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electrolysis-produced hydrogen will be needed whenever and wherever surplus power is generated. Smart grids will be required to help balance production and consumption - and also to regulate consumption by ways of demand management, if necessary - while smart financing models will be needed across the board.To ensure the long-term success of the new German energy policy, these measures will have to fit together perfectly, like the pieces of an intricate puzzle. All the solutions described here are offered or developed by Siemens - a company that is devoting its know-how and technology to creating a sustainable future. So that urban centres will remain attractive, livable spaces for innovation and the exchange of ideas. And so that people in the centuries to come will still find inspiration in the streets of their cities - just as Socrates did in Athens nearly 2,500 years ago. nAbout the AuthorPeter Löscher has been President of the Managing Board and Chief Executive Officer at Siemens AG since 2007. In 1985, he became a Senior Management Consultant at Kienbaum Consulting Group. In 2000, he became Chairman, President and CEO of Aventis Pharma Ltd., Japan. In 2002, Mr Löscher became President of Amersham Health and then Chief Operating Officer at Amersham Plc. In 2004, he joined General Electric as President and CEO of GE Healthcare Bio-Sciences. In 2006, he became President of Global Human Health at Merck & Co., Inc." Cities also pose the largest threat to the world's climate, accounting for about 70 per cent of the planet's greenhouse gas emissions. "Above: Singapore is living proof, that sustainability and economic success are not mutually exclusivesmart cities 095

Energy Efficiency - a Lasting Legacy T he building sector's supersized global footprint is difficult to ignore. The United Nations Environment Programme (UNEP), the InternationalEnergy Agency (IEA), and others estimate that buildings consume between 30 and 40 per cent of global energy, and are responsible for approximately a third of global greenhouse gas emissions. In some developed nations, these numbers are even higher. In the United Kingdom, for instance, buildings are responsible for over 50 per cent of energy use.What is more, the building sector consumes around three billion tons of raw materials annually, roughly 40-50 per cent of global resource consumption. The built environment is also responsible for around 20 per cent of the world's water consumption.Yet hidden beneath these alarming statistics exists a real opportunity for dramatic change. The Intergovernmental Panel on Climate Change (IPCC) has concluded that, of all sectors, buildings offer the largest potential to reduce emissions - and at the least cost. In fact, by deploying readily-available energy efficiency measures and technologies, we can begin reducing emissions in residential and commercial building sectors now and achieve cuts in the range of 30 per cent below business-as-usual by 2020, at no net cost.Science tells us that we must keep global temperatures from rising above the 2°C threshold, or below. And yet, it is clear from the negotiations in Durban last December, that the threat of climate change is not enough for most people to act. Other priorities, such as dealing with poverty, housing affordability and job creation, are much higher on the list. " The Intergovernmental Panel on Climate Change (IPCC) has concluded that, of all sectors, buildings offer the largest potential to reduce emissions "Jane Henley, Chief Executive Officer, World Green Building Council (WGBC)However, tackled the right way, climate change adaptation projects, such as green buildings, can reduce carbon emissions and at the same time deliver on those pressing priorities. While carbon reduction is not the primary driver to act, it is a consequence of a long-term, sustainable economic plan.In this context, governments and businesses in wealthy nations should begin turning to green, low-carbon buildings as critical complementary measures to achieve deeper cuts. At the same time, growing economies should employ green building strategies as a central part of sustainable development pathways and efficient energy use.BUILDING THE GREEN ECONOMYGreen building policies have the potential to support massive job growth. UNEP has found that investments in energy efficiency measures in buildings could generate 3.5 million green jobs in Europe and the United States alone. The Natural Resources Defence Council has calculated that five direct jobs and five indirect jobs could be created for every US$1 million invested in energy efficiency retrofits in the US, and similar job numbers support large-scale retrofit efforts in Australia and the UK. In addition to direct utility savings and job creation, green buildings have been shown to improve the health and wellbeing of occupants, enhance productivity, reduce staff turnover, reduce patient hospitalisation time, and even enhance student achievement in green schools. Both the direct and indirect cost savings of integrated green building strategies are real and significant. Pictured Below: Jane HenleyRight: The Los Silos project096 smart cities