Saudi Aramco, Shell, Statoil and Total. The OGCI was formed to develop collaborative solutions to reduce carbon emissions and at the same time continue to meet the world’s growing demand for energy. www.oilandgasclimateinitiative.com

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World R&D Investors in Renewable Energy Source: EU Scoreboard, World 2500, 2016.

World Rank

Name

620

VESTAS WIND SYSTEMS

765

FIRST SOLAR

879

HANERGY SOLAR

933

SMA SOLAR TECHNOLOGY

1269

SOLARCITY

1385

NORDEX

1570

SENVION

1969

TRINA SOLAR

156,0 120,0 97,8 90,8 59,6 53,7 43,8 31,3 0

100

150

Value (â&#x201A;¬ million)

Energy Access and Security Source: â&#x20AC;&#x153;Global Energy Architecture Performance Index Report 2016â&#x20AC;?, World Economic Forum, 2016.

EA&S Percentile Rank High performers 90-100% 80-90% 70-80% 60-70% 50-60% 40-50% 30-40% 20-30% 10-20% 0-10%

Low performers Not covered

Top 10 performers, EAPI Energy Access and Security Country Norway Denmark New Zealand United States Sweden

EAPI rank

EA&S score

2 5 9 48 3

0.95 0.91 0.90 0.89 0.89

Country United Kingdom Switzerland Canada Netherlands Austria

EAPI rank

EA&S score

16 1 30 37 6

0.89 0.88 0.88 0.88 0.88

Stuart Reigeluth Founder Revolve Media Vice-President Revolve Water

Water and Energy Driven Competition In the eastern lands of the arid Arabian Peninsula, European companies are competing to find water solutions but it’s unclear if they will maintain patent rights of the technologies being developed. The 2017 World Economic Forum Global Risks Report included a highlight from the 2016 survey of 750 experts who concurred that water scarcity poses the gravest threat to global society over the next decade. Some regions are obviously more arid than others but scarcity is not always

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about the lack of a natural resource, it can also, often, be about over-demand and mismanagement of an existing resource.

“resource water” – investing in water is good for society, good for the environment and it’s good for business as it brings energy costs down too.

In the 1980s and 1990s, Denmark saw the economic and environmental waste of leakages and over-consumption. Policies were implemented to improve the delivery of water and to raise awareness about the value of water.

Denmark Cracked “Secret Code” in Water-Energy Nexus

Denmark has been particularly successful in reducing water wastage in general and in particular has turned wastewater into

Thanks to determined policies, Denmark has succeeded in breaking the seemingly inextricable linkage between water and energy use. But replicating the Danish model at European level won’t be easy, policymakers warn. In a much more arid region where

Global Sustain Yearbook 2016/17

The Energy [R]evolution | Corporate

water is substantially scarcer and more expensive than oil, the Arabian Peninsula also sees the great value of investing in producing clean water for good reason: the oil will eventually run out and the peninsula would rely entirely on external sources of imported water. So far, the most popular solution and rather expensive means of extracting large quantities of fresh water from the seas has been desalination.

do with except throw back into the seas (increasing the salinity of the waters) or dumping into the desert (where it creates salt crystal ponds).

Desalination is very energy intensive, costs a lot and produces brine – a salty sludge that no one really knows what to

This kind of competition is good, it’s healthy for capitalism and it’s driving the transition away from fossil fuels to

In typical Arabian Peninsula fashion, when the UAE announced a major solarpowered desalination plant a couple of years ago, Saudi Arabia responded by building a solar-powered desal plant that would be four times as big.

more sustainable sources of getting energy and water. Most countries cannot afford the high price tag of the solar-powered desal plants yet though, or if they do they prefer to invest in something else like wind energy or hydropower, when and where they have an abundance of water already. Today, an estimated 60% of global production of desalinated water is coming from the Gulf Cooperation Council (GCC) countries of the peninsula and globally desalination could grow by one third by 2020, according to Steve Griffiths, Vice-

President of Research at the Masdar Institute of Science and Technology at the International Water Summit in Abu Dhabi. And then God Said: Let There be Rain Between Abu Dhabi and Dubai there is a small strip of coastal land called Ghantoot that is where the EXPO2020 will host some activities. Right now, there is Racing & Polo Club and not much else, except for a testing station where Masdar, the clean energy company of Mubadala, has created

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five joint ventures (JV) with European companies, including SUEZ, Abengoa, Veolia, and Mascara, plus one US company called Trevi that is developing forward osmosis technology. Each small JV is worth about EUR 1-2 million and they are competing in adjacent plants to research and test new technologies to scale-up and deploy desalination. These are all very small plants compared to the multi-billion-dollar market of offshore rigs drilling hundreds of holes deep into the sea bed in search of and in direct competition with their neighbors

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to tap into the remaining reserves of oil and gas in the Arabian/Persian Gulf. But these are important mini projects for Masdar as they have the potential of bringing more clean water in a more efficient way to more people, with the parallel potential of selling the technology patents. It’s like the race to find clean biofuels: the solution will provide control of international aviation and transport, so it’s no surprise that Masdar is investing massively and leading algae pond research to find the cleanest “green” fuel.

Back to the five mini JV plants, only the SUEZ/Masdar one is exploring how to reuse part of the brine and to reduce the overall “outfall” (waste). There is no silver bullet for this: the brine would have to be reprocessed in parallel treatment plants and reinserted into other industries that could use the minerals from the brine. This is an even more costly process as it would involve separate treatment processing. How to reuse brine is equivalent to how to store energy; they are the holy grails of the water

and energy sectors. Whoever owns the patents to these technologies will own the water solutions. Back at headquarters in Masdar City, researchers from around the world are happily exploring how to make it rain as an alternative source of water. Apart from implementing forward osmosis, reverse osmosis, membrane distillation, brine treatment and integrating renewables at the desalination plants, the Masdar Institute and the UAE Research Programme for Rain Enhancer Science are looking into how to stimulate rainfall in such arid zones

Global Sustain Yearbook 2016/17 The Energy [R]evolution | Corporate

info Stuart Reigeluth is the Founder of Revolve Media and the VicePresident of Revolve Water. He holds a MBA (2015) from the SolvayPonts Business School in Brussels/Paris and a MA (2005) from the Center for Arab and Middle East Studies (CAMES) at the American University of Beirut. Stuart was a freelance journalist covering the Arab-Israeli conflict and a columnist for Gulf News for over 10 years. He worked as Project Coordinator for the Mediterranean and Middle East program at the Toledo International Center for Peace (CITpax) in Madrid and has contributed to numerous think tank publications and media outlets.

as the Arabian Peninsula. These are exciting times to see such research and activity around addressing the number one â&#x20AC;&#x153;public enemyâ&#x20AC;? of water scarcity. This land of the eastern Arabian Peninsula is a veritable petri-dish of innovative projects to find sustainable solutions. Itâ&#x20AC;&#x2122;s about playing god a little when using remote sensing for example to optimise cloud seeding that can cause more rainfall. How this will affect the environment and the natural habitat is

yet to be seen. In the meantime, instead of trying to grow grass the vibrant Astroturf covering patches of sands by the highway seems OK now: at least no water is being wasted. But when the rain does start to fall and bigger water solutions are found, who will be buying the patents from whom? Images: Joint venture testing plants for desalination technologies with Masdar and European companies in Ghantoot, UAE. Source: Revolve Media

Revolve Media, as a communication agency fostering cultures of sustainability, offers top quality services by providing data visualisation, visual identity/branding, website development, marketing/advertising, videos, stakeholder mapping and impact reporting for its partners to increase their influence. Revolve Media also publishes a quarterly international magazine, manages numerous websites and social media outlets, and organises public information campaigns/exhibitions. www.revolve.media Revolve Water is a non-profit organisation that transfers knowledge for young professionals to better communicate about the value of water. Our knowledge leadership includes training programmes and publications, research and stakeholder events. Revolve Water brings together members from different professional and cultural backgrounds, from junior to expert level. As an international platform, we encourage the exchange of information and knowledge about water and energy in the Mediterranean region and beyond. www.revolve-water.com

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Cyril Perducat Executive Vice President IoT & Digital Transformation Schneider Electric

How to Power a Sustainable Future: Energy Efficiency, Connectivity, and Distributed Energy Hold the Key. Making Them Work Together Takes a Platform As the world grows warmer, more populated, and increasingly dependent on technology, old ways of thinking about energy – the way we produce it, manage it, use it, and value it – are being challenged. As they should. Marshalling the right resources now – capabilities we possess today and continue to improve upon – is not only key to helping Earth’s 7.5 billion people meet current economic, social and climate challenges, but also to ensuring its projected 9.7 billion inhabitants in 2050 can thrive. In meeting these present day needs

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and future challenges, energy is key. Former UN Secretary-General Ban Kimoon deemed it “the golden thread that connects economic growth, increased social equity, and an environment that allows the world to thrive.” Indeed, energy is the global currency necessary to bring entire populations out of poverty, support economic growth, and fuel future opportunity and discovery. At Schneider Electric, we believe access to energy is a basic human right. We want everyone on the planet to enjoy the benefits of safe, reliable, efficient and sustainable energy, because that access is transformational. That’s why

our rallying cry is “Life Is On.” Making sure this happens is our mission. Yet today nearly 1.3 billion people lack access to electricity. What those in the developed world take for granted with every push of a button is unavailable to almost one out of every five people on the planet. Another 1 billion people depend upon an unreliable and intermittent supply of energy. We must do better. And we can. Furthermore, we know energy demand is set to double in the next 40 years, making the stakes even higher. Three

Global Sustain Yearbook 2016/17

The Energy [R]evolution | Corporate

Solving today's energy equation by 2050

x1.5 ÷2 Growth of energy consumption

CO2 emissions need to be halved

Note: Forecast for 2050 compared to 2009 levels

global megatrends are driving this dramatic increase: • Urbanisation: By 2050, global urban population is expected to increase by 2.5 billion – just as the world’s population approaches 10 billion – concentrating energy demand and placing extreme stress on cities’ infrastructure and services. • Digitisation: Within the next five years, 30 billion more connected devices – the “things” of the Internet of Things (IoT) and the Industrial Internet of Things (IIoT) – will be online and in service, consuming more power.

3x We have to become 3 times more efficient

Source: Intergovernmental Panel on Climate Change (IPCC); IEA 2014 – 2015, Schneider Internal Analysis

• Industrialisation: While industry already accounts for one-third of total world energy consumption, experts expect this usage to increase 50% by 2050.

The current approach is unsustainable. As responsible stewards, we need to meet growing energy demand, while cutting CO2 emissions in half to avoid the worst effects of climate change.

Energy efficiency can radically reduce energy use at every conceivable touchpoint, whether at work, in our homes, via transport, on our devices, or in our cities.

The Energy Dilemma (and an Efficient Solution to Solve It)

The recipe for success is logical: Deploy energy-efficiency solutions pervasively and at scale, and couple this focus with the widespread adoption of renewable energy, through a smart, connected, distributed energy model.

For example, buildings currently consume 33% of the world’s energy, but through a number of retrofits, can be made +80% more efficient. In many buildings, older building management systems are the number one cause of large-scale inefficiencies.

So, we have a problem. We have a surge in energy demand in the developed and the developing worlds, and an urgent need for it in underserved areas. This will require producing and distributing twice as much power as we do today, within the next 40 years.

To start, let’s focus on energy efficiency – becoming three times more energyefficient to be exact.

New “smart” building management systems, leveraging the connectivity and communications capabilities of the IoT,

107 107

Innovation At Every Level

A snapshot of EcoStruxure’s impact BUILDING Deloitte’s “The Edge” (The Netherlands)

A net zero energy building

produces 102% of its own energy consumption

DATA CENTER Regionservice (Sweden)

$2.8M annual savings

Malaysia Prime Minister’s Office Target:

40%

energy savings

Core Computing data center (Korea)

Genpact (India) (BPO company)

75% less time spent on data center maintenance

in energy by 2020, enough to power 750 homes annually

Today, a sensor in a meeting room can determine occupancy and “tell” the building management system to turn off lights and adjust heating and cooling accordingly to conserve energy. This impact can be further magnified by connecting it with online weather information to shape and inform environmental controls for the upcoming workday. Applied globally, IoT connectivity can help energy managers look across their portfolio of buildings, accessing real-time and historical data, to yield the highest-returning energy and

108 108

in power and cooling costs

Cooling costs reduced by

~30%

Towergate, U.K.

capital expenditure savings

50% savings

INDUSTRY

reduction

59%

Shedd Aquarium (U.S.)

can be used to monitor, measure, and optimise energy consumption throughout the life cycle of a building.

30%

Green Mountain Data Center (Norway)

with self-cooling micro data center enclosures

GRID

Made possible by Smart Grid technologies, Stedin (The Netherlands) the emerging new world of distributed $3M – $5M seconds 50% reduction energy30 offers enormous potential to boost The bottom-line savings here are The old world of energy – the orchestration annual savings to restore global in upgrade costs 60% reduction from improved refinery performance and network efficiency and outage reduce CO2 emissions. Grid significant. Property owners andcosts facilities of its generation and transmission – is in capital investment reliability and reduced maintenance operators are maximising occupant undergoing a major transformation with automation and a more flexible distribution comfort while minimising cost and seismic repercussions on every node of model enable a more responsive network Yarra Valley Water Aracruz Cellulose (Brazil) South Australia Power 9REN Group (Spain) (Australia) environmental impact. And these efforts the grid. The old model, a centralised, onethat allows to market) realise active (operator inconsumers the turnkey photovoltaic Pulp production facility increased to 1M data points 80% reduction are being2M amplified as they shape smart way, supply-side-oriented grid designed savings. 50% increase (up from 80,000 registered energy-efficiency tons, in external support costs by ADMS system) in event recognition No. 1 in the world city initiatives. for meeting peak demand is giving way to a distributed, two-way, demand-sideMicrogrids and distributed energy A New World of Energy: Welcome to oriented model, in which consumers are resources (DER) – small-scale renewable Distributed Power empowered to take a more active role in energy sources and energy storage – allow their energy decisions. consumers to produce their own energy While energy efficiency is a major part and shift to a greener energy mix. of the solution to meet growing energy This paradigm shift literally gives “power to demand without overtaxing our planet, the people.” Electricity is now increasingly In addition, the costs of both solar and distributed and connected, and flow is so too is the advancement of sustainable storage have been dropping by a factor bidirectional between smart supply and sources of energy, such as solar and of five over the past few years. Analysts smart demand. wind, and making them a working part expect the renewable sector to account of the electrical grid. Welcome to the for up to 70% of new capacity additions operational efficiency investments. Chevron, USA

evolution of distributed energy.

Xcellerex, USA

(manufacturing technologies for biopharmaceutical industry)

BC Hydro (Canada)

Global Sustain Yearbook 2016/17

The Energy [R]evolution | Corporate

by 2040, including underserved areas without access to reliable energy from traditional grids. Decision Time: It Takes a Platform Decision-makers around the globe, both in industry and government, are keenly interested in meeting these new energy requirements to make their domains run more efficiently, profitably, and sensibly. They need to meet the demands of citizens, customer, employees, investors and future generations. But how can this be accomplished? Delivering the needed capabilities – namely energy efficiency, connectivity and intelligence, and distributed energy – across demanding environments certainly

involves the requisite technologies. But it also takes something to unite these complementary technologies, making them available in a way that enables customers to easily implement them, apply them to their own specific needs, and derive the most benefit from them. It takes a platform. At Schneider Electric, we have distilled more than 100 years of energy and automation expertise into a platform to meet the coming century’s most pressing energy challenge, and ensure Life Is On for every citizen at every touchpoint. We call it EcoStruxure™. This groundbreaking platform has brought together the latest advancements in IoT,

mobility, sensing, cloud, analytics, and cybersecurity technologies, allowing users to: • Connect devices and users, from the shop floor to the top floor. • Collect data at every level, from sensor to the cloud. • Analyze data, converting it into meaningful analytics. • Take action, in real-time, combining information and business logic to optimise operations.

execution and management tools they need to manage energy and automation more efficiently, and operate more profitably and sustainably. Breakthrough performance awaits. To learn how we drive efficiency and sustainability worldwide, go online to explore the EcoStruxure solution and to view our annual Sustainability Report. www.schneider-electric.com

Integrating a wide swath of essential capabilities in energy management, automation, data analytics, IIoT, and security, EcoStruxure delivers Innovation At Every Level, giving customers the comprehensive planning,

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Green Bond Issuance Source: Bloomberg Intelligence.

Issuance Since 2013 ($B)

Supranational

China

France

Germany

Netherlands

Spain

Sweden

Demand Growth from Developing Nations 2016 Ranking Source: The Brookings Institution, 2016. Global Middle Class | Billion People

Energy Demand | Quadrillion BTUs

800

600

Rest of World Key Growth

400

Rest of World

Key Growth

3 China

India China

200

2 India

1 OECD*

0 2000

2020

*Mexico and Turkey included in Key Growth countries

2040

OECD*

'14

'30

Ornella Barra Co-Chief Operating Officer Walgreens Boots Alliance, Inc.

Happier and Healthier Lives Everywhere - How Walgreens Boots Alliance Drives Sustainable Development Goals Across its Business and the Globe Our mission at Walgreens Boots Alliance is to help people across the world lead healthier and happier lives. This passion drives our business and our approach to the products and services we offer - and it also extends to our Corporate Social Responsibility work.

Walgreens diverting products from landfills across the United States by donating them to Feeding America, the largest domestic hunger-relief organization. Those products are donations of slightly damaged or discontinued products, screened for safety, include food as well as toiletries and household items.

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In 2015, the United Nations adopted an ambitious sustainable development agenda including 17 targets known as the Sustainable Development Goals (SDGs), a plan of action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. The U.N. called on

Global Sustain Yearbook 2016/17

The Energy [R]evolution | Corporate

The Boots Opticians partnership with the National Literacy Trust gave away 350,000 copies of children’s eye health book Zookeeper Zoe in fiscal 2016, to help detect undiagnosed eye conditions.

governments, civil society and the private sector to help implement the goals. The private sector responded enthusiastically. In the 2016 U.N. Global CompactAccenture Strategy CEO Study (the largest global study of attitudes toward sustainability from the world’s leading CEOs) 89 percent of responding CEOs said commitment to sustainability is translating into real impact in their industry. In the same study, almost half of the CEOs said business will be the single most important factor in delivering the SDGs.

At Walgreens Boots Alliance, we are committed to the same ideals as those in the SDGs, and believe they are compatible with our business strategy. That’s why we have developed a strategic framework integrating our CSR programmes and the SDGs into our core capabilities and global footprint. We are pleased to report that our portfolio of CSR activities spans all 17 SDGs, including working to end poverty, hunger and inequality, taking action on climate change and the environment, improving access to health and

In fiscal 2016, Alliance Healthcare España achieved its zero waste to landfill target for the first time at its largest warehouse, located in Polinya, not including customer returns, damaged and out of date stock.

education, building strong institutions and partnerships, and so much more. Our CSR approach is structured into four key areas:

“I feel immensely proud of our CSR initiatives, which show how much our people care and which are embedded in the work we do every day. “ Ornella Barra Co-Chief Operating Officer and Leader of Corporate Social Responsibility

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Employees of Alliance Healthcare EspaĂąa held a fundraising activity for the European Organisation for Research and Treatment of Cancer (EORTC).

Our Moreno Valley, California distribution center sent 4 metric tonnes of waste to landfill in August 2016, down from an average of 22 metric tonnes a month in fiscal 2015, through a zero waste to landfill pilot program.

Within those areas we have identified 12 ambitious goals that will shape our CSR approach moving forward (on the following pages you will see how we are mapping our CSR goals with the SDGs). We are working with our individual

114 114

businesses to address specific targets that are relevant to the SDGs. To this end, we are educating and engaging our hundreds of thousands of employees and many millions of customers about how they can help to further the SDGs in their communities, as part of our

Walgreens with the U.N. Foundationâ&#x20AC;&#x2122;s Shot@Life campaign expanded its Get a Shot. Give a Shot. program in 2016 and donations have helped provide more than 15 million vaccines.

Global Sustain Yearbook 2016/17

The Energy [R]evolution | Corporate

Employees at Boots Thailand celebrate an initiative where they raised money for the country’s National Cancer Institute.

Farmacias Benavides in Mexico sponsored the Rosa Fuerte 5K/10K run to raise funds for Fundación Alma, which helps women with breast cancer.

collective efforts. We are dedicated to communicating our progress and connection to the SDGs in our annual CSR report, which will align with international frameworks (such as the Global Reporting Initiative).

We can make a significant and meaningful contribution to ensure that everyone enjoys peace and prosperity, happily and healthily. Walgreens Boots Alliance not only provides care for citizens across the globe, but is also an engaged global citizen.

Boots UK’s new healthcare apprenticeship program is designed to generate excitement about careers in community pharmacy.

Mrs Barra receiving the Global Leadership award from The United Nations Foundation, recognizing Walgreens Boots Alliance‘s ongoing commitment to CSR.

115 115

Mapping the SDGs to Our CSR Strategy Every Walgreens Boots Alliance CSR goal has been mapped to one or multiple SDGs to make it easier to measure progress and report our findings. Our approach to aligning with the SDGs was broken down into five key steps: 1. Understanding the SDGs 2. Embedding the SDGs into our goals 3. Integrating the SDGs into our activities

116 116

4. Communicating and engaging our people 5. Measuring and reporting progress

Community goals Health and Wellbeing: To support the health, wellbeing and vitality of the communities we serve Young People: To enable young people to achieve their potential wherever they are in the world Cancer Programs: To develop and mobilize our resources and partnerships in the fight against cancer

Environment goals Gladys is a child in Guatemala who received twice yearly vitamin A supplements and deworming tablets, and a daily multivitamin. The vitamins, provided through the WalgreensVitamin Angels partnership, helped supplement her limited diet. Vitamin Angels partners with non-governmental organizations to provide lifechanging vitamins and minerals.

Our Journey Around the SDGs Environment goals Community goals Energy: To reduce our energy consumption Health and 1Wellbeing: support the and Scope and Scope 2To emissions on health, wellbeing and basis vitalityasofdefined the communities we a comparable by the serve Greenhouse Gas Protocol (GHGP) Young Tothe enable young peopleon to a Waste:People: To reduce waste we create, achieve theirbasis, potential theytoare comparable andwherever to contribute thein the world drive for increasingly circular economies Cancer To develop and mobilize throughPrograms: increased re-use and recycling our resources and fight Deforestation: To partnerships develop plansintothe help against achieve cancer zero net deforestation by 2020, collaborating with other organizations in a global initiative

Marketplace goals Environment goals

Traceability: To create a global process that Energy: To reduce our energy consumption enables transparency of ingredients and their and Scope 1 and Scope 2 emissions on traceability for the exclusive consumer retail a comparable basis as defined by the product brands that we sell Greenhouse Gas Protocol (GHGP) Ethical Sourcing: To continue to drive ethical Waste: To reduce the waste we create, on a sourcing practices, protecting human rights comparable basis, and to contribute to the across our supply chain drive for increasingly circular economies External Stakeholders: To work through increased re-use and recycling collaboratively with a global network of key Deforestation: To develop plans to help external organizations engaging in issues achieve zero net deforestation by 2020, that carry the greatest social relevance to the collaborating with other organizations in a markets and in the communities we serve global initiative

Marketplacegoals goals Workplace

www.walgreensbootsalliance.com Traceability: To create a global process that Employee Health and Wellbeing: To enables transparency ingredients andand their proactively support theofpersonal health traceabilityoffor exclusive consumer retail wellbeing ourthe employees product brands that weTo sell Equal Opportunities: deliver our Ethical Sourcing: To continue to drive commitment to equal opportunities for ethical sourcing practices, human rights everyone across ourprotecting employment practices, across our chain policies andsupply procedures External Stakeholders: To work Health and Safety: To continuously improve

Children and adults pedaled Gladys istoa power child inan Guatemala bicycles outdoor who received yearly movie screen twice at an energy vitamin and fair heldAbysupplements the Boots UK deworming tablets, and a daily multivitamin. The vitamins, The event, organized by our provided through the WalgreensEnergyCare program, is an Vitamin Angels example of howpartnership, we promote helped supplement her limited energy saving initiatives. diet. Vitamin Angels partners with non-governmental organizations to provide lifechanging vitamins and minerals.

Walgreens worked with state Children and adults pedaled governments and regulators bicycles to power an outdoor across the USA to allow for movie screen at an energy medication take-back programs fair held by the Boots UK to be implemented in pharmacies. In addition, as of 31 August The event, organized by our 2016, opioid overdose antidote EnergyCare program, is an naloxone was available in example of how we promote Walgreens stores in 18 U.S. states energy saving initiatives. following engagement with state regulators and governments.

Walgreens worked state Jamie Graham, onewith of more governments and regulators than 900 employees at our U.S. across the USA to allow distribution centers whofor identify

medication take-back programs as people with disabilities, to beworked implemented in pharmacies. has at the Walgreens In addition, as of 31 August Connecticut Distribution Center

2016, opioid overdose antidote for eight years as a general naloxone was available in says warehouse worker. Jamie Walgreens in 18 U.S. the job has stores transformed herstates life.

Energy: To reduce our energy consumption Community goals2 emissions on and Scope 1 and Scope a comparable basis as defined by the Health and Wellbeing: To support the health, Greenhouse Protocol wellbeing andGas vitality of the(GHGP) communities we Waste: To reduce the waste we create, on a serve comparable basis, and to contribute to the Young People: To enable young people to drive fortheir increasingly economies achieve potentialcircular wherever they are in through the worldincreased re-use and recycling Deforestation: To develop plans tomobilize help Cancer Programs: To develop and achieve zero net deforestation our resources and partnershipsbyin2020, the fight collaborating against cancerwith other organizations in a global initiative

Marketplace goals Traceability: To create a global process that Environment goals

enables transparency of ingredients and their Energy: To reduce our energy consumption traceability for the exclusive consumer retail and Scope 1 andthat Scope emissions on product brands we 2sell aEthical comparable basisToascontinue defined to bydrive the ethical Sourcing: Greenhouse Gas Protocol (GHGP) sourcing practices, protecting human rights Waste: To reduce waste we create, on a across our supply the chain comparable basis, and to To contribute External Stakeholders: work to the drive for increasingly economies collaboratively with a circular global network of key through re-use and recycling external increased organizations engaging in issues Deforestation: To develop plans to helpto the that carry the greatest social relevance achieve deforestation by we 2020, marketszero and net in the communities serve collaborating with other organizations in a global initiative

Workplace goals Marketplace goals

Employee Health and Wellbeing: To Traceability:support To create global process that proactively the apersonal health and enables transparency of ingredients and their wellbeing of our employees traceability for the exclusive consumer Equal Opportunities: To deliver our retail product brands that we sell commitment to equal opportunities for Ethical Sourcing: Toemployment continue to drive ethical everyone across our practices, sourcingand practices, protecting human rights policies procedures across and our supply Health Safety:chain To continuously improve External Stakeholders: To work our robust approach to health and safety, collaboratively withour a global networkand of key actively caring for employees external organizations in issues customers, throughoutengaging the company that carry the greatest social relevance to the markets and in the communities we serve

Workplace goals Employee Health and Wellbeing: To proactively support the personal health and

Children and adults pedaled bicycles to power an outdoor movie at an energy Gladysscreen is a child in Guatemala fair held by the Boots UK

who received twice yearly Global Sustain Yearbook 2016/17

vitamin A supplements and The Energy [R]evolution | Corporate The event, organized by our deworming tablets, and a daily EnergyCare program, is an multivitamin. The vitamins,

example how we provided of through thepromote Walgreensenergy Vitaminsaving Angelsinitiatives. partnership, helped supplement her limited diet. Vitamin Angels partners with non-governmental organizations to provide lifechanging vitamins and minerals.

Walgreens worked with state governments and regulators Children and adults pedaled across the USA to allow for bicycles to power an outdoor medication take-back programs movie screen at an in energy to be implemented pharmacies. fair held by as theofBoots UK In addition, 31 August 2016, opioid overdose antidote The event,was organized by in our naloxone available EnergyCarestores program, an states Walgreens in 18isU.S. example of how we promote following engagement with state energy saving regulators andinitiatives. governments.

Jamie Graham, one of more Walgreens worked with state than 900 employees at our U.S. governments and regulators distribution centers who identify across thewith USAdisabilities, to allow for as people medication programs has workedtake-back at the Walgreens to be implemented in pharmacies. Connecticut Distribution Center In addition, as of August for eight years as31 a general 2016, opioidworker. overdose antidote warehouse Jamie says naloxone was available inher life. the job has transformed Walgreens stores in 18 U.S. states following engagement with state regulators and governments.

Jamie Graham, one of more than 900 employees at our U.S.

wellbeing of our employees Equal Opportunities: To deliver our commitment to equal opportunities for

distribution centers who identify as people with disabilities, has worked at the Walgreens Connecticut Distribution Center

everyone across our employment practices, policies and procedures

for eight years as a general warehouse worker. Jamie says

117 117

The Energy Architecture Performance Index Source: “Global Energy Architecture Performance Index Report 2016”, World Economic Forum, 2016.

Economic growth and development

Environmental sustainability

This sub-index measures the extent to which a country’s energy achitecture adds or detracts from economic growth

This sub-index measures the environmental impact of energy supply and consumption

Energy access and security This sub-index measures the extent to which an energy supply is secure

The Energy Architecture Performance Index 2016 Ranking Source: â&#x20AC;&#x153;Global Energy Architecture Performance Index Report 2016â&#x20AC;?, World Economic Forum, 2016.

"Our planet cannot be saved unless we leave fossil fuels in the ground where they belong. Twenty years ago, we described this problem as an addiction. Today, we possess the means to end this reliance." Leonardo DiCaprio,

American actor and film producer (1974- )

"Everything is energy and that is all there is to it." Albert Einstein,

German-born theoretical physicist (1889-1955)

"Nuclear energy in terms of an overall safety record, is better than other energy." Bill Gates,

technology entrepreneur, American business magnate, investor, author and philanthropist (1995- )

"A transition to clean energy is about making an investment in our future." Gloria Elizabeth Reuben,

Canadian singer and actress of film and television and producer (1964- )

Global Trends Likely to Transform Businesses Source: “19th Annual Global CEO Survey”, PwC, 2016.

Threat Concerns by CEOs Source: “19th Annual Global CEO Survey”, PwC, 2016.

Q: How concerned are you about the following potential economic, policy, social and business threats to your organisation’s growth prospects?

About Global Sustain Founded in 2006, Global Sustain creates awareness and inspires and supports companies and organisations to embody sustainability, through advisory, communications, networking and training, with a focus on the people-planetprofit philosophy. Its members include corporations, non-governmental and non-profit organisations, municipalities and local authorities, educational foundations, the media, professional bodies, think tanks and other public or private entities. Global Sustain is a signatory to the Ten Principles of the UN Global Compact, a Global Reporting Initiative (GRI) Data Partner and Gold Community Partner, an affiliated member of the Academy of Business in Society (ABIS), member of the European Foundation for Quality Management (EFQM) and Social Value International and collaborates with international organisations such as FSC International, CSRwire, Ethical Performance, CEO Clubs, Institute of Directors, TBLI, Capitals Circle Group, Financial Times and Business Wire. Global Sustain operates as a carbon neutral company, supports numerous sustainability conferences around the globe and organises the annual Sustainability Forum, a training, networking and professional development event. Global Sustain is headquartered in London (UK), with companies in Berlin (Germany) and Athens (Greece), an office in Brussels (Belgium) and affiliates in New York (USA), ZĂźrich (Switzerland) and Nicosia (Cyprus). Global Sustain is a registered trademark (TM).

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www.globalsustain.org www.sustainabilitylearning.gr www.sustainabilityforum.eu www.globalsustainyearbook.org @GLSustain Global Sustain Global Sustain Global Sustain Global Sustain

About Yearbooks • 10 publications with • 300 + contributors from • 20 + countries • 14,000 + recipients in • 50 + countries

The Yearbook series aims at highlighting critical sustainability issues and constitutes a catalyst for constructive dialogue and positive change. This annual global publication is trusted by top companies and important stakeholders from all around the world. Each year, Global Sustain selects a topic of universal interest relevant to the people-planet-profit concept and analyses all aspects through the views of internationally renowned personalities, business leaders, politicians, visionaries and academia. Industry opinion formers and decision makers across the world contribute with policy and business intelligence to the publication, while leading corporations showcase their best practices and flagship products and services in the sustainability field. The hard copy publication is presented every year in special events and venues, with high level participants and is distributed to more than 50 countries.

The Spirit of the Forest Yearbook 2007 (ISBN 978-960-14-1799-8)

Innovation for Excellence Yearbook 2012/13 (ISBN 978-960-99967-2-3)

Green Development & Sustainability Yearbook 2008 (ISBN 978-960-14-1995-4)

Beyond Borders Yearbook 2013/14 (ISBN 978-960-99967-3-0)

It’s a Matter of Culture Yearbook 2009 (ISBN 978-960-14-2237-4)

Y E A R B O O K 2 0 1 4 / 1 5

The Power of Collaboration

The Power of Collaboration Yearbook 2014/15 (ISBN 978-960-99967-4-7)

The Future of Responsible Investing Yearbook 2010 (ISBN 978-960-99967-0-9)

Sustainable Consumption and Production: Towards a Circular Economy Yearbook 2015/16 (ISBN 978-960-99967-5-4)

Leadership for Sustainability Yearbook 2011/12 (ISBN 978-960-99967-1-6)

The Energy [R]evolution Yearbook 2016/17 (ISSN: 2529-1858)

125 125

Acronyms and abbreviations AACSB ACEI AEE AFVs AG APAIE AUEB B.A. B.C. B.Sc. / B.S. BaU BBC bcm BIM bn BoD BP BT BTU C C&I C(S)R CABS CCUS CEO CHC CHP CISL CLG CNPC CO2 COP CP CSP d D.C. DER DG DNA Dr. DSM 126 126

Association to Advance Collegiate Schools of Business Accelerating Clean Energy Innovation Association of Energy Economics Alternative Fuel Vehicles Aktiengesellschaft - Company with Limited Liability Asia Pacific Association for International Education Athens University of Economics and Business Bachelor of Arts Before Christ Bachelor of Science Business as Usual British Broadcasting Corporation billion cubic meters Bachelor in Management Billion Board of Directors British Petroleum British Telecom British Thermal Unit Celsius Commercial and Industrial Corporate (Social) Responsibility Chartered Association of Business Schools Carbon Capture Use and Security Chief Executive Officer Combined Heating and Cooling Combined Heat and Power Cambridge Institute for Sustainability Leadership Corporate Leaders Group China National Petroleum Corporation Carbon Dioxide Conference of the Parties Controllable Pitch Concentrating Solar Power day District of Columbia Distributed Energy Resources Directorate-General Deoxyribonucleic Acid Doctor (Royal) Dutch State Mines

e.g. EAE EAIE EAP EAPI EC EFMD EMEM Eng. ENI EnMS EPC ESCP Europe ESP etc. ETS EU EUR EV FEED FMCG FSC G20 GCC GDP GEF GHG GIS GT GWP HC HFC HFO HRH Hub i.e. ICT IEA IGCC IIoT IMF

exempli gratia Energy Academy Europe European Association for International Education Energy Awareness Programme Energy Architecture Performance Index European Commission European Foundation for Management Development Executive Master in Energy Management Engineer Ente Nazionale Idrocarburi Energy Management Systems Engineering, Procurement, Construction Ecole Supérieure de Commerce de Paris Energy Saving Programme et cetera Emissions Trading System European Union Euro (Symbol €; ISO code: EUR) Electric Vehicles Front End Engineering Design Fast-moving consumer goods Forest Stewardship Council Group of 20 Gulf Cooperation Council Gross Domestic Product Global Environment Facility Greenhouse Gas Geographic Information Systems Gigatonnes Global Warming Potential Hydrocarbon hydrofluorocarbon Heavy Fuel Oil His Royal Highness Historically Underutilized Business id est Information and Communication Technologies International Energy Agency Business Integrated Gasification Combined Cycle Industrial Internet of Things International Monetary Fund

Acronyms and abbreviations Inc. IoT IP IPCC IPE IR IRENA ISBN ISI ISID ISO ISSN ITER JRC JV Kg Km. kWh kWp LED Li-ion LNG LPG M.Sc. MA MAN mb MBA mboe MCC MEM MENA MEng MEPS MNE MP Mphil Mt. MW MWh NATO

Incorporated Internet of things International Petroleum Intergovernmental Panel on Climate Change International Political Economy International (or Investors) Relations international Renewable Energy Agency International Standard Book Number Institute for Scientific Information Inclusive and Sustainable Industrial Development International Organization for Standardisation International Standard Serial Number International Thermonuclear Experimental Reactor Joint Research Centre Joint Venture Kilogram Kilometre Kilowatt hour Kilowatt Peak Light-emitting diode Lithium-ION (rechargeable battery) Liquefied Natural Gas Liquefied Petroleum Gas Master of Science Master of Arts Maschinenfabrik Augsburg-Nürnberg million barrels Master of Business Administration million barrels of oil equivalent Metro/Makro Cash & Carry Master in Energy Management Middle East North Africa Master of Engineering Minimum Energy Performance Standards Multinational Enterprise Member of Parliament Master of Philosophy Metric Ton Megawatt Megawatt Hour North Atlantic Treaty Organization

NDCs NECPs NGO(s) No./no. OECD OGCI OPEC p.a. PEMEX Ph.D. Prof. PV R&D R&I RCEM RE RES RTD S.A. SDGs SEforAll SESI SET SHP SMEs TAP TM UAE UK UN UNCTAD UNFCCC UNIDO US(A) USD vs WEC WEF WEO WTO

Nationally Determined Contributions National and Energy Climate Plans Non-Governmental Organisation(s) Number Organisation for Economic Co-operation and Development Oil and Gas Climate Initiative Organisation of the Petroleum Exporting Countries per annum Petroleos Mexicanos Doctor of Philosophy Professor Photovoltaic Research and Development Research and Innovation Research Centre for Energy Management Renewable Electricity Renewable Energy Sources Research, Technology, Development Société Anonyme Sustainable Development Goals Sustainable Energy for All Stanford Energy System Innovations Strategic Energy Technology Separate Heat and Power Small and Medium-sized Enerprise(s) Trans Adriatic Pipeline Trademark United Arab Emirates United Kingdom United Nations United Nations Conference on Trade and Development United Nations Framework Convention on Climate Change United Nations Industrial Development Organization United States (of America) United States Dollar (symbol: $; ISO code: USD) versus World Energy Council World Economic Forum World Energy Outlook World Trade Organization 127 127

List of tables, graphs, figures, facts & stats

128 128

TITLE

SOURCE

World Energy Outlook 2016 Investment to 2040 in Renewable Electricity Generation RE100 Company - Average Progress against 100% Coal Renewable Energy Employment Renewable Energy Employment by Technology G20 Global Reduction Efforts of CO2 CO2 Emissions per Capita How to See the Earth in the Universe after Copernic and Before Global Energy Related CO2 Emissions Between Today and 2050 Factors that Shaped World Energy World Primary Energy Demand by Fuel Type Unsubsidised Levelised Cost of Energy Comparison Three Scenarios The Grand Transition Challenges Faced by Energy Leaders Share of Renewable Energy in Gross Final Energy Consumption Investment Plan for Europe OGCI Climate Investments - The Multiplier Effect World R&D Investors in Renewable Energy Energy Access and Security Solving Today's Energy Equation by 2050 Innovation at Every Level â&#x20AC;&#x201C; a Snapshot of Ecostruxtureâ&#x20AC;&#x2122;s Impact Green Bond Issuance Demand Growth from Developing Nations 2016 Ranking CSR approach structured into four key areas Mapping the SDGs to Our CSR Strategy Our Journey Around the SDGs The Energy Architecture Performance Index The Energy Architecture Performance Index 2016 Ranking Global Trends Likely to Transform Businesses Threat Concerns by CEOs

International Energy Agency The Climate Group The Climate Group IRENA IRENA Enerdata Enerdata Wikipedia IRENA World Energy Council OPEC Lazard World Energy Council World Energy Council World Energy Council Eurostat European Commission Oil and Gas Climate Initiative European Commission World Economic Forum IPCC, IEA, Schneider Electric Schneider Electric Bloomberg Intelligence The Brookings Institution Walgreens Boots Alliance Walgreens Boots Alliance Walgreens Boots Alliance World Economic Forum World Economic Forum PwC PwC

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The Energy [R]EVOLUTION YEARBOOK 2016/17

geothermal

solar

water

bio

wind