INNOVATION ! invest in the clean energy future we want By Thomas PELLERIN-CARLIN, Head of the Jacques Delors Energy Centre, Jacques Delors Institute. [email protected] @ThPellerin © Jacques Delors Institute 26 August 2019, Energy Community, Krakow Question 1- In your opinion, climate change … a) does not exist. b) does exist but it is not driven by human activities. c) is a significant challenge, but less important than other issues. d) Is one of the key challenges for Humankind in the 21st century. 2 Climate change, now a top political priority for EU citizens 3 But with different views depending on nationality 4 Climate Change Continuous rise of CO2 emissions Source: IPCC, 5th Assesment Report 5 Why we need innovation to fight Climate Change To avoid catastrophic climate change, all human emissions of greenhouse gases, especially CO2, need to decrease very fast and quickly reach a near-zero level. In blue, what the IPCC roughly estimates necessary to have a 66% chance of staying below 1,5°C. In grey, what the IPCC roughly estimates necessary to have a 66% chance of staying below 2°C. Source: IPCC, 1,5°C report, October 2018 6 Question 2- In your opinion, which country pollutes the most (in CO2 emissions per person): a) France, b) Germany, c) Poland, d) Romania. 7 8 Question 3- In your opinion, what is the most important energy source in Europe? a) Coal, b) Natural Gas, c) Nuclear, d) Oil, e) Renewables. 9 10 Question 4- In your opinion, where is most of the energy being consumed in Europe? a) Agriculture, b) Buildings, c) Industry, d) Transport. 11 40% of EU energy is consumed in buildings (Households + Services) 4- In your opinion, where is most of the energy being consumed in Europe? a) Agriculture, b) Buildings, c) Industry, d) Transport. 12 What is an ‘energy transition’? ‘Energy transition’ is the new buzzword to talk about our situation It was coined in 1974 by US administration to replace ‘energy crisis’. It came to Europe in the 1980s through the German word ‘Energiewende’ Today, it has a new meaning in the EU: Transition away from the inefficient use of fossil fuels Transition towards the efficient use of renewables It can have different variations (e.g. German transition away from nuclear while Hungary builds new nuclear power plants). 13 Question 5- In your opinion, who should drive the energy transition? (multiple answers allowed) a) Businesses, b) Citizens, c) Consumers, d) Policy makers, e) Greta Thunberg. 14 The Energy Union’s targets 15 The Energy Union’s Themes and Tools Main themes: Main tools: -Energy Efficiency, Set targets -Renewables, Create/shape markets: -Carbon Market (ETS), Create new markets (e.g. CO2 Market) -Liberalisation, Shape markets (e.g. obligation to provide -Energy Security, information) -Infrastructures, Change what is legal: -Mobility, Ban products/practices, etc. -Vehicles emissions, Oblige to adopt some products, services, -Innovation, practices, etc. -Financing. Modify prices (tax or subsidise) 16 No innovation without public sector push Innovation is the introduction of something (e.g. technology, process, business model, etc.) that is new to a given organisation, Innovation is not born in a vacuum, Innovation has a direction and a speed, Public sector can set the direction and increase the speed. 17 Setting the direction for energy innovation Regulation: historical example of regulation on waste disposal Net-zero emissions by 2050 ? Paris Agreement, by the UNFCCC ‘A Clean Planet for all’, Strategy by EU Commission Towards an EU ‘R&I Mission’ to make 100 cities carbon-neutral by 2030 18 EU financial support for energy research and innovation 19 Horizon Europe – What the EU Suggests A new EU framework programme for 2021-2027 European Commission proposes: -New tools (e.g. ‘EU R&I Missions’, a ‘European Innovation Council’), -Invest more (from 80 to 94 Bn€, over 7 years). National governments and new European Parliament will decide in late-2019/2020. 20 Conclusion The energy transition is a systemic change: from an old dirty energy system, to a new clean energy system. We need innovation across the board to change all the relevant elements of this system: A- Technology: what exists to produce something at a particular cost? B- Infrastructure: which infrastructure favours which energy use? C- Economic incentive: how much does it cost? Business models? D- Social norms: what is good ? What is bad? E- Routines: what are you accustomed to do? 21 Thank you! For more, watch the free Jacques Delors Institute online course on energy innovation: https://www.youtube.com/watch?v=D0q_sL34Bck&list=PLn9Er_P QcqQKjNwirPjXd86FS0s3ymiSf Jacques Delors Institute Thomas Pellerin-Carlin, Head of Jacques Delors Energy Centre, Jacques Delors Institute [email protected] @ThPellerin © Institut Jacques Delors 22.