Strategic Plan. Sharing best practices for the low carbon future iipnetwork.org

Similar documents
EnMS under China s Top- 10,000 Program

BARRIERS AND SOLUTIONS TO CORPORATE ENERGY EFFICIENCY

INTERNATIONAL COOPERATION TO PROMOTE ENERGY MANAGEMENT

How To Understand Energy Management

Prepared by the Commission on Environment & Energy

Ministerial Statement. Beijing, China, 2 Sep APEC Energy Ministerial Meeting. Beijing Declaration

Environmental commitment and social responsibility

Growing the Green Economy

How To Promote A Green Economy In The European Constitution

Smart Cities. Smart partners in tomorrow s cities

Overcoming Implementation Gaps Through A Business-Oriented Energy Management System Support Package in China

Resource efficiency. United Nations Environment Programme

for Energy Efficiency Parminder Sandhu, P. Eng

EXAMPLES OF SUCCESSFUL POLICY TOOLS FOR EMISSION REDUCTION

RESPONSIBLE CARE GLOBAL CHARTER. A Special Supplement Presented with

SCP Issues for Business and Industry

Greenhouse gas abatement potential in Israel

PRACTICAL STRATEGIES FOR IMMEDIATE PROGRESS ON CLIMATE CHANGE BUILDING BLOCKS FOR A GLOBAL AGREEMENT

Case Study. Reduction Story. Clay Nesler Vice President, Global Energy & Sustainability. Steve Thomas Manager, Energy & Sustainability Communications

Using Less Energy: Nova Scotia s Electricity Efficiency and Conservation Plan

3M Canada s Commitment to Energy Management

White Certificates Trading, Green Certificates Trading, Emission Trading Which One to Choose?

For a Green Economy Tomorrow, Private Sector Development Today will Tip the Scales!

Draft Scope 2 Accounting Guidance: What it could mean for corporate decisions to purchase environmental instruments

Energy Working Group Proposed Workplan for 2013

Empowering Sustainability in Logistics

Saving energy, growing jobs

HUGO BOSS ENVIRONMENTAL COMMITMENT. Our claim. Our approach

St. Petersburg Declaration - Energy Security: Challenges and Strategic Choices

G20 ENERGY EFFICIENCY ACTION PLAN VOLUNTARY COLLABORATION ON ENERGY EFFICIENCY

一 背 景... 4 I. Background 二 宗 旨... 8 II. Purposes 三 原 则 III. Principles 四 目 标 IV. Objectives... 13

Corporate Sustainability

ISO Energy Management Standard Opportunities and Challenges

Win the energy challenge with ISO ISO energy management

Statement of Lawrence W. Kavanagh Vice President, Environment and Technology American Iron and Steel Institute Washington, D.C.

Hong Kong, China. 40 th APEC Energy Working Group Meeting Statement on Notable Energy Developments. (1) Building Energy Codes

The Economic Impacts of Reducing. Natural Gas and Electricity Use in Ontario

THE UK CLIMATE CHANGE PROGRAMME AND EXAMPLES OF BEST PRACTICE. Gabrielle Edwards United Kingdom

International experiences with energy management standards supporting policies

sustainable gains in energy policy. While the report addresses energy policies comprehensively, the following sections highlight these three topics.

Call to Action on Smart Sustainable Cities

Good afternoon, and thanks to the Energy Dialogue for your kind invitation to speak today.

Chairman, Working Group on Global Environment Strategy Committee on the Environment and Sft Safety KEIDANREN (Japan Business Federation)

Energy service companies

Nissan Automaker improves energy performance 7.2% with a four-month payback using Superior Energy Performance

Status of China s regional trading programs: progress and challenge

World Energy Outlook. Dr. Fatih Birol IEA Chief Economist Paris, 27 February 2014

Nissan Automaker improves energy performance 7.2% with a four-month payback using Superior Energy Performance

CICS Quick Guide to ISO 50001, the New Energy Management System Standard

Prepared by the Commission on Environment & Energy

Financing Energy Efficiency and Renewable Energy through the India Renewable Energy Development Agency

Business Benefits Achieved

Energy Union. Integrated, Interconnected, Resilient and Secure

First Release of Federal GHG Inventory: Key Observations

SUBMISSION BY THE UNITED ARAB EMIRATES

Africa Clean Cooking Energy Solutions Initiative. Scaling-Up Access to Clean Cooking Technologies and Fuels in Sub-Saharan Africa

Environmental footprinting of products. The policy outlook

How to Earn the LEED Green Power Credit

ELECTRIC VEHICLES: THE PORTLAND WAY

Quantifying and Managing Supply Chain Greenhouse Gas Emissions

State of Qatar. Ministry of Environment. Intended Nationally Determined Contributions (INDCs) Report. November 19 th, 2015

Innovation For Cool Earth Forum (ICEF) 2 nd Annual Meeting

Fujitsu Group s Environmental Management: Outline of Environmental Protection Program (Stage IV)

Office of Climate Change, Energy Efficiency and Emissions Trading. Business Plan

Environmental footprinting of products The policy outlook

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

Starting an Energy Efficiency Program for Your Utility and Community

ENERGY MANAGEMENT SYSTEMS ENERGY EFFICIENCY & ISO Paul Stevenson Kazakhstan September 2014

Energy Audit Practices in China: National and Local Experiences and Issues

How To Help The World Coffee Sector

CEMENT SECTOR NAMA READINESS PROGRAMME IN VIETNAM CLIMATE. Nordic Partnership initiative: SOLUTIONS #NNCS NEW NORDIC

Corporate Social Responsibility Practice Guidelines

FIRST ANNOUNCEMENT AND CALL FOR ABSTRACTS. 7th International Conference on Energy Efficiency in Domestic Appliances and Lighting (EEDAL 13)

SEATTLE STEAM COMPANY FREQUENTLY ASKED QUESTIONS

INTERNATIONAL ENERGY AGENCY. UpcomingIEA Publications

What are the steps to adopt Energy Management Systems?

Energy efficiency is a priority for the Russian Federation in its energy policy

Brief Summary from GHG Protocol Workshop on Accounting for Green Power Purchases January 24, 2010 London, U.K.

Finding a green engine for economic growth China s renewable energy policies

Scaling EnMS for Whole- Industry Adoption

Post Graduate Diploma Program

Scope 2 Accounting Guidance: What it means for corporate decisions to purchase environmental instruments

INDONESIA S COUNTRY REPORT ENCOURAGING CLEAN ENERGY INITIATIVE

Business Perspectives to Financial Subsidies for Industrial Energy Saving: A Survey Study in China and Korea

Health, Safety and Environment Policy

Energy Procurement & Sustainability Services Strategy at every stage of your energy and sustainability life cycle

Calculating Greenhouse Gas Emissions

Major Economies Business Forum: Expectations for the Green Climate Fund

Outline. 1. Climate and energy: where do we stand? 2. Why a new framework for 2030? 3. How it works. 4. Main challenges. 5.

Renewable Energy for Kent

Operating Sustainable Facilities

Global Energy Management System Implementation: Case Study

Micro Small and Medium Enterprises (MSME) Promotion Programme

How are energy companies adapting to the changing rules in the energy sector? Jaroslav Zlabek Country President Schneider Electric Polska

Credit: Global Alliance for Clean Cookstoves INCREASING INVESTMENT IN THE CLEAN COOKING SECTOR

Business proposals in view of a 2015 international climate change agreement at COP 21 in Paris

3. Operational Highlights

Figure 1: Comparison of Projected Electricity Use,

Convention on Climate Change entered into force over 20 years ago, Speech by H.E. Xi Jinping. President of the People's Republic of China

Transcription:

Strategic Plan Sharing best practices for the low carbon future iipnetwork.org

Role of the Institute for Industrial Productivity The Institute for Industrial Productivity (IIP) maintains a network of policy, technology, and finance experts to identify, analyze, and share best practices, tools, and information that can boost the effectiveness of government and industry efforts to significantly reduce industrial energy intensity and greenhouse gas (GHG) emissions while improving productivity. Energy use and CO 2 emissions will almost double by 2050 if current trends persist. This would put the world on the path towards a 6 C rise in average global temperature. IEA, Energy Technology Perspectives, 2012 Urgent Situation Industrial activities today account for nearly a third of global energy demand and almost 40% of carbon dioxide (CO 2 ) emissions. Rapidly growing economies are expected to significantly increase industrial energy demand through 2030. Given the attendant risks to climate, energy security, and business, governments and industry have gained a renewed respect for the many economically attractive ways to simply decrease industrial demand for energy. Making more efficient use of the energy we have today eliminating waste and doing more with less offers the cheapest and most immediate route to improve energy security and avoid harmful emissions. Industrial Direct CO 2 Emissions by Region Converging factors make this a critical time to refocus global efforts on increasing industrial energy productivity and sustainable production worldwide: Rising demand for global resources New capital investments Industrialization of emerging countries Climate change Source: IEA, Energy Technology Transitions for Industry, 2009. * Assumes global enery-related CO 2 emissions in 2050 will be half of 2005 levels. To address this urgent need, IIP provides specialized expertise in the policies, programs, financing, and technologies required to accelerate reductions in the intensity of industrial energy use and carbon emissions in key regions around the globe.

IIP Vision for Industry By 2020, advanced technologies and energy management practices will be in broad use across industry significantly reducing life-cycle process and product energy requirements; usage intensities for energy, water, and other resources; and associated carbon emissions. This industrial culture change will energize economic growth and help mitigate severe climate impacts. Supportive government policies and a public-private network for sharing best practices and results will reduce carbon intensity and encourage greener manufacturing. By 2030, the industrial sector will make rigorous use of a wide range of smart manufacturing practices such as innovative materials and processes, automation and control systems, cradleto-cradle design, full cost accounting, industrial ecology principles, and carbon mitigation strategies. These practices will further boost industrial productivity and significantly lower the carbon intensities of energy and materials use while providing sustainable solutions to the global energy economy. By 2050, industrial hubs will be models of green industry, demonstrating integrated, optimized, networked, next-generation systems to minimize carbon intensity throughout the supply chain (e.g., closed-loop manufacturing systems with near-zero discharge). Significant use of renewable energy sources, highly efficient manufacturing processes, recycling, and carbon capture and re-use will enable high-quality industrial products with minimal embodied energy and lost carbon. IIP Goals IIP activities are designed to achieve two overarching goals:* Drive a reduction in industrial energy intensity averaging 3.5% per year through 2030 in China, India, and the United States through 2030. Contribute to a 25% reduction in annual GHG emissions by 2020 (avoiding 2.0 GtCO 2 per year) and a 50% reduction by 2030 (avoiding 2.7 GtCO 2 per year) in the industrial sectors of these countries. Historical and Goal-based Reductions in Energy Intensity and CO 2 Emissions through 2030 Note: Industrial energy intensity in 2000 U.S. dollars. Source: UNIDO Industrial Development Report 2011 (historical data), IIP Goals (projections) * Basis of goals: Reaching the aggressive yet achievable IIP goal of reducing energy intensity 3.5% per year compared to baseline projections would provide a 25% decrease in industrial final energy use and emissions in 2020, compared to baseline projections. Achieving a 50% reduction in industrial GHG emissions by 2030 will require emissions reductions beyond the 3.5% annual improvement in energy intensity relative to baseline projections. These reductions are most likely to be achieved through fuel switching (including low-carbon electrification) and limited application of industrial carbon capture, storage, and reuse.

Global Industrial Energy Use by Country, 2009 Strategic Focus IIP focuses its efforts on countries and sectors that drive world industrial demand while offering major opportunities for improvement. Country Focus IIP concentrates efforts on the following three countries, which collectively use 47% of global industrial energy and produce 54% of energy-related industrial CO 2 emissions: China India United States Sector Focus Within these countries, IIP seeks to maximize its impacts on industrial energy use and emissions by focusing primarily on three of the most energy-intensive industries: Cement Chemicals Iron and steel Global Industrial Energy Use by Sector, 2009 To facilitate work with these and other energy-intensive industrial sectors, IIP maintains offices in: Beijing, New Delhi, Paris, and Washington, DC. Source: IEA Online Data Services World Energy Balances and CO 2 Emissions from Fuel Combustion (accessed 2012) Three Integrated Strategies

Strategy IIP provides critical analysis, information, tools, and expert support to assist government and industry the two most essential groups in generating large-scale improvements in industrial energy efficiency. Our three main strategies are mutually reinforcing. We assist governments in tailoring policies to more effectively foster improved industrial energy efficiency, and we team with industry to promote effective use of energy management systems and investment plans to take advantage of supportive government policies. We develop key enabling resources to assist both of these key stakeholder groups in implementing effective programs. Academia, non-profit organizations, and other groups contribute to and benefit from our work. 1. Work with Governments to Improve Policy Making Create resource materials and pursue activities that help government policy makers develop, implement, and monitor improved energy and carbon performance in industry: Help design, implement, monitor, and evaluate policies that encourage industry adoption of energy management systems (EnMS). Policy Areas of Interest Voluntary programs Standards Tax and fiscal incentives GHG targets Measurement and verification Recognition Support for policy implementation Advise on standards, incentive mechanisms, voluntary programs, and complementary policies. Assist in developing policy implementation guidelines, appropriate benchmarks, industry targets, and information collection mechanisms. Organize and convene fora, workshops, and online events to bring together key policy makers and industry experts to help craft effective government policies. 2. Team with Industry to Implement Energy Efficiency Best Practices Work with industry to facilitate implementation of energy efficiency best practices and EnMS to substantially reduce energy intensity and carbon emissions: Help companies develop targets, baselines, and benchmarks and assist them in implementing plant assessments and other strategies to achieve energy and carbon savings. Develop and disseminate energy system optimization tools and approaches. Develop and demonstrate alternative approaches to financing energy efficiency measures and advanced technologies. Develop approaches to implement EnMS in companies that account for a significant portion of demand and face structural challenges (e.g., numerous locations, diverse products or processes). 3. Develop Critical Resources and an Integrated Network to Catalyze Major Improvements in Energy and Carbon Management Assist industry and government in overcoming technology, policy, and financing hurdles to increase industrial productivity: Organize and convene multi-disciplinary teams to develop and tailor integrated solutions for focus areas and provide viable models and resources for expediting energy efficiency improvements. Develop global databases on technologies, programs, policy, financing, and supply chain initiatives. Enhance understanding of innovative measures, such as full cost accounting, cradle-tocradle design, and supply chain programs. Develop targeted information on global best practices, energy management systems, voluntary programs, performance standards, and certification. See IIP s Policy Pyramid at http://iepd.iipnetwork.org Energy Management System (EnMS) An EnMS is a systematic approach to monitoring, controlling, and saving energy in an industrial facility to achieve continual improvement in energy efficiency, productivity, and cost-effective operation. This approach involves setting energy goals, policies, and targets; developing baselines of energy use and identifying energy performance indicators; assessing opportunities; establishing plans; and periodically reporting progress. Sector- and Country-Specific Resources A database containing technical best practices is being developed specifically for IIP s sectors of interest, such as iron and steel and cement. Databases tailored to IIP focus countries are also under development. Please visit http://ietd.iipnetwork.org IIP has developed the Assessment to Action (A2A) tool for improving energy productivity in the ammonia industry. This tool is available from our website: www.iipnetwork.org/a2a

Delivery Mechanisms ClimateWorks Network Organizations Energy Foundation China Sustainable Energy Program Shakti Sustainable Energy Program Collaborative Labeling and Appliance Standards Program European Climate Foundation Global Buildings Performance Network International Council on Clean Transportation Institute for Transportation and Development Policy Regulatory Assistance Project Climate and Land Use Alliance Institute for Industrial Productivity Partnerships Working closely with key stakeholders and ClimateWorks Network regional partners, IIP finds and shares solutions that address the needs of focus countries, cultures, and situations. Through our offices around the globe, we form collaborative partnerships with industry, government, financial organizations, industry associations, universities, philanthropic organizations, and other non-governmental groups. Communications Channels While providing access to a broad range of resources, IIP also works to match products to customer needs and adjust for cultural sensitivities. Our communications materials are presented in clear, concise language to convey compelling information on best practices and share success stories. We use a variety of communications channels to increase our effectiveness in reaching our key audiences: Webinars Social media Training materials Fora Web-based databases Reports Meetings and workshops IIP tailors integrated solutions to the needs of industries and governments. Organization and Management IIP is structured to bring a broad spectrum of knowledge, experience, and expertise to its activities and facilitate the development of tailored solutions appropriate to its customers. IIP is led by a flexible, high-quality management team located in four main offices, each with an established professional staff and extensive regional networks. Washington, DC Beijing New Delhi Paris Jigar V. Shah, Executive Director James E. Quinn, Head-North America Program Patrick J. D Addario, Director, Financial Products Dongmei Chen, Head-China Program Somnath Bhattacharjee, Head-India Program Julia Reinaud, Policy and Programs Director Board of Directors IIP s Board includes respected international authorities on diverse aspects of industrial policy and operations from China, India, the United States, and Europe. Strategic Advisory Group Our Strategic Advisors are experts from industry, government, research organizations, financial institutions, and environmental groups with an interest in our mission. These dedicated individuals help to define IIP s strategic direction, advise on project activities, and facilitate key projects and partnerships.

IIP Strategy in China Country snapshot: China has emerged as a leader in world manufacturing output and consumes approximately 30% of global industrial energy. Rapid urbanization and an influx of investment from state-owned and multinational firms fueled rapid growth in China s manufacturing sector over the past decade. To raise incomes and social benefits for all citizens, China s 12th Five Year Plan now seeks a more balanced growth structure moderating GDP growth and shifting emphasis from export-led growth toward increased domestic consumption. Policy initiatives target increased industrial energy efficiency and wider use of non-fossil fuels. These initiatives are compelling old, inefficient plants to be closed, upgraded, or replaced with more energy-efficient practices and technologies across China s most energy-intensive industries, including iron and steel, petrochemicals, and cement. Goal: Drive a 3.5% annual reduction in energy intensity in at least 15,000 companies in key industries through 2020. Government IIP will build linkages with China s national, regional, and provincial governments to support policy development and create policy incentives for broad industry adoption of energy systems optimization (ESO) and energy management systems (EnMS). Activities will include monitoring and evaluating implementation efforts, conducting pilot demonstration projects, and facilitating achievement of national energy goals. IIP will partner with the China Sustainable Energy Program (CSEP), the National Development and Reform Commission (NDRC), and the Ministry of Industry and Information Technology (MIIT) to target key energy-intensive industries and provinces. Resource Materials and Networking Industry IIP will develop a robust network providing tools, methodologies, and other resources to help China s industrial companies lower their energy intensity. IIP will develop business cases and incentives, increase energy management capacity, provide frameworks for informed discussion, and help demonstrate successful use of energy best practices in key industries (including chemicals, cement, and iron and steel). IIP will assist in the design, implementation, and evaluation of energy performance demonstrations by industry partners and document the results in case studies. These efforts will help China reach its target goals for its Top 10,000 Enterprises, Top Runner, and 100 Energy Efficiency Standards programs. To support China s industrial energy policies, IIP will conduct demonstrations and help to identify, develop, and deliver a robust portfolio of materials. IIP will work with CSEP to further develop partnerships with NDRC, MIIT, the China National Institute of Standardization (CNIS), the Center for Industrial Energy Efficiency (CIEE), Shanxi and Shandong provinces, key industry associations, and companies in the target industries. Representative Activities: 2012-2013 Representative Activities: 2014-2015 Work with Shanxi and Shandong provinces to implement pilot energy management programs. Scale up pilot energy management programs for adoption by China s Top 10,000 enterprises. Top 10,000 Enterprises Program This program aims to save 250 million tonnes of coal equivalent (tce) by 2015 in the roughly 15,000 enterprises that collectively use about 60% of China s energy. Specific energy savings targets are set for all enterprises that use more than 10,000 tce and designated others that use more than 5,000 tce annually. Each must set up an energy management system, establish benchmarks, and conduct energy audits, among other activities. http://iepd.iipnetwork.org/policy/top-10000- energy-consuming-enterprises-program Top Runner Program By 2015, the Ministry of Industry and Information Technology (MIIT) aims to bring all enterprises in China s petrochemical, iron and steel, and cement industries up to the level of energy efficiency practiced by the current top performers in each industry. In June 2012, MIIT identified the top petrochemical performers for 10 products. If the rest of China s petrochemical producers match the top runners, they could collectively save an estimated 21 million tce annually by 2015. 100 Energy Efficiency Standards Program This program aims to review existing standards in terms of domestic and international best practices and introduce 100 new or revised standards over the next two years. Launched in 2012 by the National Development and Reform Commission (NDRC), General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), and Standardization Administration of China (SAC), the program presents an opportunity to establish an enduring system to enforce industrial energy standards. Publish best practices summaries for facilities in the petrochemical industry participating in the Top Runner Program. Continue technical support for the 100 Standards Program: develop implementation guidelines for EnMS in steel and cement and for ESO in steel and refining; energy standards for energy-intensive products. Develop plan to introduce energy efficiency technologies in key chemical furnaces (kilns). Pilot energy management practices in the cement, petrochemical, and steel industries. Develop ESO case studies for the iron and steel industry. Establish ESO and EnMS Knowledge Exchange. Work with financial institutions to improve practices and conduct pilot demonstrations of innovative financing options for energy efficiency projects. Promote implementation of ESO standards in the iron and steel and oil refining industries. Develop implementation guidelines for EnMS in eight additional sectors. Disseminate measurement and verification protocols for energy management. Identify cement industry best practices and case studies. Extend Knowledge Exchange Platform. Energy Systems Optimization While energy-efficient components can provide efficiency gains of 2% to 5%, optimizing energy use at the systems level can deliver average efficiency gains of 20% to 30% within a payback period of two years or less. System design and operational practices must be re-evaluated and optimized periodically with changes in equipment and production patterns. Source: UNIDO web page at unido.org/index. php?id=1000498

IIP Strategy in India Perform, Achieve and Trade (PAT) In 2011, India introduced the market-based trading scheme Perform, Achieve, and Trade (PAT) to increase the cost effectiveness of energy efficiency improvements. 478 enterprises in nine energy-intensive sectors (including power, iron and steel, cement, pulp and paper, and fertilizer) are required to reduce their energy costs by target amounts by 2014. Upon certification, companies exceeding their targets may accrue business benefits by trading their certificates; companies that do not meet their targets will either buy certificates or pay a penalty. MSMEs Micro, small, and medium enterprises (MSMEs) often possess significant opportunities for improving their energy efficiency, yet they lack the needed expertise and financial resources. A range of strategies can help these businesses capitalize on opportunities to gain a competitive edge. Carefully designed interventions can substantially mitigate CO 2 emissions as well as deliver diverse co-benefits. Country snapshot: Despite considerable progress, the energy intensity of India s industrial sector remains relatively high. Energy performance varies widely within the subsectors due to the wide range in plant vintage, production capacity, level of technology, quality of raw materials, and product mixes. In the cement and fertilizer sectors, for example, India has some of the best-performing plants in the world. This high bandwidth in energy efficiency poses a challenge to policy makers in designing effective and targeted policies. The Energy Conservation Act (ECA) of 2001 established the Bureau of Energy Efficiency (BEE), set up energy efficiency standards by product/process, required energy audits by an accredited auditor, and made certified energy managers mandatory in energy-intensive industries. In 2011, the government launched its ambitious Perform, Achieve, and Trade (PAT) scheme, which combines regulation with a flexible market mechanism. In addition to the energy-intensive sectors covered under PAT, micro, small, and medium enterprises (MSMEs) constitute another significant industry segment with many energy-intensive subsectors in which the cost of energy forms a sizeable share of total production costs. These MSMEs represent a tremendous opportunity to improve energy efficiency and mitigate GHG emissions through technology upgrades, modernization, and adoption of better energy management practices. Goal: Drive a 3.5% annual reduction in energy intensity in India s energy-intensive industries through 2020. Government IIP will engage with BEE and other relevant government agencies, banks, regulators, and utilities to evolve an environment conducive to the success of India s PAT initiative. IIP activities will similarly pave the way for increased use of alternative fuels and raw materials (AFR) in energy-intensive industries, such as cement, and will facilitate development of policies that complement effective implementation of PAT. IIP will also provide informational resources to support BEE s efforts to promote energy efficiency across the MSME sector. Industry IIP will work with industry associations, selected industrial clusters, and large corporate groups and their suppliers to build technical capacity, provide essential tools, and promote implementation of industrial energy efficiency best practices. These efforts will focus on: (1) developing the major industry associations as change agents, (2) demonstrating intelligent bundling of medium-scale projects, (3) creating knowledge exchange platforms on energy themes, (4) piloting a greening of the supply chain, and (5) developing effective, easy-to-use tools to help industry continuously improve energy performance. Resource Materials and Networking IIP will develop databases, specialized assessment tools, best practice guides, and case studies to expand industry awareness of and capacity to implement energy-saving measures. IIP will provide expert policy guidance, hold conferences on topics of critical interest, and create specialized knowledge exchange platforms. Representative Activities: 2012-2013 Representative Activities: 2014-2015 Customize assessment tool to identify and prioritize energy-saving opportunities in India s ammonia industry. Work with the cement industry to create an action plan to increase thermal substitution rates. Provide technical support for bundling of mediumscale projects in a steel re-rolling cluster. Promote use of cleaner technologies by IKEA vendors to green the supply chain. Assist foundries in implementing promising opportunities (identified using IIP s best practices guide) by working with the credit facility created under the World Bank/GEF/BEE project. Help frame complementary policies to assist effective implementation of PAT. Create AFR database and promote AFR use across India s cement industry. Promote use of assessment tool by all ammonia producers. Hold seminar on the role of supply chain initiatives in promoting sustainable business. Promote energy efficiency best practices in 450 foundries in India.

IIP Strategy in the United States Country snapshot: The United States consumes nearly 11% of the world s industrial energy (IEA 2012) and offers substantial potential for efficiency improvements. The continuing economic recovery is stimulating demand for industrial products and attracting new investment in manufacturing capacity and infrastructure. These trends, in combination with low natural gas prices (helped by the development of new shale gas resources), could signal a healthy growth in U.S. manufacturing capacity, including the energy-intensive chemicals, fertilizer, cement, and iron and steel industries. State-of-the-art technologies and energy management practices can substantially reduce the energy intensity of U.S. production. Goal: Drive a 3.5% annual reduction in energy intensity in key energy-intensive industries through 2020. Government Industry Superior Energy Performance This U.S. certification program will be launched in 2013 to provide industrial facilities with a roadmap for continually improving energy efficiency while maintaining competitiveness. The program will set up a globally accepted system for verifying the energy management practices, performance improvements, and savings that accrue through use of the ISO 50001 energy management standard. http://iepd.iipnetwork.org/policy/superiorenergy-performance At the Federal level, IIP pursues opportunities to assist in developing decision tools and training materials on energy best practices and in delivering them to key industry groups. Products address systems approaches for energy management and energy system optimization. The President s August 2012 Executive Order promoting industrial energy efficiency, in combination with new opportunities at the regional and state levels, could drive new policies and programs. To support the Executive Order, IIP will partner with the Energy Foundation and work with key states, regions, utilities, and regulatory groups to identify and implement policies that foster energy efficiency and address financial, regulatory, and institutional barriers. To lower industrial energy intensity, IIP will develop a network for providing tools, training, and technical and financial assistance to energy-intensive industries (initially chemicals, cement, and iron and steel). Efforts will focus on key elements of energy management systems, including developing goals and targets, baselining, benchmarking, plant assessments, portfolio management, and implementation strategies. This work will entail direct engagement with industry and trade groups through workshops, on-line webinars, databases, and the development and adaptation of tools and information materials. Boiler MACT Forthcoming revisions to the Clean Air Act include a new U.S. emissions standard to reduce hazardous air pollutants emitted by industrial boilers and process heaters. Boiler MACT (maximum available control technology), as it is known, could affect more than 1,500 units when it goes into effect in 2016. Combined heat and power (CHP) technology is seen as a leading compliance strategy for some operations. Resource Materials and Networking To support work with government and industry, IIP will help to identify, develop, adapt, and deliver a robust portfolio of materials. These resources will include policy databases, supporting measures and tools for implementation, technical and financial databases, and information on important technical resources, programs, training materials, and publications from the United States and around the world. IIP will establish and nurture partnerships with key U.S. groups, including the ACEEE, Alliance to Save Energy, U.S. Commerce and Energy Departments, Environmental Protection Agency, National Association of State Energy Offices, regional energy efficiency organizations, and state and utility energy programs. Representative Activities: 2012-2013 Representative Activities: 2014-2015 Work with Ohio groups and industries to assist in identifying CHP and waste heat opportunities and technical and financial needs to meet expected EPA coal Boiler MACT requirements. Establish chemicals and cement industry working groups in Gulf area to identify key opportunity areas and hold workshops and webinars on topics of interest. Develop on-line database for describing key U.S. resources. Conduct monthly series of on-line webinars to address best practices in energy systems management in energy-intensive U.S. industries. Work in several important industrial states in the Midwest to provide enabling tools and models to accelerate the use of best practices and advanced technologies. Develop and adapt tools and technical information targeting waste heat recovery applications in energyintensive industries. Further develop an expert network of technical, financial, and policy experts that can develop an integrated, system-wide approach to substantially reducing industrial energy intensity. Revise and expand databases, software suites, training materials, and information products that can provide cost-effective solutions to saving energy and carbon.

IIP Strategy for Global Research ISO 50001 Energy Management Standard The ISO 50001 Standard, released in June 2011, provides a systematic approach for industrial and commercial facilities to plan, manage, measure, and continually improve energy performance. Organizations can use its internationally recognized framework to voluntarily implement an energy management system. Measurement & Evaluation Accurately measuring energy use is a critical first step toward energy savings. Following established measurement methods and protocols in setting an energy baseline or assessing project impacts will enable accurate, transparent, and consistent evaluation of energy efficiency projects, performance, and progress. Global Superior Energy Performance An initiative of the Clean Energy Ministerial and International Partnership for Energy Efficiency Cooperation, GSEP aims to reduce global energy use in industrial facilities and commercial buildings by encouraging continuous improvement in energy efficiency. The initiative also aims to promote public-private cooperation on specific technologies or in individual energyintensive sectors. Global snapshot: As economies gradually recover from the recent global recession, businesses will be ramping up production and investing in new industrial capacity increasing the global demand for energy. In some regions, rapid urbanization and industrialization are also significantly increasing energy use. Technology choices in all new or expanded industrial plants will have an enormous impact of energy use and carbon emissions over the coming decades. These choices will either alleviate or exacerbate global issues of energy security, water quality, climate, and health. Greater awareness and technical knowledge of energy best practices, in combination with effective policies, standards, and appropriate financial instruments, can improve technology choices and the energy performance of industrial operations today and for the future. Focus: Initially transfer best practices in policy, finance, and technology to target regions; progress to the transfer of innovations, smart manufacturing, and other approaches leading to zero plant emissions. Government IIP facilitates the sharing of information across governments on effective policy frameworks for improving the energy performance of energyintensive industries and tailors solutions to local needs. IIP workshops and resources assist policy makers in designing complementary policies with appropriate targets, benchmarks, protocols, and incentives. In concert with regional needs, political systems, and cultures, IIP works with government agencies to design and implement pilot programs that demonstrate the benefits of effective systems approaches to energy management and optimization in IIP s region of focus. Resource Materials and Networking Industry IIP disseminates best practices, technology information, tools, financing options, and case studies, as well as sector- and country-specific information. Industrial firms can use these resources to identify, implement, and monitor new energy efficiency options. IIP also works with selected industrial firms and government partners to demonstrate various approaches to energy efficiency helping to document the benefits, prepare case studies, develop guidelines, and disseminate these materials so that industrial companies around the globe can replicate successful programs and benefit from the experiences of others. IIP provides governments and industry with integrated expertise in policy, programs, finance, and technology for industrial energy efficiency. IIP maintains and continuously improves a suite of databases, tools, and multimedia resources on technology, financing options, program approaches, supply chain initiatives, and technical information. Representative Activities: 2012-2013 Representative Activities: 2014-2015 Energy Management Working Group One of six GSEP working groups, this group facilitates international dialogue to share best practices and resources to accelerate continuous energy performance improvements. It supports participating governments in creating high-impact programs. Document policy frameworks that tie energy management to energy performance improvements and incentives. Expand and enhance IIP s databases on policy, programs, financing, technology and supply chain initiatives. Evaluate the effectiveness of fiscal incentives in China, the United States, Germany, and Japan. Pilot the integration of energy efficiency assessments into the mainstream financing practices of HSBC India and one Chinese bank. Explore opportunities to pilot and scale up energy management implementation through supply chains. Launch monthly Industrial Excellence series and other multimedia products in partnership with the Clean Energy Solutions Center. Translate technology database into four languages by partnering with industry associations or energy service companies. Help integrate energy efficiency assessments into the mainstream financing practices of eight additional financial institutions. Assist additional government agencies to design energy management programs and facilitate implementation of EnMS in companies. Promulgate ISO 50001 in 20 supply chains. Create social networks of energy-efficiency stakeholders in selected technology/industry-specific sectors. Expand resources on global best practices.

Sharing best practices for the low carbon future iipnetwork.org 2200 Pennsylvania Avenue, N.W., 4th Floor, East Tower, Washington, D.C. 20037 U.S.A. info@iipnetwork.org Twitter.com/iipnetwork October 2012