© OECD/IEA 2016 © OECD/IEA 2015

Market-based Instruments for Energy Efficiency

Samuel Thomas, Senior Programme Manager MBI Workshop, European Commission Brussels

24th January 2017

© OECD/IEA 2016

Global energy-related GHG emissions

20

25

30

35

40

2000 2014 2020 2025 2030

Gt

CO

2-e

q

Bridge Scenario

INDC Scenario Energy

efficiency

49%

Reducing inefficient coal

Renewables investment

Upstream methane reductions

Fossil-fuel subsidy reform

17%

15%

10%

Savings by measure, 2030

9%

Five measures – shown in a “Bridge Scenario” – achieve a peak in emissions around 2020, using only proven technologies & without harming economic growth

Efficiency is the Keystone in the Bridge

World Energy Outlook Climate Special Report 2015

© OECD/IEA 2016

Interest in market-based instruments

Delivering substantial efficiency gains

Driving cost-effectiveness, through:

• Competition / market forces; and

• Technology / delivery route neutrality

Stimulating private sector investment

Variety of approaches

© OECD/IEA 2016

54 EEOs (48 operational & 6 planned) 6 auction mechanisms

© OECD/IEA 2016

Structure of the day

Strategic level in the morning; policy

design and implementation issues in the afternoon

We want to explore what’s working where and why?

We want to maximise the time for discussion and knowledge sharing