Reflections on the potential global impact of ISO 50001 and the evolution of new energy standards by Rob Steele, ISO Secretary General

Reflections on the potential global impact of ISO 50001 and the evolution of new energy standards 2nd International Conference on the Global impact of Energy Management Systems “Creating the right environment for ISO 50001 to thrive” 4th May 2012 - The Mansion House, Dublin / Ireland Rob Steele ISO Secretary-GeneralSG/16060404 1

ISO – A Global System Updated January 2012 163 national members 5 000 people 98% of world GNI 97% of world population Over 600 Collection of 19 023 organizations in ISO Standards liaison Customer 1 208 standards produced Vision Internal in 2011 Financial & Process Strategy 215 active TCs Central 3 335 technical Learning Growth Secretariat bodies in Geneva 100 000 experts 151 FTE staffSG/16060404 2

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World Energy Outlook 2012 “As we do each year, we analyse a single fuel, this time energy efficiency. We take a comprehensive look at the strategies to unlock the potential of energy efficiency and unleash real gains for energy security, economic growth and the environment. “ Preview for the IEA World Energy Outlook – available November, 2012SG/16060404 5

50001 and business …. Sales Less expenses = ProfitSG/16060404 6

The Bossmust getinvolved ….SG/16060404 7

Business Benefits of 50001 Efficient components = efficiency gains in the range of 2-5% (best case) System optimization = average system efficiency gains of 20-30% Case studies already show payback on investment or gains from zero capex Mindset to actively manage / improve energy use, output and costs Helps reduce emissions without negative effect on operations Document savings for internal and external use (e.g. emission credits)SG/16060404 8

Some early adoptors of ISO 50001 Delta Electronics – Dongguan,  Reduced power consumption by 10.5 MWh China Jan-May, 2011 vs. Jan-May 2010 Schneider Electric Head Office ,  Enforces leader position in energy France management AU Optronics 8.5G TFT-LED  Expect 10% energy conservation in 2011 fabrication plant, Taiwan, Province (saving approx 55MWh) of China Municipality of Bad Eisenkappel (2  Expect 25% decrease in electricty consumption 400 inhabitants), Austria (updating waste water plant, street lights to LED) Dahanu Power Station, India  Operational review of all major equipment, targeted investment. Savings estimated at INR 96.4 million per annum 9 SG/16060404 9

So what has the uptake of the standard been ….  Over 1 300 copies sold since launch in June 2011  One of the top ten publications sold by ISO/CS  Over 190 certifications in 26 countries at the beginning of April 2012  Publicized at the World Economic Forum, 2011  Promotion by ISO members and partners  Training programmesSG/16060404 10

50001 and government ….. a basic argument for encouraging 50001  35% of worldwide final use of energy by industry … more than 50% in developing countries  …estimated potential to decrease energy intensity by 26%  Energy efficiency awareness poor amongst large and small business managers / owners  Therefore lack of culture and motivation of plant- managers  Cost of good energy management incentives vs. Cost of investment in infrastructure  Often missing or ineffective policy measures and incentives to encourage energy efficiencySG/16060404 11

Why government should assist national involvement in International Standards on energy management  Promote good energy management practices  Supporting scientific cooperation and possible harmonization of public policies  Help improve consumers and users understanding and confidence  Avoiding unnecessary technical barriers to trade related to energy policies  Enable creation of world markets for energy efficient technologiesSG/16060404 12

Which governments are focusing on the issue ….  Energy efficiency is now a major focus of G-8 meetings and is recognized by the International Energy Agency as a primary source of short-term GHG emission reductions  China initiated plan to reduce energy use 20% per unit of GDP over 2005 levels by 2010 focus on Top 1000 industrial enterprises  Rio+20  The USA plan to raise its energy efficiency until 2015 by 30% compared to 2003  In 2007, the EU has set itself a target for saving 20 % of its energy consumption by 2020.  Ireland has set out a National Energy Efficiency Action Plan to reduce energy demand by 2020 by 20% in the private, by 33% in the public sectorSG/16060404 13

So what is the future …. Evolution of new energy standards 20 ISO Technical Committees involved in aspects of energy efficiency and renewables ISO Strategic advisory group (SAG) on Energy efficiency and renewable energy sources ISO/IEC JTC 2 Joint Project Committee – Energy efficiency and renewable energy sources – Common terminology Industrial energy efficiency (e.g. ISO/TCs 17, 86, 115, 117, 118, 203, 244) Increase of efficiency of road vehicles and tyres (ISO/TC 22, partnership with UNECE WP 29 and ITF) Energy efficiency of buildings (ISO/TC 163 and ISO/TC 205) ISO/TC 238 on solid biofuels and ISO/PC 248 on sustainability criteria for bioenergy New committees: ISO/TC 265 Carbon capture and storage, ISO/TC 263 Coalbed methane, ISO/TC 255 Biogas SG/15891893 - 2011-05-12 Energy Management – 14

TC 242 - Evolution of new energy standardsAfter ISO 50001 was published ISO Project committee 242 was convertedto ISO/TC 242 and the following WGs created:  ISO/TC 242/WG 1 Energy Management  ISO/TC 242/WG 2 Energy performance metrics  ISO/TC 242/WG 3 Joint TC 242 - TC 257 WG: Measurement & verification of organizational energy performance - General principles and guidelines  ISO/TC 242/WG 4 Opportunities for ImprovementSG/16060404 15

TC 242 – New projects approved ISO/AWI 17570 Energy Baseline General Principles and Guidance ISO/AWI 17578 Energy Performance indicators (EnPIs) General Principles and Guidance ISO/AWI 17579 Guidance for the Implementation, Maintenance and Improvement of an EnMS ISO/AWI 17580 Monitoring, measurement, analysis and verification of organizational energy performance ISO/AWI 17590 Energy audits ISO/AWI 17595 Energy management system audits and auditor competency ISO/NP 17866 Energy management systems – Modular implementation of the energy management system ISO 50001 including the use of energy performance evaluation techniquesSG/16060404 16

ISO standardization supporting renewable energy sources  ISO Technical Committees specifically involved: Solar Energy, Hydrogen Technologies, Geothermal  1 Joint Working Group with IEC on Wind Turbines  ISO/PC 248, Sustainability criteria for bioenergy preparing the future standard ISO 13065  ISO/IEC JTC 2 Joint Project Committee – Energy efficiency and renewable energy sources – Common terminologySG/16060404 17

Impact for Developing Countries  Energy pricing and the possible impact on developing a significant concern  Some least developed countries use twice as much energy per unit of economic output as OECD countries and are not as efficient in converting energy to output  Sustained USD 20 bbl delivers an equivalent 1,47% loss of GDP for many countries (0.2% - 0.4% in GDP for many but up to 4% of GDP for poorest countries – World Bank study 2011) 1 UNDP/ESMAP, 2005SG/16060404 18

Confidence has a nickname …SG/16060404 19

Reflections on the potential global impact of ISO 50001 and the evolution of new energy standards by Rob Steele, ISO Secretary General

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