Barriers to Energy Efficiency Energizing Cleaner Production Management Course

1. Barriers to Energy Efficiency Energizing Cleaner Production Management Course

2. Session Agenda: Review of barriers - approach Four main barriers & examples Guidance to policy makers Role of companies, CP Centers and others

3. Review of Barriers to Energy Efficiency in Industry Four steps: • Energy Efficiency Survey • Regional Stakeholder Workshop • Desk-top reviews of key barriers • Reporting

4. Four barrier categories • Lack of management awareness • Limited knowledge and information • Lack of financing • Limited policies and enforcement

5. But first… In what step(s) of the methodology do we encounter barriers to EE?

6. Lack of management awareness • Company management awareness is essential to improving energy efficiency • Root cause of other barriers: • Production is more important • Lack of investment capital • Limited policies/systems/processes • Hierarchical structures

7. Lack of management awareness Barrier: Focus on production output and turnover instead of • Producing safely • Producing more efficiently • Reducing production costs Result: Energy assessment & option implementation difficult

8. Lack of management awareness Barrier: Environment seen as • Compliance issue • Cost burden Result: Companies not willing to look at environment unless they absolutely need to

9. Lack of management awareness Barrier: “Only new technology can improve energy efficiency” Result: Less focus on low cost / good housekeeping options

10. Lack of management awareness Barrier: Immature systems to manage energy, e.g. • Policies • Management systems • Environmental / Energy Manager Result: • Management not sufficiently informed • Staff less able to take initiatives

11. Lack of management awareness Barrier: Hierarchical management structures Result: • Staff inhibited to give suggestions • Approval for options takes longer

12. Limited knowledge and information Barrier: Poor information systems • Few meters for electricity, water etc • Lack of monitoring equipment • Information held by different people • Lack of communication • Multiple sets of data • Limited data from contractors Result: Not measuring is not knowing!! • No insight into energy/resource losses • Improvements from options cannot be measured

13. Limited knowledge and information Barrier: Limited internal knowledge and expertise • Lack of training • Limited written procedures/documents Result: • Energy losses through poor operations • Difficult to identify, investigate, implement options

14. Limited knowledge and information Barrier: Difficult to access external information and expertise • Information scattered over many organizations • Language barrier • Internet access Result: Companies don’t know how to identify and solve problem

15. Lack of financing Barrier: Money available, but not now! • Budget round • Permission from head office Result: Delayed implementation (= sometimes no implementation!)

16. Lack of financing Barrier: Lack of money to invest in options • Long payback period • High investment • Unable to get a loan • Uneasy about taking loans • Perceived barrier??? Result: Much less options get implemented than possible

17. Limited policies and enforcement Barrier: Lack of effective policies Focus on command-control policies (legislation) Different per country! Result: Industry not encouraged by government to improve energy efficiency

18. Limited policies and enforcement Barrier: Weak enforcement of legislation • Limited funds for enforcement • Bribing of government officials is cheaper • Stealing of electricity Result: Continued environmental pollution / energy wastage

19. Limited policies and enforcement Barrier: Focus on short-term economic gain • Conflicting policies • Many agencies with role in energy • Under-pricing of resources • Subsidies of petrol/electricity Result: • Companies more discouraged than encouraged to reduce resource use • The economy wins (in the short term…)

20. What can policy makers do? Five step approach: • Analyze the problem & set scope • Identify main barriers • Identify existing and new policy instruments • Evaluate policy instruments • Select policy instruments

21. What can Companies, CP Centers and others do? This is what we need to know from you!!!

22. Barriers to Energy Efficiency Thank you for your attention!

23. Acknowledgements This training session was prepared as part of the development and delivery of the course “Energizing Cleaner Production” funded by InWent, Internationale Weiterbildung und Entwicklung (Capacity Building International, Germany)and carried out by the United Nations Environment Programme (UNEP) The session is based on the report “Barriers to Energy Efficiency in Industry in Asia – a review and policy guidance” from the “Energy Efficiency Guide for Industry in Asia” developed as part of the GERIAP projectthat was funded by the Swedish International Development Cooperation Agency (Sida) While reasonable efforts have been made to ensure that the contents of this publication are factually correct and properly referenced, UNEP does not accept responsibility for the accuracy or completeness of the contents, and shall not be liable for any loss or damage that may be occasioned directly or indirectly through the use of, or reliance on, the contents of this publication. The report and references are available on www.energyefficiencyasia.org