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5 Key Steps for Effective Policy Packages: Insights into Industrial Energy Conservation Policies, Julia Reinaud
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5 Key Steps for Effective Policy Packages: Insights into Industrial Energy Conservation Policies, Julia Reinaud

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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 …

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, 2012

More information about the workshop: http://www.iipnetwork.org/our-recent-activities#workshopbj

To 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?

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  • 1. 5  Key  Steps  for  Effec0ve  Policy   Main  Presenta+on  Title    Packages  for  heavy  industry  :   20.12.10  Insights  into  Industrial  Energy  Conserva+on  Policies      IIP-­‐CECA-­‐CSEP-­‐ERI  Workshop  February  20,  2012,  Beijing  
  • 2. Presenta+on  Outline     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  
  • 3. About  the  Ins+tute  for  Industrial  Produc+vity   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.  •  Sharing  best  prac+ces,  including  policy   experience,  and  providing  access  to  a   network  of  interna+onal  experts   The  IIP  team  and  Strategic  Advisory  Group  •  Developing  original  research,  analysis   and  databases  •  Bridging  the  gap  between  government   policy  and  industry  implementa+on.    
  • 4. The  IIP  Policy  Approach   MAIN  PAGE  TITLE  •  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      
  • 5. The  IIP  PPAGE  TITLE   MAIN   olicy  Pyramid  The  Policy  Pyramid  allows  you  to  see  policy  interrela+ons   and  visually  understand    the  policy  hierarchy  
  • 6. United  States  (Federal):  simplified   Mandatory  standards  on  equipment   Voluntary  programs,  including  the   Superior  Energy  Performance  Program   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)  
  • 7. United  States  (Federal)   •  Mandatory  standards  under  the  Clean  Air  Act   (BACT)   •  Superior  Energy  Performance   •  Beber  Buildings,  Beber  Plants  (formerly  SEN)   •  Energy  Star  program  for  industry   •  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    
  • 8. India:  simplified  pyramid   Mandatory  energy  efficiency  targets   with  tradable  cer(ficates     Performance  Achieve  Trade  (PAT)   Energy  Efficiency  Funds   Na(onal  Awards  for  “top”  companies   Implementa(on  toolbox  focuses  on   energy  audits  and  energy  managers  
  • 9. India   •  Perform  Achieve  Trade  scheme   •  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  
  • 10. Australia:  simplified  pyramid   Mandatory  carbon  tax  and  then  CO2   targets  with  tradable  cer(ficates     Mandatory  Energy  Management  System     Energy  Efficiency  Opportuni0es  Program   Extensive  technical  support,  guidelines   and  best  prac(ce  sharing  such  as  case   studies  
  • 11. Australia   •  Carbon  Price  Mechanism   •  Generator  Energy  Efficiency  Standards   •  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  
  • 12. China:  simplified  pyramid     Mandatory  energy  conserva(on  targets   Top-­‐10,000  enterprise  program   Mandatory  appraisals  of  projects  &   closures   Industrial  Performance  Standards     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  
  • 13. China   •  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   •  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  
  • 14. Five  Steps  to  Effec+ve  Policy  Packages   China:  16%  energy  intensity   Step  1:  Set  the  overall  energy  saving  and/or  GHG  mi7ga7on   goal  to  be  achieved  by  industry   reduc0on  below  2010  levels  by   the  end  of  2015   India:  Mandatory  EE  targets   Step  2:  Define  the  effort-­‐defining  policy(ies)   (Perform  Achieve  Trade)   Step  3:  Define  suppor7ng  and  complementary  policies   Australia:  Mandatory  energy   management  system  (EEO)   Step  4:  Design  a  comprehensive  implementa7on  toolbox   US:  SoNware  tools  Step  5:  Establish  transparent  systems  for  monitoring,  repor7ng   India:  MRV  rules   and  verifica7on    
  • 15. Main  Presenta+on  Title  Julia.reinaud@iipnetwork.org   20.12.10      iipnetwork.org/publica+ons  iipnetwork.org/databases  iepd.iipnetwork.org    
  • 16. Appendices  
  • 17. •  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.  
  • 18. IIP  Policy  Work  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).  

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