policies for ee - presentation

8/13/2019 Policies for EE - Presentation

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Policies for EnergyEfficiency

Energising Cleaner Production

Management Course


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Session Agenda:

Types of policy instruments

Definitions and Examples

Evaluation of policy instruments


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task 1a: Meeting with top management task 1b: Form a Team and inform staff task 1c: Pre-assessment to collect general information task 1d: Select focus areas task 1e: Prepare assessment proposal for top management approval

Step 1: Planning and Organization

task 2a: Staff meeting and training task 2b: Prepare focus area flow charts task 2c: Walkthrough of focus areas task 2d: Quantify inputs and outputs and costs to establish a baseline task 2e: Quantify losses through a material and energy balance

Step 2: Assessment

task 3a: Determine causes of losses task 3b: Identify possible options task 3c: Screen options for feasibility analysis

Step 3: Identification of Options

task 4a: Technical, economic and environmental evaluation of opt ions task 4b: Rank feasible options for implementation task 4c: Prepare implementation and monitoring proposal for top

management approval

task 5a: Implement options and monitor results task 5b: Evaluation meeting with top management

Step 5: Implementation and Monitoring of Options

task 6a: Prepare proposal to continue with energy efficiency for topmanagement approval

Step 6: Continuous Improvement

Step 4: Feasibility Analysis of Options

task 1a: Meeting with top management task 1b: Form a Team and inform staff task 1c: Pre-assessment to collect general information task 1d: Select focus areas task 1e: Prepare assessment proposal for top management approval

Step 1: Planning and Organization

task 2a: Staff meeting and training task 2b: Prepare focus area flow charts task 2c: Walkthrough of focus areas task 2d: Quantify inputs and outputs and costs to establish a baseline task 2e: Quantify losses through a material and energy balance

Step 2: Assessment

task 3a: Determine causes of losses task 3b: Identify possible options task 3c: Screen options for feasibility analysis

Step 3: Identification of Options

task 4a: Technical, economic and environmental evaluation of opt ions task 4b: Rank feasible options for implementation task 4c: Prepare implementation and monitoring proposal for top

management approval

task 5a: Implement options and monitor results task 5b: Evaluation meeting with top management

Step 5: Implementation and Monitoring of Options

task 6a: Prepare proposal to continue with energy efficiency for topmanagement approval

Step 6: Continuous Improvement

Step 4: Feasibility Analysis of Options

But first In what step(s)of themethodologyis lack ofpolicies orenforcement abarrier?


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What are energy efficiency policies?

All public interventions (policyinstruments) aiming at improvingenergy efficiency of a country,through adequate pricing, institutionalsetting regulations and economic orfiscal instruments

- World Energy Council


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Policy instruments types

Legislativeinstruments

Economicinstruments

Voluntaryinstruments

Laws & regulationsStandardsCodes of practice

FiscalSubsidiesProperty & tradable rightsBonds & deposit fundsLiability systemsVoluntary agreementsPrograms & projects

Research & development


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Legislative instruments:

Definitions

Laws & regulations: Law: legal rules that govern a specific action,

process, product etc. Regulation: outlines how the law should be

implemented

Standards: provide technical and designguidance notes (e.g. for equipment)

Codes of practice: give practical advice /guidance on how to comply with legislation (e.g.Building Code)


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Legislative instruments:

Energy Conservation Laws

India Energy Conservation Actrequires large industry to:

Commit to energy conservation Adhere to energy standards &

equipment labels Appoint energy managers Carry out annual energy audits


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Legislative instruments:Minimum energy performance

standards (MEPS)

New Zealand MEPS Combined with mandatory labeling Appliances and products e.g.

distribution transformers, 3-phaseelectric motors, heat pumps, airconditioners, fluorescent lamps

Benefits: 1% EE improvement + 335000 tons CO 2 (2003) Keeps NZ manufacturers competitive


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Economic instruments:

Definitions

Fiscal instruments: Taxes, fees, charges levied to producers and

consumers

Subsidies: Grants, soft loans, tax allowances Property & tradable rights:

Licenses, rights (e.g. water, emissions) Bonds & deposit funds:

Money returned when environmental behavioris met


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Petrol and emission taxes

Denmark Carbon Dioxide Act 1993 Purpose: internalize external costs of

energy use in industry CO 2 rates based on C content of fuel Tax income recycled back into

economy Emission reduction of 13% 1990 - 2002


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Subsidies on EE technologies

Thailand Several subsidies:

Favorable loans:


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Voluntary instruments:

Definitions

Voluntary agreements: commitmentfrom business to protect theenvironment

Programs & projects: to increaseawareness, skills and knowledge, e.g.

Information Demonstration projects Development of CP centers

Research & development: newtechnologies, processes, products


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Energy programs and projects

GERIAP project (Greenh ou se Gas Emiss ionReduc t ion f ro m Indu s t ry in As ia and the Pac i f ic )

9 countries, 5 sectors Capacity building, demonstration,

survey of barriers Energy Efficiency Guide for Industry

in Asia


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Energy labeling schemes

USA Energy Star since 1992 40 product categories Industrial appliances: heat pumps,

lighting, office equipment, ceilingfans, boilers, air conditioners,furnaces

Partnership with >8000 organizationsto deliver information and tools toconsumers

2001 savings: 560 trillion EJ$4.1 billion


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Energy efficiency R&D

Taiwan Financed with 0.5% from sales of

petrol and electricity Development, research and training Industry e.g.: cogeneration, heat

recovery, electric heating 2005: 140 GW electricity, 17000 kl fuel

oil


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How to evaluate policy instruments:

5 evaluation criteria

Policyinstrument

Environmentaleffectiveness Economic

efficiency

Budgetary

impact Ability toimplement& enforce

Stakeholder

support


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Environmental effectiveness

Has instrument reduced energy /emissions?

Legislative: depends on resources andenforcement

Taxes / subsidies: if high enough Voluntary: if commitment is real,

otherwise highly uncertain


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Economic efficiency

Is this instrument the most costeffective?

Legislative: higher cost than economic Economic taxes: yes Economic subsidies: yes, but distort

market forces Voluntary: varies a lot!


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Budgetary impact

Does the government pay or receive?

Legislative: penalties from non-compliance

Economic taxes: raise revenue Economic subsidies: high & mostly

financed by community Voluntary: revenues in transition

phase to mandatory


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Support from stakeholders

Govt Industry NGOs Public

Legislative + - + +/-

Taxes +/- - + +/-

Subsidies + + +/- +/-

Voluntary + + + +


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Conclusions

There is a wide range of policyinstruments

No policy instrument is perfect Most likely a mix of instruments is

needed to really improve energyefficiency


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Policies for EnergyEfficiency

Thank you for your attention!


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This tr aini ng session was prepared as part of the development anddelivery of the course Energising Cleaner Production funded byI nWent, I nternationale Wei terbildung und Entwicklung (CapacityBui lding I nternational, Germany) and carr ied out by the Uni ted NationsEnvironment Programme (UN EP)

The session is based on the report Improving Energy Efficiency inI ndustry in Asia a policy review from the Energy Efficiency Guide for

Industry in Asia developed as part of the GERIAP project that wasfunded by the Swedish I nternati onal Development Cooperation Agency(Sida)

While reasonabl e effor ts have been made to ensure that the contents ofthi s publi cation are factuall y corr ect and proper ly referenced, UNEP doesnot accept r esponsibil i ty for the accuracy or completeness of the contents,and shal l not be li able for any loss or damage that may be occasioneddir ectly or indi rectly thr ough the use of, or rel iance on, the contents ofthi s publi cation.

The report and r eferences are available on www.energyeff iciencyasia.org

Acknowledgements

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