06 session 4 mr. shaleen singal impact analysis from ... ·
TRANSCRIPT
Sustainable Consumption and Production: Policy Impact
Shaleen Singhal
Prof. TERI School of Advanced Studies, New Delhi
UNESCAP Conference on
Living within our planetary limits
17-18 Oct. 2019, Bangkok, Thailand
Context
…. On the one hand, over a billion-and-a-quarter people are still living in poverty. Onthe other, patterns of unsustainableproduction and consumption areendangering our planet’s eco-systems.….
THE PRESIDENT OF INDIA, SHRI PRANAB MUKHERJEE
(Inauguration of World Sustainable Development Summit, Delhi, 2016)Consumer Behaviour responsive Policy Landscape
Sustainable Consumption and Production
SCP - India - Region
• Economic growth, wellbeing, poverty reduction - vital• By 2030, India to become 3rd largest consumer market after US and China (middle
class-led; cities) – HDI performance rank (130th in 2018)• Institutional factors dominate the challenges for transition to SCP• Beyond sensitization of policy makers (higher education & practice)• Enhance evidence base - contribution of SCP policies to Region’s sustainability• Delink economic growth and environmental degradation• Sectoral focus
(UNEP 2015; World Sustainable Development Summit 2016-19; Singhal, 2019)
Urgency and Focus
• Sectoral SCP focus• Energy and Waste • Trajectory
• Geographical emphasis• India
• Methodological approach• Review of practice-based and
scientific literature • Non directive interviews with key
stakeholders• Consumers, policy practitioners,
researchers, manufacturers and supply chain, others
Policy Impact & Behavioural
Responses
Enabling Environment –
Change & Challenges
Recommendation (Flexible
Strategies)
Energy consumption in
buildings
Consumer choices and demand for energy efficient appliances
Waste management(Construction and Demolition waste)
• India - likely to contribute 17 – 18% of global urban growth by 2050
• Urban population - 290 million in 2001; to 472 million in 2019; and likely 876 million in 2050
• Building sector - 33% of total energy produced (24% by residential sector; 9% by commercial sector)
Impact Analysis: Rationale1. Energy Management in Building Sector
0
100000
200000
300000
Elec
tric
ity C
onsu
mpt
ion
(Gw
H)
Domestic Commercial
Source: Central Electricity Authority (CEA), GoI, 2017
Trend of Energy Consumption in Urban areas
Policy Initiatives and Changes
Year Policy/Guidelines Emphasis
2001 Energy Conservation Act Catering the need of energy efficiency
2002 Bureau of Energy Efficiency (BEE)Specify standards for energy consuming, generating & transmitting appliances
2007 Energy Conservation Building Code (ECBC) For Commercial Buildings2007 GRIHA Green Rating2016 Model Building Bye-laws sustainability and Green buildings 2017 IGBC Green Rating
2018 Energy Conservation Building Code (ECBC) For Residential Buildings
2010-11 Energy Efficient Housing Refinance Scheme Encouraging energy efficiency in the residential sector
Building efficiency approach includes efficiency in five key building system components:• Building Envelope (Walls, Roofs, and Windows)• Heating Ventilation and Air Conditioning (HVAC) System• Electrical Systems (Power Factor, Transformers)• Lighting (Indoor and Outdoor)• Services Water Heating and Pumping
Policy Impact: Stakeholders Behavioral Response
Type Warm and humid Composite Hot and dry Moderate Simple averageOffice building, less than 50% air-conditioning
101 86 90 94 93
Office building with more than 50% air-conditioning
182 179 173 179 178
Shopping mall 428 327 273 257 321BPOs 452 437 – 433 440Hotels – up to 3 star 215 201 167 107 173Hotels – above 3 star 333 290 250 313 297Hospitals 275 264 261 247 262Institutes 150 117 106 129 126
Source: EECB Report , 2016
Energy performance index of commercial buildings (kWh/m2/year)
22672
667630
32235
233167
18784 36398 47494
0
100000
200000
300000
400000
500000
600000
700000
800000
Thou
sand
Meg
awat
t Hou
rs (M
Wh)
Cumulative Energy Savings Potential for HVAC Technologies (2010-2030)
Source: PACE-D (2014)
Avg. EPI is highest for BPOs and lowest for office buildings with less than 50% air-conditioning
Policy Impact: Stakeholders Behavioral Response
• Commercial energy consumption (Trade and Offices) – Max by HVAC. Likely increase - 11-12%/yr
• Preference to LEED rating system over indigenous GRIHA (international branding)
• Increasing awareness in middle class for energy-efficiency (cities)
• Willingness to pay extra to live in energy-efficient built environment (family earning)
• Limited enforcement of norms for monitoring energy consumption in residential sector.
4%, 4%4%, 4%
34%, 34%
28%, 28%
13%, 13%
7%, 7%10%, 10% Coolers
TV
Fans
Lights
Refrigeration
Acs
Others
25%, 25%
15%, 15%55%, 55%
5%, 5%
Lighting
Internal loads
HVAC
Others
Energy Consumption by Appliances
Commercial buildings Residential buildingsSource: : ICLEI South Asia, 2019
Governance
Uptake of green building rating programs
Enlargement of a pool of energy- efficient building
experts
Amendments of codes at State level
Finance
Providing rebates in electricity charges
Promote use of energy saving equipment in domestic context by National Housing Bank.
Low interest loans for green housing
Provision of aadditional FAR (Floor Area Ratio)
Eco-Labelling
BEE Star labelling programme for existing buildings >100kw
Rating of appliances program by BEE
Enabling Environment(Buildings)
Enabling Environment: Changes and Challenges
Multiplicity of institutional roles
Low willingness to pay by developers (only 2-5% extra) for green branding; working around
rating systems
Limited monitoring of programmes
efficacy
Noticeable gaps in awareness of broad user base towards energy-
efficiency
Lack of reliable data and information at micro level
Reliance of occupants on appliances for comfort - buildings
fail to meet comfort needs
High inconsistency between costing, branding and energy
efficiency across brands
Enabling Environment: Changes and Challenges
Impact Analysis: Rationale• Rapidly growing economy with increased disposal incomes is leading to rise in consumption/
usage of appliances.
• Fans, TV, refrigerators, ACs, water-heaters have substantial share of electricity consumption.
• India’s Commitment at UNFCCC to reduce its energy intensity by a third by the year 2030.
0.010.030.050.070.090.110.130.15
1990
1991
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1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
India - Energy Intensity (MTOE/ GDP ($Bn)
Source: Thapar (Forthcoming)
2. Consumer Choices & Demand for Energy Efficient Appliances
Sr. No. Guidelines Year Emphasis
1.Standards and Labeling Programme
2006-2007 Labelling program for Air Conditioners and Refrigerators
2007-2010 12 Appliances included in voluntary labelling Programme
(2007-10)
2010-2016 4 Appliances covered in mandatory labelling
2011-2016 21 Appliances included in labelling programme 8 in Mandatory labelling scheme
2016 onwards 10 mandatory appliances (2018) Star labelling for cars
2.
Unnat Jyoti by Affordable LED and Appliances (UJALA) Scheme 2015
• Promoting super-efficient mass-selling appliances• Reducing peak load as well as energy consumption• LED Lamps provided to each HH to replace existing
inefficient lamps 360 Mn Lamps, 2 Mn Fans, 7 Mn Tubes
Policy Initiatives and Changes
Source: Thapar (Forthcoming)
0
2000000
4000000
6000000
8000000
Star-1 Star-2 Star-3 Star-4 Star-5 TOTAL
Air Conditioners - Sale Figures in India2011-122012-132013-142014-152015-162016-172017-182018-19
Policy Impact: Stakeholders Behavioral Response
• Maximum increase in sales of Star 3 labelled air conditioners (2011 – 2019)• Concern of consumers for surrounding pollution levels; rise in willingness to pay extra.
0
200
400
600
800
1000
2014 2015 2016 2017 2018
Lamp Sales - India (Million Pieces)
ICL LED
Source: Thapar (Forthcoming)
Policy Impact: Stakeholders Behavioral Response
• Creation of web portal to facilitate manufacturers, suppliers and importers• Designated state government agencies to enforce provisions by way of inspections & penalties• Concern of consumers about their surroundings and pollution level and rise in willingness to
pay more
Source: EESL
Governance
Energy efficient Appliance made mandatory when sale
of rated systems cross a certain threshold (50%).
Involvement of EESL as a dedicated federal agency
Finance
Steep-cost reduction due to Demand aggregation and open
tenders, Upfront payment to suppliers enabled low quotes,
Direct sale using offices of DISCOMS, Reduced
transportation costs.
Eco-Labelling
Organization of ‘National Retailer Training Programme’ for salespersons on promoting
Star-Rated Appliances
Gradual enhancement of efficiency standards, 5-star becomes 4-star
Innovation
DIY- LED retrofit in casement of existing lamps for consumers.
Customer pay equivalent to ICL, balance in monthly bills
Technology
E-portal & APP for consumers to compare energy use of a
product.
Enabling Environment
(Energy Appliances)
Enabling Environment: Changes and Challenges
Limited regulatory bandwidth for effective project
monitoring.
Limited fiscal incentives for using energy efficient products
Unexpected consumer behavior-Rebound effect,
low-income elasticity.
Higher uptake of systems like ACs, refrigerators over other
items.
Market saturation phase,
diminishing returns on investment
Skewed sale of products like 3-starTVs
Difficult to scale-up equipment requiring retrofit (fans, tube) & high cost; no one-size
fits all model.
Enabling Environment: Changes and Challenges
Tiered Framework for Energy Management
Enhancing SCP through
ENERGY MANAGEMENT
Furtherincentivizationfor energy &environmentalratingsEnhanced
private sector engagement by promoting ESCOs
Strengthening labelling programme (active/passive measures)
Bridging gap inuser awareness(beyond metrocities)
Programme efficacy monitoring
Financial instruments to promote EE in buildings (debt based, equity financing, etc.)
Efficient HVAC systems. Quality/ testing of large category of products (including imports)
Responsivenessof residentialbuildings tolocal climaticconditions-energyoptimization
Convergence &implementationof rules inpractice
Methods to ascertain actual performance of rated buildings-continual basis
Awarenessdrive -consumersanddevelopers
Distincthousingsnorms -differentincomegroups
Strengthening institutional memory
Providing key energy efficient products
information on energy performance of products
Baseline HH energy assessment based on consumption
pattern and demand
EFFECTIVE GOVERNANCE
INNOVATIVE FINANCE
TECHNOLOGYADVANCEMENT
INFORMATION & CAPACITY
Innovative business models -bidding, demand aggregation, competitive procurement, Carbon Credits/ Green funds
• The demand of construction minerals expected to increase 5-7% annually due to rise in urban population (Ministry of Mines, 2018).
• Current sand, aggregate, and soil consumption is 750 million tonnes, 600-750 million tonnes and 350 million m3 (BMTPC 2018, NITI Aayog, 2019).
• India generates 100-300 million metric tonnesof construction and demolition waste (C&DW) annually (Jain et al. 2018).
• The amount of waste generated during demolition (500 kg/m2) is greater than during construction or renovation (40-60 kg/m2) (TIAAC, 2001).
3. Waste ManagementImpact Analysis: Rationale
Source: Jain et al. 2019; based on data from CementManufacturer’s Association and Census reports
Impact Analysis: Rationale• Urban areas alone generate more
than 700 million tonnes of C&DW(DA, 2015).
• C&DW recycling can save 2-8% of natural minerals like sand and aggregates in urban areas.
• Land is a valuable resource, C&DWrequires land for dumping as considerable amount of C&DW is dumped illegally or landfilled.
Policy Initiatives and Changes
Sr. No.
Year Policy/Guidelines Emphasis
1. 2000 Municipal Solid Waste (MSW) Rules
• Waste management
2. 2016 C&DW Waste Management Rules, MoEFCC
• Established waste management hierarchy• Defined roles and responsibilities of stakeholders (waste generators, ministries,
local government)• Hold waste generator responsible for ensuring waste property transported to
designated sites at their own cost• Large generators to also pay processing charges
3. 2016 Bureau of Indian standards (revised after 1993)
• Permits 100% use of recycled materials in non-structural applications• Up to 20% in structural applications
4. 2019 Draft National Efficiency Policy
• Suggests through inventorizing CD&W by 2022• Achieving 50% recycling rate by 2025, 75% by 2050• Ensuring 30% use of recycled materials in public construction works
Policy Impacts: Eco Efficiency
• Recycling 1 tonne of C&DW in India has potential of lowering life cycle carbonemissions by up to 5-10 kgs. 100 million tonnes could lower India’s carbon footprint by0.5-1 million tonne.
Potential cumulative material, energy and emission savings from C&DW recycling by 2025 Source: Jain et al. 2019
• Drafting of National Resource Efficiency Policy 2019, the impacts will only be noticeable after 2022-2023.
• Few cities have started commissioning recycling plants (Delhi, Ahmedabad)• Recycling plants in New Delhi became operational before current rules
were notified• Two recycling plants in New Delhi recovering 0.5-0.6 tonnes of sand and
aggregates, and 0.3-0.4 tonnes of soil from each tonne of C&DW. • Competition is limited as recycled products still constitute small share of
total demand.• Competition for C&DW is arising between recyclers and builders; builders
want C&DW for backfilling whereas recyclers want it for recycling.
Policy Impacts: Stakeholders Behavioral Response
GovernanceMandatory procurement of
recycled materials up to 10-20% in all local
government contracts
Encouraging RecyclingThe production cost of recycled products is lower than that of similar products made from natural
materials
However, higher tax for recycled products than on natural products to make them less attractive
Targeting increase in C&DW recyclingTarget of achieving
recycling rate of 50% by 2025 and 75 % by 2030
Target of constructing a recycling plant in every
major urban area
Enabling Environment(C&D Waste)
Enabling Environment: Changes and Challenges
Consumers
Mandatory procurement of recycled materials up to 10-20% in all local government
contracts
Governance
Inefficient policy and regulatios to encourage C&DW recycling in nearly all major cities
Producers
Plant operators are challenged to sell their products; government
agencies continue to buy traditional products
Enabling Environment(C&D Waste)
Enabling Environment: Changes and Challenges
Flexible Strategy (Recommendations) - C&D Waste
Governance• Incentivizing state and local governments to procure recycled materials.• Integrating rural areas in discourse of resource efficiency.• Enhancing growth of recycling industry through focus on large cities.• Enhancing demand for recycled products.
Finance• Fiscally empowering local authorities.• Encouraging extended producers responsibility as well as tax incentives and subsidies.
Technology• Influencing architects and construction managers to minimize generation of C&D waste.• Promoting innovative use of C&D waste (bricks, kerbstones).
1. Hotspots o Knowledge exchange – SCP Academy on Cities for Region
2. Low hanging fruits o Sectoral – Energy, Waste. Green Infrastructure, Transport, Watero Empirical and indigenous data driven policy structuring
3. Policy implementation – Feedback loop o Branding a policy change - top-down & bottom-up o Efficiency to Effectivenesso Handholding
4. Behavioural response – Stakeholders (multi-dimensional response)o Transformation of institutional infrastructure (stakeholders engagement -
value chain ) before policy change
5. Market transformationo Innovative business models (e.g. climate fund)o Advance R&D for production/promotion of high impact eco-friendly products
Lessons to Share (Region - Asia Pacific)
Reduce the resource intensity of production; undertake new patterns with reduced levels of consumption and change what is consumed and by whom.
Sustainability will come a full circle only when local knowledge is recognized and given its due importance
Thank you!
(Acknowledgement: Contributions from Dr Sapan Thapar, Ms Meenakshi Kumar, Ms Uzma Parveen, Mr Sourabh Jain)