Taiwans Energy Conservation and Carbon Reduction Prepared by Dr. - - PowerPoint PPT Presentation

Prepared by Dr. Kuo, Po-Yao Chung-Hua Institution for Economic Research, Taipei, Taiwan Prepared for The 17th AIM International Workshop, Tsukuba, Japan February 17th-February 19th, 2012

Taiwan’s Energy Conservation and Carbon Reduction

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

In the 2009 Taiwan final energy consumption, transportation sector, housing sector, and service sector (commercial sector) consist 13.2%, 11.6%, and 11.5% respectively.



In the 2009 Taiwan's electric power consumption, industrial sector consists 51%

• f the total power consumption. Housing and commercial sectors consist 23%

and 17% respectively.

2009 Energy Consumption Percentage bySector

(nationwide energy consumption was 113.1

million kiloliter equivalents)

2009 Electrical Power Consumption by Sector

• 1. Taiwan's Current State of Energy and Green House

Gas Emission

Transportation Sector

Housing Sector Energy Sector Service Sector Non-Energy Consumption Industrial Sector

Agricultural Sector

Industrial Sector Housing Sector

Commercial Sector

Others

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 Taiwan's energy-intensity is comparatively higher than

• ther nations.

Comparison of the Nations (without adjusting purchasing power)

Source：IEA/OECD, KEY WORLD ENERGY STATISTICS, 2008.

Japan UK Italy Germany France USA

Taiwan

Australia

• S. Korea

Canada

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 Taiwan's CO2 emission from fuel combustion between 1990~2008.

111 120 129 219 140 148 156 165 176 188 197 237 227 214 269 257 249 257 265

• 50

50 100 150 200 250 300 350 400 450 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

(年) 能源部門CO2排放 (百萬公噸二氧化碳)

50 100 150 200 250 300

燃料燃燒CO2排放 (百萬公噸二氧化碳) 工業 運輸 住宅 能源業 其他 商業 農林漁牧 燃料燃燒CO2總排放

CO2 emission between 1990~2008 increased by 132.3%. Taiwan's annual CO2 emission growth rate from fuel combustion for 2008 became negative for the first time (-4.4%). This can be attributed to:

• Global financial crisis created an economic recession.
• After reasonably adjusting Taiwan's energy prices, decreased energy demand is reflected.
• Government is actively promoting relevant measures on carbon reduction and energy conservation.

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CO2 Emission in Economical Sectors (Million tons CO2)

Industry Transportation Others Housing Commerce Energy Agriculture, forestry, fishery, animal husbandry Total CO2 emissions from fuel combustion

CO2 Emission from Fuel Combustion (Million tons CO2)

year

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 Since taking the office, President Ma has been promoting Taiwan to be a low carbon society as a priority policy.

 The Sustainable Energy Policy Guideline was raised in June 2008.  The third National Energy Conference was convened in April 2009.  The amendment draft of Energy Management Law was announced on 7/8/2009 to promote energy efficiency regulation and create an energy efficiency classification system to promote energy saving technology and products.  Statute for Renewable Energy Development was promulgated in 7/8/2009 to promote the development of renewable energy.  Greenhouse Gas Reduction Act is currently in the Legislative Yuan, and the Energy Tax Statute is being drafted in the Executive branch.  Executive Yuan established the cross-ministry Energy-Saving and Carbon-Reducing Promotion Committee and New Energy Development Promotion Committee in the end of 2009.

• 2. Taiwan's Policy on Energy Conservation

and Carbon Reduction

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Improve Energy Efficiency Develop Clean Energy Ensure Stable Energy Supply

Sustainable Energy Policy Framework

(2008 /6 / 5)

Stable Efficient Clean

 Energy efficiency raised annually by 2% for the next 8 years; energy intensity reduced by 20% by 2015 from 2005.  Reduced by more than 50% via technical breakthrough and complementary measures

CO2 emission reduced to 2008 level between 2016~2020, reduced to 2000 by 2025, and reduced to 2000's 50% by 2050 Among power generators, low carbon energy increased from 40% to over 55% by 2025. Establish a safe energy supply system for future economic development Increase dependence

• n domestic energy

sources

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Sustainable Energy Policy Framework

Supply Side

The 2 Highs and 2 Lows Energy Consumption Model and Energy Supply System Increase energy utilization and generation efficiency

High Efficiency

Increase added value in energy utilization

High Value

Pursue low- carbon and low- pollution energy supply and consumption

Low Emission

Reduce reliance on fossil and imported energy

Low Reliance

Demand Side

Clean Source

Reduce Consumption

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International Climate Negotiation History and Developmental Trend

1988 1992 1997 2005 2007 2009 2010 2011 2012

United Nations Framework Convention on Climate Change (Berlin 1992)

Kyoto Protocol Passed (Kyoto 1997)

Intergovernmental Panel on Climate Change (IPCC) founded.（Geneva）

Kyoto Protocol became effective (Montreal 2005)

Bali Plan of Action (Bali 2007)

Copenhagen Accord (Copenhagen 2009)

IPCC's first assessment report（1990）

IPCC's second assessment report（1995）

IPCC's third assessment report（2001）

IPCC's fourth assessment report（2007）

The Stern Review

（2006） COP16/CMP6 （Cancun, 2010） COP17/CMP7 （South Africa, 2011） COP18/CMP8 （Asia, 2012）

Year Evidence Negotiation Taiwan's Response

IPCC's SRREN

（2010）

IPCC's SREX

（2011） IPCC's fifth assessment report（2014） The cross-ministry Global Environmental Change Task Force（1992） Energy Saving and Carbon Reduction Promotion Committee/ New Energy Development Promotion Committee （2009 ）

Voluntary reduction based

• n Copenhagen Accord

（2010 ）

First National Energy Conferenc （1998 ） Second National Energy Conference（2005 ） Third National Energy Conference （2009 ） Climate Change and Water Resource Report（2008） Sustainable Energy Policy Framework（2008 ）

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Taiwan's 2010 Announcement of CO2 Reduction Target by 2020

• EPA estimates under the condition of business as usual (BAU),

CO2 emission by 2020 will reach 467 million tons.

• Government has announced that 2020 CO2 emission will be

maintained at 2005 level of 257 million tons. Thus, Taiwan's actual CO2 emission needs to be reduced by 210 million tons by 2020, approximately 45%.

• South Korea and Singapore, both Taiwan's main competitors,

have carbon reduction targets of 30% and 16% respectively. And IPCC recommends 15~30% reduction for developing nations. Thus, Taiwan voluntarily promised to reduce by over 30% according to UNFCCC in June 2010.

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• The ministries could only promise energy saving plans which would reduce CO2

emissions equal to 3% of the reduction target by 2020.

467 257 Returning to 2005 emission level by 2020 Green House Gas Emission Baseline

445 440 411 375

Million tons CO2

2000 2005 2010 2015 2020 200 250 300 350 400 450 500

407 461

257 269 265 257 243

Generator Efficiency up by 1.2%；Forestation 0.5%

年 Energy Saved 3%

Natural Gas 7.6%

Renewable Energy 2.5%

Nuclear Power 13.7%

Carbon Right 15.4%

56% short of the total target reduction



Taiwan's Challenge in Energy Conservation and Carbon Reduction

year

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Organization of the Energy Conservation and Carbon Reduction Promotion Committee

Secretariat (MOEA) Convener (Vice Premier) Deputy Convener (Secretary General, Minister without Portfolio) Energy Conservation and Carbon Reduction Promotion Committee Members of Conference Committee Members (14 government agency representatives)

Low-Carbon Energy System Division

（ MOEA ）

Low-Carbon Community and Society Division

（ EPA ）

Low-Carbon Industrial Structure Division

（ MOEA)

Green Transportation Promotion Division

（ MOTC ）

Green Scenery and Construction Division

（ MOI, COA ）

Energy Conservation and Carbon Reduction Technology Division

（ NSC ）

Low-Carbon Infrastructure Division

（ PCC ）

Energy Conservation and Carbon Reduction Education Division

（ MOE ）

Promotion and Communication Division

（ MOFA 、 GIO ）

Project and Indicator Management Division

（ CEPD ）

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• 4. Promote Green Taxation (MOF)
• 3. Create Sub-Laws for Renewable Energy Development Statute

and Energy Management Law Amendments (MOEA)

• 2. Draft Sustainable Energy Basic Law (MOEA)
• 1. Improve Green House Gas Management Regulations (EPA)
• 8. Promote Assessment of Valid Nuclear Power Use (AEC)
• 7. Promote Smart Grid Project (MOEA)
• 6. Reduce Carbon Emission from Power Generation (MOEA)
• 5. Promote Renewable Energy New Century Plan (MOEA)
• 12. Promote Green Lifestyle Social Movement (EPA, MOEA)
• 11. Build the Low-Carbon Island (EPA, MOEA, MOTC)
• 10. Forge Low-Carbon City (EPA)
• 9. Build Low-Carbon Communities (EPA)
• 16. Promote Green Agriculture (COA)
• 15. Promote the Sunrise Project for Green Industries (MOEA)
• 14. Environmental Assessment for Energy-Intensive Industrial

Policies (MOEA)

• 13. Promote Green Industies (MOEA, NSC)
• 21. Comprehensively Upgrade New Cars

‘ Efficiency (MOEA)

• 20. Build Human-Oriented Traffic Environment (MOI)
• 19. Build Intelligent Road Services (MOTC)
• 18. Promote and Build Convenient Mass Railway Network (MOTC)
• 17. Build Seamless Green Highway Network (MOTC)
• 25. Promote Forestation Projects (COA)
• 24. Promote Green Designation for Buildings (MOI)
• 23. Promote Intelligent Green Buildings (MOEA, MOI)
• 22. Promote Green Buildings and Materials (MOI)
• 27. Promote Cross-the-Board Energy Technical Professionals

Training Program (NSC)

• 26. Promote National Energy Technology Program (NSC)
• 30. Strengthen Green Mechanism in Government Procurement

Procedures and Regulations (PCC)

• 29. Promote Green Quality Control for Infrastructure's Life Cycle

(PCC)

• 28. Establish Regulations and Mechanism for Sustainable Green

Infrastructure (PCC)

• 33. Strengthen Green Education (MOE)
• 32. Build Sustasinable Campus and Green Assessment for

Schools (MOE)

• 31. Implement Green Programs in Agencies and Schools under

MOE (MOE)

• 35. Promote International Green Environment Diplomacy (MOFA,

EPA)

• 34. National Green Communication and Promotion Plan (GIO,

REDC, CPA, MOEA, etc.)

National Energy-Saving and Carbon-Reducing General Plan: 10 Major Benchmark Projects/35 Benchmark Plans



MOEA raised the National Energy-Saving and Carbon-Reducing General Plan in the Promotion Committee in March 2010.

(1)Improve Regulations’ Robustness (2)Remake Low-Carbon Energy System (3)Create Low-Carbon Communities and Society (4)Establish Low-Carbon Industrial Structure (5) Build Green Transportation Network (6) Construct Green Scenery and Building (7)Expand the Green Technology's Momentum (8) Promote Green Infrastructure (9) Deepen Green Education (10)Strengthen Green Promotion and Communication

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• 1. Energy Conservation

Energy efficiency increased by over 2% annually for the next 8 years; energy intensity reduced by over 20% from 2005 level in 2015; reduced by over 50% by 2025 via technical breakthroughs and complementary measures.

• 2. Carbon Reduction

The national CO2 emission will return to the 2005 level between 2016~2020 and return to 2000 level by 2025.

Objectives

Target and Structure of National Energy-Saving and Carbon-Reducing General Plan

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• 1. Since taking the office, President Ma has actively promoted energy

conservation and carbon reduction. As a result, Taiwan's annual energy intensity average was reduced by 2.68% between 2007~2010.

• 2. Growth of national demand for electrical power has been negative for the

past 3 years, a 7% save.

• 3. 2010 is the Year of Energy Conservation and Carbon Reduction; 2010’s

energy intensity was a record low, a 3.97% drop from 2009.

• 4. President promoted the 4-Saves Movement in 2011, saving electricity, oil,

water, and paper.

Result of Taiwan's Current Energy Conservation and Carbon Reduction Annual Change（%）

1980-1999

• 1.91

1999-2007

• 0.01

2007-2009

• 2.03

2007-2010

• 2.68

Taiwan's Energy Intensity Fluctuations between 1980~2010

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• 1. On 10/6, Taiwan's government announced the Sustainable Environment

vision of its Golden Decade planning. 4 green energy and carbon reduction

• bjectives were raised:

(1) Nationwide CO2 emission to return to 2005 level by 2020. (2) Energy efficiency raised by over 2% annually; energy intensity reduced by 12% of the 2010 level by 2016 and by 18.3% of the 2010 level by 2020. (3) Renewable energy deployment capacities for 2016 and 2020 will be 4580,000 kw and 6040,000 kw respectively. Annual generations will be 12.2 and 16.1 billion kwh (approximately the annual consumption of 4030,000 households). (4) Promote low-carbon homes and push for green new lifestyle and consumption.  Primary strategies for CO2 emission reduction are: (1) Efficient use of Taiwan's natural resources, expand the promotion of various renewable energy, and develop sustainable energy. (2) Popularize wind power, develop land wind fields first, and then expand to

• ffshore.

(3) Methodically expand photovoltaic deployment under the principles of slow first and quick second as well as roof first and ground second. (4) Encourage valid low-carbon natural gas utilization.

The Golden Decade: the Sustainable Environment Chapter

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The End Thank You!

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Key Information regarding Taiwan’s LCS

• Taiwan’s CO2 emissions is about ¼ of Japan’s

CO2 emissions.

• Taiwan’s energy intensity is 2.5 times of Japan’s

energy intensity.

• CO2 emission in 2010 was about 255 million

metric tonnes.

• CO2 emission has increased by 130% from 1990

to 2010, but has no significant increase from 2005 to 2010.

• CO2 emissions will reach 467 million metric

tonnes by 2020 under the condition of BAU.

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Key Information regarding Taiwan’s LCS

(Kyoto Protocol announced-1997)

• First National Energy Conference - 1998

(Kyoto Protocol became effective-2005 )

• Second National Energy Conference - 2005

(Bali Action Plan-2007 )

• Sustainable Energy Policy Guideline - 2008
• Third National Energy Conference - 2009

﹝develop Low carbon, sustainable homeland plan﹞

(Copenhagen Accord-2009 )

• Energy Saving and Carbon Reduction Promotion Committee

(chaired by Vice Premier) - 2009

• Carbon Reduction Target (over 30% by 2020) - 2010
• National Energy-Saving and Carbon-Reducing General Plan in

the Promotion Committee (10 major benchmark projects/ 35 benchmark sub-projects) - 2010

• The Sustainable Environment Chapter of the Goden Decade

Vision: Green energy and carbon reduction objectives - 2011

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Key Information regarding Taiwan’s LCS

Taiwan’s Low Carbon, Sustainable Homeland Plan developed since 2009

• Establish 50 low-carbon communities in 2011.
• Establish 6 low-carbon cities (including 2 low-

carbon islands) in 2014.

• Establish 4 low-carbon, sustainable life-cycles

cover the whole Taiwan in 2020.

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Taiwan’s Model Activities

Dynamic Generalized Equilibrium Model of Taiwan (DGEMT)

• Developed by Dr. Liang, Chi-Yuan (Chairman, CIER)
• DGEMT consists of the following four sub-models: (1) the producer’s

model; (2) the consumer’s model; (3) the macroeconomic model developed by Directorate-General of Budget, Accounting and Statistics; and (4) ITRI’s MARKAL engineering energy model.

Several CGE models for energy research have been developed by Taiwan’s universities MARKAL engineering energy model

• ITRI
• INER

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Taiwan’s Model Activities

Dynamic Generalized Equilibrium Model of Taiwan (DGEMT)

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Taiwan’s Model Activities

Taiwan’s two bottom-up GHG abatement cost curve projects in 2011

• The Chun-Hua Institution for Economic Research

(CIER) has cooperated with the McKinsey Co. to develop a 2030 GHG abatement cost curve including 113 technological measures.

• The Industrial Technology Research Institute (ITRI)

has also developed a 2030 GHG abatement cost curve including 79 technological measures.

• All measures did not include the measures for

behavior changes

• Less than 1/3 of measures were studies by both

research groups, thus their works should be reviewed and updated in the future.