Under the High Patronage of the President of the Italian Republic

Italian Energy Day

Building EU - MED transition pathways

This event will explore Italian, macro-regional and international energy issues based on the Council’s content and insight. Open to all, including the Council’s communities, global and Italian energy leaders and special guests, key sessions will include discussions on resilience, green finance, innovative-mobility, digitalisation and market design.

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October 3, 2018

ACCESSIBILITY

Energy access links together economic growth, human development and environmental sustainability.
Once again, the interconnection between regions appears to be crucial in facing the energy sector's challenges.

Energy access links together economic growth, human development and environmental sustainability. The adoption of the Sustainable Development Goals in 2015 established a new level of political credit for energy’s key role in development.

 

Technological innovations are offering new opportunities for making important steps forward on the SDG goal on electricity access. The synergy between declining costs for solar and decentralised solutions, cheaper and more efficient illumination, and new business models making use of digital and mobile-enabled platforms has increased the number of available solutions to provide electricity access to a wider basis. But there are still many challenges, in particular concerning clean cooking.

 

Efforts to foster electricity access are registering a positive impact in all regions, and the rate of progress has accelerated. The quantity of people without electricity access fell to below 1.1 billion  for the first time in 2016, with almost 1.2 billion people having gained access since 2000, a quarter of which in India. The major progress has been made in developing Asia, where 870 million gained access since 2000, of which India account for 500 million – being one of the main electrification success stories in history.

 

Nevertheless, an estimated 2.8 billion people still do not have access to clean cooking facilities. A third of the world’s population – 2.5 billion people – rely on the conventional use of solid biomass, around 120 million people use kerosene and 170 million use coal. Although there has been some progress since 2000, strong population growth in developing countries, especially sub-Saharan Africa, has meant that the number of people relying on biomass for cooking has grown by 400 million people, even with rising consciousness of the related health risks and decades of programmes targeting access to clean cooking.

 

Once again, the interconnection between regions appears to be crucial in facing the energy sector’s challenges. For example, in the Euro-Mediterranean and African regions, the  urgency to facilitate the development of flexible, safe and  resilient energy infrastructures rises as these areas are increasingly interconnected, a platform for economic, energy and infrastructural connectivity, a crucial junction in terms of both energy networks and transports.

September 26, 2018

GREEN FINANCE

Green finance can be understood as the financing of investments that provide environmental benefits in the broader context of environmentally sustainable development.
Under the Italian Presidency of G7 in 2017, was launched the initiative “Financial centres: mobilising capital to accelerate climate action”.

Green finance can be understood as the financing of investments that provide environmental benefits in the broader context of environmentally sustainable development and will require tens of trillions of dollars in the coming decade. Green finance was incorporated into the G20 agenda for the first time under the Chinese Presidency of 2016 in form of the Green Finance Study Group (GFSG), and was continued under the German Presidency, the Italian Presidency of G7 in 2017 and the COP 22 in Morocco. Under the Italian Presidency of G7, with the support of Italian Ministry of the Environment and the contribution of UN environment, the leading global environmental authority that sets the global environmental agenda, was launched the initiative “Financial centres: mobilising capital to accelerate climate action”.

 

Action at the country level has helped catalyse more ambitious thinking beyond national boundaries. Systemic approaches are now evident at the regional level, such as the comprehensive sustainable finance strategy being developed by the European Union (EU) and the roadmap for a sustainable global financial system developed by the World Bank Group and UN Environment.

 

The process of dialogue and analysis is summarized in the report welcomed by G20 Finance Ministers and Central Bank Governors, who concluded that “in order to support environmentally sustainable growth globally, it is necessary to scale up green financing”. At the September 2016 Hangzhou Summit, G20 Heads of State welcomed seven broad financial sector options, “for voluntary implementation by countries in light of national circumstances”, to achieve this goal. Key options are highlighted below:

 

1 Provide strategic policy signals and frameworks

2 Promote voluntary principles for green finance

3 Expand learning networks for capacity-building

4 Support the development of local green bond markets

5 Promote international collaboration to facilitate cross-border investment in green bonds 6 Encourage and facilitate knowledge-sharing on environmental and financial risk 7 Improve the measurement of green finance activities and their impacts

September 26, 2018

MARKET DESIGN

Technological advances and falling costs are driving the deployment of distributed generation and digital transformation of energy systems, but policy and market design are critical to help steer the digital transformation into a secure and sustainable path.

Policy and market design are vital to steering digitally enhanced energy systems into an efficient, secure, accessible and sustainable path.  In many parts of the energy system, digitalization and inclusion of distributed generation can facilitate positive change, but only if policy makers undertake efforts to understand, channel and harness the impacts and minimise its complexity. It should first be acknowledged that policy makers have different starting points – country by country and jurisdiction by jurisdiction – with respect to energy resources, digital and energy infrastructure, and market designs. Furthermore, certain countries have already adopted general policy goals seeking rapid spreading of renewable distributed generation and digitalization of their economies and societies as a whole.

 

Policy-making processes can also benefit from more timely and sophisticated collection and publication of energy data that greater access to digital data could facilitate. Emerging low-cost digital tools, such as online registries, web-crawled data and quick response codes, can lead to more targeted and responsive policy regimes.

 

For example, digitalization and distributed generation can assist in providing electricity to the 1.1 billion people who still lack access to it. New digital tools can promote sustainability, including satellites to verify greenhouse gas emissions and technologies to track air pollution at the neighbourhood level. In line with broader IEA recommendations, the costs and benefits of digitalization in energy should be considered not only per component or per individual consumer, but also in terms of overall net benefits to the security, sustainability and affordability of the system as a whole. This approach is particularly important in electricity where the transition to smart energy systems may require significant changes in market design.

September 12, 2018

INNOVATIVE MOBILITY

The transport sector is experiencing great innovations and the many actors involved are developing groundbreaking solutions for mobility. Technologies offers an extraordinary capacity for innovation both on the supply and demand side and the theme of how to set up the infrastructure needed is essential.

 

 

The transport sector is experiencing great innovations and the many actors involved are developing groundbreaking solutions for mobility. As Electric mobility is proving to play a key role especially in urban transport, natural gas and bio-gas (CNG and LNG) are offering sustainable solutions already available for areas where electric mobility is not naturally inclined, such as maritime and heavy road transport.

 

Sales of new electric cars worldwide surpassed 1 million units in 2017 – a record volume. This represents a growth in new electric car sales of 54% compared with 2016. The global stock of electric cars surpassed 3 million vehicles in 2017 after crossing the 1 million threshold in 2015 and the 2 million mark in 2016. It expanded by 56% compared with 2016. In 2017, China had the largest electric car stock: 40% of the global total. Electric vehicle (EV) uptake is closely mirrored by the growth of charging infrastructure In 2017, private chargers at residences and workplaces, estimated to number almost 3 million worldwide, were the most widely used charging installations for electric cars owned by households and fleets. Charging outlets on private property for fleets (primarily buses) number some 366 000 units, almost all in China.

 

As for the natural gas, the use of LNG as sustainable fuel is explained on the basis of its environmental and economic sustainability. If we limit ourselves to the consumption of heavy road transport, to maritime transport and to direct uses in industry, in Italy about 11% of final energy consumption  could be covered with liquid methane to replace traditional products in use. Approximately 110 LNG trucks are currently in circulation in the north of the country. According to market sources, around Piacenza station gravitate 75 trucks for an average of about 30 supplies a day, with loads between 150 and 200 kg of LNG each. In addition the use of CNG and bio-CNG for light-duty vehicles is an important solution for the reduction of local pollutants in city and metropolitan areas.

 

These technologies offer an extraordinary capacity for innovation both on the supply and demand side and make the theme of how to set up the infrastructure needed essential.

September 12, 2018

SECURITY

Demand for secure, affordable and environmentally sustainable energy is increasing due to population growth, ongoing urbanisation and a growing global middle class. However, Energy Security is challenged by different threats these days.

Energy Security means continuous reliability of energy sources at an affordable price. In this regard, it becomes key promoting diversity, efficiency and flexibility for all fuels and energy sources.

Demand for secure, affordable and environmentally sustainable energy is increasing due to population growth, ongoing urbanisation and a growing global middle class. However, Energy Security is challenged by different threats these days.

 

First, increased decentralisation will confront the reliability and security of energy supply. This is related to concerns that maintaining system reliability will become increasingly complex and new approaches to system management, supported by improved digital technology, will be necessary to manage energy security challenges. This should provide opportunities to improve system resilience.

 

Furthermore, the emerging of physical, financial and virtual risks cause ever greater threats to the energy sector. These threats impact both the physical structures and the capital returns that are needed to improve energy systems towards a more sustainable future. Facing these challenges, policymakers, energy and finance leaders need to assess current approaches to energy investments and the financing of resilient energy infrastructures.

 

There are several measures that can mitigate the potential pervasive impact of emerging risks, and provide – in some instances – enhanced energy security: innovation in technology, system design and management, cross-country and cross-value-chain cooperation, required policies and financing concepts. If they are to reduce the risk-margins of energy investments, policymakers, energy leaders and the financial sector must reassess approaches across a number of areas, including risk assessment and modelling, better planning and design, increasing communication and collaboration.