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Climate Action 2014-2015

MITIGATION AND

MITIGATION AND ADAPTATION will save money, the air will be cleaner, and severe climate change less likely. The challenge is that in many developing countries minimum energy performance standards are very low or are entirely missing. "GEFI aims to double new light duty vehicle fuel economy by 2030." The key is a global shift to more efficient appliances and equipment. To achieve this market transition, UNEP and the Global Environment Facility (GEF) launched the Global Efficient Appliances and Equipment Partnership Programme and the Appliances and Equipment Accelerator under SE4ALL. This initiative brings together like-minded organisations and private sector companies extending throughout the complete value chain of energy generation, distribution and consumption, from utilities and leading power technology companies to appliance manufacturers. In Latin America, the Caribbean and Southern Africa the Accelerator is starting to build competitive regional markets that foster trade in efficient products, reduce prices and increase savings to consumers. If developing countries and emerging economies were to adopt ambitious efficiency standards for the top six energy consuming products – electric motors, air conditioners and fans, refrigerators, information and communication technology, and distribution transformers – they would reduce global electricity consumption by 1,500 terawatt-hours per year and annual CO 2 emissions by 1 giga tonne, equivalent to taking 500 million cars off the road. At the same time the reduction in energy consumption would save US$215 billion of electricity bills each year. IMPROVING VEHICLE FUEL EFFICIENCY Vehicle fuel efficiency is a high-impact efficiency opportunity and the Global Fuel Economy Initiative, or GFEI, is the accelerator within the SE4ALL Global Platform addressing this particular area. GFEI was established in 2009 by several global organisations – the International Energy Agency, the International Transport Forum, the FIA Foundation, and UNEP; these organisations were later joined by the University of California Davis and the International Council for Clean Transportation. GFEI’s aim is to double the efficiency of the global vehicle fleet from an average of 8 litres per 100 km in 2005 to 4 litres per 100 km by 2050, reducing emissions as a direct consequence. Consistent with this long-term goal, GEFI also aims to double new light duty vehicle fuel economy (measured in either litres per 100km or grams of CO 2 per km) by 2030 – goals that are consistent with IPCC and G8 targets and recommendations. Even if the number of vehicle kilometres doubles by 2050 because of growth in transport, efficiency improvements on this scale would effectively keep emissions of CO 2 from light duty vehicles at current levels. Vehicle efficiency improvements that follow this path would cut CO 2 emissions by 1Gt CO 2 annually by 2025 and 2Gt annually by 2050. The Initiative has been undertaken successfully in a number of countries, including Chile, Ethiopia, Kenya and Indonesia. Several countries have already committed to be part of its expansion and many more have expressed strong interest developing or strengthening their fuel economy policies under the GFEI flag. The SE4ALL Energy Efficiency Accelerators are doing what their name suggests, accelerating action by bringing together motivated organisations, governments, NGOs and companies to achieve collective impact, quickly and at scale. Energy efficiency is not a new idea, but when it comes to fighting climate change, it is an idea whose time has definitely come. Mark Radka heads the UN Environment Programme’s Energy Branch, which is part of the organisation’s Paris based Division of Technology, Industry and Economics. He manages the organization’s efforts to link the global energy and environment agendas, much of which involves building partnerships between industry, governments, NGOs, and other groups. Radka has a special interest in the technology needs of developing countries, and was a coordinating lead author of the Special Report on Methodological and Technological Issues in Technology Transfer issued by the Intergovernmental Panel on Climate Change. The Division of Technology, Industry and Economics (DTIE) was set up in 1975, three years after UNEP began. The Division provides solutions to decision-makers and helps change the business environment by offering platforms for dialogue and cooperation, innovative policy options, pilot projects and creative market mechanisms. John Christensen is the Director of the UNEP DTU Partnership. He has worked on energy, climate and development issues in the UN Environment Programme for the last 25 years. His focus is on supporting developing countries’ engagement in energy and climate issues across all regions. He has in addition been a Bureau member of the IPCC and Lead Author on several IPCC reports. UNEP DTU Partnership (formerly UNEP Risø Centre) is a leading international research and advisory institution on energy, climate and sustainable development. It is based in Copenhagen with a team of more than 60 scientists and economists from 20 countries. UNEP DTU Partnership is an active participant in both the planning and implementation of UNEP’s Climate Change Strategy and Energy Programme. Through in-depth research, policy analysis and capacity building activities, the Partnership assists developing countries in a transition towards more low carbon development paths, and supports integration of climate-resilience in national development. 80

SHARED ACTION WITH WATER USERS At SABMiller, sustainability is about the viability of our business. High quality water and agricultural crops are vital for a brewing company – and of course are essential for the societies within which we operate. We are part of a value chain with suppliers and our customers, many small local enterprises. We are mutually dependent. Beer is local; when society prospers, SABMiller prospers. We see shared resource risks becoming more acute under changing consumption patterns and demographic pressures worldwide. An additional three billion middle-class people in the world by 2030 is an example of the rapid pace of progress, but the resulting resource pressures have to be managed carefully, and we have a role to play in this. This is a business case that is deeply understood by all of us on SABMiller’s Executive Committee. It is not about complying with someone else’s agenda: it is central to our business strategy. REDUCING WATER USE This year we hit our target of a 25 per cent reduction in water used to produce each litre of beer worldwide, a year ahead of schedule. But in most areas, the vast majority of water used is taken up in agriculture – and usually in farms that are not supplying us with crops, so this is not an easy risk to control. We share the risks of water scarcity with the farmers, and with others who are buying crops. Across our brewing operations, we will hit a world class water efficiency target: by 2020 we will reduce water use further and be using an average of 3.0 litres of water to make each litre of beer. The only way of tackling this shared risk is through collaboration with other water users. Business benefits and social benefits often arise together when we tackle shared risks. Managing water is not something you can do on your own. So this, more than ever, is about shared action. PASSIONATE ABOUT BREWING SABMiller is in the beer and soft drinks business, working in a way that improves livelihoods and builds communities. We are passionate about brewing and have a long tradition of craftsmanship in making superb beer from high quality natural ingredients. We are local beer experts, producing more than 200 beers that are freshly brewed from locallygrown ingredients and only sold in their country of origin. We also brew internationally famous beers such as Peroni Nastro Azzurro, Pilsner Urquell, Miller Genuine Draft and Grolsch, as well as our own range of soft drinks. With 70,000 employees in more than 80 countries, we are a FTSE-20 company. "Across our brewing operations, we will hit a world class water efficiency target." Website: www.sabmiller.com climateactionprogramme.org 81