1. The Economics of Energy Efficiency – Why It Makes Sense For Canada Carol Buckley Director General Office of Energy Efficiency April 12, 2013 Presentation to the Canadian Energy Efficiency Alliance

2. 2 Purpose of the presentation  Outline a global context  Examine energy efficiency in Canada today  Macro economic benefit of current and future investments  Role of government in realizing the benefits

3. 3 Energy Efficiency Update Page 1 Reduction in North American Oil Imports by Source Source: IEA World Energy Outlook, 2012 Demand-side efficiency Biofuels use in transport Natural gas use in transport Reductions due to: Increased oil supply 2011 net oil import level Projected net imports Global energy demand is growing rapidly, with shifting demand and supply patterns Energy efficiency - the “fifth fuel” Demand side

4. 44 Globally, there is still significant untapped energy efficiency potential …. Source: World Energy Outlook 2012, International Energy Agency The IEA recommends that efficiency improvements more than double the 1980-2010 rate in order to capture these benefits Energy Efficiency Potential 2011-2035

5. 5 Over the last two decades, energy productivity in Canada has improved Total secondary energy use intensity per capita and unit of GDP index, 1990-2010 (1990=1) 25% improvement Source: Energy Efficiency Trends in Canada, 1990 - 2010 Energy Intensity 1990 - 2010

6. 6 … in large part from energy efficiency Factors Influencing the Change in Energy Use, 1990-2010 Petajoules ++++= Source: Energy Efficiency Trends in Canada, 1990 - 2010

7. 7 Each sector has energy efficiency gains (1990-2010) Residential  36%  $9.0 billion savings Transportation  24%  Passenger $8.2 billion; freight $3.4 billion savings Industrial  20%  $6.1 billion savings Commercial / Institution  30%  $5.6 billion savings Source: Energy Efficiency Trends in Canada, 1990 - 2010

8. 8 From a regional perspective, energy efficiency investments yield significant returns.… 6:1 ratio Modeled Investment Levels: BAU+: moderately intensify current efforts Mid: put provinces among EE leaders High: put provinces as EE leaders (i.e. No.1) Source: Energy Efficiency: Engine of Growth in Eastern Canada, prepared by Environment Northeast (May 2012)

9. 9 …. including net increases in employment Program and participant spending ends 625,000 net increase in cumulative job years Job Impacts - Mid Scenario Source: Energy Efficiency: Engine of Growth in Eastern Canada, prepared by Environment Northeast (May 2012)

10. 10 …. and net increases in government revenue Mid Scenario Source: Energy Efficiency: Engine of Growth in Eastern Canada, prepared by Environment Northeast (May 2012) Total Gov’t revenue/yr $638M Annual Increase in Government Revenue

11. 11 More work is underway  Canada-wide Macro-Economic Impact Study  Energy Efficiency Jobs  Multiple Benefits Work (International Energy agency)

12. 12 Canada continues to build on the potential of energy efficiency The Government of Canada is making significant progress toward key IEA recommendations Making the stock more efficient Making energy performance more visible Making operations more efficient Making energy efficiency more affordable e.g. Labelling programs that support regional programs e.g. EnerGuide Rating System for houses e.g. Regulations covering 74% of residential energy use e.g. SMARTWAY Transportation Partnership

13. 13 Office of Energy Efficiency Natural Resources Canada 580 Booth Street Ottawa, Ontario K1A 0E4 http://www.oee.nrcan.gc.ca Contact Information

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