Framework Agreement on the Improvement of Energy Efficiency in Industries

Transcription

1 18/804/2007 Unofficial translation Framework Agreement on the Improvement of Energy Efficiency in Industries 1 Parties The parties to this Energy Efficiency Agreement on the Improvement of Energy Efficiency in Industries are the Ministry of Trade and Industry (hereinafter the Ministry) on behalf of the government and the Confederation of Finnish Industries EK (hereinafter the Confederation), the Finnish Food and Drink Industries Federation, the Finnish Energy Industries, the Finnish Chemical Industry, the Finnish Hospitality Association, the Finnish Forest Industries Federation, the Finnish Plastic Industries Federation, the Federation of Finnish Commerce, and the Federation of Finnish Technology Industries on behalf of the business sector. New industry associations are accepted to this agreement according to the procedure described in section 4.3. The company shall commit itself to the agreement scheme by joining the Action Plan specific to its branch with a separate accession document in accordance with the procedure described in section 4. The company may join several action plans, if necessary. 2 Starting points, grounds and definitions The Energy Efficiency Agreement continues to develop a practice launched with the Agreement on the Energy- Saving Action Programme in the industrial sector, signed on 20 October 1992, and the Energy Conservation Agreements in the industrial sector, the energy sector and the property and building sector, signed on 10 November 1997 and terminating on 31 December The purpose of the agreement is to agree on joint action to implement the measures required by the targets and implementation of the Energy and Climate Strategy, approved by the government in November The target of the Energy and Climate Strategy is to reduce total energy consumption by 5 per cent by the year 2015 when compared against the situation where no new measures are taken. The agreement promotes the introduction of new, energy-efficient technology and the creation of jobs related to energy-efficiency measures and, where possible, the introduction and increased use of renewable energy sources with measures applicable to this agreement activity. The parties to the agreement deem it important that companies have the best possible technology and expertise at their disposal. In order to ensure this, close cooperation models will be created within the agreement with the Strategic Centres for Science, Technology and Innovation; research and technology programmes and other key energy-efficiency projects. This arrangement will promote research and development partnerships between the energy technology and service suppliers and the companies participating in the agreement. With these partnerships, the companies participating in the agreement will gain a competitive edge as the first companies applying the new technology, and the technology producers will gain necessary platforms for research and test activities and demonstration installations. The directive on energy end-use efficiency and energy services (32/2006/EEC) (hereinafter the Energy Services Directive) calls for measures in to aim for an indicative energy savings target of 9% by 2016 in branches that are not part of the EU emissions trade, calculated from the average energy consumption for The Energy Efficiency Agreements play a key role in achieving our conservation target and reporting our results. 1

2 Improving the efficiency of energy use will reduce carbon dioxide and other emissions. Finland ratified the International Framework Convention on Climate Change (FCCC) on 31 May The parties to the agreement take a serious view on climate change and deem that they are contributing to the mitigation of climate change with the Energy Efficiency Agreement. In the opinion of the parties to the agreement, the energy efficiency requirements included in the Council Directive (96/61/EEC) concerning integrated pollution prevention and control will be met with the measures implemented and to be implemented in companies based on the agreement. With the agreement, the Ministry implements the government s energy policy, in which energy conservation plays a key role. The parties regard this agreement as an effective procedure to increase energy efficiency. The parties to the agreement aim to implement the measures pertaining to the agreement and to develop the agreement scheme so that it will become an energy conservation method comparable to standards with respect to its effectiveness, having a flexible method of implementation with no adverse impacts on competitiveness, such as taxation deviating from international development or regulation. Energy efficiency In this agreement, improvement of energy efficiency means the implementation of measures to reduce the amount of energy needed for the production of a certain product or service. The energy efficiency improvement measures may be technical or related to the use of energy-using appliances, methods of operation, operating environment or behaviour. Defining the change in energy efficiency and its reporting are agreed in further detail in the industry-specific Action Plans of this agreement scheme. Renewable energy sources In this agreement, promotion of renewable energy sources means the utilisation of energy obtained from renewable biomass, biogas, hydro power, solar power, wind, the biodegradable part of refuse-derived fuel and the heat content of the soil, water, air or waste water in the company s own operations. 3 Targets The target of this agreement is to contribute to ensuring that the energy conservation targets of the national Energy and Climate Strategy and the Energy Services Directive are met. The objective is to include as much as possible of the end use and production of the member companies of the Confederation of Finnish Industries in the agreement scheme. Another target is to implement measures in electricity distribution, sales and district heating sectors together with customers receiving energy services, especially customer groups not otherwise covered by Energy Efficiency Agreements. These measures would significantly promote the achievement of the energy conservation target of the Energy Services Directive in the energy use of these customers in when compared against the situation where no energy-efficiency measures are taken. 4 Agreement sectors 4.1 Energy-intensive industry Target group As a principal, companies with one or more sites with an annual end consumption of energy of at least 100 GWh may join the Energy Efficiency Agreement scheme for industries through the Action Plan for the Energy-Intensive Industry. 2

3 Targets of the energy-intensive industry The target is to include all energy-intensive industrial companies in Finland in the agreement scheme. The company specifies its quantitative energy efficiency improvement target in connection with the introduction of the Energy Efficiency System. Not later than 2010, the Confederation together with the Ministry will present the management group in accordance with section 7 with an energy efficiency improvement target for the energy-intensive industry for the entire agreement period until The target will reflect the energy efficiency improvement targets set by the companies on the one hand and on the other, the energy efficiency improvement targets of the national Energy and Climate Strategy set at the time. Joining the agreement scheme A company joins the agreement scheme once the Confederation has established that the accession document signed by the company is in due form and the company has been entered into the participant register. Obligations of the company The company is obliged to introduce the Energy Efficiency System (Appendix 2) within two years of joining this agreement scheme. The Energy Efficiency System includes the procedures on the implementation of continuous improvement, energy efficiency improvement targets, a plan to improve energy efficiency, taking energy efficiency into account when choosing appliances and systems throughout their life cycle, and monitoring of energy consumption and annual reporting. Furthermore, the company aims to introduce new energy-efficient technology whenever it is economically possible, taking safety and environmental aspects into consideration, and to enhance the energy efficiency of transport by improving logistics and energy use in transport in co-operation with companies providing these services. Company-specific measures are described in further detail in the Action Plan for the Energy-Intensive Industries (Appendix 1.1, section 2.3). 4.2 Energy production Target group As a principal, companies with combined or separate generation of electricity and heat may join the Energy Efficiency Agreement scheme for industries through the Action Plan for Energy Production. Energy production targets The target is to have 80% of energy production under the scope of the agreement scheme. The objective is to implement energy efficiency measures to improve the efficiency of primary energy use and the overall efficiency of energy production. The indicative target is among the companies which have joined the agreement to achieve a total saving of 1,000 GWh in the use of primary energy and an improvement of 1,000 GWh in electricity generation calculated in electrical energy by the year 2016 when compared against the situation where these new measures are not taken. 1 Joining the agreement scheme A company joins the agreement scheme once the industry association has established that the accession document signed by the company is in due form and the company has been entered into the participant register. 1 The indicative target will be reassessed based on experiences gained towards the end of the launch period of the energy efficiency agreement ( ) and according to what has been commonly agreed on the specification and monitoring of the energy efficiency of the branch. 3

4 Obligations of the company The company is obliged to introduce the Energy Efficiency System (Appendix 2) within two years of joining this agreement scheme. The Energy Efficiency System includes the procedures on the implementation of continuous improvement, energy efficiency improvement targets, a plan to improve energy efficiency, taking energy efficiency into account when choosing appliances and systems throughout their life cycle, and monitoring of energy consumption and annual reporting. Furthermore, the company aims to introduce new energy-efficient technology whenever it is economically possible taking safety and environmental aspects into consideration. Companies and their sites without a management system in use shall draw up an Energy-Efficiency Improvement Plan within one year of joining the agreement scheme, which is to be updated in an appropriate manner at least every three years. The measures are described in further detail in the Action Plan for Energy Production (Appendix 1.2, section 2.3). 4.3 Medium-sized industry and private service sector Target group As a principal, companies with no sites exceeding a maximum annual energy consumption of 100 GWh may join the Energy Efficiency Agreement scheme for industries through the branch-specific Action Plans. Member companies of the Confederation with no branch-specific Action Plan in their sector and with no sites exceeding an annual energy consumption of 100 GWh may join the General Action Plan for the Confederation of Finnish Industries EK. Targets of the medium-sized industry and private service sector The aim is to include a total of at least 60% of the energy use of the medium-sized industry and private service sector in the agreement scheme. The indicative target of energy conservation to be set for each branch will be 9 per cent 2. Achieving the target of the branch requires that each company joining the agreement scheme sets an indicative energy saving target of at least 9 per cent. For justified reasons, the company-specific target may be smaller than that of the branch. Action Plan The Branch-Specific Action Plan specifies the characteristics of the branch in question, taking into account the actions required for the implementation of the agreement in further detail. The management group in accordance with section 7 of this agreement decides on taking a new branch within the scope of the agreement at the proposal of the association representing the branch after the relevant Action Plan has been completed. Joining the agreement scheme A company joins the agreement scheme once the industry association has established that the accession document signed by the company is in due form and the company has been entered into the participant register. Obligations of the company The company commits itself to continuous improvement of energy efficiency and the measures listed in the following whenever it is economically possible taking safety and environmental aspects into account: Organisation and planning of operations Improvement of energy efficiency 2 Calculation of the target is presented in the Action Plans. 4

5 Annual reporting of energy use and its improvement Training and internal communication Taking energy efficiency into account in planning and procurement Evaluation of energy efficiency activities Furthermore, the company aims to improve the energy efficiency of transport and storage related to its activities in co-operation with service providers increase the use of renewable energy sources whenever it is technically and economically possible. Company-specific actions are described in further detail in the Branch-Specific Action Plan for Medium-Sized Industry and the Action Plan for the Private Service Sector (Appendices , section 2.3). 4.4 Energy services Target group Companies delivering district heat and district cooling to end users and those carrying on electricity transmission, distribution and retail sale may join the Action Plan for Energy Services. The Action Plan for Energy Services also includes energy efficiency improvement measures in district heat production when the company has only separate production of district heat. Targets of the energy services The target is to have 80 per cent 3 of the electricity transmitted to end customers (electricity distribution), the electricity sold to end customers (electricity sales) and the district heat sold to end customer within the scope of the agreement by the end of the year The indicative target of the branch is to implement actions resulting in a saving of 150 GWh of electricity in the transmission and distribution losses of electricity and in the electricity consumption of district heat production and transmission, and a saving of 150 GWh in the distribution losses of district heat and the consumption of fuel energy in separate production by the year 2016 when compared against the situation where no new measures are taken. 4 The company aims to implement energy efficiency improvement measures together with customers receiving energy services, especially customer groups not otherwise covered by Energy Efficiency Agreements. These measures would significantly promote the achievement of the directive energy conservation target of 9% of the Energy Services Directive in the energy use of these customers in when compared against the situation where no energy-efficiency measures are taken. Achieving the target of the branch requires that each company sets an indicative energy saving target of at least 5 per cent 5 as the quantity of energy related to improving the efficiency of their own energy use. The companyspecific target will be specified further within two years of joining the agreement once the company has identified the possibilities of improving the efficiency of its energy use. Joining the agreement scheme A company joins the agreement scheme once the industry association has established that the accession document signed by the company is in due form and the company has been entered into the participant register. 3 The coverage target may be specified on the decision of the management group if it is justified after the energy use data of the branch is specified. The industry association must make a proposal on specification not later than in The target of the branch may be specified for justifiable reasons not later than in The target is specified from the energy data for

6 Company s actions and obligations Actions for improving customers energy efficiency The company commits itself to offering energy services to customers and to the actions listed in the following whenever it is economically sensible. The development and provision of energy services also requires commitment by the management. Organisation and planning of operations Evaluation of energy efficiency activities Action according to the Plan described in further detail in the Action Plan in order to improve customers energy efficiency Annual reporting of energy services and energy efficiency improvement measures Obligations to improve the efficiency of own energy use The company commits itself to continuous improvement of energy efficiency and the measures listed in the following whenever it is economically possible taking safety and environmental aspects into account: Organisation and planning of operations Evaluation of energy efficiency activities Improvement of energy efficiency Annual reporting of energy use and its improvement Company s internal activities to improve energy efficiency Training and internal communication Taking energy efficiency into account in planning and procurement Furthermore, the company aims to introduce new energy-efficient technology and procedures improve the energy efficiency of transport and storage related to its activities in co-operation with service providers The measures are described in further detail in the Action Plan for Energy Services (Appendix 1.11, section ). 5 Obligations of the signatory parties 5.1 Confederation The obligations of the Confederation of Finnish Industries are related to section 4.1., and to the implementation of the General Action Plan for the Confederation of Finnish Industries EK with respect to section 4.3. In order to reach the targets, the Confederation shall: Encourage and advise companies to join the Energy Efficiency Agreement and take part in the implementation of the agreement scheme Maintain the participant register of the Action Plan for the Energy-Intensive Industry and the General Action Plan for the Confederation of Finnish Industries EK, as well as the list of people in charge of energy use 6

7 Together with Motiva Oy, monitor the implementation of the energy efficiency improvement targets of companies which have joined the General Action Plan for the Confederation of Finnish Industries EK. When necessary, set up a steering group to guide and monitor the implementation of the General Action Plan for the Confederation of Finnish Industries EK if the combined energy consumption of the companies which have joined this Action Plan exceeds 100 GWh/a. Furthermore, the Confederation establishes the possibilities of drawing up a separate branch-specific Action Plan after ten companies in the same branch have joined the General Action Plan for the Confederation of Finnish Industries EK. Participate in the development and marketing of energy audit and analysis activities and communication on the results Participate in the implementation of the development and pilot projects in its own branch related to the execution of the agreement together with other parties to the agreement Participate in the preparation of reporting and the compilation of the annual report Participate in the development of the agreement scheme together with the Ministry, industry associations and companies joining this agreement. 5.2 Industry association The obligations of the industry association are related to the implementation of sections 4.2, 4.3 or 4.4. The Confederation is responsible for the obligations pertaining to the industry association with respect to the General Action Plan for the Confederation of Finnish Industries EK (Appendix 1.10). In order to reach the targets, the Federation shall: Encourage and advise companies to join the Energy Efficiency Agreement and take part in the implementation of the agreement scheme Maintain the participant register of companies in its own branch and the list of people in charge of energy use Participate in the development and marketing of energy audit and analysis activities and communication of the results Advise companies which have joined this Action Plan on the implementation of company-specific reporting and participate in the drawing up of an annual summary report on the entire branch Participate in the implementation of the development and pilot projects in its own branch related to the execution of the agreement together with other parties to the agreement Participate in the development of the agreement scheme together with the Ministry, Confederation and companies in its own branch, which are joining this agreement. 5.3 Ministry In order to reach the targets and taking into account the annual available appropriations, the Ministry shall: Support energy audits and analyses on energy conservation and renewable energy use of the Companies. When determining the amount of subsidy, take into account as a positive factor the company s commitment to long-term energy conservation and improvement of energy efficiency and actions to promote the use of renewable energy sources. Support investments related to energy conservation and renewable energy sources established in the energy audits and analyses of the company or in similar studies, meeting the general terms and conditions of energy subsidy. Projects promoting the introduction of new technologies and procedures take priority. 7

8 Participate in the implementation of the development and pilot projects related to the execution of the agreement together with other parties to the agreement. Participate in the development of the agreement scheme together with the Confederation, industry associations and companies which have joined the agreement scheme. Allocate resources for Motiva Oy so that Motiva Oy can monitor the implementation of the Action Plans, participate in the development of the agreement scheme, in the compiling of annual reports and the production of communication and training material suitable for the companies. Participate in the funding and organisation of possible advisory services in energy efficiency. 6 Reporting In accordance with the schedule specified in the Action Plan, the Companies shall provide an annual 6 report on the energy use of the previous year and the related efficiency measures and on the implementation of other actions related to the Action Plan for each sites or groups of sites into the monitoring system of the Energy Efficiency Agreement. The Ministry, the Confederation and the industry associations shall specify the methods, on the basis of which the development of energy efficiency is monitored and evaluated, by the end of Management group The activities in accordance with this agreement are supervised by the management group, for which each party to the agreement shall appoint its own representative. The Ministry of Trade and Industry appoints the chairman of the management group as well as two members representing the government. After a new Action Plan on a branch has been added to the agreement, the industry association in question is entitled to appoint its own representative to the management group. The management group invites a secretary and decides on the experts to be invited. The tasks of the management group include: a) Providing general instructions and interpretations related to the implementation of the agreement, when necessary b) Monitoring the implementation of the targets of the agreement c) Evaluating the results achieved by the year 2013 and, when necessary, preparing the changes applying to actions related to the end period of the agreement in accordance with section 9 d) Deciding on the publication of the progress reports in 2011 and 2014 and of the end report to be published in 2017 e) Deciding on including new Action Plans for medium-sized energy users in accordance with section 4.3 of the agreement f) Confirming the procedures, according to which companies will report on actions in accordance with the agreement, and deciding on the publication of annual summary reports g) Dealing with company s notice of termination in accordance with section 8 before the Ministry of Trade and Industry has made a decision on the matter h) Deciding on the completion of unfinished projects if the agreement is cancelled or called off in accordance with section 8. 6 On joining the agreement scheme, the Company also commits itself to reporting in 2017 the corresponding data for

9 8 Duration and cancellation of the agreement This agreement shall enter into force once it has been signed, and it will be valid until 31 December If it seems unlikely that the indicative energy efficiency improvement target set for 2016 based on the evaluation in section 7 c can be achieved, the management group shall prepare proposals for changes applying to period At the same time, it will be agreed on how to implement the changes together with the companies, which have joined the agreement. The Ministry or Confederation may terminate the agreement if the other party does not fulfil its obligations or if the operating environment or conditions have fundamentally changed compared with the situation at the time of signing the agreement. The industry association may withdraw from the agreement scheme and terminate its Action Plan if the operating environment or conditions have changed from the time of signing the agreement to such an extent that the industry association will not be able to continue to implement the Action Plan. Correspondingly, the Confederation may terminate the Action Plans under its responsibility. An individual company may cancel its membership in the agreement scheme by notifying to the Ministry and the association whose Action Plan it has committed itself to. The Ministry may terminate the agreement of a company that has not implemented the obligations it has committed itself to in the accession document and its appendices. Before termination, the matter must be dealt with by the management group referred to in section 7. The state subsidy received by the company that has given or has been given notice of termination may be collected according to the conditions on recovery recorded in the subsidy decision in question. The Ministry and the Confederation may agree on the termination of this agreement if it does not seem to result in the appointed targets. It shall be agreed in connection with the termination or cancellation how the unfinished projects will be completed. 9 Other terms The judicial nature of the agreement scheme is comparable to a target plan and in addition to the fact that the company will be discharged from the agreement scheme, the failure to meet the obligations of the Action Plan will not result in any legal consequences other than referred to above on state subsidy. The parties to the Energy Efficiency Agreement and the companies which have joined the agreement scheme shall aim to act in such a manner that the measures in accordance with this Action Plan will be fulfilled. This agreement is drawn up in 10 identical copies, one for each party. Helsinki, on the fourth of December 2007 Ministry of Trade and Industry Confederation of Finnish Industries EK Mauri Pekkarinen Minister of Trade and Industry Antti Herlin Taisto Turunen Director General Leif Fagernäs Director General 9

10 Finnish Food and Drink Industries Federation Finnish Energy Industries Berndt Brunow Seppo Ruohonen Heikki Juutinen Director General Finnish Chemical Industry Juha Naukkarinen Managing Director Finnish Hospitality Association Risto Rinne Marja Rantanen Hannu Vornamo Director General Timo Lappi Managing Director Finnish Forest Industries Federation Finnish Plastic Industries Federation Anne Brunila President and CEO Kari Kallonen Kari Teppola Managing Director Federation of Finnish Commerce Federation of Finnish Technology Industries Magnus Bargum Ole Johansson Heikki Ropponen Deputy Managing Director Martti Mäenpää Director General 10

11 APPENDICES Appendix 1.1 Action Plan for the Energy-Intensive Industry (unofficial translation available) Appendix 1.2 Action Plan for Energy Production (unofficial translation available) Appendix 1.3 Action Plan for the Food and Drink Industries (translation not available, see 1.9) Appendix 1.4 Action Plan for the Commerce Sector (translation not available, see 1.6) Appendix 1.5 Action Plan for the Chemical Industries (translation not available, see 1.9) Appendix 1.6 Action Plan for the Finnish Hospitality Association (unofficial translation available) Appendix 1.7 Action Plan for the Plastics Industries (translation not available, see 1.9) Appendix 1.8 Action Plan for the Wood Processing Industries (translation not available, see 1.9) Appendix 1.9 Action Plan for the Technology Industries (unofficial translation available) Appendix 1.10 General Action Plan for the Confederation of Finnish Industries EK (translation not available, see 1.6 or 1.9) Appendix 1.11 Action Plan for Energy Services (unofficial translation available) Appendix 2 Energy Efficiency System (EES) (unofficial translation available) 11