An Energy Efficient Economy is More Flexible!

Climate Change / Renewable Energy in the context of Sustainability and Flexibility of Supply

Max Gutbrod Partner

Baker & McKenzie – CIS, Limited is a member firm of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organisations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an office of any such law firm. © 2015 Baker & McKenzie – CIS, Limited

Goals: ‒ prevention of climate change, that is replacement of fossile energy? ‒ use of otherwise not utilized or underutilized raw materials? ‒ flexibility in general?

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General Requirements for Flexibility Adequate allocation of individual responsibility in particular for cost incurred and for other risks in taking decisions ‒ ‒

what is the average speed and flexibility within companies at large? more specifically, who within a company can take the responsibility for a change in the characteristics of supplied material required, as is typically required for energy efficiency? ‒ ‒ ‒

cumulation of novel technical and commercial risks or challenges can standardization encourage smoother decision making? can disclosure requirements reduce reliance on existing supply sources? See UK carbon disclosure initivative.

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The Potential Role for Governments Why should governments get involved and how?

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This slide is from a confidential presentation on smart grid that was made in 2010 and is simply aimed at demonstrating what is typical for the industry:

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Tentative Answers on Reason for Government Action

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The Potential Role for Governments -

Governments can afford to have a longer view Government can, by focussing on one level of production in spite of the industry being highly differentiated, foster a development much more impartially and efficiently than any of the industry players

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Approaches to Waste Disposal Regulation Non Harmful

Harmful

Russia

Producer Dealer Consumer

West

Possible Obligation

Waste Disposal Organisations Trade

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Features of Housing Common ?

heating

Possible consequnces of encompassing ownership - need to organise

electricity

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Concluding Remarks: Is there a benchmark for flexibility or sustainability? What is the

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Conclusion There seems to not be an absolute benchmark. Rather, national economies within an increasingly competitive global marketplace in future appear to differentiate themselves in their ability to adapt and achieve optimal results in volatile markets

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