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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	
  
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	
  
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.	
  	
  
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	
  	
  
	
  
The	
  IIP	
  PPAGE	
  TITLE	
  
                        MAIN	
   olicy	
  Pyramid	
  




The	
  Policy	
  Pyramid	
  allows	
  you	
  to	
  see	
  policy	
  interrela+ons	
  
         and	
  visually	
  understand	
  	
  the	
  policy	
  hierarchy	
  
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)	
  
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	
  	
  
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	
  
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	
  
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	
  
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	
  
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	
  
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	
  
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	
  	
  
Main	
  Presenta+on	
  Title	
  
Julia.reinaud@iipnetwork.org	
  
 20.12.10	
               	
  
	
  
iipnetwork.org/publica+ons	
  
iipnetwork.org/databases	
  
iepd.iipnetwork.org	
  
	
  
Appendices	
  
•    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.	
  
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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5 Key Steps for Effective Policy Packages: Insights into Industrial Energy Conservation Policies, Julia Reinaud

  • 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    
  • 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).