Accelerating energy efficiency activities in the manufacturing sector

Panel: 5. Business models and financing: established practice and innovative approaches

Author:
Stefan M. Buettner, University of Stuttgart, EEP – Institute for Energy Efficiency in Production, Germany

Abstract

Enhancing advancement in industrial energy efficiency is a global challenge that also promises great rewards in the form of enhanced competitiveness, economic growth and jobs, greater resilience and energy security, clean air or fewer emissions.

Despite money being theoretically being more accessible than in the past not enough is happening to address the necessary action to limit the global warming to 2°C wich would require an eightfold increase in energy efficiency finance. With the Paris Agreement and the aim to stay significantly below 2°C.

Whilst it is known that aviation/shipping and the building sector could significanlty contribute to reduce emissions, this is also the case for the manufacturing industry where, however, interventions are more complex often. Yet, it is the business decision makers that make re-investment decisions on a frequent basis and investments. To kick-start a 'viral' upscaling of energy efficiency investments in industry it is crucial to understand on what basis and what values devisions are being made, and to change supply-side means to anticipate this demand side mindset.

What drives decision makers, what keeps them away from investing more in energy efficiency upgrades, and how important is energy efficiency in context to to normal operations are key questions addressed by the energy efficiency index of the German Industry.

How can the drastic upscale in capacity in the financial sector, amongst the implementers and the demand side be developed. What role do the emerging energy efficiency networks play in collaboratively tapping into energy efficiency potentials that European companies are more happy to address following Paris and the increased likelyhodd that efforts so far constitute a first mover advantage in the light of what has yet to be done globally.

This session will make the link between the different dimensions of energy efficiency finance and transmission channels to make things happen on the ground.