Energy efficiency measures adopted in the 4-for-2 °C Scenario bring about a $900 billion increase, relative to the New Policies Scenario, in cumulative investment from 2012 to 2020
(Figure 2.13). Mor...
e than half of the increase is due to households purchasing more effcient energy consuming equipment (IEA, 2012a). The increase in cumulative investment in the
service and transport sectors respectively reaches more than $160 billion and $170 billion.
Energy intensive industries are responsible for only a small share of total energy efficiency investments, as their potential for energy savings is comparatively limited in the period to
2020. The reduction of methane emissions from upstream oil and gas requires a cumulative investment of around $20 billion up to 2020, while power generation investment is slightly reduced, relative to the New Policies Scenario, due to lower electricity demand, driven by energy efficiency policies.
The implementation of the four policies will require transfer of technology from developed to developing
countries. One such mechanism, Joint Crediting Mechanism (JCM), is being established by the Japanese
Government. Through this mechanism a host country receives technology and sets up measuring, reporting,
and verification of a projects emissions reductions. Projects include renewable energy, highly efficient power
generation, home electronics, etc., which facilitates low-carbon growth in developing countries.
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