Promoting Resource Efficiency in Small & Medium size ... - UNEP

Detailed assessment: Energy efficiency
5.1 WHAT:
Problems related to energy consumption in
SMEs
Carbon is the problem, not energy
The main problem is not that we use energy, but how we produce and
consume energy. As long as we continue to cover our energy needs
primarily by combustion of fossil fuels or with nuclear reactors –
which release carbon and GHG into the atmosphere or create toxic
waste that cannot be re-absorbed by the planet – we are going to
have environmental and social problems.
In 2005, worldwide per capita consumption of energy was 1,778 kg of
oil equivalent. This figure includes all fuel used by industry, commerce
and households. It also includes large quantities of wood and other
biological fuels used mostly in developing countries. The figure of
1,778 kg of oil equivalent per person is an average for the world’s
population that conceals tremendous regional differences (e.g. 7,886
kg for the United States compared to 1,052 kg for the average of Asia
or 1,766 kg for the average of the Middle East and Northern Africa).
The consequence of this type of energy consumption is global
warming and the lack of fossil fuels in the future. 31
According to Figure 30 by 2015, oil use is expected to exceed 100
million barrels per day, a consumption rate 50% greater than in
1995. That is why the international community is taking action; for
example, Europe has implemented a CO2-capping strategy and a
carbon trading scheme.
The effect of carbon on macro level
Eleven of the last twelve years (1995–2006) rank among the
twelve warmest years in the instrumental record of global surface
temperature (since 1850).
Observations since 1961 show that the average temperature of the
global ocean has increased to depths of at least 3000 m and that
the ocean has been absorbing more than 80% of the heat added
to the climate system. Such warming causes seawater to expand,
contributing to sea-level rise. Mountain glaciers and snow cover
have declined on average in both hemispheres and widespread
decreases in glaciers and ice caps have contributed to sea-level
rise. 32
Supply problems
Many countries, especially in Asia, suffer from a severe shortage
of electric capacity. According to the World Bank, roughly 40% of
residences in India are without electricity. In addition, blackouts are
a common occurrence throughout the country’s main cities. The
World Bank also reports that one-third of Indian businesses believe
that unreliable electricity is one of their primary impediments
to doing business. Further compounding the situation is that
total demand for electricity in the country continues to rise and
is outpacing increases in capacity. Adequate additional capacity
has failed to materialise in India because of market regulations,
insufficient investment in the sector, and difficulty in obtaining
environmental approval and funding for hydropower projects. In
addition, coal shortages are further straining power generation
capabilities.
31) International Energy Agency (IEA) Statistics Division. 2007. Energy Balances of OECD Countries (2008 edition) and Energy Balances of Non-OECD Countries
(2007 edition)
32) IPCC, Direct Observations of Recent Climate Change, 2007
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