Packages for heavy industry : Insights into Industrial Energy Conserva+on Policies. IIP- CECA- CSEP- ERI Workshop February 20, 2012, Beijing

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1 5 Main Key Steps Presenta+on for Effec0ve Title Policy Packages for heavy industry : 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 Developing original research, analysis and databases The IIP team and Strategic Advisory Group Bridging the gap between government policy and industry implementa+on.

4 The MAIN IIP Policy PAGE Approach 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 MAIN IIP Policy PAGE Pyramid TITLE 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 CO 2 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 11 th and 12 th 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 Step 1: Set the overall energy saving and/or GHG mi7ga7on goal to be achieved by industry Step 2: Define the effort- defining policy(ies) China: 16% energy intensity reduc0on below 2010 levels by the end of 2015 India: Mandatory EE targets (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 and verifica7on India: MRV rules

15 Main Presenta+on Title 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, 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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