United Nations Industrial Development Organization (UNIDO)

INDUSTRIAL DEVELOPMENTREPORT

Kandeh YumkellaIndustrial energy efficiency for sustainable wealth creation
Director General
Capturing environmental, economic and social dividends
United Nations Industrial Development Organization
Ludovico Alcorta
Director, Development Policy,
Statistics and Research, UNIDO

Elizabeth Rose Hall,
Unitedations
University,
TokyoWorld
FutureEnergy Summit
28 August
AbuTuesday,
Dhabi, January
17th 20122012

Outline
 Energy intensity trends Industrial energy efficiency dividends
 Energy efficiency policies fordeveloping countries: national andinternational Support material

Global industrial energy intensity trends (1990-2008)

Industrial energy consumption, 2008
2.54 gigatonnes of oil equivalentIndustrial energy intensity, 2008
0.35 tonnes of oil equivalent per US$1,000

Note: Industrial energy intensity in 2000 US dollars.
Source: UNIDO 2010e,f,g; IEA 2010c.

Industrial energy intensity(By income group, 1990-2008)

Low-income developing economies

Lower middle-income developing economies

Upper middle-income developing economies
High-income developing economies

Note: Industrial energy intensity in 2000 US dollars.
Source: UNIDO 2010e,f,g; IEA 2010c.

Environmental
 Mitigation potential of industrial energy
efficiency can be substantial since: industry accounts for 25% of all GHG emissions
 manufacturing and construction directly and indirectly
account for 37% of CO2 emissions (developing countries47%)

 Industrial energy efficiency can help reach CO2
reductions of around 1.3 Gt equivalent to global
emissions reductions of approximately 4% from2006 levels

Economic
 Industry expenditure on energy estimated at$1trillion a year, 55% in developing countries
 Investing in energy efficiency projects isprofitable:
 Paybacks of 30 months
 40% IRR for projects with an expected lifetime of five years

 Cost savings from best available technologies:
 $65 billion in developed countries
 $165 billion in developing countries 23% of total energy costs and around 3% of total MVA

 ‘All rounders’: better product quality, lower
throughput and waste and more innovation

Technical savings potential
arising from industrial energy-efficiency improvements (%)
Sector and productDevelopedcountries

Developingcountries

10-1570

Steam cracking (excludingfeedstock)

20-2525-30

Ammonia

1125

Methanol914

Alumina production

3550

Aluminium smelters

5-105

Other aluminium

5-10

Process sectors
Petroleum refineries
Chemical and petrochemical

Non-ferrous minerals

Copper smelters

545-50

Zinc

1646

Iron and steel

1030

20

25

30-35

40

25

20

1020

Food and beverages

2540

Other sectors

10-15

25-30

Total

1530-35

Excluding feedstock

15-20

30-35

Non-metallic minerals
CementLimeGlass
Ceramics
Combined sectors
Pulp and paper

Yet, there is a 25-30%
potential for
obtaining even moredividends and tokeep the rate ofenergy consumption
under check

TextileSpinningWeaving

10

At the national level Laws, regulations, institutions andprogrammes
 Negotiated agreements
 Information-based instruments New technology and innovation support
 Market-based instruments
 Financial facilities

At the global level SE4ALL initiative Setting energy-intensity targets andstandards
 Facilitating technological change Contributing to international technology
transfer Promoting international financing
 Establishing an international monitoring
and coordinating functionIDR working papers (14)Available at www.unido.org

UNIDO
databaseon Industrial Energy Efficiency policies

Available at http://ieep.unido.org/

WWW.UNIDO.ORG

18