5 key steps for effective policy packages: insights into industrial energy conservation policies,...
DESCRIPTION
Presentation by Julia Reinaud, the Policy and Programs Director of the Institute for Industrial Productivity, given during the Sharing Energy Efficiency Policy Experience for Key Energy-Consuming Enterprises Workshop in Beijing, February 20, 2012More information about the workshop: http://www.iipnetwork.org/our-recent-activities#workshopbjTo facilitate best practice sharing for the implementation of the Top 10,000 Enterprise Program, the Institute for Industrial Productivity co-organized a workshop in collaboration with the China Energy Conservation Association, the China Sustainable Energy Program (Energy Foundation) and the Energy Research Institute (ERI). The workshop convened Chinese policy-makers and international experts. International experts presented different policy approaches that have been (or are currently being) implemented in Australia and in the US, and discussed with Chinese policymakers and think tanks what and how these approaches might be helpful for China.While the design of the Top-10,000 program has been outlined, details for its implementation will be the subject of much discussion in the coming months. Key questions include: what type of technical support for enterprises is the most appropriate? How can the government play an effective role in monitoring and verifying the results? Is there a role for market-based mechanisms?TRANSCRIPT
Main Presenta+on Title 20.12.10 5 Key Steps for Effec0ve Policy Packages for heavy industry : Insights into Industrial Energy Conserva+on Policies IIP-‐CECA-‐CSEP-‐ERI Workshop February 20, 2012, Beijing
1. The Ins+tute for Industrial Produc+vity & its policy work
2. The IIP Policy Pyramid
3. The Industrial Efficiency Policy Database
4. An overview of the policy packages of the United States, India, Australia and China
5. Five steps for effec+ve policy making
Presenta+on Outline
About the Ins+tute for Industrial Produc+vity
The IIP team and Strategic Advisory Group
• Sharing best prac+ces, including policy experience, and providing access to a network of interna+onal experts
• Developing original research, analysis and databases
• Bridging the gap between government
policy and industry implementa+on.
The Ins(tute for Industrial Produc(vity provides companies and
governments with the best energy efficiency prac(ces to reduce energy
costs and prepare for a low carbon future.
MAIN PAGE TITLE The IIP Policy Approach
• Policies are oYen needed to drive energy conserva+on in industry • Need to set EC goals and +meframe for achievement
• Addi+onal support and regula+on might be required targe+ng industry and other players • Help companies by providing financial and educa+onal support and introducing energy management
• Guidelines, MRV and tools for companies are also key to policy implementa+on
MAIN PAGE TITLE The IIP Policy Pyramid
The Policy Pyramid allows you to see policy interrela+ons and visually understand the policy hierarchy
Mandatory standards on equipment Voluntary programs, including the Superior Energy Performance Program
United States (Federal): simplified
Many measures developed at the State level, with some excep+ons at the Federal level
Very detailed implementa(on toolbox and tools to help companies iden+fy their energy conserva+on poten+als ex. SoYware tools (e.g. Quick PEP)
• Mandatory standards under the Clean Air Act (BACT)
• Superior Energy Performance • Beber Buildings, Beber Plants (formerly SEN) • Energy Star program for industry
United States (Federal)
• Business Energy Investment Tax Credit • Modified Accelerated Cost-‐Recovery System • Innova+ve Technology Loan Guarantee • GHG Repor+ng
• Control Technology Clearinghouse • SoYware tools (e.g. Quick PEP) • Benchmarking tools • Etc….
For a complete set of policies, see hbp://iepd.iipnetwork.org/country/united-‐states-‐federal
Mandatory energy efficiency targets with tradable cer(ficates Performance Achieve Trade (PAT)
India: simplified pyramid
Energy Efficiency Funds Na(onal Awards for “top” companies
Implementa(on toolbox focuses on energy audits and energy managers
• Perform Achieve Trade scheme
India
• Mandatory energy managers and auditors • Na+onal Conserva+on Awards • Venture capital and risk guarantee funds • Preferen+al loans
• Monitoring and verifica+on protocols • Cer+fica+on and training of energy
auditors and managers • Financing guidelines
For a complete set of policies, see hbp://iepd.iipnetwork.org/country/india
Mandatory carbon tax and then CO2 targets with tradable cer(ficates
Australia: simplified pyramid
Mandatory Energy Management System Energy Efficiency Opportuni0es Program
Extensive technical support, guidelines and best prac(ce sharing such as case studies
• Carbon Price Mechanism • Generator Energy Efficiency Standards
Australia
• Energy Efficiency Opportuni+es • Clean Energy Finance Facility • Clean Energy Technology Programme
• Na+onal Greenhouse and Energy Repor+ng System
• Carbon Neutral Program and standard • EEO Assessment Framework and workshops • Clean Energy Skills
Mandatory energy conserva(on targets Top-‐10,000 enterprise program Mandatory appraisals of projects & closures Industrial Performance Standards
China: simplified pyramid
Financial subsidies Policies targe(ng other actors (Escos, FI) Some are also by Provinces Technology catalogues, guidelines from Beijing Technical support oYen provided at the provincial level
• 11th and 12th Five year plan targets • Top-‐1,000 and Top-‐10,000 Programs • Industrial Performance Standards • Energy Efficiency Appraisals • Phasing-‐out of Outdated Capacity
China
• Ten Key Projects • EE financing regula+ons and rewards • Differen+al electricity pricing • ESCOs • Energy management
• Technology catalogues • List of qualified ESCOs • Guidelines for EE appraisals • Training • Etc.
For a complete set of policies, see hbp://iepd.iipnetwork.org/country/china
Five Steps to Effec+ve Policy Packages
Step 5: Establish transparent systems for monitoring, repor7ng and verifica7on
Step 4: Design a comprehensive implementa7on toolbox
Step 3: Define suppor7ng and complementary policies
Step 2: Define the effort-‐defining policy(ies)
Step 1: Set the overall energy saving and/or GHG mi7ga7on goal to be achieved by industry
China: 16% energy intensity reduc0on below 2010 levels by the end of 2015
India: Mandatory EE targets (Perform Achieve Trade)
Australia: Mandatory energy management system (EEO)
US: SoNware tools
India: MRV rules
Main Presenta+on Title 20.12.10 [email protected] iipnetwork.org/publica+ons iipnetwork.org/databases iepd.iipnetwork.org
Appendices
• A free online database focusing on industrial energy efficiency and GHG mi+ga+on policies
• Can compare country characteris+cs and policy informa+on across countries
• 500 links to relevant government and expert reports
• Detailed CO2 emissions and energy consump+on data by country and industry sub-‐sector.
IIP’s policy work focuses on which government policies foster and facilitate energy efficiency, climate and industrial produc+vity benefits
Recent publica+ons include: • Insights into Effec0ve Policy Packages: Sharing Best Prac0ces from Six Countries. January,
2012. • Energy Management Programmes for Industry – Gaining through Saving. Forthcoming, IIP
& IEA. • The Boardroom Perspec0ve: How Does Energy Efficiency Policy Influence Decision Making
in Industry? 16 November 2011, IIP & IEA. • Best Prac0ces in Energy Efficient Industrial Technologies: Iron and Steel Industry, 25
October 2011, IIP • Best Prac0ces in Energy Efficient Industrial Technologies: Motor Systems, 30 August 2011, • IIP Promo0on Systems and Incen0ves for Adop0on of Energy Management Systems in
Industry: Some Interna0onal Lessons Learned Relevant for China. 3 August 2011, IIP (also available in Chinese). Collabora+on with Energy Pathways.
• Ten Key Messages for Effec0ve Policy Packages: Sharing Best Prac0ces in Industrial Energy Efficiency Policies, 11 July 2011, IIP (also available in Chinese).
IIP Policy Work