7.6.1 Business and Industry
Within Countries
While government decisions create an enabling environment for environmentally
sound investments, the bulk of investment funds are coming increasingly from
the private sector (See Chapter 2). The developing countries
are expected to be the largest markets for energy efficiency products in the
21st Century, driven by a growth in population, economic activity, and energy
demand that far outstrips that of industrialised countries. For example, the
developing countries' current rate of growth in annual energy demand is more
than double that of the OECD countries, 3.7 per cent versus 1.7 per cent (IIEC,
1996). To respond to this trend in ways that minimise economic, environmental,
and social costs will create an attractive opportunity for new, environmentally
sound products and services. While these changes are often characterised as
opportunities for international exports, they also invite the growth of domestic
production and joint ventures. To grasp these opportunities, participating governments
could remove any artificial trade, regulatory, taxation, or commercial barriers
that hinder the diffusion of advanced technologies (World Energy Council, 1998).
Among Countries
The largest market for ESTs in the 21st Century will be in the developing countries
and CEITs. This will offer an opportunity for the domestic industries of these
countries. It also will also be an export opportunity for international industries.
A 1995 study by Hagler Bailly Consulting, Inc. estimates the annual international
market for energy efficiency will rise from about US$40 billion currently to
US$125 billion in 2015 (Hagler Bailly, 1995). A recent assessment of the export
market identified building technologies among the major items, including building
environment controls; heating, ventilation and air conditioning equipment; lighting;
household appliances; and building materials (IIEC, 1996). International strategies
can capitalise on this demand by identifying the international corporations
that are targeting this market and by encouraging them in the rapid deployment
of the best ESTs.
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