Energy Updates For All Countires
Energy Updates For All Countires
Energy Updates For All Countires
IEA Efficiency
Update
BACKGROUND
Energy On 15 August 2002, the Australian government announced its agenda for the
and the development of a forward strategy on climate change, and elaborated the key
Environment elements on which that strategy will be based. The major aspects of this
announcement included:
The Ministerial Council on Energy (MCE), which comprises energy ministers from
all Australian States and Territories and the Commonwealth, was formed in June
2001. MCE’s objectives are:
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The Framework will be strategic in focus and developed co-operatively with all
jurisdictions and key stakeholders. Delivery and implementation will be targeted at
the most appropriate level and will take into consideration the individual
circumstance of particular regions and jurisdictions.
Institutional Australia is a federation of six states and two territories. The Commonwealth
Framework government has limited constitutional powers in relation to many aspects of the
energy economy. Local governments have responsibility for implementing planning
policies and regulations which have an impact on energy use and efficiency at local
level. This covers areas such as urban design, road planning, etc., planning
regulations which effect energy efficiency in houses and businesses, and in waste
management and utilities. These can have large-scale implications for energy use
and consequent environmental impacts at the local, national and global levels. A
number of programmes administered through the Commonwealth's AGO
(Australian greenhouse Office) aimed at improving energy efficiency, are managed
through local governments.
RESIDENTIAL/
COMMERCIAL
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annum by 2020. The programme is expected to save purchasers over A$4 billion1
by 2018. More information can be found at:
www.greenhouse.gov.au/energyefficiency/appliances/meps/
Building Codes
Mandatory In March 1999, following wide consultation, the federal government and the
Energy Efficiency building industry reached agreement on a comprehensive strategy aimed at making
Standards for Australian buildings more energy-efficient. This two-pronged strategy
Buildings encompasses, on the one hand, Commonwealth government and building industry
support for voluntary best practices in building design, construction and operation,
and the elimination of worst energy performance practices on the other hand by
incorporating a single standard for minimum performance requirements into the
Building Code of Australia (BCA).
The AGO estimated in 1999 that in the absence of any such measures, the energy
consumption of residential buildings could grow by 40% between 1990 and 2010,
leading to a 17% increase in greenhouse gas emissions. The energy use in non-
residential buildings could even increase by 91%, leading to a 94% growth in CO2
equivalent emissions, or 62.8 million tonnes of CO2 equivalent from commercial
buildings alone in 2010.
Australia is the first nation to effectively rebase its labelling scheme. The Australian
label has been used as an example of label best practice by CLASP, a UN funded
NGO which promotes label schemes to developing countries and it has been used
by the Indian government as the model for that nation’s scheme.
The Australian Gas Association (AGA), together with the Gas Appliance
Manufacturers Association of Australia, developed voluntary energy labelling and
minimum performance programmes for the two main gas-using appliances (gas
water heating systems and space heaters) in Australia. The AGA is recognised as
a standard-setting body for gas issues and the energy programmes have been
designed to comply with these standards. While participation in the labelling
programme is notionally voluntary, all appliances comply as all suppliers are
members of these associations.
Australia’s Standby power is the energy used by an appliance while it is plugged in but not
Standby actually carrying out its central function. In Australia, standby power consumption
Power Strategy generally accounts for over 10% of Australia’s household electricity usage, costing
2002-2012 more than A$500 million and generating more than 5 million tonnes of carbon
dioxide per annum. This is equivalent to the greenhouse impact of more than
1 million cars.
1
On average, in 2002 A$1 = US$0.543.
3
In August 2000, all Australian governments agreed to pursue efficiencies in
standby power consumption and the “1 Watt” target for appliances under the
banner of the IEA standby power initiative. In its publication ”Things that Go Blip in
the Night”, the IEA advocates that members develop long-term plans to reduce
standby over time, a recommendation that Australian jurisdictions have embraced.
The Strategy is being developed through a process which potentially has two
stages. This staged approach will provide the opportunity firstly to identify the
products that need attention and, secondly, provide industry with the opportunity to
develop voluntary measures to address standby for the product, and then move to
more interventionist measures (mandatory actions) if and when necessary.
Stage 1 -- Profiles: identification of major product groups and initial actions (as
short as one year and as long as five years):
All key products will have a product profile prepared which outlines its current
status with respect to standby power. Australian governments will announce the
standby target for each product in the product profile. Generally, this target will
be the Energy Star level promoted by the US Environmental Protection Agency
or some other previously identified internationally accepted level. The standby
target will be included in the relevant Australian Standard to ensure all
stockholders have a reasonable opportunity to become aware of the target level
and compliances dates. NAEEEC will continue benchmarking surveys each
year and gather other market intelligence to monitor standby levels. The data
will be used to measure improvement for each product and build on the existing
data sources and analysis. This monitoring function will be assisted by industry
agreements where suppliers agree to supply government agencies with standby
levels for relevant products. A formal review of progress will be undertaken once
milestones have been reached. A review will generally result in either “a positive
result”, meaning that reasonable progress has been made to date and that
voluntary measures in place can continue as proposed, or a “negative result”
meaning that insufficient progress has been made (or is unlikely to be made)
and that specific mandatory measures under Stage 2 will be necessary.
Initially 40 product types have identified savings of 36 Mt over 15 years.
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House Governments have agreed to implement a consistent Nation-wide House Energy
Energy Rating Scheme (NatHERS). The scheme provides householders with a means of
Rating assessing energy efficiency of houses and thereby assists in making more
informed choices about housing purchases and renovation. The national scheme
and several state-based rating schemes will be co-ordinated to ensure consistency.
A graded five-star rating system is used, with the most energy-efficient dwellings
receiving the highest number of stars. Implementation of the scheme rests with the
state and territory governments who can decide whether or not to make the
scheme mandatory. The Australian Capital Territory has a requirement that all new
houses achieve at least a four-star rating. Victoria has recently announced that all
new residential buildings will soon have to have a five star energy rating.
Mandatory energy efficiency measures for houses were introduced in the Building
Code of Australia on 1 January 2003. However, the measures were not adopted in
all States and Territories at that time, as some administrations need time to resolve
administrative issues, including reconciling building control and planning
requirements. These changes will make homes more energy-efficient and save
greenhouse gas emissions.
Windows In 2001 the window and glazing industry, supported by the Commonwealth
Energy government, launched a system of energy performance labelling for window
Rating products called the Window Energy Rating Scheme (WERS). The scheme, which
Scheme delivers both an energy performance label for consumers and backup technical
support for industry members, was designed to inform consumers and influence
purchase decisions.
Education, In 2002, the Commonwealth government, several state governments, and the
Training building and design industries jointly developed and published Australia’s most
and Public comprehensive guide to environmentally sustainable housing titled Your Home.
Awareness
The Your Home suite of materials includes a Consumer Guide to raise awareness
and a Technical Manual for building professionals and interested owner builders.
The Your Home Technical Manual has become the principal reference guide for
building industry education and training programmes.
Your Home materials are also used in tertiary education for architecture,
environment design, and building courses.
State and territory governments have focused on their own communities and areas
of responsibility to raise public awareness both on energy efficiency and
environment protection. Activities undertaken include the production of booklets,
journals, books, web sites, demonstration projects and training programmes; some
local governments are active in producing publications aimed at increasing public
awareness of energy efficiency and environmental issues.
PUBLIC SECTOR The Commonwealth government has made a commitment to lead by example in
ensuring that its own procurement practices and operations maximise energy
efficiency. State and territory governments are implementing similar programmes.
Government The Australian government is committed to reducing the intensity of energy use in
Energy Commonwealth operations, with a consequent reduction in economic costs and
Efficiency greenhouse gas emissions. Annual whole-of-government energy reports are
Actions tabled in Parliament and made available to the public. The reports show total
energy used by Commonwealth departments and agencies, the intensity of energy
use and associated greenhouse gas emissions.
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The fourth annual report, Energy Use in Commonwealth Operations 2000-01,
showed a 10% reduction in total energy consumption and a 10% reduction in
associated greenhouse gas emissions largely as a result of reduced energy
intensities of government operations.
Other measures include mandatory minimum energy intensity levels for new and
refurbished buildings, and office equipment and appliances, the requirement that
new building leases increase the incentive for building owners to improve building
energy efficiency, regular energy audits of building space with implementation of
cost-effective recommendations, and the application of minimum energy
performance standards for new houses, with an energy review of existing stock.
New fuel efficiency levels for the government vehicle fleet will be announced in
early 2001.
Government bodies not specifically covered by the policy are encouraged to adopt
the policy measures. The success to date of the central government approach has
encouraged states and territories to adopt similar measures in energy reporting,
and a national government energy data reporting system has been developed by
ITR, in co-operation with the other government jurisdictions.
Local Cities for Climate Protection™- Australia assists local governments and their
Governments communities reduce greenhouse gas emissions. The programme is funded through
a commitment of A$13 million over five years, made by the Prime Minister in his
statement, Safeguarding the Future, in November 1997. CCP™ is an international
trade-marked programme of the International Council for Local Environmental
Initiatives (ICLEI) delivered in collaboration with the AGO, under which councils
commit to progress through five milestones with the aim of reducing greenhouse
gas emissions. Councils that join the programme are provided with assistance,
information and incentive programmes to design approaches to reduce greenhouse
gas emissions and understand the potential impacts of climate change. With
programmes running in a number of countries, Australia has taken the lead.
CCP™ Australia now has over 160 local governments representing over 63% of
the Australian population – the most of any country. This also represents nearly
30% of local government members worldwide.
INDUSTRY
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progress, and a forecast of expected abatement of emissions over a set time
period. The programme also provides information to members, including technical
advice on how to identify, monitor and mitigate emissions in each sector, a
workbook to assist participants in developing their co-operative agreement, and
workshops and seminars on technical issues and greenhouse actions.
The report demonstrated that the Challenge has been effective in achieving
greenhouse gas emission abatement and in building the capacity of both
government and industry to identify, monitor, manage and report greenhouse gas
emissions. The Greenhouse Challenge has demonstrated that it is a flexible
programme that can remain effective in a changing environment.
Australia Post is the country's largest retail network, with more than 4 000 outlets.
Through its Greenhouse Challenge membership, Australia Post introduced a large
number of energy efficiency measures. In the first year, the organisation expected
a 1.8% reduction in its greenhouse emissions, and a forecast target of 3% by 2005.
But the results exceeded forecasts. Australia Post achieved a 14.9% reduction in
its first reporting, saving about 50 000 tonnes of CO2 equivalent and an estimated
A$3 million a year.
Energy Efficiency The Energy Efficiency Best Practice (EEBP) Programme launched by the
Best Practice Commonwealth government in mid-1998 assists targeted industries to reduce their
Programme greenhouse gas emissions while also reducing costs and increasing productivity
through improving energy efficiency. A$10.3 million has been allocated by the
government over a five-year period 1998-2003 to support the programme.
EEBP’s major focus is on innovation and training, applying strategies that have the
potential to identify efficiency improvements of up to 50% in key energy-using
processes:
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The programme is currently undertaking both sectoral and cross-sectoral work in a
number of areas identified as having opportunities for cost-effective improvements
in energy efficiency. Sectors engaged in the innovation and training aspects of the
programme include bread baking, supermarkets, resource processing, beverage
and containers manufacturing, wine making and dairy production. Energy efficiency
products include a range of promotional and advisory materials, information
dissemination and bench-marking tools (hotels and aluminium sectors). Cross-
sectoral activities include the development of products relating to motors, energy
performance contracting and vehicle fleet management.
The programme and its activities are communicated through the programme's
Website, bimonthly newsletter, stakeholder seminars and presentations to
governments, key users and industry stakeholders.
An independent full-term review of the programme has been conducted, finding the
programme to be cost-effective and saving 1.2 Mt CO2 and A$74.6 million in
energy costs by 2010 assuming the planned actions are implemented.
Generator The Voluntary Efficiency Guidelines For Power Generation was launched in the
Efficiency Prime Minister's 1997 Safeguarding the Future statement and subsequently
Standards (GES) incorporated into the National Greenhouse Strategy. The measure was developed
in recognition of the fact that power generation is responsible for more than a third
of national greenhouse gas emissions (excluding change of land use). Design of
the Guidelines, subsequently referred to as the Generator Efficiency Standards
(GES) has been completed and agreed by governments. Based on the model
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developed by the Efficiency Standards Working Group (ESWG), the government
introduced on 1st July 2000 efficiency guidelines for power generators using fossil
fuels. The standards apply to new power plants (approved after 30 June 2000) and
existing power generators above a minimum threshold on a case-by-case basis.
This includes grid-connected power stations, off-grid plant or auto-generators. The
minimum threshold is 30 MW capacity, 50 GWh electrical output, and a capacity
factor of 5% or more in each of the last three years. Approximately 65% of energy
generation capacity in Australia is covered by the GES programme. It is proposed
that the measure be implemented through legally-binding, five-year agreements
between the Commonwealth and power generators.
The contract specifies the approach generators should take in identifying and
undertaking agreed actions that improve plant efficiency and reduce greenhouse
gas intensity. Generators first sign the agreement. Then they calculate the best
practice performance band and current performance of the plant and submit this
information, together with a menu of options, to the government for agreement,
within six months of signing. The menu of options outlines potential improvements
for the plant.
The generators must monitor their performance and report to the AGO (Australian
Greenhouse Office) on a regular basis. The standards are reviewed every five
years. The measure is expected to save about 4 million tonnes of CO2 equivalent a
year during the first commitment period under the Kyoto Protocol.
Energy Some energy utilities have distributed information material on climate change,
Utilities developed energy efficiency promotional campaigns, conducted building energy
Information management seminars and provided consumer advice.
TRANSPORT
Transport In May 2000, the Australian Transport Council (ATC) directed the National
Policy Transport Secretariat (NTS) to work with Commonwealth, state and territory
Framework transport agencies to develop a long term strategy for reducing greenhouse
emissions across the transport sector.
The ATC provides a forum for Commonwealth, state, territory and New Zealand
transport ministers to maximise the contribution of effective transport to Australia’s
productivity, quality of life and equity.
Ministers requested that particular attention be paid to the impact of urban traffic on
greenhouse emissions and to develop an integrated national approach. The
Strategy Lowering Emissions from Urban Traffic – An Integrated National Action
Plan responds to that request. The strategy may be viewed at
www.nts.gov.au/environment .
National The government is continuing to work with the automotive industry towards
Average Fuel reaching agreement on a satisfactory national average fuel consumption target for
Consumption passenger vehicles for 2010. The negotiations are being carried out in line with the
Target Prime Minister's call for an improvement of 15% over business-as-usual average
fuel consumption for new passenger vehicles by 2010 that was outlined in the 1997
statement Safeguarding the Future: Australia's Response to Climate Change.
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range of vehicles in July 2003. The revised label will also show how much carbon
dioxide is emitted by each vehicle.
Government The government has undertaken to develop options for challenging but realistic fuel
Vehicle efficiency targets from 2003 for government car fleets. A number of states have
Fleets introduced initiatives to improve the efficiency of government fleets. The Victorian
Greenhouse Strategy 2002 sets a target of reducing greenhouse gas emissions
from the government passenger fleet by 10% by 2006. In July 2002, the New South
Wales government placed the world's second largest order for hybrid vehicles with
a decision to buy 200 Toyota Prius sedans. The state's Prius fleet -- second only to
New York City's 300 -- will save NSW taxpayers an estimated A$550 000 in fuel
costs over the next two years. The ACT Government Greenhouse Strategy
released in 1999 stated that the government will aim to reduce the greenhouse gas
emissions from the operation of its vehicle fleet by a further 15% by 2008.
The Energy Efficiency Best Practice Programme is also targeting vehicle fleets
(see separate section on EEBP).
Integrated The Australian government has released a green paper on fundamental land
Transport transport infrastructure reform, AusLink: Towards the National Land Transport
Planning Plan.
AusLink will result in the development of a more sustainable and higher performing
national transport network. It will also improve transport links across regional
Australia, with funding specially earmarked for regional areas.
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Employing a consistent approach to funding -- establishing a single, flexible
funding programme to replace the separate programmes for different transport
modes. It will help to direct funds to the best projects. Regional funding will be
earmarked.
Encouraging reciprocal responsibility -- encouraging the joint and
complementary development and funding of projects between governments,
and with the private sector, to increase the level of available funding.
The AusLink Green Paper is open for comment until 7 February 2003 and will be
supported by a series of consultation meetings in metropolitan and regional
Australia. The government will release a formal policy statement, or white paper,
next year. AusLink will commence from July 2004.
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Energy
IEA Efficiency
Update
Energy The Energy Report 1993 of the federal government was agreed upon in the
Report Ministerial Council in May 1993 and adopted by the National Council after due
1993 and consideration on 6 April 1994. It laid down the goals for Austrian energy
1996 policy which remain unchanged. These are:
Security of supply.
Cost-efficiency of the energy supply.
Environmentally benign energy supply.
Social acceptability of the energy supply system.
Energy Austria ratified the United Nations Framework Convention on Climate Change
and the (UNFCCC) on 28 February 1994. The Convention entered into force globally
Environment on 21 March 1994 and for Austria on 29 May 1994. The first National
Communication entitled National Climate Report of the Austrian Federal
Government in compliance with the obligations under Articles 4.2 and 12 of
the Framework Convention on Climate Change, Vienna, was issued in August
1994.
Austria supports the UNFCCC climate change policies. The government had
committed itself in all official reports to a national target of a 20% reduction of
CO2 emissions by 2005, based on 1988 emissions. Meanwhile, the target has
been adapted to the Kyoto Protocol under the UN Framework Convention on
Climate Change, where the European Union as a whole has taken on the
commitment of an 8% reduction of the greenhouse gases CO2, CH4, N2O,
HFCs, PFCs and SF6 until the commitment period from 2008 to 2012. The
percentage reduction is based on the emissions of 1990 (for CO2, CH4, N2O)
and 1990 or 1995 (for HFCs, PFCs, SF6). The EU Member States have
thereafter agreed on individual reduction targets for each Member State.
According to the so-called "Burden sharing-agreement“1 Austria is committed
to reduce greenhouse gas emissions by 13% below 1990 levels by the time of
the first commitment period 2008-2012.
Total Austrian GHG emissions have risen 2.7% from 1990 to 1999, so the
country must now reduce emissions slightly more than 15% from 1999 levels
in order to meet the Kyoto Protocol commitments. The Austrian Parliament
ratified this Protocol in March 2002 and the EU as a whole ratified it in May
2002, making the country's commitment to GHG emissions targets legally
binding.
The Second National Climate Report of the Austrian Federal Government was
published in September 1997 in compliance with the UNFCCC obligations.
1
The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
1
Energy related measures are described in several sections of Chapter 4 of the
Third National Communication. They are related to minimum thermal
standards for buildings, thermal insulation of dwellings and support schemes
for energy efficient constructions and the use of renewable energy in new
buildings (see below).
The National The National Environmental Plan (NUP) of the federal government was
Environment adopted in 1995 and provided Austria with a long-term concept and integrates
Plan (NUP) these environmental commitments at all political levels — industrial policy,
energy policy, agricultural policy and technology policy. In this plan, the major
energy related targets were defined as further advances in energy efficiency
and a continuing shift to renewable energy sources.
Klimastrategie In response to climate change challenges, Austria has recently developed the
2000-2008/2012 "Strategie Österreichs zur Erreichung des Kyoto-Zieles- Klimastrategie 2000-
2008/2012"; this report builds on the ideas and structures outlined in Austria’s
Third National Climate Report submitted to the UNFCCC by the federal
government in November 2001. It is based on the study “Kyoto-Optionen-
Analyse” by the "Österreichische Kommunalkredit“; this study built upon work
of the Austrian Council on Climate Change (ACCC) (especially the "Kyoto
Technology Package“, which had been proposed as a follow-up to the
"Austrian Toronto Technology Programme“) as well as related studies from
the business and industry sector and took into account the views of different
stakeholders on costs and effects. This is a comprehensive strategy which
lays out a series of measures intended to curb the country’s GHG by 13%
below 1990 levels by 2008-2012, as stipulated in the EU burden-sharing. The
Klimastrategie was released in early 2002 and co-ordinated by the Federal
Ministry of Agriculture, Forestry, Environment and Water Management which
has responsibility for overall energy policy with respect to climate change.
The plan was developed as part of a consultative process among the relevant
ministries at the federal level as well as with representatives of all nine Länder
and calls for a variety of measures at the federal, Länder, and municipal level.
Responsibility for the implementation of the Klimastrategie is shared amongst
various federal and Länder government institutions.
2
Measures in this category are expected to reduce CO2 emissions by 4 million
2
tons per annum once fully implemented.
Energy Supply
This category deals with all measures related to energy supply with activities
falling under one of the following headings:
Transport
This category includes measures to curb emissions from all modes of Austrian
transport. Activities include:
Industry
2
The emissions reduction effects from demand-side measures have been included in the Energy Supply
category in order to avoid double counting.
3
In the 2002 in-depth review of the energy policies of Austria, the IEA stated:
Austrian Strategy The government has recently announced plans to accelerate the reduction in
For Sustainable its national energy intensity. In April 2002, the government published the
Development Austrian Strategy for Sustainable Development (Die Österreichische Strategie
zur Nachhaltigen Entwicklung) which establishes goals for the further
reduction of the country’s energy intensity (defined as national TPES per unit
of GDP). The country is aiming for an average improvement of energy
intensity of 1% per year beyond the normal improvements in this area that can
be expected without any explicit policy initiatives. The report defines this
normal energy intensity improvement to be the average EU decrease of
energy intensity in the time period 1990-1997, which it estimates as 0.6%
annually. Therefore the total energy intensity improvement target is 1.6%
annually. Such a target is identical to that put forward by the European
Council for all EU countries in their resolution on energy efficiency issued on
7 December 1998.
The new Federal government which was sworn in on 28 February 2003 stated
in its programme a variety of measures for sustainability and environment
protection, for example:
Institutional Austria is a federal country with nine Länder (provinces). The Länder as well
Framework as the municipalities are active players in the energy market. The Federal
Constitution allocates responsibilities either exclusively to the federal level, or
to both the federal level and the state level. Federal level responsibilities
cover issues that require co-ordination between Länder, such as energy
security, while the Länder responsibilities involve issues endemic to each
state, such as building code efficiency regulations and subsidies for renewable
energy, where diverse local conditions require different types of approaches.
Co-ordination of various initiatives between the federal and provincial
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governments is a priority in Austrian energy efficiency policy. In this context,
according to Article 15a of the Federal Constitution, an agreement between
federal and provincial governments on the efficient use of energy came into
force in June 1995. This agreement obliged the parties to adopt a specific set
of measures with respect to energy efficiency by 15 June 1998.
The instruments for the financial support of energy efficiency measures (by
households, enterprises and municipalities) encompass a variety of
programmes. Most of them are at the Länder level and in many cases the
improvement of energy efficiency is only one of several programme goals.
Due to this variety and multi-functionality of the programmes, exact data on
financial support granted and investments triggered are not available.
In the 2002 in-depth review of the energy policies of Austria, the IEA stated:
5
In the 2002 in-depth review of the energy policies of Austria, the IEA stated:
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Space Heating The strategy to reduce GHG emissions from space heating is based on the
and Electricity following pillars: Thermal improvement of existing building stock, enhanced
Demand technical standards for new buildings, increasing share of renewable energy
sources and district heating, increasing boiler efficiency, switching to fuels with
lower (fossil) carbon content. The most important instruments with regard to
these targets are technical construction regulations, housing support schemes
(both under sole responsibility of the states) and federal funds to support
district heating and entrepreneurial use of renewable energy sources and
efficiency improving measures (trade, industry, agriculture). The federal level
is also responsible for civil law with respect to the residential matters.
Building Since legislation for building codes falls under the responsibility of the Länder,
Codes an agreement between the federal government and the Länder in accordance
with Article 15a of the Federal Constitutional Law was applied to formulate
common goals and to co-ordinate future action.
According to the objectives stated in the 1993 Energy Report, the following
measures were adopted in the agreement:
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and techniques undergo continuous improvements and can be influenced
positively by strict legal standards.
Electric The agreement on efficient energy use based on Article 15a of the Federal
Appliances Constitution between the Federation and the Länder contains the following
and Others elements:
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Energy Eight regional and local energy agencies have been created since 1994. They
Agencies are funded by the Federal Ministry for Economic Affairs and Labour, the
Länder and municipalities.
Support In the past, public support programmes for construction of new dwellings have
Schemes had rather counterproductive total impacts on CO2 emissions, as they have
lacked quality standards. Over the past years most Austrian provinces started
to introduce specific incentive schemes for energy efficient construction
(improved insulation, zero energy houses, etc.) and the use of renewable
energy sources, such as heating systems based on biomass and solar
installations.
Generally, subsidies under the housing support schemes of the Länder in the
new construction sector are segmented into different components. All Länder
give basic subsidies for new houses built in conformity with existing technical
construction standards. Most Länder give supplementary subsidies, either on
social grounds or for specific measures to improve the quality of buildings well
beyond legally binding standards. Supplementary supports, differentiated
along energy-related specifications, led to significant decreases in CO2
emissions from new dwellings since 1995. The schemes also had positive
impacts on the construction industry in terms of technically improved building
standards at competitive costs.
Energy efficiency measures, i.e. insulation, other energy saving measures and
connection to district heating, are supported by all nine Länder in the context
of housing improvement in various ways: loans, subsidies, sureties.
"Buildings of Tomorrow" are residential and office buildings and differ from
current construction practice in Austria in that they fulfil the following criteria:
3
On average in 2001, Sch 1 = US$0.065. In 2002, Sch1 = € 0.07267.
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Higher energy efficiency throughout the whole life-cycle of the building.
Greater use of sustainable raw materials and efficient use of materials in
general.
Greater use of renewable energy sources, especially solar energy.
Increased consideration of user needs and services.
Since 1999 projects have been supported with an amount of some € 7 million
of public funding. This released innovative projects with an overall budget of
some € 120 million. Web site: www.hausderzukunft.at
INDUSTRY
Measures already The Austrian government has not established regulatory constraints on
existing and/or industry which mandate minimum energy efficiency standards in the industrial
being improved sector. This is partly due to the diversity of production processes in the sector
itself and the consequent difficulty in establishing standards which can be
applied to different systems. It is also due to the government’s federal
structure and the corresponding authority held by the Länder government
which makes it difficult to sustain such standards nation-wide. While industry
is subject to environmental laws which can effect energy efficiency, the
government’s greatest influence in this area is through the financial support of
energy auditing and investment in efficient systems. These support systems
are described below.
Information/ In 1980 an audit consultancy service for industrial enterprises was created
Technical and financed by the Federal Ministry for Economic Affairs and Labour in
Assistance collaboration with the Austrian Energy Consumer Association (ÖEKV). The
underlying service contract (between ÖEKV and the ministry) for the year
2001 was the 13th of its kind. Since the programme's inception in 1980, more
than 550 companies were audited and impressive potentials for improving
energy efficiency in industrial companies were identified. As ÓEKV also
proposes concrete measures for improvement it is demonstrated to
companies that the payback periods are in many cases less than two years.
These audits are free of charge for the interested companies.
From 1998 through 2001, this programme has worked with 89 companies.
These audits have identified 171 GWh of annual energy savings potential, an
amount equal to 8.1% of the firms’ total energy use. For the period from 1998
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to 2000 the audited firms consumed a total of 2 297 GWh, an amount equal
to 1% of the total energy consumed in the industrial sector over that time and
0.3% of the country’s total final consumption. The targeted potential savings
from this programme are equal to 0.8% of the country’s total final energy
consumption. No comprehensive monitoring system has tabulated data on
the actual realisation of these potential projects or the amount of energy that
was ultimately saved.
4
Statistics on total Austrian industrial energy use have not yet been prepared for 2001, so one can only look
through 2000. Nevertheless, there is no reason to believe that the three years of data from 1998 to 2000 are not
representative.
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Austria disposes of a network of energy auditors covering all Länder. In order
to facilitate access to this useful service, the Energy Efficiency Agency (EVA)
has published a brochure listing all the energy auditors. To ensure minimum
qualification standards, the ARGE Energie-beraterausbildung has developed a
multi-level training programme including the possibility of a university degree
(post-graduate). In addition, in order to improve the communication skills of
auditors, EVA holds seminars entitled Energy Auditing —Train the Trainer.
Demand-Side The Association of Austrian Electricity Utilities carries out different demand-
Management side management activities to improve efficiency in energy supply. The major
(DSM) activities are as follows:
Combined District heating (DH) and combined heat and power (CHP) plants are
Heat and widespread throughout Austria, and are often instrumental in meeting the
Power heating and power needs of medium and large cities. District heating
(CHP) schemes produce approximately 12% of the country’s heating and hot water
and 27% of the country’s electricity. The city of Vienna has the most
extensive system which provides 50% of the city’s power and 40% of its heat
and hot water. In 2001, the four CHP plants that serve WienStrom, the
Viennese energy utility, had a combined electric capacity of 1 050 MW. They
operated at a 35% capacity factor over the year and produced 3 255 GWh of
output. In additional to such municipal facilities, industrial plants also make
use of CHP technology.
CHP has long been supported by the regulatory structure in Austria. In order
to survive financially, the majority of Austrian CHP plants require tariffs per
kilowatt-hour of electricity above pure market prices. The Austrian Energy
Liberalisation Act implemented on 1 December 2000 includes the Federal Act
providing new rules on the organisation of the electricity sector, "ELWOG
2000" (Electricity Act 2000). This Act stipulates that the executive laws of the
nine Länder can impose on grid companies the obligation to purchase
electricity from CHP plants, provided that they serve public district heating
supply. It also stipulates that a minimum payment per kWh can be granted to
CHP generated electricity, also provided that they serve public district heating
supply.
As a result, the Austrian Energy Liberalisation Act allows the Länder to pay
CHP plants for their power at rates higher than those of other generation
options. Industry experts estimate that the average cost of CHP-provided
power would be approximately 5 € cents / kWh while system marginal cost
throughout the year would average 3 € cents/kWh. The regulations allow the
utilities to recover these additional costs through tariff supplements imposed
on all electricity grid users. These payments are in a per kilowatt-hour form.
The Länder of Vienna makes the most extensive use of CHP plants. To
support this system, each Viennese customer pays an additional 0.7427 €
10
cents per kWh of electricity consumed, which goes into a fund used to pay for
power coming from CHP facilities. Based on the average retail residential
rates for electricity in Vienna of approximately 15 € cents/kWh, the CHP
surcharge represents a 5% increase in customers’ electricity bills.
While the original Liberalisation Act gave the Länder full discretion in setting
these rates as they chose, legislation making its way through the Austrian
parliament establishes one CHP tariff for the entire country. However, neither
the original law nor the 2002 update make provisions for the continuation of
this system after 2004. No alternative policy for the support of CHP facilities
has gathered sufficient political momentum to be considered as a possible
replacement of the current support scheme.
In July 2002, the new Green Electricity Act was passed by the National
Council and Federal Council (announced in mid-August 2002). Most of its
clauses came into effect on 1 January 2003. The Green Electricity Act
governs the aid for green energy and combined heat and power generation
throughout the country. This means that all end consumers and electricity
dealers in Austria contribute to an equal extent to the financing of the aid
required.
The Green Electricity Act lays down a budget limit on aid based on
calculations of the expenditure required for cost-effective implementation. The
expenditure is financed as two components: firstly the electricity dealers must
reduce their proportion of cost to an internal price of 4.5 cent/kWh (this is
greater than the sales proceeds for the electricity dealers). Secondly, the end
purchasers must pay a supplement to the network tariff (probably around 0.25
to 0.30 cent/kWh). As of 1 January 2003, this supplement replaces the former
federal state supplements which are between 0.05 cent/kWh and 0.8
cent/kWh and would have had to be increased anyway to finance the Green
Electricity Act.
In the 2002 in-depth review of the energy policies of Austria, the IEA stated:
• Review the support scheme for CHP plants, including its continuation after
2004. Maximise CHP’s cost-effective contribution to meeting
environmental goals through such measures as a gradual lowering of the
support levels in accordance with a benchmarking system which includes
minimum efficiency standards.
11
In 2000, subsidies were:
The investments resulting from this support amounted to € 6.8 million, € 1.4
million, € 1.7 million and € 1.1 million respectively.
In addition to the two schemes, Energy audits and the Environment Support
Act, there are about 30 programmes -- mainly run by the Länder -- for the
support of various energy efficiency measures in the manufacturing industry.
Research In 1991 the Verbundgesellschaft (the Austrian electricity industry, the Länder
Co-operation electricity companies as well as the municipal and other electricity utilities)
in the Electricity established the Energieforschungsgemeinschaft (EFG) within the framework
Industry of the Verband der Elektrizitätswerke Österreichs, VEÖ (Association of
Austrian Electricity Utilities). EFG’s general aim is to improve the generation,
distribution and use of electricity in terms of cost-effectiveness, efficiency and
environmental compatibility. Its research activities focus on:
Environment.
Renewable sources of energy.
Innovative energy technologies.
Energy efficiency.
Social, economic and political framework.
12
Since 2001, additional energy-related projects, such as a survey for the
potential for the use of solar-thermal energy in industry, have been carried out
by this sub-programme.
Energy At the beginning of 1993, at the federal state level, a programme on energy-
Technology technology was created within the Innovations- und Technologiefonds, ITF
Programme (Innovation and Technology Fund) for a period of five years. After its
expiration at the end of 1997 the programme was extended to 1998 – in
particularly to synchronise with the Fourth EU framework programme on
RD&D. Follow-up activities were initialised within the ITF programme on
“technology transfer”.
Measures under
Consideration
Long-term From June 2000 until the autumn of 2001, EVA, the Energy Efficiency Agency,
Agreements together with partners from Italy and Norway worked on a project concerning
the implementation of long-term agreements (LTA) on energy efficiency in
industry (energy intensive industry, except energy industry). Various forms of
LTA were examined with regard to their effects and the elements necessary
for success as well as the possibilities for implementation in Austria. The
purpose was to find out how LTAs have to be designed to enable their
integration into the mix of Austria's energy efficiency policy instruments. For
Austria, a country with no LTA tradition in the energy efficiency field, the
study's results are certainly a valuable input for discussion should LTA be
chosen as an option for energy efficiency measures.
PUBLIC SECTOR In March 2001, the Federal Ministry of Economic Affairs and Labour together
with the Federal Ministry of Agriculture and Forestry, the Environment and
Water Management, started an initiative on third-party financing (TPF) of
energy efficiency measures in (federal) public buildings, following a successful
pilot project in 64 federal schools with a usable floor-space of more than
500 000 square metres. A management group consisting of representatives
of Bundesimmobiliengesellschaft (the company which owns the federal public
buildings and leases them to the user Ministries), user Ministries, the Federal
Ministry of Economic Affairs and Labour and external consultants was set up
and has so far accomplished the following tasks:
The potential annual savings of energy costs after the implementation of the
projects is estimated at € 6.5 million. The potential for reduction of CO2
emissions is estimated to be between 70 000 and 100 000 tonnes.
13
TRANSPORT
Measures already
existing and/or
being improved
Vehicle Vehicles in Austria are subject to two different types of taxes: a fuel
Taxation consumption tax (Normverbrauchsabgabe/NoVA)) and a car registration tax
(Kraftfahrzeugsteuer).
The fuel consumption tax NoVa was introduced in 1992. This tax has to be
paid at the time of purchasing a new car and is based on the fuel consumption
specifications of the car. The Structural Adjustment Act in 1996 led to an
increase in this tax rate of about 1% by changing the way fuel consumption is
measured. At the same time, the maximum tax rate was raised from 14% to
16%. Since the fuel consumption tax increases the tax burden depending on
the vehicle’s relative fuel consumption, this measure offers incentives for the
purchase of energy-efficient vehicles. In recent years a strong trend towards
diesel powered vehicles reduced the average fuel consumption. In 1996
diesel powered vehicles accounted for 50% of all new registrations compared
to 22% before the introduction of the fuel consumption levy. Diesel vehicles
currently hold a share of 40% to 50% of the total passenger vehicle fleet
compared to 5% in the mid-1980s.
The car registration tax has to be paid for each month in which a vehicle is
registered and has a number-plate, the prerequisite to use public roads. The
level of the tax depends on engine specification and it is paid to the insurance
company together with the liability insurance premiums. The tax is then
forwarded by the insurance company to the tax authority.
Road Some provisions of the Road Traffic Regulations have been amended to
Traffic implement a general night-time driving ban for non-low noise trucks and a
Regulations 60 km/h speed limit at night (in force since 1 January 1995) and to implement
enhanced monitoring of adherence to existing speed limits (in force since
1 October 1994).
Annual In order to maintain vehicles in a satisfactory technical state, every car must
Check-up undergo an annual check-up. (EU legislation calls for a maximum of two
years between check-ups.)
Master The 1991 Master Transportation Concept adopted the goal of reducing CO2 by
Transportation 20% by the year 2005 (from 1988 levels) and formulated appropriate
Concept measures to bring about this reduction. These measures are based on the
following principles:
Road To better utilise the available infrastructure of motorways and express ways
Pricing and to improve traffic distribution, a road pricing system has been set up. In
1997 an annual fee for motor vehicles to use motorways and express ways
was introduced. This fee is paid via the purchase of a sticker (vignette) which
has to be stuck onto the windscreen. The price of the vignette until the end of
14
2002 is € 73 (passenger vehicles) and € 727 (HGV up to 12 tonne) per year.
The introduction of a toll depending on mileage for motor vehicles exceeding
3.5 tonne is being discussed.
Public The following measures have been taken to promote municipal, local and
Transport regional public transport:
Bilateral In order to promote the use of buses and trucks with low emissions and low
Agreements consumption, Austria has concluded bilateral agreements with a number of
Central and Eastern European countries (Slovenia, Croatia, Bosnia, Lithuania,
Moldavia and Russia) on a quota system for vehicles which do not meet
certain emission and consumption standards.
Energy In 1999, the Tax Reform Commission proposed a number of measures for an
Taxation ecological tax reform including higher taxation on energy. In mid-2000 the
existing tax on electricity was increased from 0.1 Sch per kWh to 0.2 Sch per
kWh.
MONITORING/ For measures which are taken in the context of the EU, it can be assumed
ASSESSMENT that cost-effectiveness is seriously taken into account because – as a rule –
initiatives taken by the Commission and negotiated and adopted by the
Council are thoroughly analysed beforehand.
Decisions on measures at both the federal and Länder levels are based on
thorough preparatory work. At the project level, monitoring is done on a case-
by-case basis, where beneficiaries of subsidies have to report on the use of
the money. In many cases this micro monitoring is not exclusively focused on
15
energy efficiency because programmes often pursue objectives other than just
energy efficiency improvements.
So it can happen that a measure chosen may appear sub-optimal from a mere
energy efficiency perspective and differently from a global point of view.
In the 2002 in-depth review of the energy policies of Austria, the IEA stated:
16
Energy
IEA Efficiency
Update
BACKGROUND
Constitutional The fundamental factor affecting the evolution of Belgium’s energy policy in
Framework the last decade has been the Special Law of Institutional Reform of 8 August
1988 which made Belgium a federal state. Under this law, responsibilities for
energy efficiency, including related R&D activities, were fully transferred from
1 January 1989 to the three regional governments of Flanders, Wallonia and
Brussels-Capital. The federal government remains responsible, for example,
for energy tariffs. The energy consultation group CONCERE/ ENOVER
(Concertation état-regions pour l’énergie/Energie-Overleg Staat-Gewesten
inzake Energie) is a co-operative structure created by the central and regional
governments and operational since 1992. One of the main tasks of the
Cellule CONCERE/ENOVER is to gather information and promote its
exchange among the regions and the federal government and internationally.
Policies (regional, national and international) relating to energy efficiency are
discussed in the monthly plenary meetings of the group and in the thematic
working groups.
In the 2000 in-depth review of the energy policies of Belgium, the IEA stated:
Federal level
Federal Public Service – Economy – Division Energy:
www.energie.mineco.fgov.be
CREG (Commission for Electricity and Gas Regulation): http://www.creg.be
Federal Planning Bureau: http://www.plan.be
Brussels-Capital Region
Brussels Institute for Management of the Environment, IBGEBIM,
http://www.ibgebim.be
Flemish Region
Natural Resources and Energy Department: http://www.energiesparen.be
VREG (Flemish Electricity and Gas Regulatory Commission):
http://www.vreg.be
Sustainable Energy Agency, ODE-Vlaanderen: http://www.ode.be
Energy and Environment Information System: http://www.emis.vito.be
Walloon Region
Administration for Energy: http://energie.wallonie.be and
http://mrw.wallonie.be/dgtre
CWAPE (Walloon Electricity and Gas Regulatory Commission):
http://www.cwape.be
Information site on renewables: http://www.erel.org
Energy desks: http://energie.wallonie.be (click on "particulier")
Renewable Energy Agency: http://www.apere.org
Energy In June 1991 the Council of Ministers adopted a target to reduce CO2
and the emissions by 5% between 1990 and 2000. This target refers to total
Environment anthropogenic CO2 emissions; there is no specific target for the energy sector.
1
To achieve it, the regional governments in June 1994 and the Council of
Ministers on 1 July 1994 approved the Belgian National Programme for
Reducing CO2 Emissions (PNBRE94). This programme selected 14
categories of measures concerned essentially with energy conservation.
Review of the In March 1996, the different working groups that produced the PNBRE94
PNBRE94 carried out a detailed review to assess the results achieved by implementing
programme these 14 categories of measures. The review recommended that to overcome
the difficulties of implementation, it would be necessary, inter alia, to:
After the Kyoto commitment of December 1997, the European Union Council
1
of Ministers agreed on 17 June 1998 on the Burden-Sharing Agreement
towards achieving the 8% European Union commitment to reduce emissions.
In this context, Belgium is committed to reducing its emissions by 7.5% for the
2008-2012 period over the 1990 levels.
The first Federal Plan for Sustainable Development, submitted to the general
public and to organisations for consultation, was approved by the federal
government on 20 July 2000. The Plan is available (in French and English) at
http://www.icdo.fgov.be/pub/rapports.stm).
National Climate At the Belgian federal level, the "Plan National Climat 2002-2012" was
Plan 2002-2012 finalised on 6 March 2002.
1
The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6
2
respect to the “green” taxation reform. It will create a Climate Commission
consisting of representatives from the federal government and the three
regions, and supported by a permanent secretariat. It will make an annual
assessment of national co-operation and the implementation of the measures
taken in the framework of the National Climate Plan. It will advise on Belgian
positions in the international context of climate change and ensure information
exchange between the parties involved. Co-operation between the federal and
regional bodies will be achieved to implement flexibility mechanisms. It
integrates the measures foreseen in the plans in the Regions, in particular the
“Plan d’Action de la Région wallonne en matière de changements climatiques”
and the corresponding “Plan pour la maîtrise durable de l’énergie” (draft
available at http://daras.wallonie.be/).
3
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Thermal The main insulation standards for new buildings and retrofitting in the
Insulation residential and tertiary sector currently being implemented in the three regions
Standards are as follows:
Wallonia
For new lodgement buildings (residential, but also hospitals, hotels, boarding
2 3
schools, barracks, prisons) either the K55 standard or the Be 450 standard
4
is enforced. In both cases, k max values for various building shells and a
ventilation rate are enforced.
When retrofitting the above type of buildings with no change of allotment, only
k max values for the retrofitted elements are enforced. For rooms with
retrofitted windows, a ventilation rate is enforced.
Flanders
For new residential buildings in the Flemish Region, the K55 standard is
enforced as well as different k max values for various building shells.
For new buildings in the tertiary sector, i.e. hospitals, hotels, boarding schools,
barracks and prisons, the Flemish Region enforces the K55 standard and k
max values.
Brussels-Capital
2
The K ratio concerns the total level of thermal insulation calculated on the basis of a technical standard
established by the Belgian Institute for Standardisation (IBN). It takes into account mainly the insulation of the
various shells but neither solar heat, nor occupant behaviour nor the efficiency of heating. The lower the K factor
the better the total insulation of a dwelling.
3
The Be ratio concerns the calculation of the net needs for energy for heating, which means taking into account
the free inputs of solar heat. The calculation of the Be ratio is published in the "Arrêtés" of the Walloon
Government of 15 February 1996, "Moniteur belge" of 30 April 1996 and 9 May 1996.
4
A “k value” designates a heat loss coefficient of a wall system of a building. It allows the calculation of the
specific heat loss of a wall while the K65 or K55 (note the capital K) is the heat loss value of a whole building.
The current regulation in Belgium refers to a “k maximum value” for every type of wall used in a building.
Consequently, it is easier to use a “k value” for a wall in the case of a renovation project as the regulation would
apply only to the walls that were renovated.
4
Before a building permit can be issued, the calculation of the K ratio is
checked by the regional administration of town planning. The monitoring
process, however, is insufficient, and there are no official inspections to check
compliance with this regulation.
The Flemish government has issued an energy policy document for the period
2000 to 2004 which stated the objective of reducing energy consumption in
the residential sector in 2004 to the 1998 level. It is considering the
introduction of an energy performance standard following the Dutch
experience for new buildings (dwellings and office buildings) and efficient
control and motivation activities to enforce the existing legislation concerning
insulation of buildings. For industry and the service sector, the objective is to
increase energy efficiency by 2004 compared to 1998. This objective calls for
a wide range of measures, such as the creation of benchmarking covenants
with energy-intensive industries, a new Decree creating a global framework for
funding energy efficiency projects and the development of a coherent
communication strategy to promote energy efficiency.
The Walloon Region checks the application of the legislation at the stage of
the building permit but also at the beginning of the construction site.
Nevertheless, the inspections are insufficient and better ways to carry out
controls are being studied.
Interregional collaboration
The most recent decision of the group is on Belgian participation in the SAVE
II project EnPeR on Energy Performance Regulation.
5
adoption of the K55 insulation standard in the residential and tertiary sector of
the three regions.
In the 2000 in-depth review of the energy policies of Belgium, the IEA stated:
Heating Following a European SAVE study on the regular inspection and timely
Appliances replacement of central heating installations, all regions are planning actions in
this area. In Flanders a revision of the existing regulation is almost ready.
Following consultation in the framework of CONCERE/ENOVER, the other
two regions are studying a similar initiative.
Energy Belgian legislation is also being amended to comply with EU Directive 92/75
Labelling on energy labelling of household appliances.
Information/
Motivation
6
contains three main pillars: figures and statistics related to energy and
environmental matters; contacts (databases containing information on
organisations in the public and private sectors, and general information); and
processing (a technology database will be established containing
technological and economic information about clean and cost-effective
technologies in processes which can be applied in the industrial sector).
In Flanders, the Flemish Institute for the Rational Use of Energy (RUE),
VIREG, Vlaamse Instelling voor het Rationeel Energieverbruik, created in
September 1997, is now fully operational. Its goal is to involve actively the
different actors in RUE policy, to co-ordinate Flemish initiatives in the field of
RUE and ensure that available funds are used in the best possible way. More
particularly, the tasks of VIREG are to determine the energy saving potential
within the Region, plan and executive concrete actions in energy efficiency
and monitor these actions.
One of the most important actions of VIREG is the annual organisation of the
“month of RUE” in October. An ambitious calendar of events is developed
each year including seminars on RUE in the different sectors, numerous
conferences, workshops, advertisement in newspapers, magazines and
Flemish television.
Financial/Fiscal
Incentives
Subsidies for Various financial incentives have been introduced by the regions for the
Retrofitting retrofitting of buildings (excluding R&D). The Walloon Region through the
7
MEBAR programme allocates a maximum subsidy of BEF 55 0005 to low-
income households to improve the energy efficiency of their dwellings.
Measures under
Consideration
Fiscal At its meeting on 17 October 2000, the federal Council of Ministers decided to
Deduction promote energy efficiency measures in the residential sector through a fiscal
deduction.
An article that foresees a tax deduction for energy efficiency measures in the
residential sector has therefore been inserted in the new law that modifies the
taxation of physical persons. Eligible measures are the replacement of old
boilers, the installation of solar boilers and PV systems, the use of double
glazing and thermostatic vans and the insulation of roofs. In June 2001 it was
decided that the fiscal deduction of energy efficiency measures will enter into
force for the revenues of 2003 (tax declaration 2004) with an annual budget of
1.5 billion BEF (€ 37,184 million). The measures are deductible for a percentage
of the real costs. The deduction rate is 15% for the replacement of old boilers
by new condensation boilers, and for solar energy. The rate is 40% for the
installation of double-glazing, roof insulation, the installation of a central heating
regulator, plus energy audits. The total cumulative amount per dwelling may not
exceed € 500 the first year but might be increased the following years.
In this framework the federal authority and the Regions are working together to
prepare software for evaluating the energy efficiency of a building.
Discouraging To discourage direct electric heating and promote the use of natural gas
Direct Electric heating, the regional energy ministers will launch consumer information
Heating campaigns (leaflets, energy information kiosks, advice from architects,
technical brochures, etc.) on the real costs of using the different heating
systems and on their impact on the environment.
INDUSTRY
Measures already
existing and/or
being improved
Information and In Flanders, the Flemish Institute for Technology Research (VITO) raises
Technical energy awareness among industrial companies in particular through the
Assistance Information System on Energy and Environment (EMIS). The Flemish
5
On average in 2000, BEF 1 = US$ 0.023.
8
Institute for the Rational Use of Energy (RUE), VIREG is in fact a discussion
platform between the Flemish government, the energy production and
distribution companies and the industrial and residential energy users.
Flanders has also established energy efficiency consultancy departments for
small and medium-sized enterprises in each of the five regional development
companies. Industries can benefit from a 15% subsidy for energy audits that
are part of an overall investment project.
• In agreement with the SME, the RUE Broker analyses the energy balance
of the enterprise and detects the major problems. He proposes solutions
and provides information about the incentives and accompanying
measures available from the Walloon Region.
• In a few cases, the RUE Broker makes a deeper analysis (Energy Potential
Scan method, which was developed in the Netherlands) and proposes
more elaborate solutions.
• This action is sustained 100% by the Walloon Region, the SME assuming
responsibility for its own human and material participation.
Energy For industry, the Walloon Region intends to promote the CAFE (Comptabilité
Audits Analytique des Fluides et des Energies) or analytical accountancy for fluids
and energies used in industrial processes which is composed of data
collection, analysis, reporting and communication. It also promotes energy
audits by bearing 75% of the cost of expert advice.
9
intensive industry, the other industries being invited to make any energy
saving investments with a pay-back time less than five years.
Wallonia has already taken the first steps to adopt voluntary agreements with
different industrial sectors. The first sectors to sign a letter of intent were the
chemical and paper industries in July 2000. In 2001, three industrial sectors
(cement, limestone, and non-ferrous) signed a letter of intent. These letters of
intent will lead to voluntary agreements to reduce energy consumption by 2010.
DSM/IRP All regions have introduced policies and measures to promote energy
in the efficiency. The 2002 Flemish decree for the promotion of energy efficiency
Electricity sets the grid manager energy saving targets to be realised at customer level.
Sector Certificate markets to support combined heat and power (CHP) have been
introduced in Flanders and also in Wallonia where they are imbedded into its
green certificates system. Brussels-Capital is in the process of preparing its
own certificate scheme to promote CHP. Flanders is establishing a quota-
based certificate system for the promotion of CHP with a target to install an
additional 1 198 MW by 2005. Flanders and Wallonia have introduced
voluntary agreements for energy-intensive industries. The Flemish
agreements are based on “world top benchmarking” of energy efficiency
whereas the Walloon government subsidises energy auditing and monitoring
in industry, as well as technical certification of products contributing to a better
control of energy consumption. Projects are under way in all regions to
improve energy efficiency in buildings in line with the EU directive on the
Energy Performance in Buildings. The Flemish region is also preparing a law
to establish a legal framework on which specific implementing measures will
be based related to energy efficiency, renewables and the implementation of
flexible mechanisms and emissions trading.
Financial/Fiscal
Incentives
Economic General legislation enacted in 1959 and amended in 1970 created a structure
Development for financial support for economic expansion. This support is now the
Subsidies responsibility of the regions, and has been diversified according to each
10
Region’s needs. The financial support consists of subsidies, reimbursable or
not, which are allocated by the regions before the realisation of the
investment. The level of subsidy varies according to the type of enterprise and
other criteria such as the promotion of RD&D, the introduction of new energy
efficient processes and the development of employment.
In Flanders, subsidies for energy saving investments amount to 20% for SMEs
and 10% for large enterprises.
As the VLIET budget was not entirely spent, the VLIETbis programme was
started in 1997. Mid-1997, calls for proposals were launched for both parts of
the programme (namely policy support research and research in the field of
RUE and renewables). Mid-1998 the Flemish government agreed to support
12 policy support research projects and 16 research projects on RUE and
renewables. Budgets amounted to, respectively, BEF 84 and BEF 197 million.
The typical project duration is two years, which means that, currently, final
reports on the projects are being prepared. Under the new government, no
decision on the continuation of the VLIET programme has yet been taken.
6
Vlaams instituut voor bevordering van het wetenschappelijk technologisch onderzoek in de industrie – Flemish
Institute for the promotion of scientific and technology research in industry.
11
The Walloon Region operates various programmes in support of innovative
technologies, including energy technologies. The most important of those
programmes, the “Decree” (which refers to a Decree of 5 July 1990 by the
Walloon regional government granting financial support for R&D) applies to all
fields (i.e. energy, telecommunications, new materials and biotechnology).
The “Plan d’Action pour préparer la Wallonie au Futur” (“Action plan for
preparing Wallonia for the future”) was presented on 25 January 1996 and
consists of guidelines to be followed by the DGTRE. Thus, this Plan reflects
the new RD&D policy that the Walloon government intends to promote in the
future. Efforts by the regional government will be orientated towards clearly
identified technological niches through a yearly inventory that will be
developed through consultation with all the stakeholders. The different types
of support provided by the Region will be restructured and RD&D regional
policy will be better integrated into European research and development
programmes.
In the 2000 in-depth review of the energy policies of Belgium, the IEA stated:
Article 20, §4 foresees the possibility to fix minimum tariffs for the purchase of
electricity generated by quality CHP installations.
12
promote CHP by 1 January 2001. In order to develop such a list of
measures, the consultation group will collaborate with the Belgian
organisations responsible for the promotion of CHP (Belgogen and
Cogensud).
Flanders
Wallonia
The decree on the green certificate system includes the high efficiency CHP
on the basis of the avoided emissions.
Brussels-Capital
The holders of a supply permit, with the exception of the distribution grid
managers, are obliged to buy the surplus electricity produced by auto-
producers by means of good quality CHP installations, installations for green
electricity generation and installation for thermal production from domestic
waste, at the price fixed by federal legislation.
The government can oblige the suppliers, with the exception of the distribution
grid manager, to deliver a minimum amount of certificates to the "service". The
"service" defines the fine which is to be paid in case of non-compliance with
the minimum amount of certificates.
2. Other instruments
Flanders
One of the instruments that Flanders will use to reduce emission of GHG is
the increased use of CHP. In an earlier objective, the Flemish government set
a target to install 1 200 MW additional CHP capacity by 2005. The new
government has added to this target an extra 600 MW of high-quality CHP
plants between 1999 and 2004.
The special body BELGOGEN was created in 1997 (50% funded by the
Flemish government and 50% by the private sector) to stimulate market
penetration of CHP.
Wallonia
13
support of the Walloon Region.
PUBLIC SECTOR
Measures already
existing and/or
being improved
Subsidies for In order to promote the rational use of energy, two regions allocate subsidies
Non-Commercial to municipalities and other local bodies, hospitals and schools. Wallonia
Bodies implements two subsidy programmes to promote energy efficiency, AGEBA
for municipal, provincial and intermunicipal buildings and ECHOP for schools
and hospitals. These two programmes will be harmonised.
Third-Party To promote energy efficiency investments in the public sectors of the three
Financing regions, the mechanism of third-party financing (TPF), through which the
economic risk of investments in the rational use of energy is undertaken by a
third party (generally an energy service company) instead of the end-user, is
widely used in the framework of regional energy efficiency policies. This is the
case, for instance, in the Walloon Region with the AGEBA programme. In the
Flemish Region it was used in the 1998 relighting programme of a government
building in Antwerp, and in the Brussels-Capital Region which has budgetary
provisions for TPF in public bodies.
In the 2000 in-depth review of the energy policies of Belgium, the IEA stated:
TRANSPORT The Belgian National Programme for Reducing CO2 Emissions contains
several energy conservation measures for the transport sector. A new national
plan should be ready by mid-2001.
General A broad survey, held in 1999, on the mobility of persons in Belgium, gave the
Situation following shares of the respective modes in total mobility:
14
As in other European countries, freight transported by trucks on roads
increased substantially in the past 10-20 years.
As a result, total road traffic increased dramatically in the past 10-15 years (on
some motorways: >100%), causing structural congestion problems, mainly in
the larger cities (Antwerp, Brussels, Ghent) and on most motorways
surrounding or interconnecting those cities
These new taxation schemes would partly replace the existing vehicle and fuel
taxes. The current major fiscal parameter for vehicles is the so-[called “fiscal
(horse) power” (FP), which is an almost linear function of the engine
displacement value (active cylinder volume).
As a result of this definition, a diesel car gets a higher FP-value than a car
equipped with an Otto-engine giving the same engine power (in kW).
The annual circulation tax is based on a term which is (an almost quadratic)
function of the FP-value. An additional term (also function of the FP) is applied
to LPG cars and diesel cars.
Heavy duty vehicles (trucks, buses) pay a supplementary circulation tax (the
so called “Eurovignette”).
Taxes on fuels:
15
• Excises: depending on the fuel type: 0 for LPG and CNG, higher for
gasoline than for diesel.
• 21% VAT.
There is a tax (9.25%) on vehicle insurance payments and 21% VAT on all
invoices (purchase, maintenance, etc).
The introduction of “green” car taxes will have an important leverage effect on
these information actions.
Fuel Efficient Extensive measurement campaigns carried out by VITO (and financed by
Driving ANRE) on different types of cars and in real traffic conditions, have shown
Styles clearly and objectively the important influence of traffic conditions and driving
styles (from anticipating, defensive driving, to a nervous, “sporty” style) on the
fuel consumption and emissions of the cars tested.
The reported energy savings were somewhat lower than expected (in foreign
experiments, fuel savings of up to 15-20%, compared with “average, normal
driving” were reported). This can be explained by the fact that most
participants were probably experienced and motivated drivers.
7
490 000 in 1999, and 530 000 forecast for 2000.
16
The response to a questionnaire by most participants was positive. Their
remarks will help improve the course material. An effective technical
improvement would be the use of a display (on the dashboard) showing the
fuel consumption in real time (some cars have it already as a standard
feature).
VITO and a Belgian driving school (run by the Belgian importer of the
Volkswagen group, whose clients are mainly drivers of company cars) will be
active participants in a new European SAVE II-2000 project (which started in
January 2001), called “Ecodriving Europe”. The aims of this project are: to
gain more experience with ecodriving-training courses and to improve their
effectiveness, to stimulate the organisation on a larger scale of such courses,
and to integrate the testing of these fuel saving driving techniques into the
official examinations for obtaining a driving licence (which up to now,
concentrates on traffic codes and road safety).
Public Some ten years ago, the Belgian National Railway Company (NMBS-SNCB)
Transport greatly increased its investment programme in railway infrastructures for
Systems national and international train lines and in rolling stock (new locomotives,
carriages).
The public company VVM-De Lijn, responsible for regional and local public
transport in Flanders, is also investing heavily in new buses, low-floor tram
cars (in the cities of Antwerp and Ghent), and in the associated infrastructure
(such as the extension of tramlines, bus stations, passenger information
systems). The total investment budget for 2000 was BEF 5.237 million while
the prevision for 2001 is BEF 5.811 million.
De Lijn also started in 1998 an experiment with free public transport (in the
city of Hasselt). From the beginning of last year, this free service was
extended to all Flanders for certain classes of users (seniors ≥65 years, the
personnel of the Ministry of the Flemish Community, who can also get free
train tickets, children ≤12 years). The federal government followed this
example by reducing train fares for certain users.
17
Transport The Walloon regional authorities do carry out some activities to improve
Planning in energy efficiency and to reduce emissions, focusing on a sustainable
Businesses infrastructure and mobility policy. The "Plan d’environnement pour le
Développement durable en Région Wallonne” (PEDD) (Economic Plan for the
Sustainable Development of the Walloon Region) of 9 March 1995 identifies a
wide range of measures including land-use planning, carpooling, promotion of
public transport, use of alternative and cleaner fuels such as natural gas and
biofuels, traffic management, information and motivation campaigns for
drivers, promotion of railways and inland waterways, the development of
intermodal alternatives for road transport of goods and the development of
international transport for passengers and goods.
Other actions within Brussels-Capital are initiatives to limit access to the city
centres, instruments for and study on transport management.
In the beginning of 1999, a proposal for a law which was intended to make
company transportation plans compulsory for medium-sized businesses (>50
employees) was introduced in the Federal Parliament, but it did not complete
the procedures (the proposal was accepted by the Chamber of
Representatives, but was blocked in the Senate, and because of the elections
in June 1999 it expired; it was also firmly opposed by the Belgian Federation
of Enterprises). The Federal Minister of Mobility announced that a new
proposal for a law would be introduced in the autumn of this year.
Carpooling has been promoted for many years in Flanders. The initiative was
in fact originally taken by a non-profit organisation called “Taxistop”.
18
• The construction of specific parking lots (in April 2000, 40 parking lots, with
a total capacity for 2 400 cars, were open); this number should increase to
47 by the end of the year.
The Brussels-Capital Region concluded in 1999, for the “Icaro” project, a two-
year-contract with Taxistop (with co-financing from the European Commission)
to operate a carpool-centre (database) in Brussels. This initiative is intended
for individuals and about 300 medium and large-sized enterprises.
Promoting The maritime ports (Antwerp, Ghent, Ostend and Zeebrugge) process vast
Energy amounts of all forms of freight to be transported to, or coming from, their
Efficient hinterlands.
Freight
Transport Antwerp is not only the second largest maritime port in Europe, but also the
Modes most important industrial area in Flanders. Antwerp and Ghent have long
been connected to a vast network of inland waterways, with access to other
industrial areas in Belgium and to the waterway networks in the Netherlands,
Germany, France, the south of Switzerland (Basel), Austria, Central and
Eastern Europe. Antwerp is also a modal point of several pipeline networks
(for petroleum products, natural gas, industrial gases).
The four ports are also well connected to the railway network of the NMBS.
While the total freight traffic volume of the four ports increased at a moderate
rate (in the period 1980-99, it has grown from 118 million tons to 178 million
tons), the growth rate of the container traffic and Ro-Ro-traffic (“Roll on – Roll
off” = cars, trucks, trailers) has been spectacular in the past 15-20 years.
But although these types of freight (and especially containers) are very well
suited to transport by rail or inland-vessels/barges, even over relatively short
distances, between well equipped terminals, in reality a large share of
container-traffic is carried by trucks (even to neighbouring countries, the
Netherlands, Germany, France).
The substantial growth in traffic between the region of Antwerp and its
hinterland, has over the past 10-15 years, created increasing problems of
traffic congestion, mainly on the roads but also on certain sections of the
railway network of the NMBS. The Flemish government and the NMBS
therefore jointly decided to invest massively in new or improved transport
infrastructures:
The total investment of the Flemish Region in maritime infrastructure for the
four ports and in their maritime access ways, amounted to BEF 85.420 million
during the period 1989-99.
Enforced Unmanned cameras have been installed throughout Belgium to control speed
Speed Limit limits, the majority of them being in Flanders. The speeding fines were
harmonised and increased all over Belgium as of 1 January 1999.
19
Other Employees who cycle to their work place are rewarded BEF 6 per kilometre.
Measures
In the 2000 in-depth review of the energy policies of Belgium, the IEA stated:
MONITORING/ In Flanders, the SENVIVV study was undertaken in the framework of the
ASSESSMENT VLIET programme in the building area. The subject of the study was the
testing of 200 recently built (1990-1997) individual dwellings and apartment
buildings for application of the insulation regulations, the heating system
installed and the glazing. Results are as follows:
At the moment, the building owner has to prove the K value of the building
when beginning the procedure to receive the building permit. The Flemish
government considers that it would be preferable to oblige the owner to prove
the K value of his property in the final stages of construction.
In the 2000 in-depth review of the energy policies of Belgium, the IEA stated:
20
(QHUJ\
IEA (IILFLHQF\
8SGDWH
BACKGROUND Responsible and increasingly efficient energy use is given considerable policy
attention in Canada. In 1994-95 the federal government conducted a
comprehensive review of its programmes, including energy efficiency. The
review emphasised the importance of federal programmes that support
improvements in energy efficiency, particularly as they relate to fulfilling
Canada’s climate change goals.
Based on the Energy Efficiency Act of January 1993, the cornerstone of the
federal energy efficiency effort is the Efficiency and Alternative Energy
Program (EAE). It encourages investment in economic efficiency and
alternative energy opportunities by employing a mix of information,
persuasion, financial incentives, R&D and regulatory measures. Energy
efficiency activities are carried out in co-operation with provincial
governments, utilities, industry (suppliers of energy-using equipment) and
non-governmental organisations. Major programme expansions occurred in
1997 and 2000 (see below).
National Action The National Action Program on Climate Change (NAPCC) launched in 1995
Program on governed Canada's national effort on climate change. It covered federal,
Climate Change provincial and municipal initiatives already announced, or likely to be
announced, with a focus on energy efficiency, alternative energy, and
reductions of GHG emissions. Some provinces also took action with
stakeholders in their own jurisdictions.
The NAPCC gave particular attention to voluntary undertakings (for example,
by industry) registered with Canada’s Voluntary Challenge & Registry Inc. --
www.vcr-mvr.ca -- established in 1994 and privatised in October 1997. The
organisation registers voluntary commitments to reduce GHG emissions. More
than 790 organisations, including federal and provincial government bodies,
have registered, accounting for over 75% of Canada’s GHG emissions from
business and industrial sources.
Government of On 6 October 2000, the Government of Canada Action Plan 2000 on Climate
Canada Action Change was announced and the major features of the initiative outlined. It
Plan 2000 on includes new and expanded measures to reduce GHG emissions by 65
Climate Change megatonnes per year during the commitment period 2008-2012. Funding for
the Action Plan was set at C$500 million over five years, which is in addition to
the C$ 600 million over five years announced in Budget 2000 to support the
Government of Canada’s climate change-related activities.
In the 2000 in-depth review of the energy policies of Canada, the IEA stated:
Institutional Canada is a federation of ten provinces and three territories. Federal and
Framework provincial governments share political authority and jurisdiction. The division
of powers in the Canadian Constitution means that federal, provincial/territorial
and municipal governments share jurisdiction over policy areas relevant to
climate change.
In the 2000 in-depth review of the energy policies of Canada, the IEA stated:
2
NRCan The Federal Department of Natural Resources (NRCan) has primary
responsibility for formulating and implementing energy policy in areas of
federal jurisdiction. Its energy efficiency activities are delivered by two groups:
the Office of Energy Efficiency (OEE), formerly the Energy Efficiency Branch,
and the CANMET Energy Technology Branch. The OEE has a mandate to
renew, strengthen and expand Canada’s commitment to energy efficiency in
order to help address the challenges to climate change with specific emphasis
on the Kyoto Protocol.
Community The Community Energy Systems Program works in partnership with Canadian
Energy communities and businesses to help them meet their energy needs with
Systems greater energy efficiency and increased use of renewable energy. The
Program programme identifies and develops opportunities to use district heating and
cooling, combined heat and power (cogeneration), waste-heat recovery,
thermal storage and local sources of renewable energy, particularly biomass.
The programme provides planning and implementing services for projects in
both urban centres and remote communities, development of software for
system design, and analysis of the improved performance of district cooling
systems. It also promotes and fosters the adoption of integrated energy
systems. The programme’s laboratory, which houses an ice-slurry-based
district cooling system, develops and tests district energy technologies.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and or
being improved
National The Model National Energy Code for new residential and commercial
Energy buildings (MNECRCB) consists of two parts, namely the Model National
Code Energy Code for Houses (MNECH) and the Model National Energy Code for
Buildings (MNECB). The MNECRCB aims to increase energy efficiency by
specifying minimum performance standards for new Canadian houses and
buildings. It provides this customised energy standard by allowing for regional
climate and energy and construction cost variations. Published by the
Canadian Commission on Buildings and Fire Codes in 1997, its development
was supported by NRCan in collaboration with energy utilities, provincial and
1. On average in 2001 C$1 = US$ 0.65. Note – the C$44.5M is the federal budget which is leveraged through
in-house (cost recovery) and contracted-out (partnership) projects. The ability to recover costs and to
leverage external funds are obviously dependent upon the base funding identified. Cost recovery increases
the programme size by about C$7M/a. The contracting-out budget varies, ranging between C$17M/a and
C$18M/a. CETB: Partners contribution ratio target is 40:60.
3
territorial governments, and the National Research Council Canada (NRC).
NRCan provides software, training and implementation materials to support
the adoption and implementation of this model code by relevant
housing/building authorities (i.e. provinces, territories and municipalities). The
department also monitors and analyses the impact of this code. This
programme was very influential during consultations under the National
Climate Change Process in 1999-2000, when the provisions of the MNERCB
provided a strong basis for considering measures to improve the energy
efficiency of the Canadian housing and building stock.
R-2000 Home The voluntary R-2000 Home Program, first introduced by the Government of
Program Canada in January 1982, encourages Canadians to build houses that are
more energy efficient and environmentally responsible.
Certified R-2000 homes meet minimum standards for windows and doors,
insulation, HVAC (heating, ventilation and air conditioning), lighting systems,
air quality, recycled materials and water conservation.
Certified R-2000 new houses are up to 50% more efficient than homes built to
current building codes. R-2000 targets home building companies through
education and training schemes. The R-2000 Standard is available across
Canada and is delivered through agreements with Home Builders
Associations in the provinces of British Columbia, New Brunswick, Nova
Scotia and Newfoundland and Labrador, and by private companies in Ontario
and Alberta. Three provinces/territories (namely, Manitoba, the Yukon, and
Quebec) deliver the programme in their regions. When provinces or utilities
have given grants to home buyers or builders, there has been a much higher
adoption rate of the ambitious R-2000 Standard in new buildings than might
be expected on a purely voluntary basis. The R-2000 Standard has had a
strong influence on building practice in Canada; houses built today are about
30% more efficient than those built in 1980, before implementation of R-2000.
Building Given climate change concerns and the need to adopt sustainable
Energy development concepts, the goal of this programme is to establish an industry
Technology capacity which will allow a 50% improvement in energy performance in
buildings. The programme addresses both technology development and
deployment in both new and retrofit applications. Technology development
will focus on improved cost-effectiveness and life cycle performance, and on
the next generation of products. Market acceptance and adoption will be
addressed through the development of specific technologies (e.g. computer
design tools) and facilitating awareness (e.g. best practices).
Ontario (1988), British Columbia (1990), Quebec (1992), Nova Scotia (1991)
and New Brunswick (1995) have all implemented minimum energy efficiency
4
standards for specific equipment sold or leased within their respective
jurisdictions.
The Accelerated As one of the measures in the Government of Canada’s Action Plan 2000 on
Standards Climate Change, the Accelerated Standards Action Program (ASAP), will
Action Program improve the energy efficiency of appliances through the development of
& standards for residential, commercial and industrial equipment. It will
Energy Star accelerate the market penetration of high-efficiency products by providing
Promotion marketing and product certification assistance to encourage the purchase of
"best in class" products.
In line with ASAP, the Energy Star Promotion was started in July 2001. The
Energy Star£ symbol – an internationally recognised endorsement label –
allows the consumer to very simply identify the most energy efficient products
available based on a standard set of criteria.
Energy The EnerGuide for Equipment labelling programme supplements the minimum
Labelling performance requirements and seeks to stimulate consumer awareness and
to influence purchasing decisions. It covers household appliances and air
conditioners. This labelling scheme is mandatory for new products and gives a
comparative assessment of energy efficiency and energy consumption for a
range of appliances on the market. It is supported through directories for
consumers, information and education campaigns, and training for retail sales
staff. Marketplace audits revealed that over 80% of the regulated parties
complied with the labelling requirements.
Energy The Energy Innovators Initiative (EII) promotes energy efficiency upgrades
Innovators and building retrofits in the commercial and institutional sector. The initiative
Initiative recruits Canadian organisations to enrol as Energy Innovators and make a
corporate commitment to energy efficiency using an Energy Management
Plan. An Energy Innovator can ask to have its plan, which includes its
commitment to reduce greenhouse gas (GHG) emissions from its operations,
registered with Canada’s Climate Change Voluntary Challenge and Registry
Inc. (VCR Inc.).
5
available to Energy Innovators implementing comprehensive energy efficiency
pilot retrofits. NRCan contributes up to 25% of project costs to a maximum of
C$250 000. Participants agree to replicate their pilot project in at least 25% of
similar facilities that they own or occupy.
NRCan works in partnership with key sectoral associations such as the Hotel
Association of Canada and the Association of Canadian Community Colleges.
These partnerships help to recruit Energy Innovators, stimulate energy
management plans and projects and develop sector-specific tools.
The EII, as part of Action Plan 2000, will be offering two new incentives for
commercial and institutional members: one for retrofit planning services and
the other for energy-intensive retrofits in organisations with fewer than four
buildings.
Industrial Building The Industrial Building Incentive Program (IBIP) established by the Minister of
Incentive Program Natural Resources in July 2001 extends the precepts of CBIP into the
industrial sector. The programme aims to increase the energy efficiency of
newly constructed buildings used for manufacturing and other industrial
activities. IBIP will offer an incentive to companies building new industrial
facilities to offset additional design costs inherent in the initial attempts at
energy-efficient design, primarily focusing on affecting the market through
information programming.
6
PUBLIC SECTOR
Measures already
in place and/or
being improved
The FBI provides a full range of products and services for implementing
comprehensive energy efficiency improvements within an organisation. FBI
account managers work with departments from project inception, through
contract development and award, celebration and recognition, to monitoring
and tracking.
The FBI supports partnerships with energy management firms that provide a
turnkey service which includes engineering, third-party private-sector
financing, comprehensive training packages and performance guarantees.
Project data are collected annually from departments and evaluations, and
programme results are published in the Government of Canada’s annual
report to Canada’s Climate Change Voluntary Challenge and Registry Inc.
(VCR Inc.).
The House The House in Order Initiative is designed to accomplish two main objectives of
in Order the Government of Canada. The first objective is to demonstrate
Initiative environmental leadership to the rest of Canada (i.e. all other levels
government and sectors of the economy). The second is to reduce total GHG
emissions resulting from Government of Canada activities by a factor that is
as stringent as that expected of the country as a whole under the Kyoto
agreement.
The initiative provides a set of tools which departments can use to reduce
emissions in their facilities. Several tools are explored and evaluated for their
potential impact on GHG reduction, as well as for cost-effectiveness and
feasibility of implementation. The tools are meant to assist in reducing
emissions from energy production, distribution and consumption activities,
employee behaviour, procurement activities and fleet management practices.
FleetWise Launched in October 1995, the FleetWise programme — the Federal Fleet
Initiative — is a government leadership initiative that targets federal vehicle
fleets to reduce energy use and promote the use of alternative transportation
fuels. The objectives of the programme are to: improve the operational
efficiency of fleets; reduce greenhouse gas emissions from fleets and
accelerate the use of alternative transportation fuels. The initiative provides
fleet managers with an assessment of fleets at little or no cost and technical
advice on using alternative transportation fuels (ATFs) and acquiring
alternative fuel vehicles. In addition, it campaigns to encourage vehicle
operators to select alternative fuels. Four departments — Treasury Board,
NRCan, Environment Canada, and Public Works and Government Services
Canada — manage planning, implementation and reporting under the
FleetWise initiative. NRCan is responsible for implementing FleetWise.
Leadership The Leadership Challenge will encourage all federal departments and
Challenge agencies to participate in emission reduction efforts. Best practice information
7
will be provided in the areas of employee awareness, staff training, solid
waste management, GHG-responsible procurement practices, and by
supporting public transit and green commuting.
INDUSTRY
Measures already
existing and/or
being improved
Industrial The Canadian Industry Program for Energy Conservation (CIPEC), a sector-
Energy level programme, and the Industrial Energy Innovators Initiative (IEII), a
Efficiency company-level programme, both address barriers to planning, implementing
Commitments and tracking energy efficiency projects in industry. Key elements of both
programmes are: the establishment of energy efficiency improvement targets;
the preparation of energy efficiency action plans; the tracking of energy
efficiency improvements on a per-unit-of-production basis; the reporting of
results; and the development and delivery of products and services which
overcome barriers to continued energy efficiency improvements.
CIPEC relies upon the collective support and action of more than 38 trade
associations representing over 90% of secondary industrial energy demand in
Canada. Overall direction is provided by an executive board made up of CEOs
and vice-presidents of some of the largest energy users in industry. CIPEC
task forces in 23 sectors use events, publications, training sessions and
networking to promote energy efficiency.
New In part through funding provided by the Program on Energy R&D, the
Technologies CANMET Energy Technology Branch works in partnership with the private
for Industrial sector, academia and other levels of government to reduce the overall
Energy intensity of Canada’s industrial and utility sectors and, consequently, GHG
Efficiency and other emissions, while improving productivity and providing Canadian
companies with potential economic opportunities.
8
In the 2000 in-depth review of the energy policies of Canada, the IEA stated:
TRANSPORT
Measures already
existing and/or
being improved
Fuel Efficiency The Motor Vehicle Fuel Efficiency Program, in effect since 1978, delivered by
Standards NRCan and Transport Canada, promotes improvements in new vehicle fuel
efficiency by encouraging motor vehicle manufacturers to meet voluntary
annual company average fuel consumption targets for new automobiles sold
in Canada. Average fuel consumption targets are patterned after the US
CAFE standards, although compliance is voluntary in Canada. NRCan works
with the vehicle manufacturers through a voluntary Memorandum of
Understanding (MOU) on fuel efficiency. The programme focuses on
opportunities to improve vehicle fuel technology by providing information to
consumers on the fuel efficiency on new vehicles. The annual Fuel
Consumption Guide, which lists fuel consumption ratings for new vehicles, is
produced through information obtained under this initiative.
The current actual average fuel consumption ratings are 8 litres/100 km for
cars and 11.4 litres/100 km for light trucks.
Energuide Since 1999, vehicle manufacturers have been attaching a fuel consumption
for label to their cars, vans and light duty trucks. The label is standardised across
Vehicles the industry and appears on its own or is combined with the vehicle options
and price label on the side window of each new vehicle.
FleetWise Launched in October 1995, the FleetWise programme — the Federal Fleet
Initiative — is a government leadership initiative that targets federal vehicle
fleets to reduce energy use and promote the use of alternative transportation
fuels. FleetWise is described in more detail under the Public Sector section.
Auto$mart Auto$mart encourages and assists motorists to buy, drive and maintain their
vehicles in energy-efficient ways that save fuel and money, and emphasises
how such efforts also reduce vehicle emissions. Its main tool is the Auto$mart
Guide, which offers useful information and tips on purchasing, operating and
maintaining personal vehicles. The programme also provides resource
materials to driver educators for fuel-efficiency training to novice drivers and
9
provides Web-based communications tools that support and encourage the
development of new initiatives of local governments, industry and associations
to promote fuel efficiency. Auto$mart also offers information on opportunities
to use alternative fuels.
Freight The goal of the Freight Efficiencies and Technologies Initiative is to increase
Efficiencies and the freight transportation industry’s participation in voluntary climate change
Technology initiatives by: increasing the operating efficiency and environmental training
Initiative and awareness among freight operators and shippers; and demonstrating and
encouraging the take-up of innovative environmental technologies and best
practices within the freight transportation sector. This is a joint NRCan-
Transport Canada initiative.
The Demand Policy and Analysis Division of the Office of Energy Efficiency
(OEE) produces various policy and analysis reports to give a picture of the
current energy efficiency policies and the results achieved. These include:
Emissions Reductions from Federal Operations-Progress Report to the
Climate Change Voluntary Challenge and Registry; Energy Efficiency Trends
in Canada, 1990 to 1999; A Review of Secondary Energy Use, Energy
Efficiency and Greenhouse Gas Emissions; The State of Energy Efficiency in
Canada, Report 2001; and the Report to Parliament Under the Energy
Efficiency Act-1999-2000. These reports are updated annually.
10
An evaluation of the OEE’s performance measures in 2000, conducted by the
Office of the Auditor General (OAG), concluded that NRCan has made
satisfactory progress in addressing the 1997 OAG recommendations on
NRCan’s energy efficiency initiatives. While progress continues, the OAG
follow-up noted improvements in the performance information (both
expectations and achievements) as well as an increased effort to link changes
in energy use to changes in greenhouse gas emissions.
11
Energy
IEA Efficiency
Update
Energy The Czech Republic acceded to the UN Framework Convention on Climate Change
and the (UN FCCC) on 7 October 1993 on the basis of the Government of the Czech
Environment Republic Resolution No. 323 of 16 June 1993. On the basis of Resolution No. 530,
passed on 18 October 1995, the Minister of Foreign Affairs on 17 November 1995
requested the UN Secretary General and the FCCC depositor to take the following
measures:
The Czech Republic presented on 17 October 1994 its First National Communication
to the Secretariat of the UN FCCC. In May 1995, the country received the in-depth
review mission of the Secretariat, which issued a report stressing that this
Communication outlines a set of measures to mitigate the impact of climate change.
On 23 November 1998, the Czech Republic signed the Kyoto Protocol (Czech
Republic Resolution No. 669/1998). During the 2008-2012 commitment period, the
country is committed to reducing total emissions by 8% compared to the 1990 level.
Today, total GHG (greenhouse gases) from fuel combustion are 20% below the
1990 baseline.
The Czech Republic's Second Communication on the process to comply with the
commitments under the UN Framework Convention on Climate Change was issued
by the Ministry of the Environment in May 1997. It outlines various measures ("no
regret measures") that have been applied to solve the country's economic and
environmental problems. These measures are defined in the document entitled The
State Environmental Policy of the Czech Republic approved by Government
Resolution No. 472/1995.
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
State In May 1999, the government of the Czech Republic approved the document entitled
Environmental The Strategy of Protection of the Climate System of the Earth in the Czech Republic
Policy (Resolution No. 480/1999) which places protection of the climate amongst top-
1
priority environmental issues and sets out the main tasks for the individual sectors,
which should lead to fulfilling the quantitative tasks of the Kyoto Protocol. Key
emphasis is placed in the document on a wide range of measures related to energy
efficiency and on renewable energy.
A new Clean Air Act came into force on 1 January 2002. The main reason for
restructuring the current air protection legislation in the Czech Republic lies in
harmonisation and transposition of the relevant legislation of the European Union in
relation to the preparation for accession of the country to the European Union. The
new Act is comprehensive and includes protection against pollutants, protection of
the ozone layer and of the climate system of the earth in the sense of the UN FCCC
and of the Kyoto Protocol.
The new Clean Air Act will also provide a legislative basis for the National
Programme to Mitigate Changes in the Climate of the Earth, approved by the
government to replace the above-mentioned Strategy of Protection of the Climate
System of the Earth in the Czech Republic. The Act will set up reduction targets for
substances affecting the climate system and deadlines for achieving them.
National The National Energy Policy was approved by government decision No. 50 of
Energy 12 January 2000.
Policy
This basic document indicates the targets in the area of energy management
according to the needs of economic and social development, including
environmental protection. The long-term strategic targets of energy policy include a
gradual reduction of the volumes of energy and raw materials needed by the Czech
economy to meet the level of advanced industrial countries. The new sub-objectives
up to 2020 on the demand side are to remove price subsidies and distortions, to
create competitive markets for electricity and gas, to achieve freedom of choice for
consumers, and to ensure energy efficiency enhancement.
Energy The Energy Management Act (Act on Energy Management of the Czech Republic
Management No. 406/2000) was adopted by the Parliament on 25 November 2000 and
Act implemented on 1 January 2001. Chapter III of this framework law, entitled National
Programme for Economical Energy Management and Use of Renewable and
Secondary Energy Resources, deals, inter alia, with the various types of subsidies
from the state budget for specific programmes. Chapter IV, entitled Measures to
Enhance Economical use of Energy, deals specifically with the ways to promote
energy efficiency, such as minimum energy efficiency requirements, conditions for
house occupiers to fulfil determined thermal and technical properties of buildings,
energy efficiency labelling, energy audits, energy auditors and co-generation of heat
and power (CHP).
State Programme The State Programme to Support Energy Savings and Use of Renewable Sources of
to Support Energy (the State Programme) is a one year programme set up by the Ministry of
Energy Savings Industry and Trade which has been announced each year since 1991. It includes
and Use of energy saving measures in the sphere of production, distribution and consumption of
Renewable energy, wider use of renewable and secondary sources of energy and development
Sources of of CHP, counselling, implementation of new low energy consuming technologies,
Energy education, public education and promotion leading to more economic use of energy.
To carry out the State Programme, the Ministry of Industry and Trade has
established the Czech Energy Agency (see below).
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
2
National The Czech Republic became an independent country on 1 January 1993, as a result
Circumstances of the division of the former Czechoslovakia into the Czech and Slovak Republics.
Since 1990, the country's economy has been undergoing transition from a centrally
planned to a market economy; the country's economic development has also been
influenced by the division of Czechoslovakia. The first stage of economic
transformation was marked by a deep recession as GDP decreased by about 22%.
The economy revived in 1995 and its growth has been encouraged by industrial
restructuring and revitalised investments.
The environment was seriously damaged during the 40 years prior to 1989: during
this period of controlled and centrally directed economy, there was an attempt to
achieve maximum production with no regard for the environment or natural
resources. The situation was aggravated by an excessively high energy demand
and uneconomical use of raw materials; imperfect or non-existent environmental
legislation, etc. This distorted economy resulted in disproportionately high emissions
of principal pollutants and a considerable waste of energy.
The Czech Republic became a Member of the OECD on 21 December 1995. At the
end of October 1999, the IEA Governing Board invited the Czech Republic to accede
to the 1974 Agreement on an International Energy Program (IEP). On 22 February
2001, the Czech Republic officially become a full member of the IEA.
Czech The Czech Energy Agency (CEA) was founded by the Minister of Industry and Trade
Energy on 1 September 1995, as a publicly funded organisation carrying out the work of the
Agency former Energy Agency which existed in Czechoslovakia and then in the Czech
Republic. The CEA's main mission is to encourage and carry out activities aimed at
energy savings and mitigate negative environmental impacts caused by the
consumption and conversion of all kinds of energy. The CEA is in charge of
implementing the above-mentioned State Programme. In 2000, there were 19 staff
members at the CEA' s headquarters.
A total budget of Kcs 1 523 million was allocated to the Ministry of Trade and
3
Industry programmes from 1991 to 1995 (before the creation of the CEA). From
1996 to 1999, when the CEA was operational, the state budget totalled Kcs 1 226.5
million. The state budget, which was Kcs 362.6 million in 1997, decreased to
Kcs 341.9 million in 1998 and again to Kcs 315 million in 1999; because of budget
constraints, the budget for 2000 was Kcs 209.0 million and decreased to only 102.2
million in 2001. Government support is provided as financial grants and the
resources provided must be used within the given year on the basis of a selection
process. The realisation of the projects supported must occur within 18 months.
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
· Provide adequate funding to the Czech Energy Agency for its energy efficiency
programmes and co-ordinate it with other initiatives, especially those of the State
Environmental Fund.
SEVEn SEVEn, the Centre for Energy Efficiency, is an independent organisation, which is
not affiliated through ownership or in any other way to any domestic or foreign
company. From its creation until 1998, SEVEn functioned as a foundation but in
1999, owing to a change in Czech law on foundations, it was registered as a public
benefit corporation. SEVEn covers the costs of its activities through its contract
work, proceeds from consulting, and grants (in exceptional cases and to a limited
extent).
SEVEn has developed relationships with similar energy efficiency centres in other
countries and participates in many international projects. It co-operates with
domestic and foreign governmental bodies and organisations, financial institutions,
private companies, cities and other municipal governments, schools and hospitals,
various energy suppliers, NGOs and individuals.
State The State Environment Fund of the Czech Republic (SEF), established in 1991, is a
Environment specifically focussed institution for financing the preservation and improvement of
Fund the environment. In 1999, in implementing its programme for air protection, which
was not primarily concerned with decreasing energy consumption, SEF did realise
energy savings. All cases concerned the replacement by gas units of old coal-
burning furnaces or co-generation units which did not comply with the emissions
standards set by Decree No. 117/1997b of the Ministry of the Environment. This not
only led to considerable benefits for environmental protection but also to important
energy savings. In 1999, energy savings were not a condition for implementation of
specific programmes by SEF, but a secondary effect. However, from 2000, the SEF
programmes for air protection contain a requirement for an energy-saving approach,
to make it clear that energy saving is essential in an environmental project.
Energy
Efficiency
Funding
PHARE Financing for energy savings projects is difficult to obtain because of the lack of
Energy commercial financial resources and the lack of interest by private investors in
Saving funding such projects. To obtain this support, the European Commission has
Fund established the Energy Savings Fund backed by the European Union PHARE
4
resources. The Ministry of Industry and Trade has contracted the Czechoslovak
Trade Bank (CSOB) to operate and manage this fund. SEVEn co-operated in 1997
in developing the methodology for the management and administration of the Energy
Savings Fund, the procedures for realising funds and the documents subsequently
used by the CSOB.
PHARE funds (ECU 4.5 million) will be granted after a standard evaluation of a
client's credit rating and a technical and economic evaluation of the project. The
CSOB has funds at its disposal for ten years to extend loans at preferential rates for
small and medium-sized energy saving investments, in accordance with specific
qualification criteria, using its own resources on a 50/50 co-financing basis with
PHARE. These projects include the introduction of monitoring and regulation of
heating systems, double-glazing of windows, reduction of heat losses through walls
and roofs, improvements of lighting, etc.
Global The Global Environment Facility (GEF) provides grants and concessional funds to
Environment developing countries and those with economies in transition for projects and
Facility activities that address some aspects of the global environment. In August 1998, the
World Bank approved a Global Environment Facility grant of $5.8 million for the
Kyjov Waste Heat Utilisation Project to improve the efficiency of the Czech
Republic's energy sector. The project will reduce emissions of greenhouse gases
from the district heating system by increasing the energy efficiency and reliability of
heat and power supply to the Vetropak Moravia Glass factory and heat supply to the
city of Kyjov.
RESIDENTIAL/
COMMERCIAL
The Energy Management Act implemented on 1 January 2001 plans the introduction
of energy labels. Energy labelling is in preparation for those appliances for which the
European Union has introduced labels: refrigerators, washing machines, tumble
dryers, combined washer-dryers, dishwashers and lamps.
Thermal Stricter insulation standards for buildings have been in effect since 1994. They are
Insulation not mandatory, except where state money is invested. Most standards are
harmonised with the EU standards, if they exist, within one year of their introduction.
The enforcement and monitoring of building codes is considered insufficient.
Assuming that these standards result in a 30% decrease in energy consumption and
that roughly 15 000 apartments are built and retrofitted yearly, this measure
decreases annual CO2 emissions by about 40 000 tonnes of CO2.
5
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
Energy A one-off programme subsidising the sale of compact fluorescent lamps was
Efficient financed by CEZ, the electric power company and SEVEn funds. Almost 155 000
Lighting lamps were sold in two waves, costing about Kcs 20 million, which resulted in a CO2
emission decrease by an estimated 9 000 tonnes per year. This programme has not
been repeated.
Measurement The Ministry of Economy Decree No. 186/1991 stated that landlords of houses using
of Energy heat from a central source must measure heat consumption at the building's entry.
consumption Energy/heat consumption (quantity of heat for all consumers in building) was then
divided pro rata, according to individual consumption.
This Decree was replaced by the Trade and Industry Ministry's Decree No. 245/
1995 accompanying Act No. 222/1994 "on the conditions of enterprises and
administrations in the energy sector". The first Decree was mandatory; the second
Decree which was originally only a recommendation has been mandatory since
2001.
According to the Energy Management Act, house owners/occupiers, under the threat
of sanctions, must not exceed the determined standards for consumption of energy
for heating. If house occupiers do overheat, they run the risk of financial sanctions by
the state through a state-controlled institution, the State Energy Inspection.
Energy One condition for receiving financial support from the Czech Energy Agency (CEA)
Audits is that an energy audit be made which documents the energy conservation potential
that could be achieved. The audit methodology for residential, public and industrial
buildings has been drawn up by the CEA. Presently, about 300 energy auditors are
operational. Energy savings achieved on the basis of the audit range between 20
and 40%.
The energy audit and observation of its recommendations are mandatory for all
buildings owned by the state which is one of the largest landowners (offices,
schools, hospitals) and for buildings in which energy supply is financed by the state.
Heat The total capacity of heat pumps installed after 1990 is about 35 MW. They are
Pumps mostly used for heating apartments. However a number of projects have been
implemented in industry, mainly in drying plants and in the food and woodworking
industries. Annually, they account for 55 GWh of savings and a 20 000 tonnes
reduction of CO2 emissions.
District District heating is an important part of the energy system in the Czech Republic as
Heating 30% of the 10 million households are connected to a local district heating network,
providing 20% of the sector’s final energy consumption. Heat also accounts for 12%
of energy consumption in the service sector and 14% in the industry sector.
6
Household consumption is subject to large seasonal variations and minor daily
variations while that of industry is more constant. Space heating is the main energy
use of households for which the market share of district heating has been estimated
at 35% (1997 survey).
District heating systems are organised locally and operate in some 50 cities.
Individual heating companies are also power producers. The sector was fully
privatised in 1992-1994 through a voucher privatisation. A few units belonging to the
army, schools, state hospitals and other health care facilities remain under state
ownership. There have been significant foreign acquisitions of companies.
International Power (UK) gained control of EOP 748 MWt (363 MWe), the main
independent power producer (IPP) and holds a majority share in Prazska
Teplarenska, the Prague district heating company. Dalkia (France), a subsidiary of
Vivendi and EDF controls major companies in North Moravia with a capacity
exceeding 3 000 MWt. Cinergy, a US utility, controls over 1 440 MW of CHP power
generation facilities. Horizon/United Energy in the United States has three plants
totalling 1 200 MWt. Most important producers are members of Teplárenské
sdružení, the association based in Pardubice.
New The 1994 Energy Act, which previously regulated the sector, was replaced in
Energy January 2001 by the New Energy Act (No.458/2000). The construction of new
Act heating plants above 30 MWt capacity has to be approved by the Ministry of Industry
and Trade and units below this limit by regional authorities. Criteria for approval in
both cases include the use of domestic and local energy sources, energy efficiency
and conditions of solvability of the investing company.
The Ministry of Finance regulates the household tariff for each network on a cost-
plus-fees analysis method. Since 1994, regulation on prices for industrial heat users
has been lifted.
As 50% of households have individual meters and flow regulation, household tariffs
for the remaining consumers do not reflect actual consumption of heat but are based
on the size of the apartment and/or the number of persons per apartment. This tariff
structure appears complicated and inaccurate in evaluating effective heat
consumption and providing effective energy-saving incentives. Heat subsidies were
abolished in 1996 but the VAT rate remained at 5%. With the New Energy Act which
came in force in January 2001, the Regulatory Energy Office is in charge of pricing
and licensing.
In 1996-1999, five Activities Implemented Jointly (AIJ) projects were approved and
implemented by the Ministry of the Environment, two of which took place since 1998:
7
· Modernisation of a CHP plant in the Skoda Mladá Boleslav automobile company
in co-operation with the German government.
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
Financial The Czech Energy Agency (CEA) is preparing a draft for MIT of the allocation of
Incentives state subsidies to support various energy efficiency measures for apartment buildings
and houses. This concerns the use of active solar systems which could reduce
energy consumption for water heating by 30%. A subsidy of up to 30% of the total
investment cost can be granted for demonstration of the systems, up to a maximum
of Kcs 5 million per project. The subsidy is limited to Kcs 250 000 per apartment. For
residential buildings built by traditional brick technology with low energy efficiency, a
subsidy can be granted for energy-efficient measures including the installation of
insulation and the reconstruction of existing heating systems aiming at an energy
saving of at least 45%. For demonstration actions, the subsidy amounts to 15% of
the total investments, up to a maximum of Kcs 10 million. The subsidy is limited to a
maximum of Kcs 30 000 per apartment in a residential house and to Kcs 80 000 per
house.
Under Programme I of the State Programme for 1999, a total of Kcs 81.54 million
was allocated through the CEA for 87 energy efficiency projects in residential
buildings. This resulted in energy savings of about 107 000 GJ/year (762 Kcs/GJ). In
2000 76 projects were supported, the subsidy amounting to Kcs 61.6 million with
energy savings 84 000 GJ/year (ratio 734 Kcs/GJ or 770 $/toe.
The Ministry of Regional Development (MRE) provides support for the repair,
reconstruction and modernisation of apartment buildings constructed using the
concrete panel technology, of which there are more than 1.1 million apartments in
the Czech Republic. Financial subsidies are provided along with contributions to
cover interest and guarantees for activities related to repairs and reconstruction of
concrete panel apartment buildings. Preference is given to economically depressed
areas and areas with disturbed environment. Support is also provided for insulating
buildings, improving heating systems, distribution pipes and sources of heat and hot
tap water, and use of renewable energy sources in buildings which could have a
favourable effect on energy efficiency, and thus on GHG emissions. The budget of
the programme for reconstruction of concrete panel buildings for 2001 equals about
Kcs 300 million and support is expected for the repair of about 20 000 apartments,
and then for about 50 000 apartments annually. The duration of the programme is
limited by the volume of financial means available.
Education One of the main activities of the CEA is the organisation of seminars and training
and Public sessions and publication of materials for energy consumers. Private energy
Awareness consumers are targeted through the network of 60 Energy Advice and Information
Centres (EKIS) installed by the CEA. They cover the entire country, offering free
brochures, guidebooks and software (products of advisory service) and provide a
practical advisory service.
Most of the EKIS centres are operated by private consultants selected by the CEA to
give energy information to the public. These firms specialise in one specific area but
have general knowledge on other subjects. SEVEn also provides free basic
8
consulting on energy savings in households and issues a quarterly information letter
"News at SEVEn". A country-wide information campaign on energy conservation
has not been carried out since 1990.
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
Measures under
Consideration
Energy Both energy efficiency labelling and standards for household appliances in the
Efficiency Czech Republic are developed in the framework of the European Union SAVE II
Standards project, a task carried out by SEVEn. On the basis of knowledge of existing
legislation in co-operating EU countries (Austria, France, Greece) corresponding
laws, regulations and implementing documentation will be drawn up for the Czech
Republic. At the same time, the action plan for enforcing the legislation will be
prepared and measures and procedures for consumers and suppliers proposed.
PUBLIC SECTOR
Energy Audits in Based on Act No. 50/1976 as well as Act No. 22/1997, energy audits were not
the Public sector mandatory in all buildings of the public sector including the state, regions and
communes with the exception of some legally prescribed cases. The new Energy
Management Act includes mandatory audits for public and private facilities (with
respective consumption above 1500 GJ and 35 000 GJ) and the obligation to
implement low cost audit recommendations. However, funding for the audit as well as
the implementation of the recommended measures face the problem of limited
financial resources.
Model The Energy Management Act No. 406/2000 establishes the obligation for each of the
Energy 14 regions to prepare a regional energy concept within five years in order to create
Concepts conditions for efficient energy use.
The Ministry of the Environment supports the preparation of model energy concepts
for municipalities and regions through its Guidelines for Energy Concepts. A total of
80% of these concepts focus on the efficient use of energy and renewable energy
source potential.
SEVEn, which is involved in the preparation of feasibility studies and business plans
9
for towns and municipalities on supplying and using energy and in the preparation of
such energy concepts, offers guidance to the Czech Energy Agency (CEA) on model
energy concepts. These planning documents covering a 20-year period, which are
modified as necessary, include practical approaches for the economical use of
energy and of renewable energy sources, with an evaluation of the impact on the
environment.
Various energy concepts have been elaborated for several towns and regions, for
instance in 1999 for the Cities of Prague, Tábor, Bechyne, Nymburk.
Energy In a 1998 contract with the Czech Association of Environmental Technology, SEVEn
Performance was in charge of proposing a model procedure for applying the Energy Performance
Contracting and Contracting (EPC) method to the public sector. The outcome of the work was to
ESCo support the installation of energy efficient equipment in public sector buildings
administered by the civil service, educational and health care institutions, defence,
and security organs, cultural bodies and the like.
The basis for implementing an EPC in the public sector was laid down in compliance
with Act No. 199/1994. ESCos have been developed for upgrading heating and hot
water systems in hospitals and schools and others.
For example, the Energy Performance Services Czech Republic (EPS CR), an
ESCo which is a subsidiary of a privately-owned energy services company based in
the United States, implemented two performance contracting projects in two large
hospitals, the Bulovka Teaching Hospital in Prague and the Jilemnice District
Hospital in north-east Bohemia. Both hospitals needed a significant upgrade of their
central heating systems but faced a lack of investment capabilities.
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
IFC/GEF The IFC/GEF Efficient Lighting Initiative (ELI) is a $1.25 million programme funded
1
Efficient by the Global Environment Facility (GEF) and designed by the International Finance
Lighting Corporation (IFC) and by local counterparts in each participating country. ELI's goal
Initiative is to reduce greenhouse gas emissions by accelerating the penetration of energy-
efficient lighting technologies in emerging markets. It will lower market barriers to
efficient lighting technologies in the Czech Republic and also in six other developing
or transitional countries. The ELI budget for the Czech Republic is $1.25 million.
1
. The International Finance Corporation is the private-sector body of the World Bank Group and is the largest
multilateral source of loan and equity financing for private sector projects in developing countries. The Global
Environment Facility is a multilateral entity, which provides grants and concessional funds to recipient countries for
projects to protect the global environment.
10
Implementation began in the spring of 2000, with SEVEn as the Czech project
manager; the administration of the project is carried out by the Danish company
Danish Power Consult A/S. Other Czech organisations participate in its
implementation. In the Czech Republic, ELI will catalyse the installation of energy-
efficient lighting, primarily in the public sector, with special emphasis on street
lighting. It will also strengthen the capabilities of lighting businesses, particularly in
the area of project financing. ELI may also promote compact fluorescent lamps
(CFLs) for the residential sector. The initiative will run for three years (2000-2003).
The expected benefits are estimated in a direct impact on savings at a total of 390 kt
of CO2 emissions in 2000-2003 and, in subsequent years, as indirect benefits at the
level of 425 kt of CO2 emissions saved annually.
Manuals for Through a contract with NOVEM, the Dutch Energy Agency, SEVEn prepared a
Municipalities financial manual for cities and smaller municipalities entitled How to Develop
Municipal Energy Projects. The manual contains information on the purpose and
method for preparing a feasibility study and business plan; it includes an overview of
selected domestic and foreign sources of financing and a description of energy
performance contracting along with domestic ESCos that already offer such
services.
Co-operation In 1998 SEVEn took part in the European Union's long-term Urban and Regional
with Energy Efficiency Programme as a consultant for major Czech cities carrying out
Municipalities demonstration energy-saving projects under the programme in co-operation with EU
cities. Demonstration projects were carried out in the areas of energy-efficient public
lighting, central heating reconstruction, building insulation, and waste management.
INDUSTRY
Energy Energy audits are mandatory in industrial companies which consume 35 000 GJ/year
Auditing (or 835 toe). Audits proposed by CEA with limited cost contribution remain technically
orientated (flow chart) rather than focusing on cost-effective measures; there are
some doubts that industrialists appreciate the usefulness of energy audits.
State Subsidy The State Subsidy Programme for Energy Savings in Industry has been developed
Programme by the Czech Energy Agency since 1996 to support the implementation of measures
with lower energy intensity, the efficient use of energy losses from technological
processes and the application of modern technologies and materials for energy
saving measures. The proposed measures must use environmentally friendly energy
savings ideas. A new technology project is accepted on the condition that it has
been successfully implemented as a pilot project and after undergoing a series of
verifications. The programme's evaluation should offer entrepreneurs reliable
information to help them implement further measures.
Ten energy savings measures in the manufacturing industry were selected in 1997
at a total investment of Kcs 74.8 million and a state subsidy of Kcs 13.5 million.
Annual savings are 181.8 TJ representing 0.05% of the total manufacturing
industry’s consumption. In 1998 14 projects were supported for a total investment of
Kcs 158.7 million and a state subsidy of Kcs 19.7 million. Annual savings are
203.2 TJ. In 1999 24 projects were supported for Kcs 31.5 million, a total investment
of Kcs 420.6 million, energy savings 417.1 TJ/year. For the period 1997-1999, the
average unit investment cost was 817 Kcs/GJ, 412 Kcs/GJ in 1997 increasing to
1 010 Kcs/GJ in 1999.
PHARE To be eligible for loans from the PHARE Energy Saving Fund (see above), projects
Energy have to generate savings by reducing energy consumption of any type (electrical,
Saving gas use, space heating, coal technology), but also by saving the costs of energy
Fund (cheaper fuel), operation and maintenance or for labour costs. At least 40% of the
energy savings must be achieved through reduced energy consumption. The project
size must be at least Kcs 2 million and at the most Kcs 50 million. The duration of
loans and repayment terms are four years or longer (to a maximum of ten years).
11
The applicant companies are required to pay at least 40% of the total project cost.
The PHARE Energy Saving Fund awarded 13 loans for energy efficiency projects in
industry during 1998 amounting to Kcs 200 million (two-thirds of the available funds).
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
Information
News at Since 1993, SEVEn has published News at SEVEn, a quarterly newsletter devoted
SEVEn to energy efficiency with a press run of about 4 400. It is distributed free of charge to
specialised manufacturers, project, service and consulting firms, public institutions,
local governments and other expert circles interested in the energy sector and
energy efficiency.
EEBW Since 1992, SEVEn has organised an annual international conference and exhibition
called Energy Efficiency Business Week (EEBW) which is an opportunity for
specialists from the Czech Republic, Central and Eastern European countries and
other countries to discuss current events and issues in the energy efficiency area.
EEBW 2000 took place on 17-18 October 2000 in Prague and focused on a range of
topics, the most important being:
· The role of energy saving during the liberalisation of the energy market.
· Energy saving in relation to the requirements for harmonisation of the economies
of associated countries with the European Union standards.
TRANSPORT In the context of the programme to stabilise and reduce CO2 emissions, the following
measures have been implemented and/or supported by the government in the
transport sector:
· Support for public transport provided by the Transport Policy of the Czech
Republic approved by government resolution in 1998 to enterprises which carry
out municipal public transport and to Ceske Drahy (Czech Railways) as an
alternative to individual car transport.
· Continued development of integrated public transport systems in cities through
state, municipality and district subsidies and tax breaks.
· Implementation of the Highway Development Programme, including the
development of ring roads and city bypasses as well as access roads to
highways.
· Support for the development of combined transport, through a wide range of
measures such as favourable taxation, adequate infrastructure, special railways,
etc.
· Speed limits of 90 and 130 km/h for cars and 80 km/h for lorries.
· Taxation only on lorries.
· Progressive charges on engine capacity.
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
12
MONITORING Currently, the energy efficiency programme of the Czech Energy Agency is
AND independently evaluated each year by SEVEn. This has resulted in several
EVALUATION improvements in the state support programme regarding both project results and
administration.
The Energy Management Act stipulates that the Ministry of Industry and Trade, in
agreement with the Ministry of the Environment, has to prepare and assess the four-
year state programmes of energy efficiency and renewable energy sources at least
once every two years and that the government be informed of the results. If
necessary, the Ministry of Industry and Trade, in agreement with the Ministry of the
Environment, prepares proposals for changes in the State Programme and submits
them to the government.
In the 2001 in-depth review of the energy policies of the Czech Republic, the IEA
stated:
13
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BACKGROUND
Energy and The first National Energy Plan of 1976, together with further development of
Environment policies during the 1980s, resulted in major restructuring of the energy system
Plans in Denmark. The policies implemented included, inter alia:
The Energy 2000 Plan (Energi 2000) followed in 1990 based on a political
agreement of 20 March 1990. It introduced the goal of sustainable
development in the energy sector and formulated the national objective of a
20% reduction in CO2 emissions by 2005 compared to 1988. This is still one
of Denmark's main objectives in energy and environmental policy. Energy
2000 focused on savings in energy consumption, increased efficiency of the
supply system, expansion of the use of renewables, especially wind, and on
research and development. Action in these areas has been followed up by
political agreements and legislation.
The Energy 2000 — Follow-up from 1993 contained a review of trends and
policies together with a number of other initiatives.
Natural Gas On 29 May 2001 a political Agreement was reached on natural gas and
Supply and energy savings. In this Agreement it was stated that further energy initiatives
Energy Savings were necessary to reach the environmental targets. The headlines in the
Agreement Agreement are the following:
This political agreement also stipulates that other economic incentives for
energy savings will be discussed with a view for adoption prior to the Energy
Saving Review in September 2002.
Institutional Following the general election in late November 2001, a new large Ministry for
Framework Economic Affairs, Trade and Industry was created in January 2002 led by the
Deputy Prime Minister; it is responsible for economic affairs, industry, trade,
the internal market of the European Union, shipping, financial institutions,
competition, housing consumers, tourism and energy. It manages ten
2
different, major government agencies, including the Danish Energy Agency.
The former Ministry for Environment and Energy is now only responsible for
environment issues. There is no Directorate General for Energy in the new
Ministry for Economic Affairs, Trade and Industry. The view is that energy
should be seen as an integral part of all the other responsibilities of the
Department. Nevertheless, energy and international co-operation on energy
are still high on the agenda for the Ministry.
CO2 The combined effects of Energy 2000 and the Transport Action Plan were
Reduction expected to be a more than 20% reduction in emissions from energy use in
Targets 2005 compared to 1988. This target was subsequently approved by
Parliament.
Following the Kyoto agreement, Denmark has agreed under the Burden-
1
Sharing Agreement of 17 June 1998 to reduce its emissions by 21% of the
1990 levels for the period 2008-2012. Specifically, the Danish commitment is
compared to the adjusted 1990 emissions level of approximately 80 Mt CO2
equivalent.
Preliminary figures on future greenhouse gas emissions for 2000 showed that
overall CO2 emissions in Denmark have been reduced by 11% since 1988,
and that the country is on track to meeting its 2005 commitments for a 20%
2
CO2 reduction with initiatives already launched.
1. The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
2
This total is only for CO2 and is calculated somewhat differently than for the Kyoto Protocol target which
includes six greenhouse gases. The Danish national target also includes emissions from international transport
(aviation and marine bunkers are excluded from Kyoto numbers). It excludes emissions from cement, lime and
yellow brick production and from flaring, and plastics in incinerated waste as well as removal by sinks: all these
are included in the Kyoto calculations.
3
greenhouse gases are now projected to be reduced 18.6% below 1990 levels
during 2008-12 (to 62.2 million tonnes of CO2). The projection is based on the
adjusted 1990 baseline, and on policies and measures already implemented
and adopted.
Denmark’s expected gap has thus been reduced since the estimate in Climate
2012, and now stands at 1.8 million tonnes of CO2 (adjusted).
Baltic The Baltic countries' energy ministers (BCSS) and the European Commission
Energy agreed on 1 December 1998 in Stavanger (Norway) on a joint working
Efficiency programme to enhance co-operation in the Baltic energy sector.
Group
This programme includes formation of a working group on energy efficiency
(including CHP and DH) – the Baltic Energy Efficiency Group (BEEG). The
BEEG assesses energy efficiency options and potentials with a focus on
combined heat and power and district heating (including technologies,
financing and legislation). This preparatory work included a seminar in
September 1999. BEEG will be co-chaired by Denmark and Poland and
consists of governmental representatives and experts from the eleven Baltic
countries plus the European Union.
The working group on energy efficiency continued its work in 2000 on the
following issues: New financial instruments, co-ordination and follow-up on
activities taken by other international institutions and organisations and
development of combined heat and power production (CHP).
In the May 2001 report, the working group pointed out that the results of the
Baltic Chain project, with the design of a new financing mechanism with the
establishment of a clearinghouse to ensure quality and facilitate the link
between projects and financing, is the essential keypoint. Furthermore it was
pointed out that the potential for CHP is huge and that the development of a
common regulatory framework and even market conditions for district heating
in the region would support the preferred development offering environmental
benefits and security of supplies.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Building The code for new buildings was tightened in several stages in 1977 and 1985.
Codes As decided in the previous energy action plan, Energy 2000, a new code has
been introduced which will cut an additional 25% off net heating demand,
reducing it to about 70 kWh per square metre per year. The code also sets
limits on electricity consumption for ventilation and will enforce low
temperature heating systems to increase the efficiency of various heat supply
systems, such as district heating systems, condensing boilers, solar energy
and heat pumps. The new code entered into force in 1996 (large buildings)
and 1998 (small buildings).
4
already being built.
Energy Every house-owner may have an audit of his building, describing the present
Labelling energy conditions with recommendations for possible energy saving measures
of Smaller in the building shell and heating equipment. When dealing in real estate, an
2
Buildings audit is required if the building has an area of 1 500 m or less.
The result of the audit is an Energy Label describing the energy condition on a
scale from A1 to C5 (A1 is best). Heating, electricity and water consumption
are rated on the basis of a standard calculation – not actual consumption
because it is linked to the particular seller’s household (number of persons
and behaviour). Another part of the audit is an Energy Plan informing the
buyer which measures could be worthwhile carrying out in the short or long
run to save energy.
This mandatory scheme was implemented in 1 January 1997 and replaces the
heat inspection scheme that had been in operation since 1981.
The scheme was evaluated in 2000 and the conclusions were that there is a
large energy saving potential in existing buildings. Forty-five per cent of the
owners of labelled houses actually invested in heat saving measures. Even
though the scheme is mandatory, only around 50% of the traded houses were
covered by an energy certification. The largest group of labelled buildings is
single family homes. From 40 000 to 50 000 buildings are labelled every year.
On the basis of other conclusions about the set-up of the scheme, changes
were made in mid-2001 to empower the steering committee of the scheme to
take over more responsibilities for the success of the scheme.
Energy The annual supervision of larger buildings (more than 1 500 square metres) is
Labelling carried out by between 500 and 700 specially trained consultants. About
of Larger 25 000 buildings are concerned.
Buildings
(Eco-scheme) Every month all buildings, except industrial buildings, and those with very low
energy consumption, with a surface of more than 1 500 square metres must
register their consumption of heat, electricity and water. Once a year, a
consultant makes an audit comprising an Energy Label and an Energy Plan.
The Energy Label evaluates the consumption of heat, electricity and water on
scales from A to M (A is best) in comparison with average figures for
comparable buildings. The Energy Plan informs the building owner about
relevant measures for energy saving in the short and long run.
This scheme was also evaluated in 2000 and the major conclusions were that
the scheme works very well for those who participate in it, but around half of
the buildings still do not fulfil the requirements. Lack of awareness of the
existence of the schemes contributed to non-participation. The energy savings
in the buildings following the scheme are larger than in those outside the
scheme. Furthermore, the investments in energy savings are more focused in
buildings participating in the scheme and those responsible for energy are
more aware of the results of investments.
The DEA has developed an action plan to improve the implementation of both
schemes as well as further measures.
Inspection In the statutory annual inspection of oil burners, the owner has to show the
of Oil Burners chimney-sweep a contract with an authorised service provider or pay the
5
chimney-sweep for the inspection.
Energy In 1994, Parliament approved an act empowering the Minister of Energy to set
Efficiency efficiency standards for electrical appliances and other equipment. Efficiency
Standards standards for refrigerators/freezers were adopted in 1996 as EU-wide
standards and became effective late 1999, bringing efficiency improvements
of 15% compared to the 1992 market. The Directive does not include a
second phase.
Energy An extensive scheme for energy labelling of appliances was notified to the
Labelling European Union by the Danish government in April 1990. The EU Directive
for labelling of the first category of appliances (freezers and refrigerators)
came into force in January 1995. EU Directives for washing machines and
dryers were implemented in October 1996. Directives for other major
household appliances and light sources will follow.
Individual Individual metering of the use of electricity, district heating, gas and water in
Metering buildings has been mandatory in new buildings since 1996 and in existing
buildings since 1997.
Informative This initiative aims at introducing informative electricity bills for households
Electricity and for customers in the public and private service sectors. The initiative will
Bills include more frequent meter readings, regular billing of actual consumption
and graphic presentation of the customers’ electricity consumption. The
Danish Association of Power Companies has appointed a working group to
prepare the practical implementation of informative electricity bills. The group
reported in February 1994. The informative electricity bills are currently used
by the utilities.
As a part of the new regulations for the electricity market, the distribution
companies have to introduce informative electricity bills. Minimum
requirements for such bills are developed in co-operation with the sector.
Ban on The government has amended the Heat Supply Act to extend the ban on
Conversion to electric heating to the conversion to electric heating of existing buildings
Electric Heating located within a district heating or natural gas supply network. The
in Existing amendment to the Heat Supply Act came into force on 1 March 1994. By
Buildings 2005, this amendment is expected to reduce the number of electrically heated
homes by about 7 000.
6
windows, and information campaigns carried out in 2001 in co-operation with
branch organisations and companies. From 1998 to 2000 the Danish Energy
3
Agency initiated projects amounting to DKK 25-30 million in co-operation with
the manufacturer and branch organisations, etc. The market share for energy-
efficient windows has increased to around 60% in recent years. The
government anticipates that the annual energy saving will reduce CO2
emissions by about 150 000 tonnes by 2005.
District District heat is supplied by some 400 district heating companies, and today
Heating accounts for approximately 50% of Denmark’s heat demand, compared to
and CHP 30% in 1980. Most of the companies produce and supply the heat, but some
purchase heat from one of the “central” power plants. The average connection
rate in district heating areas is 82% and is still increasing. The district heating
network supplies heat not only to large consumers, apartment blocks and
institutions but also to a large extent to modern single-family houses. Danish
district heating companies are owned either by the municipalities, particularly
in the major cities, or by local consumer co-operatives or foundations. In 1996
average distribution losses were 20%.
In 1999, almost 80% of all district heat was produced from CHP plants, up
from just under 40% in 1980. In 1999, almost 50% of electricity generation
was from CHP, compared to just under 20% in 1980. Twelve of the 14 largest
power stations in Denmark deliver all or part of their surplus heat to a district
heating network. Nearly all large-scale power plants are located close to major
cities. This and the fact that 80% of the population lives in urban areas
allowed the combined development of district heating and CHP. The
conditions for industrial CHP were less favourable as Danish industry is
dominated by small and medium-sized companies with relatively low energy
demand.
The first steps in the development of CHP were taken in Copenhagen at the
beginning of the 20th century. In 1904 the first CHP plant was commissioned,
supplying heat and electricity to a hospital. By the mid-1930s the Copenhagen
district heating network was well established, even though heating was to a
large extent still provided by coal-fired boilers or small individual coal-fired
burners.
Today, ten major cities have city-wide district heating systems where almost
all of the heat (95 to 98%) is produced in large coal-fired or gas-fired CHP
plants and waste incineration plants, with a number of small oil-fired or gas-
fired heat-only units for peak-load and emergency. Since the early 1980s, no
new power plants have been commissioned unless provided with the ability to
perform CHP and to supply heat to the district heating networks. This was
motivated by environmental concerns and the wish to encourage energy
efficiency. Construction of new electricity generating capacity must be justified
by the need for new heat production capacity.
Small-Scale In addition to the large-scale CHP and district heating units, a large number of
CHP small-scale CHP plants exist. In Denmark, “small-scale” CHP designates CHP
plants outside the centrally supplied areas, i.e. the larger agglomerations. The
largest small-scale CHP plant has an installed electric capacity of 99 MW.
However, most of the plants range between capacities of 0.5 to 10 MW and
supply heat to small communities and institutional buildings. Often the plants
consist of more than one CHP unit. Small-scale CHP plants not connected to
a district heating network rarely exceed an electrical capacity of 1 MW. Small-
scale CHP plants are laid out to cover at least 90% of the local heat demand.
The electricity generated is sold to the public grid. Power utilities are obliged
to purchase the electricity from these plants. The main fuels used in small-
3
On average in 1999 DKK 1 = US$ 0.145 and in 2000, DKK 1 = US$ 0.123.
7
scale CHP are natural gas and waste and, to a lesser extent, biogas and other
biomass.
The feed-in tariffs for local CHP equal the purchasing utility's own long-term
marginal cost (avoided cost). Danish electricity feed-in tariffs are based on a
three-tier tariff system, with tariffs reflecting electricity demand patterns (low,
medium and high tariff periods). The resulting heat price from small-scale
CHP is very sensitive to variations in the gas price, but less sensitive to
changes in interest rates and investment costs. As a result of the support
measures, the capacity of local CHP was 3.4 times as high in 2000 as it was
in 1993, whereas “central” power capacity remained stable.
Industrial CHP Industrial CHP is used in industries with high demand for process heat,
especially the petrochemical, wood and paper industries. The food industry
and greenhouses can also use low-pressure steam or hot water from CHP. In
1990, Denmark had about 20 industrial CHP plants, mainly coal or oil-based
boiler or steam turbine units. However, the penetration of industrial CHP in
Denmark remained low before 1992, largely owing to the low energy intensity
of the Danish industrial sector compared to industry in neighbouring countries.
Following the introduction of the first Green Tax Package (see below),
industrial companies could obtain state grants of up to 30% of investment
costs in energy efficiency, including CHP. This provision is still in force. In
special cases, small-medium size enterprises can obtain 40% coverage of the
investment of industrial CHP plants from the government. However, a time
limit of six years has now been set for the subsidy to industrial plants.
8
The government plans to develop CHP further in future. The Energy 21
programme of 1996 set a number of CHP-related targets for the long run (to
2030), which are still in force:
The Danish Electricity Saving Trust (see below) has made an agreement with
more than 200 district heating companies using CHP and biomass to convert
electrically heated dwellings to collective district heating systems. Local
information activities are eligible for an annual subsidy of DKK 50-60 million.
During the period to 2007, 50 000 dwellings are expected to be converted (the
potential is 90 000), resulting in reductions of 555 000 tonnes of CO2.
Danish The Danish Electricity Saving Trust was established in 1997 (Act on the
Electricity Danish Electricity Saving Trust, 27 December 1996) with the primary goal of
Saving supporting the substitution of electrical heating by district heating or heating by
Trust natural gas in households and in the public sector. The Trust is managed by
an independent board that comprises representatives of consumer interest
groups and utilities, as well as experts in energy savings and economics. The
Trust extends conversion grants, currently available to electric heating
consumers in areas without collective heat supply, to consumers of electric
heating in areas with district heating and natural gas supply. A minor portion
of the subsidy grants will be used for other purposes, especially regarding the
development, market introduction and market dissemination of efficient
appliances.
The budget in 1997 for the scheme was DKK 50 million. From 1998 onwards
the scheme has been financed by a fixed amount of DKK 0.006 per kWh sold,
levied on the electricity consumption of households and the public sector. The
sum available is expected to be DKK 90 million a year.
9
homepage for consumers to find the retailers with the lowest prices on A-
labelled white goods is another popular initiative.
Subsidy Since 1993 State subsidies have been granted for energy-saving measures in
Schemes dwellings inhabited by pensioners with low incomes and relatively high bills for
heating. Subsidies of up to 50% of investment costs can be obtained up to a
maximum of US$ 3 600 per dwelling. Approximately 5 000 houses are
granted subsidies each year at a total cost of approximately DKK 40-70 million
per year.
Information/
Education and
Motivation
Campaigns for This initiative means that the campaigns run by some power companies for
Replacement replacement of electrical appliances (particularly refrigerators and freezers
of Appliances and low-energy lighting) will be expanded into longer or permanent schemes
or campaigns covering consumers throughout the country.
Buying This initiative consists of organising buying clubs, each composed of users of
Clubs and a specific product -- for example, housing associations, large companies and
Buyer retail chains. The buying clubs draw up strict requirements concerning the
Policies product’s energy efficiency, price, materials, etc. The manufacturer that best
meets these requirements is rewarded with guaranteed sales of the product in
question.
Training A pilot project for supplementary training of store personnel to motivate them
in Energy to use the EU’s energy labelling of kitchen hardware as an active selling tool
Labelling was carried out in 1994. The experience from the project was used as the
basis for a proper, country-wide supplementary training scheme when the first
EU energy label was brought into effect in early 1995 and disseminated to all
EU countries.
PUBLIC SECTOR
Measures already
existing and/or
being improved
Energy Since 1992, energy management and annual reporting of energy consumption
Management have been mandatory in every building used by the State (central
in State administration and state institutions, defence, and state-owned entities like the
Buildings railways, etc.). Local energy managers must be appointed in every institution.
10
institutions had to pay a special tax of 5% of their energy expenses in 1996
and 10% in 1997 and 1998.
After an evaluation of the grant scheme and the special tax, both were
removed at the end of 1999.
New agreements with public organisations are under negotiations, with priority
given to green accounts, energy management and buying policies.
Energy- The Danish Energy Agency co-operates with the Danish Environmental
Conscious Protection Agency to ensure that due consideration is given to environmental
Buying in and energy aspects when products, especially electrical goods, are bought by
the Public government authorities. Information on the energy consumption of the best
Sector products on the market is distributed to public sector purchasers.
Local The government will improve the incentives to implement energy conservation
Government in public buildings. This can be achieved by ensuring that a proportion of the
Buildings money saved on the energy bill can be used for other purposes. Local
commitment should be ensured at the county and municipal level. Energy-
saving efforts will be promoted at the local level, including the introduction of
“green accounts”. In addition, it is intended to promote the use of third-party
financing of the implementation of energy-saving measures in the public
sector.
Local Energy In September 2001, around 25 Local Energy Saving Committees were
Saving established or planned. They consist of representatives from electricity,
Committees natural gas and district heating distribution companies as well as
representatives from municipalities and local environmental organisations.
Their aims are to co-ordinate and discuss the planned initiatives in the energy
distribution companies. They are the only forum for a local co-ordination
between energy saving activities in the three supply sectors (electricity,
natural gas and district heating). Municipalities and counties are obliged to
initiate local Agenda 21 activities which have to be co-ordinated with other
local measures of local agencies (environmental and energy agencies).
INDUSTRY
Measures already
existing and/or
being improved
Green The Danish energy tax on industry has been revised to improve energy
Tax efficiency in industry. The new legislation, which entered into force in January
Package 1996, introduced different carbon tax rates in the industry. The tax rates are
1995 to be gradually increased from 1996 to 2000. All the revenue raised by the tax
will be recycled to the industry.
x Three tax elements consisting of an energy tax, a CO2 tax and an SO2 tax.
x A distinction between three different purposes for energy use when
assessing the tax: space heating, light industrial processes and heavy
industrial processes.
x Provisions for a significantly reduced tax rate in the case of specific
energy-intensive activities, conditional upon a business committing itself to
reducing energy consumption through an agreement negotiated between
11
the company and the Danish Energy Agency.
x Gradual phase-in of the taxes, with the revenue returned to enterprises
largely through cuts in taxation on employing labour and reduced
employer’s social security contributions. The remainder will be returned
through investment grants for energy saving measures over and above
those that might be expected to be undertaken.
If the company does not fulfil the agreement, reimbursements already paid will
have to be returned and the tax will be imposed in full.
Differentiation of the taxes according to use has led to high taxes on space
heating (rising to the household level), moderate taxes for general process
energy and low taxes for energy used in specific purposes with high energy
intensity. Thirty-five specific processes are defined as energy-intensive,
covering more than one-third of industrial energy use. All energy use that is
neither an energy-intensive process nor space heating, is defined as energy
light processes. This residual category includes fixed lights, office machines,
refrigeration and air conditioning. No firm will pay less than DKK 3 per tonne
of CO2.
The Green Tax Package was reviewed by the beginning of 1999. However,
independent evaluations of the investment grants scheme and the
agreements were carried out in 1998. The results show that the two initiatives
together will lead to the CO2 reductions in 2005 that were expected in 1995
when the Green Tax Package was approved by Parliament.
Voluntary As mentioned above in the framework of the Green Tax Package 1995,
Agreements enterprises with specific energy-intensive activities, or with energy tax
exceeding 3% of value added, can reduce their tax rate through a voluntary
energy savings agreement. The enterprise must first present an energy audit
prepared by an independent certified consultant and an action plan based on
the audit, which demonstrates how the enterprise will implement a system of
energy management, apply procurement policies favouring energy efficiency
and educate staff in energy efficiency. The audit may be disputed and
reviewed, or the enterprise may propose alternative measures to achieve
equivalent CO2 results.
By 2001, more than 300 enterprises accounting for about 60% of total energy
consumption by industry (VAT-registered companies) had concluded an
agreement with the Danish Energy Agency.
12
Subsidies From 1996 to 2000, subsidies for investments in energy efficiency amounted
in Industry to DKK 1.8 billion. About 80% of the subsidies went to the energy-intensive
industries. From 2000 onward, an additional DKK 175 million/year has been
allocated to the subsidy scheme, but the scheme is now open only to industry
(excluding agriculture and the trade and services sector). It provides grants for
three areas: investments in energy savings or efficient equipment, use of
consultants and information about energy savings. In 2001 efforts in trade and
services will focus on a strategy to develop, market, purchase and use more
energy-efficient products. The emphasis will be on lighting, cooling equipment,
ventilation, office equipment and buildings. Each year an action plan is
formulated and different categories of products are given priority. For industry,
the main focus in 2001 was on energy management, energy-efficient design,
development of energy-efficient technology, standardised solutions and
projects in selected industry sub-sectors.
The tax, subsidy and voluntary agreements package was evaluated in 2000.
The conclusion was that reductions of CO2 had met forecasts. In 1995 it was
estimated that the package would reduce emissions by 3.9% versus an actual
reduction of 3.8%. Sulphur reductions were better than expected(34 000
tonnes versus 32 000 tonnes anticipated) .The evaluation resulted in the
following assessments:
In the 2002 in-depth review of the energy policies of Denmark, the IEA stated:
Integrated Integrated Resource Planning was imposed under the new Electricity Act in
Resource 1994 to achieve a balance between investments in electricity conservation
Planning and the development of electricity supply. ELSAM and ELKRAFT, the two
regional associations of vertically integrated power companies, are obliged to
present 15-year plans to the government specifying how they will achieve their
commitments on energy efficiency and environment policies.
Amendment On 29 March 2000, the Danish Minister for Environment and Energy launched
of the Heat a proposal to amend the Heat Supply Act (revised in June 1990).
Supply
Act The overall purpose of the amendment is to promote activities that will support
the national goal of reducing CO2 emissions by 20% in 2005. The objective of
the plan is to reduce the energy sector’s negative impact on the environment
and to promote renewable energy, and thereby support an environmentally
sustainable development.
According to the amended Heat Supply Act, the existing principle for heat
pricing, stipulating that heat supplies must be priced according to actual costs
on a non-profit basis, will be preserved. To increase the utilisation of
13
renewable energy resources and industrial surplus heat, new investors and
heat producers will be allowed to sell heat on commercial conditions, always
provided that the heat prices are below a defined price ceiling.
The Heat Supply Act will introduce demands on the producers of heat to
promote energy efficiency and to reduce the costs related to the production of
heat. These demands will be implemented through benchmarking and plant-
specific income caps with the aim of securing a more cost-effective production
of heat.
Electric The Danish power distribution companies, which are either consumer- or
Utilities publicly-owned, have established extensive information and consultancy
schemes recognised as a natural activity by the regulatory authorities. Most
companies are involved in local information activities directed at consumers
and educational institutions and offer a certain basic package of consultancy
on electricity savings free of charge.
TRANSPORT
Measures already
existing and/or
being improved
Transport In May 1990, the government adopted the Transport Action Plan for
Action Environment and Development which aims at stabilising CO2 emissions by
Plan 2005 and a 25% reduction by 2030, compared to the 1988 level for this sector.
White The Transport Action Plan was followed up in December 1993 by the White
Paper on Paper on Transport-Traffic 2005, which reviewed the implementation of the
Transport- energy and environmental targets. It was emphasised that fulfilment of the
Traffic 2005 target for CO2 emissions, while continuing to provide an efficient and flexible
transport system to the public and commercial sector will be the greatest
challenge to national transport policy in the years to come.
The March 2000 Based on a re-evaluation of targets, policies and measures (including a cost
Report evaluation) and the fact that emissions from the sector continued to rise – they
were about 14% higher in 1999 than in 1988 – Denmark proposed additional
measures in a March 2000 report entitled Limitation of CO2 Emissions from
the Transport Sector - Possibilities, Policies and Measures. Without new
initiatives, it was estimated that CO2 emissions would be 27% higher in 2005
14
and 31% higher in 2010 than in 1988. Policies have not been successful in
halting the upward trend in transport emissions, owing in part to higher than
anticipated economic growth and commensurate increases in transport needs.
The April 2001 In April 2001, the Danish government published a new Action Plan for
Action Plan reducing CO2 in the transport sector, drawing on earlier recommendations.
The targets were revised significantly downward. CO2 emissions are now to
be reduced 7% in 2010 below business-as-usual trends (representing an
actual increase in emissions of 22% over 1988 levels or 19% over 1990
levels). The 2030 target remained as established earlier – 25% below actual
1988 levels. The two main strategies in the Action Plan are increased energy
and transport efficiency. The first strategy is being implemented through:
The rise in energy consumption has been greatest for road traffic and aviation.
The government estimates that the new measures in the Action Plan, when
implemented, will allow the achievement of the 7% reduction from business as
usual by 2010.
Taxation In 1997 there were some changes in taxation for pick-ups, vans, private cars
of Vehicles and electric vehicles. For pick-ups and vans the registration fees were
changed to promote the use of smaller vehicles. Furthermore, an annual tax
for private use of pick-ups and vans (medium-sized trucks up to 3 500 kg) was
introduced. The purpose was to encourage people to change from less
energy-efficient pick-ups and vans to more energy-efficient passenger cars
(when the use is only for passenger transport).
On 1 January 2000, the registration fee (purchase tax) for cars was changed
in order to provide more incentive to purchase new, more energy-efficient
vehicles. The registration tax for fuel-efficient gasoline cars consuming less
than 4 litres/100 km has been reduced, as has the registration tax for diesel
cars consuming less than 3.6 litres/100 km. The reduction in the registration
tax varies from 1/6 to 4/6 of the existing fee. In connection with this decision,
the range of diesel cars qualifying for the annual ‘green owner fee’ has also
been expanded. On 1 January 2000, another four categories qualified for the
green owner fee, and the lowest tax category is now for diesel cars which
consume less than 3.1 litres/100 km.
15
In the 2002 in-depth review of the energy policies of Denmark, the IEA stated:
x Make further adjustments to the car registration fee and pursue road
pricing and other cost-effective policy instruments in the transport sector.
Public To reduce emissions in the cities, some 230 bus companies are using natural
Transport gas or LPG. These buses run almost entirely in the greater Copenhagen
area. They consume 1.1 km/litre on average. It has been decided to improve
the quality of local mass transport in conjunction with the revision of lower
fares. The subsidy allocated to public transport (excluding large infrastructure
investments) was approximately DKK 4.4 billion in 1997. About the same
amount was expected for 1998. Subsidies for public transport were increased
in September 1997 in order to reduce prices by 10%. After preliminary
studies, this seems to have been successful.
MONITORING/ As part of the overall savings plan, the government will present an annual
ASSESSMENT report on energy savings. The first report was presented in September 2000.
In this connection, saving targets for 2005 were set for the different sectors,
and it will be assessed whether new financial incentives or other new
measures should be introduced in order to meet the overall target.
In the 2002 in-depth review of the energy policies of Denmark, the IEA stated:
16
Energy
IEA Efficiency
Update
BACKGROUND
Energy The Finnish Energy Strategy, which was completed in 1997, sets out the more
Strategy fixed objectives to limit greenhouse gas emissions. In the Energy Strategy, the
line of action for energy consumption defined in 1995 was made more
stringent. Research and development aimed to improve the efficiency of
energy use and the launching onto the market of new technologies were
stressed. The Strategy underlined the voluntary scheme of energy
conservation agreements, which were then in an initial stage of
implementation. In fact, it seems that, after about three years of experience,
this scheme is becoming the skeleton of systematic improvement of efficiency.
In recent years, the strongest justification for efficient use of energy has been
the need to reduce greenhouse gas emissions in order to prevent climate
change. However, the traditional criteria, such as energy supply and
competitive price of energy, still remain side by side with the climate policy.
New In September 2002, the Ministry of Trade and Industry appointed two working
Energy groups: one to revise the programme for promoting renewable energy
Efficiency sources, and the other to update the energy conservation programme dating
Action Plan from 2000. Both working groups submitted their reports on 16 December
2002. The principal task of the working groups, which completed their
assignments within a tight timetable, was to propose practical measures for
carrying out the statements concerning energy conservation and renewable
energy sources which were given by the Finnish Parliament in connection with
the debate on the National Climate Strategy and the debate on the new
nuclear power plant unit.
The working group on energy conservation has drawn up a proposal for a new
Energy Efficiency Action Plan. The measures proposed have been slightly
modified on the basis of comments received and included in the National
Climate Programme.
Efficient implementation of all these measures calls for their support through
information services, training and motivation. Energy conservation activities of
1
On average in 2000 Fmk 1 = US$ 0.154 and in 2001 Fmk 1 = US$ 0.151
1
the EU and other international organisations should also be supported and
used in implementing national measures.
In the long term, energy taxation should be developed in a direction that will
promote energy savings, taking into account the competitiveness of the export
industry and the national economy as a whole. State financing to enhance
energy conservation should be primarily focused on the development and
commercialisation of new technology, aid connected with energy conservation
agreements, energy renovations of buildings and information services
supporting the conservation measures. Integration of the urban structure will
require support and good management.
The energy conservation working group will continue its work with respect to
the legislative projects included in its assignment. A proposal will be prepared
for a general act on energy conservation, and the service obligation to be
placed on energy companies will be studied. These tasks should be
completed by 31 May 2003.
Energy Finland signed the United Nations Framework Convention on Climate Change
and the (UNFCCC) during UNCED in Rio in June 1992 and ratified it on 31 May 1994.
Environment It produced its first National Communication entitled Finland’s National Report
under the United Nations Framework Convention on Climate Change in
January 1995. This National Communication emphasises the role of energy
efficiency to achieve the target of stabilising CO2 emissions to 1990 levels
before 2000. At the third Conference of the Parties (COP-3) of the UNFCCC
held in Kyoto (Japan) in December 1997, Finland, among other members of
the European Union, made the commitment to reduce its GHG emissions by
8% from the 1990 level. Finland signed the Kyoto Protocol on 29 May 1998;
ratification is planned to take place in line with the other EU Member States.
As part of the European Union, Finland intends to curb her greenhouse gas
emissions during the first commitment period referred to in the Kyoto Protocol,
i.e. 2008-2012, to the extent that annual emissions will not exceed those of
1990, when they were equivalent to around 76.5 million tons of carbon
dioxide. The majority, roughly 70%, is carbon dioxide emissions arising from
the combustion of fossil fuels and peat. This stabilisation target takes into
account that Finland has already realised much of its energy efficiency
potential. Combined heat and power (CHP), for example, accounts for as
much as 32% of the country's electricity supply.
In the 1999 in-depth review of the energy policies of Finland, the IEA stated:
2
National The National Climate Strategy, submitted to Parliament on 27 March 2001 in
Climate the form of a government report, contains the principles, targets and action
Strategy measures that the government finds necessary to meet the national target.
The Parliament supported the strategy in its statement of 19 June 2001.
With reference to economic growth and other starting points, the calculations
are based on the basic principles and conditions concerning the formulation of
the climate strategy set out in the Government Programme. In terms of the
above, the target adopted for Finland will be met in such a way that the
necessary measures would neither weaken the economy nor promote
unemployment, but would support a reduction of the national debt.
3
50% more than in 2001. The energy subsidy situation for 2003 also looks
encouraging: the government proposes a commitment of about € 29 million.
Motiva In 1993, MTI established Motiva, the Information Centre for Energy Efficiency
to implement the government’s energy conservation programme.
MTI, representing the State of Finland, purchased the stock of Motiva from
Finntech Finnish Technology Ltd OY, a technology transfer company.
Following the sale of the stock, Motiva became an independent limited liability
company owned by the State; its ongoing projects will continue without
interruption.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Building The National Building Code of Finland, which applies to all new building
Code projects (both residential and non-residential) and which was revised in 1985
by the Ministry for the Environment, is supervised by the local building
authorities. The current standards are prescriptive thermal insulation
requirements for walls, roofs and windows, thermal conductivity values for
building materials, and requirements related to indoor air quality, ventilation
rates, equipment and design.
The Ministry of the Environment is revising the Building Code to improve the
4
energy efficiency of new buildings. These new regulations should come into
force in 2003. The aim is a 30% reduction in energy consumption in new
buildings compared to buildings constructed on the basis of today’s
regulations.
Energy Energy labelling and energy efficiency standards for domestic appliances
Labelling have been implemented in accordance with the principles within the European
and Standards Union.
Energy Labelling
Energy labelling of refrigerators and freezers began in accordance with EU
labelling directives in 1995. Energy labelling of washing machines and tumble
dryers started in 1996 and washer-dryers in 1998. In 2000 the energy
labelling of dishwashers and household lamps came into force. The
introduction of energy labelling has been supported by extensive information
and training carried out by Motiva and directed at consumers and retail staff.
As a result of labelling, consumers’ energy awareness has risen and the
availability of energy efficient appliances on the market has increased.
Voluntary MTI and the Finnish Association of Building Owners and Construction Clients
Agreements signed in May 1999 an Energy Conservation Agreement relating to the real
estate and construction business. This agreement provides the commercial
sector, for example shops, banks, insurance companies and media, with the
opportunity to join the energy conservation agreement and the activities
subject to it. By the end of 2001, the coverage of the agreement was 73%.
The target is to have 10% less specific heat consumption in buildings in 2005
and 15% less in 2010 compared to 1998. There is also a target to stop the
increase in electricity consumption and reverse the trend before 2005.
Metering Demonstration projects are under way on metering and billing of heat energy
and Billing on the basis of actual consumption, looking at cost-effectiveness and actual
savings. In 1995 there was a study on experiences of users and occupants.
The work in this field was based on the 1995 Government Decision on Energy
Conservation. The first phase, from 1992 to 1995, dealt with studies
amounting to about ECU 100 000. The second phase, starting in 1996,
includes demonstrations. The budget for demonstrations in 1995-1996
amounted to about ECU 1 million. Some results of the demonstration projects
are positive, others less so. The guidelines for further actions are in the
Energy Efficiency Action Plan. New buildings will be required to have
apartment-specific measurement of service water and electricity as well as
billing based on actual consumption. As for heat, the measurement
requirement will be introduced along with the development of measurement
technology and transfer technology of measurement data.
Renovation The state supports the renovation of housing by, for instance, the repair grant
Grant scheme that is prepared each year by the Ministry of the Environment. The
Scheme basic grant is 10% of the total repair cost. For certain energy conservation
measures, the amount is 20%. The Ministry of the Environment follows up on
the grant's use. These grants fund actions such as the adjustment of heating
systems, cleaning and adjustment of ventilation systems and construction of
heat recovery systems for exhaust air.
5
District District heating (DH) was introduced in Finland’s major cities in the 1950s and
Heating 1960s and in small towns after the 1970s oil crisis. DH covers 48% of total
space heating demand and in 2001 as much as 75% of DH was produced by
combined heat and power (CHP). Most DH utilities are owned by
municipalities. DH systems cover almost all regions of Finland where the sale
of district heat is profitable.
In the 1999 in-depth review of the energy policies of Finland, the IEA stated:
Technical Tekes, the National Technology Agency, supports and organises R&D
Assistance projects in the construction and building sector. One of the technology
programmes going on in this sector which includes energy efficiency targets is
INFRA – Construction and Services Technology Programme for the years
2001-2005. The national public research institute, the Technical Research
Centre of Finland, VTT, carries out R&D and offers expertise on technical
building services, structures and building systems.
Measures under
Consideration
Energy efficient devices are obtained for the Finnish market also by means of
international acquisition competitions. The winner of the IEA Copier of the
Future competition was brought onto the market in 2001. The EU´s Green
Light programme to enhance the energy efficiency of lighting piloted and
modelled a basic lighting audit model in five companies and organisations.
Through Motiva, Finland has also actively participated in the European Union
Technology Procurement SAVE Study.
2
The Electricity Market Authority (EMA) established by the Electricity Market Act (386/1995) in force since 1 June
1995, is the regulatory institution of the electricity supply industry responsible, inter alia, for supervising grid
access and pricing
6
INDUSTRY
Measures already
existing and/or
being improved
Energy At the end of 2001 there were a total of nine audit models for industrial and
Audits service properties. Audits are conducted by experts who identify potential
ways of achieving savings in the areas of heating, water consumption,
electricity and air conditioning. Motiva Oy is responsible for the development,
marketing and quality assurance of audit activity and for training the auditors.
The Ministry of Trade and Industry (MTI) provides subsidies for audits, which
are normally 40% of the auditing cost. In the period 1992-2001 more than
4 900 audits had been supported by the MTI at a total cost of € 13.7 million.
Audit activity speeded up at the end of the 1990s when the first energy
conservation agreements began to be implemented. In 2001, 95% of audits
were carried out at companies and organisations falling within the scope of
energy conservation agreements. A substantial share of energy consumption
in industry has been audited. In SME industry saving potential observed in
audits are on average 8% in electricity and 25% in heating. According to the
questionnaire circulated in year 2000 approximately two-thirds of the saving
potential will be realised.
Some 115 companies had joined the voluntary industrial agreements at the
end of 2001, representing about 85% of total energy use by Finnish industry.
All the major energy users have joined. In the power plant sector, 22
companies have signed an energy conservation agreement, representing 90%
of Finland's electricity production. The agreement in the district heating sector
has been signed by 40 companies, accounting for 70% of the district heat
7
energy sold in Finland. An agreement on electricity transfer and distribution
has been concluded with 42 companies, covering 76% of electricity supply to
final consumers.
8
In the 1999 in-depth review of the energy policies of Finland, the IEA stated:
• In its voluntary agreements, set concrete targets for the different sectors,
based on thorough audits and estimates of likely trends, and further
develop monitoring of the results.
Grants MTI provides grants for energy audits and investments to improve the
efficiency of energy production and use and to increase the use of bio-energy
or other renewable sources. Grants of up to 30% of the capital expenditure
are provided for qualifying investment projects and up to 50% for audits. Total
subsidies were Fmk 135 million in 1999 and Fmk 130 million in 2000.
Combined Heat Finland leads the world in the combined production of heat and power (CHP).
and Power Co-generation is widely applied for the heating of communities and for heat
and power from the utilisation of waste fuels from industrial processes. The
amount of energy Finland saves annually through CHP corresponds to 6% of
all primary energy used in the country.
Energy Motiva started developing standard ESCO contract documents in 1997 and
Service launched the first pilot project in the autumn of 1998. The model contract
Companies documents were released in 2000. The idea of the developed Motiva ESCO
(ESCOs) Concept is to show one transparent way of applying energy performance
contracting in the Finnish market. ESCOs can benefit the model when drafting
their own concepts.
Motiva is involved in the IEA´s international ESCO project lasting until the end
of 2002, which will investigate the state of activity in eight countries all over
the world. The results of the project will be utilised by applying them to Finnish
conditions.
Technology As an international pilot project within the IEA DSM Agreement Annex III,
Procurement Motiva organised the IEA Hi-Motors Competition. The goals of the project are
to:
• Establish electric motors with losses of some 25-50% less than average
motors, at a price and performance level which guarantees a significant
long-lasting market share.
• Establish highly efficient electric motors in the market (three-phase, four
9
poles, 1 500 r/min., continuous use, most common motor type on the
market).
• Produce electric motors with an energy efficiency higher than in any
previous motor and get them to the marketplace.
With a buyer group of more than 30 Finnish industrial companies, the project
has led to commercially available motors by ABB with extremely high energy
efficiency – not seen in practice before.
Technology Tekes is the main financing organisation for R&D in Finland. It provides
Development funding and expert services for R&D projects and promotes national and
international networking. Energy efficiency is one of the criteria that are taken
into account horizontally in different technology sectors when granting aid to
R&D projects. Tekes also finances some technology programmes where
energy saving is one of the key targets. The Process Integration Technology
Programme (2000-2004) is an example of this with a total budget of around
€ 17 million. In 2001 Tekes spent about € 20 million for the R&D projects the
main target of which was energy conservation.
PUBLIC SECTOR
Energy A third of public buildings are audited. According to the reported audits, the
Audits average saving potential in audited buildings of the public sector is 16% for
heating, 7% for electricity and 8% for water consumption.
Voluntary agreements have been developed with the public sector (and with
industry) for energy intensity reductions. A public sector agreement was
signed by MTI with the Association of Finnish Local and Regional Authorities
(representing all municipalities) and another with the City of Helsinki in 1993.
The municipal sector agreements were renewed in 1997.
Recommendations HYMONET, a tool for the environmental control of procurements, was brought
for Energy into use in spring 2001. The extranet database guides users to select energy-
Efficiency of efficient products in accordance with MTI´s recommendations on public
Public procurements.
Procurements
TRANSPORT
Measures already
existing and/or
being improved
10
based on ISO standard 14 001. The programme defines the environmental
objectives, responsibilities of various actors and concrete measures to reach
the objectives. Moreover, the programme contains a monitoring and follow-up
mechanism. This new programme provides a practical tool for the
environmental management of transport policy. The Ministry of Transport and
Communications has also published a long-term strategic programme called
"Towards a sustainable and intelligent transport sector". The strategy aims at
reaching a transport system in which the demand for road transport
(passenger car traffic and road freight traffic) should peak by the year 2020
and gradually start to decrease thereafter. With the aim of promoting the
attractiveness and market share of sustainable modes of transport and in
accordance with the National Climate Strategy and the Environmental
Management Programme, the Ministry of Transport and Communications has
adopted the following programmes:
1) National Cycling Policy Programme with the aim of doubling cycling from
the 1998-99 level by 2020. An annual cycling week is held at the
beginning of May.
2) National Walking Policy Programme with the aim of incorporating walking
into transport policy and planning.
3) Public Transport Strategy with the aim of increasing the attractiveness and
competitiveness of public transport, e.g. with the help of door-to-door
travel chains and the introduction of travel centres.
Motiva Motiva has also worked actively in the transport sector since 1994. It
develops, launches and implements practical work according to the National
Climate Strategy. The goal is to activate companies, organisations and
consumers to improve energy efficiency and increase the use of renewable
sources of energy. Motiva operates in joint projects with companies and
organisations in the market.
Joint Efforts to The Ministry of Transport and Communications, Motiva and other relevant
increase Transport organisations and parties are working together in the following areas to
Energy Efficiency increase energy efficiency of transport and reduce transport related
greenhouse gas emissions.
LIPASTO LIPASTO is a calculation system for traffic exhaust emissions and energy
consumption in Finland. The system was developed by the Technical
Research Centre of Finland (VTT). The website www.lipasto.vtt.fi introduce the
system with its submodels and the results. The submodels are: LIISA – road
traffic, RAILI – railway traffic, MEERI – waterborne traffic and ILMI – air traffic.
In addition, the work machine emission model TYKO (in Finnish only) and unit
emission pages will be presented. Unit emission means here vehicle
emissions per transported mass or person and distance unit (g/tonne-
kilometre, g/person-kilometre).
All the material on these sites is public and available in English. The material
can be cited referring the source.
New Study In the study “Reducing carbon dioxide emissions of transport in Finland”
Completed carried out by Tampere University of Technology, several measures to reduce
carbon dioxide emissions have been analysed. In addition to the effect on
carbon dioxide emissions the applicability and feasibility of the measures have
11
also been assessed.
The assessed measures have been mainly allocated to the modes and source
areas where the emissions are greatest. The studied measures include
different means of transport pricing, legislative measures, development of
vehicle technology, promoting public transport, decreasing traffic congestion,
development of transport system, and changes of attitudes and life styles.
Among the most efficient measures to reduce carbon dioxide emissions would
be increasing the fuel price, decreasing the annual tax of diesel passenger
cars, promoting an economical driving style, and adding biofuel components
to traditional petrol and diesel fuels. Promoting railway transport and
increasing the highest allowed truck total weight to 70 or 80 tons would also
notably decrease carbon dioxide emissions. The most efficient measure of
public transport means studied was the development of light rail systems in
urban areas.
Fuel Fuel economy labelling of new passenger cars sold in Finland came into force
Economy at the beginning of 2001, in accordance with the EC Directive. The motor
Labelling vehicle database designed by Motiva for its homepage includes all passenger
car and cross-country vehicle models sold in Finland. Car sellers can print out
type-specific symbols directly from the electronic motor vehicle database.
The guide for choosing a car with fuel consumption and emission data
published by the Vehicle Administration and Motiva’s electronic database
helps consumers to compare consumption and carbon dioxide emission data
for passenger cars.
Promoting The annual funding for public transport is around € 0.4 billion. This funding is
Use of Public shared between the government (around two-thirds) and municipalities (one-
Transportation third). It is not expected that the annual governmental funding for public
transport will increase but it will be directed differently aiming at increasing its
efficiency, reducing the taxation rates set for the employment-bound public
transport tickets lower than their nominal value and funding the development
of passenger information services and establishing travel centres.
The international Car Free Day was held this year in Finland for the third time.
The “In town without my car” concept has attracted several towns and
municipalities to promote light traffic and public transport.
12
The impacts of the car free day are studied in Helsinki and Tampere: the
quantity of traffic, quantity of people using public transportation and parking
areas on that day compared to average working day. Air quality and noise are
also measured.
Voluntary Energy The voluntary agreement scheme was launched in Finland in November 1997.
Conservation
Agreements At the end of 2001, an energy conservation agreement was in force in five
sectors and two co-operation programmes were underway. In the transport
sector, there are two agreements ongoing, one for trucks and vans and the
other for buses. The aims of this agreement procedure are to reduce specific
consumption of energy as well as to develop and introduce action models
which allow energy efficiency to become an integral part of the companies’
operations.
The coverage of the agreement in the truck and van sector is some15% of the
vehicle stock in the agreement scheme, i.e. 400 companies and 2 380
vehicles.
An evaluation was completed among the 850 driving teachers involved in the
project and 90% thought that the material worked well. The fuel savings for
cars owned by driving schools vary in the range of 6 to 12%.
EcoDriving
Since 1997 EcoDriving has been increasingly integrated into the general
driving instruction that is given in Finland. Energy and environmental matters
pertaining to EcoDriving are included in stages I and II of the training provided
by driving schools.
For drivers already carrying a driving licence an educational package for more
efficient driving with less emissions has been developed. It is especially aimed
at companies and organisations that have environmental programmes or are
working to certify their operations according to the ISO 14001 standard.
In Finland, more than 200 000 driving school students and over 3 500 drivers
who already have a driving licence have been trained in EcoDriving.
EcoDriving reduces the average driver’s fuel consumption by 1.3 litres per 100
km (12-16 %). The EcoDriving method can be tailored to several target
13
groups. For example taxi-drivers and policemen have a tailor-made EcoDriving
training modules
The EcoDriving and KEY driving habit training methods have been exported to
Sweden and Norway.
Travel virtually! In the Flight-exhibition in the Finnish Science Centre Heureka a new
multimedia travelling game was launched in September 2002. In the game you
travel virtually from Lisbon to Helsinki (via Manchester) by passenger car,
train, bus and airplane. The programme gives you information on the different
forms of travel: the fastest, the most economical, the least polluting and the
least fuel consuming. You can also compare the emissions and fuel
consumption as well as travel time and costs of different means of
transportation.
Information Motiva publishes a wide range of leaflets, brochures, guidebooks and other
dissemination material concerning sustainable transport in co-operation with many
organisations and companies. The latest publication published this year is
called “Nyt menoksi” (Let’s go) and gives information and good tips for making
sustainable choices for you daily trips.
Measures under
Consideration
Automobile In reforming the automobile tax, fuel consumption will be considered one of
Tax the criteria on which the rate of tax would be based. Such studies on taxation
are in the programme of work of the Ministry of Finance.
CO2 Tax Finland was the first country to introduce a CO2 tax in 1990, initially with a few
exemptions for specific fuels or sectors. The tax was based on the carbon
content of the fuels. After a number of increases in the CO2 tax rate in the
early 1990s, the first major change occurred in 1994, when an additional
component based on the energy content of the fuels was introduced, as well
as special taxes on nuclear power and hydropower. Imported electricity was
taxed at the average rate applied to domestically produced electricity.
14
fuel inputs in the electricity sector was scrapped and an electricity
consumption tax was introduced, with a lower rate for industry and
greenhouse cultivation (slightly above half the rate on households and service
sectors). Source fuels for heating and transport continued to be taxed, but
only on their carbon content, with a reduced rate for natural gas and peat.
Since then, tax rates have been raised on two occasions and further
exemptions added mainly for electricity production by renewable energy
sources. In addition, since 1998, some taxes paid by energy-intensive
industries are refunded.
MONITORING/ Preliminary impact assessments derived from the baseline scenario used for
ASSESSMENT the preparation of the climate strategy have been made on the full-scale and
successful implementation of the energy conservation programme proposed
by the working group appointed in September 2002. The updated energy
conservation programme could have an impact on primary energy
conservation that is about 50% higher than the impact of the previous
programme. Calculated on the basis of the average electricity generation
structure and fuel consumption, the reduction of greenhouse gas emissions
could total about 4 million tonnes.
15
Energy
IEA Efficiency
Update
BACKGROUND The fundamental objectives of French energy policy have not changed
significantly since the early 1970s. They continue to be to improve energy
security by reducing dependence on imported fossil fuels, maintaining reliable
low-cost energy supplies to ensure the competitiveness of the French
economy and protecting the environment. The basic strategy to achieve these
goals includes, inter alia, end-use efficiency and co-operation with other
countries through the IEA, the European Union and other international
organisations.
At the Fourth Conference of the Parties (COP-IV) to the FCCC held in Kyoto
in December 1997, the European Union as a whole agreed to reduce the
emissions of a basket of six gases by 8% from 1990 levels by the period
2008-2012. In June 1998, the European Union Council of Environment
1
Ministers reached a Burden-Sharing Agreement on emission reduction
commitments, to re-allocate internally the 8% reduction agreed at Kyoto. The
reduction commitments are expressed as a percentage of 1990 levels for the
2008-2012 period.
Institutional
Framework
1. The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
1
including policy recommendations, was published. One of the main
conclusions and recommendations was that France’s international
commitments to limit CO2 emissions and local environmental problems require
more efforts in improving energy efficiency. One priority should be
enforcement of existing efficiency standards in the transport and building
sectors.
Energy This report was published in 1998. It outlined the major directions for French
2010-2020 energy policy: organising the liberalisation of the electricity and gas markets,
Report modifying underlying trends in the transportation urban planning sectors in
order to control consumption, preparing to replace electric power generating
plants while maintaining nuclear options open, and making energy tax policies
fairer and more environmentally friendly.
ADEME French energy efficiency policy is defined by the DGEMP (Direction générale
de l'énergie et des matières premières – Directorate-General for Energy and
Raw Materials) and carried out by numerous organisations. An important body
for the implementation of energy efficiency policies and programmes,
including information dissemination, technical assistance and R&D, is the
Agence de l’Environnement et de la Maîtrise de l’Energie, ADEME (Agency for
the Environment and Energy Efficiency). ADEME was set up in September
1991, bringing together the former energy conservation agency, Agence
Française pour la Maîtrise de l’Energie, AFME, with two environmental
agencies – the waste agency, Agence Nationale pour la Récupération et
l’Elimination des Déchets, and the air quality agency, Agence pour la Qualité
de l’Air.
ADEME has a staff of 700 in three locations (Paris, Angers and Valbonne) and
26 delegations in the French regions, in three overseas territories that operate
in a very decentralised manner, and in Brussels. http://www.ademe.fr (with
information in English).
In the context of the national climate response plan, the government decided
2
in February 1998 to set aside Fr 575 million in 1999 (compared with Fr 75
million in 1998) for activities in areas of efficient use of energy and the
development of renewables (plus the R&D budget). On the basis of this
increased budget, ADEME defined a new programme to mobilise economic
actors towards energy efficiency investments.
ADEME’s budget more than doubled between 1992, when it was slightly
above Fr 1 billion, and 1999, when it reached almost Fr 2.5 billion. Most of
ADEME’s resources were spent on waste, including the clean-up of
contaminated soils, which accounted for almost 40% of the budget in 1999.
The portion of the budget reserved for energy efficiency and renewables was
22%, and a further 14% was spent on transport and clean air.
In a special effort to re-launch French energy efficiency policy after the Kyoto
conference, the government in 1998 decided to allocate Fr 500 million a year
to help implement its climate change policy. This amount forms part of
ADEME's Fr 2.5 billion budget for 1999 but represents a stable and higher
energy-related portion than before.
A new planning contract was signed in June 2001 between ADEME and the
three Ministries in charge of Industry, Research and the Environment.
Priorities for the period 2000-2006 are in three areas: waste management,
energy efficiency, transportation policy and air quality. For 2001, ADEME's
total budget was € 400 million, 15% of which was devoted to research.
2
Given the co-operation with each administrative region in the framework of
"ADEME-region" contracts, a total budget of € 230 million was available in
2001 for energy management in all sectors of the economy. Despite this large
budget, extensive and systematic subsidies by ADEME for energy
conservation remain impossible. ADEME therefore implements partnerships
with banks, large building stock managers, professional organisations and
municipalities.
In the 2000 in-depth review of the energy policies of France, the IEA stated:
Law on Air Law No. 96-1236 of 30 December 1996 on Air and Rational Use of Energy
and Rational was adopted to replace most of the existing legislation relating to efficient
Use of Energy energy use and is implemented through Decrees.
• The public effort was too specific to the economic situation (following the
evolution of energy prices).
• A large number of measures labelled energy efficiency are devoted to
other public policies (building activities).
• In the transport sector, public intervention was poor and inefficient (only
on vehicle efficiency).
• Regulatory measures were well-designed (new buildings, audits in
industry) but lacking supervision and in some cases (boilers) not strict
enough.
• Subsidies for diagnostics in industry and for demonstration were effective.
National On 19 January 2000 the Prime Minister announced the adoption of the
Programme to Programme national de lutte contre le changement climatique (National
Combat Climate Programme to Combat Climate Change) elaborated by the Mission
Change Interministérielle sur l'Effet de Serre, MIES (Inter-ministerial Mission on
Climate Change).
3
The Programme presents a set of 96 measures designed to comply with the
French commitments to 2010. It identified three categories of measures to fill
the gap:
The report required by the Chairman of the MIES from the Ministry of Planning
on "evaluation of the GHG measures of the National Programme to Combat
Climate Change" has been published. The report concludes that if in certain
cases the evaluation of a measure is valuable, it is also necessary to evaluate
a "package of measures" dedicated to a specific target. It also recommends
that a set of models for assessing long-term GHG emission forecasts should
be launched for five years and supported by the French administration. For
this purpose, the MIES carried out a European call for tender for a decision by
the end of 2002.
In the 2000 in-depth review of the energy policies of France, the IEA stated:
4
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Thermal As early as 1974, France took the initiative, in close co-operation with the
Regulations construction industry, to introduce mandatory heat insulation requirements for
in New new constructions. The regulations were strengthened regularly. Their
Residential adoption permitted a reduction of one half of average specific consumption for
Buildings housing built after 1975.
Energy regulations for new buildings were updated in 2001. In the residential
sector, energy consumption in new buildings should be reduced by 15% with
respect to the 1989 regulations. In the commercial and tertiary sector, a
performance improvement of 40% is expected (the previous regulation was
much less severe).
The new regulation "RT 2000" incorporates a general objective for the energy
performance of the buildings and not merely constraints on particular aspects
such as thermal insulation, thermal bridges, infiltration, etc. Space heating,
ventilation, air-conditioning and domestic hot water are concerned (as is
lighting in commercial and administrative buildings). The optimal combination
can be chosen by building designers from among all possible solutions,
thermal insulation, use of solar energy, high-performance space heating and
cooling systems, etc., taking into account the practical constraints of the
project and economic aspects.
This new RT2000 regulation has been applied since June 2001. Based on the
same methodology and evaluation tools, it is planned to update it in 2005.
Thermal Former thermal regulations in force in the new commercial sector (buildings
Regulations other than housing) were less stringent than those applying to new housing
in New units since 1 January 1989. These regulations, as mentioned above, have
Commercial been revised according to RT2000 with the aim of gaining 40% energy
Buildings efficiency.
5
To incite professionals to design more energy-efficient buildings than the
current regulations require, sectoral guides have been produced by ADEME
and the Association of Air-Conditioning, Ventilation and Cold Engineers. Eight
guides (hotel, office, health, educational, retail, leisure, industry and
agricultural sectors) were published between 1992 and 1997.
On the assumption that new building projects continue at the present rate, a
gain in unit consumption of 25% with respect to the current regulations will
produce an energy saving of 90 000 toe a year for the buildings put into
service each year as from 1998.
Existing There are 28.9 million houses in the residential sector, including 23.9 million
Buildings principal residences occupied on a permanent basis, and 753 million square
metres of heated commercial premises. Most of this property, about 66% for
residential buildings and around 65% in the commercial sector, was built
before 1975, date at which the first thermal building regulations came into
force.
Policy aimed at this category of housing has been in place since 1975, based
on three types of action:
In the 2002 budget, building energy retrofits benefit from a tax reduction of
15% of expenses to a maximum of € 8 000 per family.
6
Energy The Law on Air and Rational Energy Use dated 30 December 1996 required a
Costs standardised estimate regarding annual energy costs of housing units or
Certificate commercial units for sale or lease. A decree should specify the rules on
computing the estimate. The decree for new buildings was issued in April
2000. A decree for existing buildings will be also be issued.
Local In the framework of the National Programme to Improve Energy efficiency, the
Information focus has been on the implementation of Local Information Centres ("Points
Centres Info-Energie") throughout the country to inform local people and small
companies about energy efficiency. ADEME set up these local centres and by
September 2001, 41 were in operation. The target was to have 84 centres by
the end of 2001 and 150 by the end of 2002. The network is organised
through a 30% funding in partnership between ADEME and local or regional
authorities.
Financial/Fiscal Various financial incentives to improve existing housing have been introduced
Incentives focusing on projects that are the most efficient with respect to combating the
greenhouse effect. The amount of this public financing for energy savings can
be assessed at Fr 2.5 billion in 1992. The incentives are as follows:
7
Measures under In 1997, the building sector was responsible for 17.5% of GHG emissions: the
Consideration Programme designs 26 measures for limiting emissions by 2.66 Mt CO2 by
2008/2012.
Energy Energy auditing will become mandatory when renting or selling a building.
Auditing
Those responsible for commercial centres and the rented building park will be
encouraged to implement energy efficiency work, thus motivating the other
building sectors to do likewise.
Regulation Starting in 2000, and over five years, the thermal regulation of buildings will be
and Technical progressively strengthened step-by-step to allow professionals to comply with
Control higher energy efficiency standards and to avoid too high increases in the
prices of materials. Implementation of the reinforced thermal regulation will be
carefully monitored through strengthened controls and, if necessary, penalties
for non-compliance.
Information Energy labelling and information to the public will be developed to encourage
and Training consumers to buy energy-efficient goods.
Financial/ For buildings in the tertiary sector which cannot benefit from specific support,
Fiscal a new incentive scheme will be created under precisely defined conditions.
Measures Financial incentives will be made available for condensed boilers in collective
buildings.
The VAT rate on the sale of heat from new and renewable energy sources
and on some highly energy efficient products will be lowered.
PUBLIC SECTOR
Government Each year government buildings consume 2.25 million toe and spend Fr 3
Buildings billion on energy.
The priority, as of 1995, has been for investments for which the payback is
less than six years so that government buildings may serve as a reference in
the energy field; this applies to new buildings as well as renovations and the
operations of existing buildings. This programme is a priority action for
ADEME, which spent Fr 3.2 billion on it in 1996.
8
Energy consumption in existing government buildings could thus be reduced
by around 12%, i.e. a reduction of 200 000 tonnes of carbon emissions per
year by 2000.
Guide for The Climate Change Task Force published a Guide for local authorities to
Local help local public decision makers identify the impact of their investments in
Authorities GHG emission prevention; during 1999. Regional authorities prepared multi-
year contracts (2000-2006) with the State; these "contrats de plan" signed by
the State and elected regional authorities are implemented in all sectors of
regional responsibilities (land and urban planning, transport, community
services).The government's objective is to promote the prevention of GHG
emissions through investments in these contracts.
INDUSTRY
Measures already
existing and/or
being improved
Energy Mandatory energy audits, carried out by experts appointed by the Ministry of
Auditing Industry were required every three years from 1977 to 1997 for industrial
facilities consuming more than 300 toe per year (20 000 sites in France). The
degree of compliance in 1994 was only 40%, partly due to inadequate
resources. Energy savings identified are about 3% of energy consumption
with an average return of investment of four to five years. The regulation was
changed in September 1998 and these mandatory audits were suppressed.
ADEME, which was subsidising energy audits and specific studies for the
other establishments (SMEs essentially), will continue for all types of
enterprises, eventually in partnership with regions.
The regulation now concentrates on the obligation for audits on the energy
efficiency of energetic equipment including large boilers, for which efficiency
standards were updated in 1998.
9
Financial/Fiscal
Incentives
Subsidies for Since 1983, financial support of up to 50% of the cost is provided to
Audits and companies that carry out an energy audit or a feasibility study. The average
Feasibility support amounted to Fr 15 000 for an audit and Fr 40-100 000 for a feasibility
Studies study. Almost all investments with a rate of return of less than three years
have been implemented, the rate of “free-riders” being 10%. A public budget
investment of Fr 600 generates 1 toe of energy saving per year for ten years.
ADEME has reinforced its intervention in this area by subsidising both “light”
studies (“pre diagnosis”) or more specific ones (“diagnosis” and feasibility
studies).
Accelerated Since 1977, investment in various types of systems intended to save energy
Depreciation or produce electricity in cogeneration units has been eligible for accelerated
depreciation (depreciation over 12 months since 1991). This is equivalent to a
subsidy of 2 to 5%, depending on the useful life of the installation. It is not
possible to specify the impact of this very modest aid, which is of very little
interest to industries.
SOFERGIE Funds for energy efficiency investments in industry are available from
SOFERGIE, created in 1980 (a group of companies that finances energy-
saving investments) to facilitate lease financing for energy management with
the hope that this funding would give structure to a body of “third-party
investors” who would identify, analyse, carry out and finance investment in
“turn-key” energy conservation projects remunerated out of the resulting
savings. The role of SOFERGIE funding has ultimately been very small and,
according to the CIME assessment, maintaining this funding system does not
appear justified.
FIDEME FOGAME, the fund to guarantee energy management has been used less and
less in past years and consideration has been given to transforming this fund.
The FIDEME (Fonds d'Intervention pour l'Environnement et la Maîtrise de
l'Energie - Investment Fund for Environment and Energy Management) aimed
at small and medium companies was launched by ADEME. The subscription
to this fund guaranteed by ADEME with the banking sector started on 21
October 2002 and ended 31 December 2002. Total funding was € 45.7 million.
Voluntary Since 1995, the government has undertaken discussions with energy-
Agreements intensive industries covering energy efficiency improvements and emission
reductions. At this stage, voluntary agreements have been signed with six
partners (branches or industries): aluminium (the Pechiney Group), cement
industry, fat lime and magnesia lime manufacturers, the French steel
federation, glass packaging industry, and the “3 Suisses”-France (a large mail
order company).
Negotiations are under way with the French Smelters Union. In other
branches such as chemicals, paper and agro-food industries, discussions
have taken place but no agreement is in sight.
10
Cogeneration Since the early 1990s, there has been a renewed interest in cogeneration in
France. Installed power reached 4 GW as of 1 January 1998, including
2.4 GW for steam turbines.
District In addition to measures adopted to encourage the use of wood, solar thermal
Heating energy and geothermal energy, the development of district heating based on
renewable energy will be supported by fiscal incentives; feasibility studies will
assess the opportunity of adopting a public policy to promote district heating.
Measures under In 1996, industry was responsible for 23% of the GHG emissions: the
Consideration Programme designs 13 new energy efficiency measures for limiting emissions
by 3.42 Mt CO2 by 2008/2012.
Energy It is planned to develop and strengthen the current energy labelling policy.
Labelling
Information Information for businesses will be improved and strengthened, particularly for
and Training the replacement of combustion devices and electric motors.
11
TRANSPORT
Measures already
existing and/or
being improved
Passenger
Transport and
Light Goods
Vehicles
Technical Safety inspections have been mandatory since 31 December 1985 upon the
Inspection sale of a vehicle over five years old and under 3.5 tonnes. A regular safety
inspection has been required for all these vehicles, whether sold or not, as of
1 January 1992. The inspection is carried out in approved centres and covers
52 items defined in a decree dated 18 June 1991; these include inspection of
carbon monoxide emissions (gasoline) and exhaust fumes (diesel).
Since 1 January 1995, a safety inspection is required every two years for
vehicles over four years old. A decree of 5 July 1994 requires mandatory
repairs of vehicles that have failed pollutant emission tests during the safety
inspection, as follows:
Economic France fully supports the Conclusions of the European Council of 25 June
and Clean 1996, announcing the objective of an average level of CO2 emissions for new
Vehicles cars sold in the European Union of 120 g CO2 per kilometre to be reached by
2005 or, at the latest, in 2010.
12
depolluting cycle, research on materials and lighter vehicles, focus on non-
conventional engines, design of low consumption demonstration projects are
the main actions being considered on this issue.
Urban The Law on Air and Rational Energy Use of 30 December 1996, made it
Travel mandatory for all cities with populations of over 100 000 to draft urban travel
Plan plans. These urban travel plans, drafted and implemented by the authorities
organising urban travel in the relevant cities, focus in particular on automobile
traffic reduction, the development of less expensive and less polluting
transportation modes, the development and exploitation of street networks,
organisation of parking, transportation and freight delivery, etc.
Electric The Law on Air and Rational Energy Use of 30 December 1996 introduced a
and other number of measures aimed at fostering the development of electric vehicles
Alternative and other alternative vehicles powered by liquefied petroleum gas or natural
Vehicles gas. The main measures are the exemption or reduction in the tax on
company vehicles for electric vehicles or other alternative vehicles as well as
the requirement that the various public managers of vehicular fleets procure a
minimum of 20% of such vehicles when renewing fleets.
In the 2002 budget, the purchase of a clean vehicle (LPG, NGV, electric and
hybrid) will benefit from a tax reduction of € 1 525 per vehicle, +50% if an old
vehicle is retired.
High-Speed Following the entry into service of the first TGV (high-speed train) line in 1981,
Trains France decided to build a high-speed rail network adopting as early as 1991 a
master plan of national high-speed rail links. This plan provides for around
4 700 km of new high-speed lines, of which 1 260 km were already
operational in 1995. In June 2001, the Mediterranean TGV became
operational, running from Paris to Marseilles and the first phase of the Eastern
TGV will begin from Paris to the Moselle Valley.
Traffic estimates by the SNCF (French National Rail Company) concluded that
the opening of the Mediterranean and Eastern TGVs would divert from air
travel 1.8 and 0.7 billion passenger/km per year respectively. Diversion from
road travel would reach 0.7 and 0.3 billion passengers/km per year.
13
Freight Transport
(excluding Light
Trucks)
Intermodal In France, a country with much transit traffic, including freight, road-rail
Freight combined transportation still represents a small proportion of traffic. The
Transportation objective for 2000 in the field of combined transportation was to double the
volume compared with 1990 (+7 billion tonnes/km). In particular, efforts made
for expanding infrastructures are aimed at ensuring that the development of
combined transportation is not hindered by a lack of capacity.
The law of 13 February 1997 that established the public corporation Réseau
ferré de France (the French railroad network), responsible for developing and
enhancing the rail infrastructure, is a crucial stage in implementing the
European Union Directive 91/440/EEC providing for access to rail
infrastructures of the Member States to international combined transportation.
New transfer platforms were built in 2000 on four of the ten major focal points
of combined transportation in France (Bordeaux, Lille, Lyon and Marseilles).
Government and regional contributions to these investments equal Fr 100
million per year.
In the 2000 in-depth review of the energy policies of France, the IEA stated:
14
Measures under In 1997, transportation was responsible for 22% of GHG emissions: the
Consideration Programme designs 29 measures to save 4 million tonnes CO2 by 2008/2012.
Measures
for Vehicles
Management
Measures
Information Information and training of all categories of road users should take into
and Training account energy efficiency and environmental concerns.
Land Efforts will be developed in line with the above-mentioned Law to avoid
Planning unnecessary traffic. At the European level, co-operation will be set up to
manage the space so that the less polluting means of transport can be
organised.
Urban Urban collective transport will be developed (Fr 500 million/year from the
Collective Ministry of Transport). ADEME will allocate Fr 60 million/year for transport
Transport demand-side management (support of feasibility studies of local authorities).
Freight Regulations on heavy trucks will focus on speed limits and technical control on
Transport the road; a study on the benefits of a speed limit for light trucks will also be
carried out.
15
Intermodal Improving the intermodality between air transport and public transport will be
Freight made through, for instance, better co-ordination between national and
Transportation international flights, agreements between air and rail companies, etc.
Air Various measures will be considered to limit emissions in air transport when
Transport planes are awaiting for taking-off.
TGAP The Taxe générale sur les activités polluantes (TGAP) (general taxation on
Energie polluting activities) was planned to be implemented in 2001 on industrial and
tertiary enterprises. The government has fixed a level of Fr 150-200/tonne
C02 at the beginning to rise to Fr 500/tonne CO2 progressively by 2010. A
special regime for alleviating or exempting highly energy-intensive industries
has been studied to avoid distortion of economic competitiveness of the
French industry on the international market.
This project adopted in 2000 was criticised by industry and cancelled by the
Conseil Constitutionnel (The French Supreme Court). The Prime Minister has
decided not to reintroduce this project for an energy ecotax.
MONITORING/ As mentioned above, the French government is very concerned about some
ASSESSMENT of the weaknesses of its energy efficiency policies and measures and
launched in-depth assessments of its various programmes to overcome the
barriers – economic, technical regulatory – which impede or slow down such
energy efficiency efforts. The Souviron report and CIME report provided the
government with detailed information on this matter.
In the 2000 in-depth review of the energy policies of France, the IEA stated:
16
Energy
IEA Efficiency
Update
The Länder governments are responsible for the implementation of the federal
law. They are in charge of granting licences in their jurisdiction. Beyond those
matters that are under federal jurisdiction (e.g. energy regulation), Länder,
may take their own measures in the field of energy policy. Länder
governments and municipalities finance a wide range of measures to improve
energy efficiency, in particular through loans and grants to industries and
commerce. These measures have to be notified to the European Commission.
There are no legal or constitutional restrictions on the measures related to
energy efficiency that local governments are empowered to take, but, as a
general rule, a project is not allowed to receive funds from different public
authorities at the same time. Länder have no obligation to report to the
federal government on their activities. However, the federal government seeks
to be informed.
The reunification of Germany took place on 3 October 1990. Since 1991, the
federal government has taken measures to integrate the five new Länder into
the German regulatory and economic framework; major efforts have been
made at both the federal and local levels to integrate and increase energy
efficiency measures and policies.
Energy Report In October 2001, the Federal Ministry of Economics and Technology published
a new Energy Report entitled "Sustainable Energy Policy to Meet the Needs of
the Future". The report outlines the new orientation of the government's
energy policy for the 1998 to 2002 period. It describes the decisions already
taken by the federal government to assure the sustainable supply and use of
energy. It further explains how long-term trends for energy supply and use
might develop, depending on the climate policy targets that are set. The basis
for the Report are two scenarios, each relying on the reference year 2020 and
both assume a phasing out of nuclear energy use.
Eco Tax One of the main aims of the federal government is to reduce unemployment
on Energy by reducing social costs. To reduce these costs, and at the same time improve
Products the environment, the government set up an ecological tax, the so-called Eco
Tax. The tax is being introduced in two stages: 1 April 1999 to January 2000
and 2000 to 2003. Tax increases for the manufacturing industry and
agriculture amount to 20% of normal rates. The law also provides for further
rebates for energy-intensive industries. Railways must pay 50% of the
electricity tax.
Table 1: Eco Tax, 1999 and 2003
*The reduced rate applies only to night storage heaters installed before 1 April 1999.
The government expects that additional tax revenues from the Eco Tax in the
2000 to 2003 period will amount to more than DM 35 billion. These funds will
be used to lower social security contributions of companies and their
employees by 2%.
In the 2002 in-depth review of the energy policies of Germany, the IEA stated:
Environmental It is the responsibility of the federal government to adopt national targets and
Policies measures to achieve environmental goals. The Länder can establish their own
climate protection programmes with a wider range of local measures and all of
them have chosen to do so. Local authorities have increasingly included
climate change mitigation among their environmental policy goals. More than
400 cities, towns and rural districts have joined the Climate Alliance2 (Allianza
1
On average in 1998: DM 1 = $ 0.57 = € 0.51.
2
The Climate Alliance was founded in 1990 as a partnership between European local authorities and indigenous
rainforest peoples with the goal of protecting the atmosphere. Almost 1 000 European cities, municipalities and
district authorities have joined the Climate Alliance. By joining, the members have committed themselves to
certain goals, activity areas and measures. One of these is to halve CO2 emissions from the 1987 level by 2010.
2
del Clima) and thus undertaken a voluntary commitment to cut carbon
emissions in the energy and transport sectors. Citizens have also taken an
active role in energy and environment related policies through the many
strong environmental NGOs.
After the Kyoto commitment of December 1997, the European Union Council
of Ministers agreed on 17 June 1998 to the Burden-Sharing Agreement 3
towards achieving the 8% European Union commitment to reduce emissions.
In this context, Germany is committed to reducing its emissions by 21% of the
1990 level for the period 2008-2012. According to an estimate made by the
federal government, Germany’s GHG emission reductions by 2001 represent
75% of total reductions achieved within the EU since the “Burden Sharing”
agreement in 1998.
The Federal Council passed a bill on the ratification of the Kyoto Protocol on
22 March 2002 and the Parliament gave its approval on 26 April 2002.
By 1999, CO2 emissions had been reduced by 15.3% and those of the six
GHG named in the Kyoto Protocol by roughly 18.5% relative to their 1990
levels.
3
The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
3
Strategy for On 17 April 2002 the federal Cabinet adopted a comprehensive document on
Sustainable a Strategy for Sustainable Development. It contains estimates and scenarios
Development on an energy policy sustainable in the future.
In the 2002 in-depth review of the energy policies of Germany, the IEA stated:
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Buildings and
Structures
Thermal On 1 February 2002, the new Energy Conservation Ordinance came into force
Insulation which aims at reducing the amount of energy consumed in heating, climate
control, and hot-water provision in new buildings by roughly 25 to 30%. It
unifies the previously separate thermal insulation and the heating installation
4
ordinances. The Energy Conservation Ordinance means that, for the first time,
an overall optimisation of measures for thermal insulation on the one hand,
and heat unit efficiency on the other hand, is possible and specifically
supported by statutes. Another new provision of the Ordinance is that new
buildings must have an energy-profile certificate showing information on its
energy demand.
Both the existing rules on energy conservation and the government assistance
have resulted in substantial improvements in Germany’s building stock.
Between 1978 and 1993, the specific heat energy consumption in residential
buildings in the west of Germany dropped by about 30% to an average of
200 kWh/m2.
For new residential buildings, the following ceilings have derived from the
measures:
New The federal government set new standards for the energy-efficient
Administrative construction of administrative buildings. The new buildings, constructed for
Buildings the relocation of parts of the federal government to Berlin in 1999, use 20% to
50% less energy than is required by the recent Thermal Insulation Ordinance.
The figures are 44% for the Federal Chancellery, 34% for the Federal Ministry
of Economics and 29% for the Office of the Federal President.
Energy Since 1 January 1998, energy consumption labelling has been mandatory in
Labelling Germany. EU Directives have thus been transposed into national law (Energy
and Consumption Labelling Ordinance, Energieverbrauchskennzeichnungs-
Standards verordnung). Cooling and freezing equipment, washing machines, dryers,
combined washers/dryers, dishwashers and household lamps have to be
provided with uniform labels showing information on energy consumption and
other product characteristics before they get into the shops. A separate
Ordinance (Ordinance on Maximum Energy Consumption, Energie-
verbrauchshöchstwerteverordnung) to transpose the EU Directive on
maximum values of energy consumption by cooling and freezing equipment
came into effect on 13 June 1998.
The national legal basis for labelling and minimum energy performance
ordinances, the Energy Consumption Labelling Act, had to be amended in
particular to open legislation for the labelling of appliances other than 'white
goods'. The act became effective in February 2002. On this basis, the federal
government started to work out new ordinances on energy efficiency
5
requirements for ballasts for fluorescent lighting and on the disclosure of
motor vehicles' energy consumption levels, to include European Directives
into German law.
In the 2002 in-depth review of the energy policies of Germany, the IEA stated:
Small and medium-sized companies can also receive assistance under this
programme if the amount of turnover does not exceed an upper limit.
Depending on the number of dwellings, grants up to € 332are provided to the
6
owners of residential buildings as well as SMEs (within the programme no
distinction is made between private owners and SMEs with respect to the
amount of the grant). Despite the scarcity of public funding, Parliament
decided on an increase of funds provided in 1999 for energy consulting
services for consumers, small and medium-sized enterprises and builders.
The scope of information and advisory services supplied will thus be further
expanded, especially in collaboration with consumer consulting organisations,
consultant engineers and regional energy agencies. The assistance
programme, originally scheduled to expire after the summer of 2000, has now
been extended to the end of 2002.
The report can also be used to take advantage of the variable "Measures
Package 4" of the KfW's CO2 building modernisation programme. With this
package approach, the applicant is free to select the modernisation to be
made, as long as a recognised energy consultant confirms that a minimum of
40 kg of CO2 is saved every year per square metre of living space.
Heat Since January 1996, rooms in occupied buildings in the new Länder have to
Consumption be equipped with heat consumption metering instruments as in the old Länder
Metering where this measure has been in force since 1981. Independent experts
indicate the energy efficiency effect of this regulation to be 15%.
Environmental Since 1977 the Environmental Certification Mark (Blauer Engel) has been
Certification used to draw consumers' attention to products supporting efficient, thrifty
Mark energy use, as well as the use of renewable energies. It is similar to the
European Ecolabel now being introduced.
Information The federal government has taken steps to enhance the transparency of
programmes promoting energy conservation. In co-operation with the state of
North-Rhine-Westphalia and the Association of Consumer Unions,
preparations have been made for the pilot project entitled “modernising
consultancy” designed to enhance the efficiency of recommendations by using
up-to-date media. A demonstration version of a CD-ROM providing advice on
such questions as: “How can walls be efficiently insulated in existing
buildings?” is now available. In October 1997, the Federal Ministry of
Economics and Technology set up an Internet data base on promotion
facilities which, for the first time, gives a complete and up-to-date overview of
all its promotion programmes, including those of the federal states and the
European Union.
7
efficient energy use” by the Federal Ministry of Economics and Technology,
the Guide to Saving Energy in your Home by the Federal Ministry for
Transport, Building and Housing, etc.
Dena’s Energy At a press conference on 29 October 2002 the German energy agency Dena
Efficiency (Deutsche Energie-Agentur) launched a nationwide energy efficiency
Campaign campaign ("Initiative EnergieEffizienz"), aiming at raising energy efficiency in
private households. This public awareness campaign has been organised as a
public/private partnership project. Three main associations of the electricity
supply companies (VDEW, VRE, VKU) provide € 8 million. Additionally € 2.8
million are being provided by the Federal Ministry of Economics and Labour
and € 2.2 million by the Federal Environment Foundation (Bundesstiftung
Umwelt), thus granting a budget of € 13 million to the whole project. The
financial contribution of the electricity supply companies is part of their
voluntary commitment to CO2 reduction as agreed with the Federal
Government.
Initial planning began in January 2002 and the entire campaign is designed for
four years ending in December 2004. The campaign focuses on three items:
Part of the strategy of the campaign is to include retail trade and craftsmen as
well as co-operating with existing consumer advice centres. Six regional
project managers organise the project to cover all federal states organising
strong regional support. Regional energy agencies play a special role in this
concept.
The initiatives at a local level include information for the local media, opinion
polls, exhibitions and other public events. From October to December 2002
more than 300 reports on the campaign were published by the media,
including 164 articles in newspapers and magazines with an edition of 26
million. In particular, standby electricity consumption of appliances has been
a topic often covered by the reports.
Until May 2003 about 3 000 retail stores including small shops as well as big
chain stores joined the campaign and were equipped with special point of sale
materials by the Dena. The strategic guiding of the campaign is managed by
a project steering group consisting of representatives of the partners financing
it. An opinion poll organised by the Energy Efficiency Campaign in January
2003 provided more information on the challenges in the field of lighting in
private households. According to the results of the poll, the share of German
households not using energy saving lamps still amounts to 51%. Only 6% of
households use mainly energy saving lamps.
Financial/Fiscal
Incentives
Climate Protection The Climate Protection Programme for Existing Buildings was launched in
Programme for January 2001 to provide financial support to the activity. It is a modernisation
Existing programme for buildings aimed at improving energy efficiency and reducing
Buildings CO2 emissions. Over the next few years, packages of measures involving the
modernisation of heating installations, thermal insulation and the replacement
of windows in more than 33 000 dwellings are to be supported by low-interest
loans from KfW. The condition is to reduce CO2 emissions by at least 40 kg
8
per square metre of floor space in buildings which were built before 1979. The
programme consists of four special packages. The first three packages
support the modernisation of heating installations, the change of the heating
system to more energy-efficient sources, the thermal insulation of the building
shell, the replacement of windows and some other measures in standardised
combinations, for which a reduction of CO2 emissions by at least 40 kg per
square metre per year is assumed. The fourth package is flexible: additional
measures can be financed if an expert carries out an analysis of the building’s
energy performance ensuring that the measures result in at least a 40 kg CO2
reduction. The programme budget is € 1.02 billion over the next five years. It
is to be expected that the KfW will thus be able to mobilise a loan volume of
some € 5.1 billion. From January 2001 to May 2002, more than 18 500
applications for cheap credits were brought forward. More than € 826 million
of loans were provided to energy conservation activities in nearly 50 000
residences. The expected volume of loans will amount to € 8 billion by 2007.
Loans for The programme on CO2 cuts adopted for the old federal states for a period of
Modernisation five years beginning 1996 under which low-interest loans (1-2% below market
of Buildings rates) are obtainable from Kreditanstalt für Wiederaufbau (KfW), the
in the reconstruction bank, has reached a total of DM 7.8 billion for 380 000 housing
Old Länder units. Of this, 38% was for thermal insulation, 44% for the construction of new
low energy and passive housing units, and 16% for the installation of
condensation and low temperature boilers. In 1999, the volume of approved
loans stood at more than DM 4.5 billion.
Loans for The housing modernisation programme of the KfW reconstruction bank
Modernisation provides loans at a rate 1-2% lower than market rates for a ten-year period for
of Buildings modernising and renovating housing in the new Länder. Up to the end of
in the 1999, low-interest loans totalling DM 78.4 billion had been earmarked for the
New Länder modernisation of 3.6 million dwellings. Some 22% of the funds were
committed to energy conservation. In a second phase of the programme, from
February 2000 to June 2002 about 11 400 loans comprising a volume of
€ 1 886 million were committed for financing the modernisation of 120 000
dwellings.
Tax Breaks The September 1993 amendment of the Assisted Areas Act provided for tax
for the breaks until end 1998 in the new Länder for the renovation of existing
New Länder buildings. This renovation work generally included improvements in energy
efficiency. Up to 50% of expenses for the modernisation of buildings that
generate revenue -- such as commercially-used buildings and rented
residential buildings -- could be written-off. Up to 10% a year of modernisation
expenses, to a maximum of DM 40 000, were tax-deductible as extraordinary
expenses for buildings used for (own) residential purposes. Tax deductions
were possible for both measures within ten years.
From 1999, the tax breaks have been replaced by investment allowances in
the new Länder: for modernisation and repair measures of buildings
constructed before 1991 an investment allowance of 15% is granted.
Architects On 1 January 1996, the fifth amendment to the Ordinance on the Fees for
and Architects and Engineers (HOAI) came into force. This updated version of the
Engineers Ordinance provides for fee-based incentives for architects and engineers to
encourage efficient use of energy and the use of renewable energy sources in
dwellings.
9
of some € 292 million (as of 1 September 2001). A total of 142 759 solar panel
installations, for example, were installed. By 2002, roughly 200 000 additional
approvals are expected. During the first year the programme also supported
energy conservation in existing buildings. In combination with thermal solar
units, grants or loans amounting up to 20% of investment costs were available
for the insulation of roofs and external walls, window refitting, heat recovery
units, and heating modernisation. In the first eight months of its
implementation, nearly 10 000 applications for energy conservation were
submitted, of which 4 035 applications for thermal insulation measures, 604
for heat recovery units and 6 642 for heating system modernisation. In order
to concentrate the programme's financial means on the extended use of
renewable energies, the possibility to use it for energy conservation measures
was cancelled.
INDUSTRY The federal government relies more on market based measures such as
voluntary agreements in industry than on regulatory interventions. It considers
that additional regulations are not necessary because industries implement
the most cost-effective measures related to energy savings in order to be
competitive. The voluntary agreements signed by industry are aimed at CO2
emissions and improvement of energy efficiency.
Measures already
existing and/or
being improved
10
programmes to provide funding to these enterprises. In particular, this
organisation provides low-interest loans to medium-sized private businesses
for cogeneration projects.
DSM Public utilities in Germany are deeply involved in least-cost planning and
demand-side management (DSM). German utilities lead the development of
load management, and DSM activities are an integral part of business
policies. DSM projects consist of advising consumers on energy savings.
The Federal Ministry of Economics sees no need to be involved in such an
activity. Annual expenditures for information and consulting in this area
amount to about DM 800 million.
Combustion The Small-Scale Combustion Plant Ordinance sets maximum heat losses and
Facilities pollution levels for combustion facilities with heat output of less than 1 MW
(where solid fuels are used), less than 5 MW (liquid fuels) and less than
10 MW (gaseous fuels). The Ordinance of November 1996 amending the
Small-Scale Combustion Plant Ordinance further reduced heat loss
requirements in new and gas-fired heating systems. Heat losses in existing
plants must be progressively reduced to these levels after a transitional
period.
The length of this transitional period depends on the operational status as well
as on the nominal heat capacity of the combustion plant. It amounts to three
to eight years from the date at which the amendment entered into force (i.e.
1 November 1996).
Combined Heat Heat for district heating and industry is produced both in combined heat and
and Power/ power (CHP) plants and in heat-only boilers. The government estimates that
District Heating 12.5% of domestic electricity generation takes place in CHP plants. The
(CHP/DH) German Association of District Heating and CHP Producers (AGFW)
estimates that the installed electric capacity in CHP plants was 10 700 MW
and electricity generated by CHP was 28 TWh in 1999.
4
Euroheat and Power is a non-governmental international association for district heating, cooling and combined
heat and power (CHP).
11
replaced coal in CHP and heat plants, which still accounted for 50% of heat
production in 1998, followed by natural gas (42%), waste (5%), oil (2%) and
other fuels (1%).
Heat price is not regulated. Prices are negotiated between the supplier,
usually the local stadtwerke, and the consumer.
The difficulties mentioned above faced by CHP over the last few years,
triggered a broad debate to seek for adequate policy instruments to make
CHP sustainable. For example, CHP supporters suggested the introduction of
tradable certificates, which are similar to green certificates, issued for co-
generated power; the five largest electricity companies suggested new
voluntary agreements with fixed CO2 reduction targets. The government
decided to include into the new Climate Protection Programme the new
voluntary agreements with the industry and the introduction of a new CHP law,
which would again support co-generation by attractive feed-in tariffs.
In August 2001, the government presented a new CHP Law, replacing the
previous one, and its provisions on remuneration in 1 April 2002, mainly to
give incentives for the on-going operation and modernisation of existing co-
generation units. The law aims to lower CO2 emissions in 2005 by about 10 Mt
and in 2010 by 20-23 Mt compared to the 1998 levels. The law will be
effective until the end of 2010. The 2002 law allows CHP operators, feeding
electricity into the public transmission network, to receive bonus payments on
top of the revenue at market price. The estimated total cost of these bonus
payments is € 4.45 billion between 2002 and 2010. The law requires that an
interim assessment be carried out in 2004 to evaluate whether the climate
targets are met and the expenditure is within the budget. The legislation sets
requirements for the power-to-heat ratio to qualify to receive the bonus. The
bonus then varies according to the plant type:
The above rates will be progressively reduced from 2004 onwards except for
fuel cells and new small plants (up to 50 kW e). Payments will end in 2010 for
the small plants, and for plants built before 1990 and modernised in 2002 or
later. For non-modernised plants above 2 MW, payments end in 2006 if the
plant went into operation before 1990; for other plants, the payments end in
12
2009. The cost of the bonuses granted within the feed-in tariffs can, in
principle, be transferred to the electricity consumers through the electricity
prices. The cost is transferred in proportion to consumption but for large
consumers, meaning those consuming more than 100 MWh/year or those
whose electricity bill is more than 4% of annual turnover, the resulting price
increase has been limited for amounts exceeding 100 MWh/year.
In the 2002 in-depth review of the energy policies of Germany, the IEA stated:
• Evaluate the bonuses granted within the feed-in tariffs for electricity
generated in CHP plants with the aim of reducing unreasonable costs.
• Evaluate the cost-effectiveness of expanding district heating systems thus
creating effective use of more heat from the CHP plants and smaller CHP
versus expanded district heating networks.
PUBLIC SECTOR
Third-Party In order to further promote energy conservation in their own properties, the
Financing for federal government and Länder have initiated third-party financing projects.
Public Based on the first results of these projects, as well as of several projects
Buildings successfully conducted in Baden-Wurttemberg, the federal government has
recently published a guide to third-party financing for its own properties. The
building administrators have been instructed to use this guide for
implementing new projects. The federal government thus aims at supporting
the dissemination of this relatively new financing model in order to make it
better known.
The Land of Berlin has set in motion a project Berlin heat supply model to
modernise many inefficient heating facilities in the eastern part of the city.
Private sector operator models have managed to reduce considerably current
expenditure on fuels in schools without the state having to meet investment
13
costs. Based on this experience, Berlin has started a comprehensive project
entitled Energy Conservation Partnership Berlin. With three partners (so far),
energy management contracts have been concluded for a total of 120
buildings. The first interim results are very promising. It is planned to invite
bids for further groups of buildings.
TRANSPORT
Measures already In the face of the rise in CO2 emissions in the transport sector, unlike the trend
existing and/or in other sectors, the federal government considers it particularly important to
being improved achieve substantial progress in this area. In its Climate Protection Programme
of 18 October 2000, it announced various measures to achieve this goal.
14
automotive and energy companies with the goal of a broadly based
introduction of alternative fuels.
Financial assistance from the federal government in the amount of more
than € 8 billion a year for investment to improve traffic and transport in
local communities (community transport financing act, regionalisation act)
with an eye to the greater use of short-range public transport.
Vehicle In March 1997, the German Parliament adopted an amendment to the Motor
Taxation Vehicle Tax Act that took effect in July 1997. It allows for temporary
exemptions of the annual motor-vehicle tax for low pollutant emissions cars
(cars that meet the limit values laid down in the European Commission’s
proposal for the follow up Directive 94/12 EC) and higher taxes for some high
emissions cars. The tax rate was also reduced for cars that have a very low
level of specific consumption. Particularly energy-efficient and low pollutant
cars benefit from tax rebates: so called “5-litre cars” (120 g CO2/km) enjoy a
non-recurring tax rebate of DM 500 upon the date of first registration. The tax
rebate for so-called “3-litre cars” (90 g/CO2/km) is DM 1 000, irrespective of
the date of first registration. This amended Act is subject to renewal five years
after its implementation.
In the 2002 in-depth review of the energy policies of Germany, the IEA stated:
Eco-Taxation in The federal government raised mineral oil taxes in April 1999 and in the
Transport Sector following years, as part of the concept of eco-taxation (see details under "Eco
tax of energy products").
Vehicle Mandatory controls on emissions for all kinds of vehicles have been in place
Inspection since December 1993. The aim of the inspection is primarily to reduce
harmful emissions, not to improve energy efficiency
Railways The 1992 Federal Transport Infrastructure Plan called for more investments in
railways than in road transport. Between 1991 and 2012, it is planned to
devote DM 244 billion to the railways (DM 118 billion of which is for new
construction and development). It is also planned to devote DM 210 billion to
long-distance motorways (DM 109 billion for new construction and
development) and DM 30 billion for waterways (DM 16 billion for new
construction and development). Before the Plan, more funds were devoted to
motorways than to railways.
Trans-shipment Germany is a key transit country in Europe. The tonnage of freight increased
Terminals by over 25% in the period 1990/1995. The Federal Ministry of Transport
expects – as for passenger transport – an increase in freight haulage by 2010
15
of another 30%; over 60% of this increase will account for road haulage. For
this reason, the federal government has decided to expand the interfaces
between road haulage and railway transportation. This includes new
construction and/or expansion of 52 trans-shipment terminals. The federal
investment grants are to amount to DM 4.1 billion till 2010.
Information In 1997, the Federal Ministry for the Environment, Nature Conservation and
to Drivers Nuclear Safety published a brochure entitled “My Agenda 21 – The Energy-
Saving Booklet as your contribution to climate protection” which incorporates a
chapter on mobility. The aim is to make drivers more aware of fuel-saving
driving habits, to encourage them to use public transport and, in general, to
foster greater environmental awareness on the part of automobile users.
MONITORING/ Major efforts are under way to improve energy efficiency at the federal, Land
ASSESSMENT and municipal levels with the main objective of reducing CO2 emissions, a
priority of overall energy policy in Germany. Thus the federal government
places great emphasis on improving its monitoring and assessment efforts on
energy efficiency measures in order to concentrate on the most cost-effective
ones. However, the federal government has only limited information on the
various energy efficiency measures developed by administration at Land and
municipal levels.
In the 2002 in-depth review of the energy policies of Germany, the IEA stated:
16
GREECE Updated July 2002
BACKGROUND Greece signed the UN Framework Convention in June 1992 and ratified it in
April 1994 (Law 2205 on the Ratification of the United Nations Framework
Convention on Climate Change, Gazette A/60/15.4.94).
The Greek government has accepted as a realistic objective for its national
programme the restriction of the total increase in CO2 emissions during the
1990-2000 period to 15% +3% (or 12.4 million tonnes). The margin of 3% is
to allow for unpredictable domestic or international developments and relevant
EU policy actions. The EU community policy on climate change agreed by the
European Council of Ministers in March 1997 allows a 30% increase in Greek
greenhouse gas emissions (CO2, CH4 and N2O) over the period 1990-2010.
After the Kyoto commitment of December 1997, the European Union Council
1
of Ministers agreed on 17 June 1998 on the Burden-Sharing Agreement
towards achieving the 8% European Union commitment to reduce emissions.
In this context, Greece is allowed to increase its emissions by 25% over the
1990 levels for the 2008-2012 period.
Main Legal
and Fiscal
Instruments
Development The Development Law 2601/98 replaced the previous Development Law
Law 2601/98 1892/90. It provides inter alia the subsidisation of industrial and tertiary sector
activities relative to energy saving, exploitation of agricultural, industrial and
municipal wastes and effluents, and the creation of mechanisms for energy
saving. The law also provides subsidies to industries or companies for the
production of electricity through the exploitation of indigenous renewable
energy sources. Investment subsidies range from 15 to 40%, depending on
the geographical location of the investment. An alternative scheme of loans at
reduced interest rates and tax credits is also provided. Up to 2001, 38
projects have been approved. Approximately 25 projects concern wind power
(more than 60 MW), ten projects concern small hydro (more than 3.4 MW) and
the rest concern energy conservation from heat recovery or substitution of
fossil fuels by natural gas. As for energy efficiency the Development Law
2601/98 has proved to be inefficient; very few investments have been made
in energy efficiency because the subsidies are less generous than under the
1990 Law and investors find the subsidies through the operational
programmes preferable.
The results of the 1990 Development Law were assessed by the Directorate
of Renewable Energy and Energy Saving in the Ministry of Development. The
subsidy scheme reduced primary energy consumption by 26.3 ktoe/year and
1. The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
1
substitution of electricity and oil by gas and biomass by 37.4 ktoe/year
between 1993 and 1998.
Law 2208/97 Law 2208/97 for the Sustainable Development of Towns is a major legislative
development to ensure better the sustainable development of proper planning
of the urban and rural areas, emphasising the recycling and upgrading of the
built space instead of its expansion. The law grants subsidies to the local
authorities to enable them to proceed with the rehabilitation of urban
agglomeration aiming at the improvement of the built environment, the
aesthetic upgrading of buildings, protection of the environment and
conservation of energy and natural resources.
Law 2364/95 This law gives financial incentives to promote the use of natural gas and
(Article 7.17) renewable energy resources through a 75% tax reduction of the expenses for
the purchase and installation of domestic appliances or systems using natural
gas or renewable energy resources for the whole tertiary sector.
Law 1559/85 The possibility of exploiting renewable energy sources and promoting
and Law 2244/94 combined heat and power generation was established for the first time by Law
1559/85. However, as the results obtained after implementation of this law
were unsatisfactory, it has been replaced by Law 2244/94. (For detailed
information, see the paragraph on Combined Heat and Power].)
Operational An Operational Programme for Energy (OPE) of the Ministry for Development,
Programme for in which funds for investments in renewable energy sources and rational
Energy (OPE) energy use are made available, was launched in January 1994 and continued
until the end of 2001. The programme has a total budget of ECU 1 116
million, out of which 33.8% derives from the EU Community Support
Framework, 39.6% from the Public Power Corporation (PPC), 21% from
private contributions and 5.6% from state contributions. The amounts of
subsidies were up to 45% for energy efficiency investments (35% for
cogeneration) and 55% for renewable energy use. In addition, the European
Investment Bank can provide a loan of up to 50% of the project cost.
The budget has been used for projects in the following five categories:
The OPE has been managed by a separate management authority within the
Ministry of Development. The evaluation of OPE project proposals was to be
carried out by independent evaluators following transparent criteria taking into
account a variety of factors including technology, energy saving, economic,
environmental and social considerations. The projects accepted have been
subject to continuous monitoring and energy audits, and a full evaluation of
the programme will be completed in 2002. Most, but not all, of the energy
objectives set for the programme, in terms of installed capacity of large-scale
electricity generation, cogeneration and generation from renewables, were
achieved. Private investments were smaller than originally estimated and
2
many investments in energy conservation and renewables were developed
with public support.
Operational The OPC was launched in 2000 and it will continue until the end of 2006. It
Programme for applies not only to the energy sector but also to a variety of other economic
Competitiveness activities. The three sub-programmes with energy objectives are the following:
(OPC)
· Support and Encouragement of Entrepreneurship: increased use of
renewables and CHP. Energy conservation, fuel substitution,
environmental protection.
· Promotion of Excellence in Enterprises: Improvement in the quality and
management of CHP, renewables and energy conservation technologies
used. Increased competitiveness of Greek energy technology.
· Security of Energy Supply and Promotion of Liberalised Energy Markets:
Energy Infrastructure to support security of electricity supply in the islands
and security of gas supply.
· Reinforcement of energy infrastructure to promote more electricity
generation from renewables. Improved operation of the liberalised
electricity market; support for the establishment and operation of the
Regulatory Authority for Energy (RAE) and the Hellenic Electricity
Transmission System Operator S.A (HTSO). Preparation for gas market
liberalisation.
· Energy and Sustainable Development: Transmission and use of energy in
an environmentally-friendly manner. Rational use of natural resources.
The first calls for energy project proposals were launched in 2001 with a total
budget of € 0.51 billion of which € 0.17 billion were EU Community Support
Framework grants. The programme received 310 proposals from the private
sector for renewables, cogeneration and energy efficiency.
In the 2001 in-depth review of the energy policies of Greece, the IEA stated:
The Hellenic In 1996, the Ministry of the Environment (YPEXODE) developed the “Hellenic
Climate Change Action Plan for the Abatement of CO2 and other Greenhouse Gas Emissions”
Programme in 1995. The government’s objective, set out in the Plan, was to restrict an
increase in GHG emissions, namely CO2, N2O and CH4, from all sources in
2000 to no more than 15% ±3% (or 15.7 Mt +/- 3.1 Mt) from 1990 levels. The
margin of 3% was adopted to allow for unpredictable domestic or international
developments and relevant EU policy actions. As the emissions of the three
GHGs were 23.3% above 1990 levels in 2000, the target was not achieved.
3
National The Hellenic Action Plan expired in 2000 and Greece is planning to introduce
Programme a new “National Programme for Reducing Greenhouse Gas Emissions 2000-
for Reducing 2010”. The plan was compiled by the National Observatory of Athens under
Greenhouse the supervision of the Ministry for the Environment, Physical Planning and
Gas Emissions Public Works, and partly the Ministry of Development. The first version was
completed in early 2002 but needs be approved by the two Ministers. The
government plans to establish a Special Action Unit to monitor and assess
progress in implementation.
In the 2001 in-depth review of the energy policies of Greece, the IEA stated:
In the 2001 in-depth review of the energy policies of Greece, the IEA stated:
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Action Plan The Action Plan “Energy 2001” is the main action taken to comply with the
“Energy 2001” European Directive on reducing carbon dioxide emissions through building
energy efficiency programmes (SAVE Directive 93/76/EC). It was prepared
under the supervision of the Ministry of the Environment by a joint scientific
committee under the co-ordination of the Centre for Renewable Energy
sources (CRES). Financial incentives for energy saving measures in buildings
are being planned.
4
The Action Plan also stresses the use of renewable energy sources as a basic
prerequisite for sustainable development.
Energy Minimum energy efficiency standards were set by the EU for non-industrial
Efficiency boilers (Directive 92/42/EC) and refrigerators and freezers (Directive
Standards 96/57/EC). Greek legislation has been harmonised in accordance with both
EU standards through the Presidential Decrees 335/1993 and 178/1998.
Energy The general obligations for energy labelling are set by Directive 92/75/EC
Labelling (harmonisation by the Presidential Decree 180/1994), while particular
provisions are set for refrigerators/freezers (Directive 94/2/EC —
harmonisation by the Ministerial Decision 25810/1994), washing machines
(Directive 95/12/EC — harmonisation by Ministerial Decision 3972/96), dryers
(Directive 95/13/EC — harmonisation by Ministerial Decision 3972/96); for
combined washer-dryers (Directive 96/60/EC) — harmonisation by Ministerial
Decision 9142/97 and for dishwashers (Directive 97/17/EC) — harmonisation
by Ministerial Decision 10200/98).
Energy The Centre for Renewable Energy Sources (CRES), founded in 1988,
Auditing manages a programme of energy auditing. The programme provides money
and technical assistance for energy auditing in buildings as well as in small
and medium-sized enterprises and industry. As of November 1997, a total of
50 energy audits had been performed in the building sector (15 in hotels, 10 in
hospitals and 25 in public buildings).
Lighting A programme for the replacement of incandescent lamps with more energy
efficient lamps mainly in the islands (which are not connected to the mainland
electricity grid, and face significant problems because of high rates of increase
of electricity consumption) is in progress. The programme is co-ordinated by
the national electric utility (PPC) and provides fiscal incentives to customers
for lamp replacements (i.e. gradual payment of the relevant investment cost
through electricity bills). Approximately 120 000 bulbs were replaced in 2000-
2001 and the resulting energy conservation from the application of this project
is estimated to be 12 GWh.
Third Party Third party financing has, up to now, been little used in the private sector and
Financing is actually forbidden in the public sector. Only a couple of projects have been
established in private hospitals, despite the more favourable financing terms
offered by OPE. A draft law, which will shortly be presented to Parliament, will
create the necessary legal frame, which will encourage the use of third-party
financing in the private sector.
Information The government has established 18 energy centres at regional, local and
to Consumers urban levels as provided for by Law 2244/94 on the promotion of energy
conservation and renewable energy sources. The European Union, through
5
the SAVE programme, contributes most of the funding for these centres. The
main goal of the centres is to provide support to all energy consumers. They
use all available methods to disseminate energy efficiency technology,
procedures, etc. The centres also collect and disseminate energy-related
information. Three new centres were opened in 1998 in the framework of the
SAVE II programme. Law 2244/94 foresees the enactment of a Presidential
Decree that will establish CRES as co-ordinator for all regional centres.
The Public Power Corporation (PPC) promotes the conservation and efficient
use of electricity by all classes of consumers through information campaigns
and other measures.
In the 2001 in-depth review of the energy policies of Greece, the IEA stated:
INDUSTRY
Measures already
existing and/or
being improved
Combined CHP has mainly been promoted through investment support. The
Heat and mechanisms for this support are the Greek Development Laws (1982/90 and
Power 2601/98) and the Operational Programme for Energy 1994-1999 (OPE) and
(CHP) the Operational Programme for Competitiveness 2000-2006 (OPC), which
receive financing from the EU Community Support Framework. The investor
may choose the subsidy mechanism he prefers. The fuel efficiency
requirements for eligibility for a subsidy are 60% for the industrial sector and
65% for the services sectors. OPE provided subsidies of a maximum 35% of
the investment cost leading to an 185 MW e increase in CHP capacity. The
investment subsidy under OPC will also be 35% and the estimated increase in
CHP capacity is 375 MW e and 690 MW th.
Under the Development Law of 1998, the investor can benefit from a 40%
investment subsidy. Most investors have preferred the lower subsidy from the
Operational Programmes because it is available at the beginning of the
investment project whereas the subsidies under the Development Law are
paid only upon completion of the project.
Law 2773/99 replaced the provisions of Law 2244/94 on the buy-back tariffs
for electricity produced by CHP. In the interconnected system, the generator
receives compensation for energy, which is 90% of the energy part in the
medium-voltage end-use tariff and for capacity that is 50% of the capacity part
in the same tariff. Prices in the non-interconnected system are determined as
percentages of the current PPC low-voltage residential tariffs, ranging from
60% for CHP using fossil fuels to 90% for CHP using renewable energies.
6
There were some barriers to wider use of CHP other than weak economic
competitiveness. For environmental reasons, the prevailing legislation does
not allow the installation of CHP or any other industrial plants in the Region of
Attika (surrounding Athens). There have been plans to revise the legislation to
allow CHP installations using natural gas.
District The Public Power Corporation (PPC) has initiated the implementation of a
Heating (DH) cogeneration programme in its lignite-fired plants by setting up a district
heating network in northern Greece. Specifically:
There are plans to develop a DH network in the town of Florina (70 MW th) and
another to supply heat to the town of Amyntaio (40 MW th). In addition, the DH
unit for the town of Megalopolis (Peloponnese), with a capacity of 20 MW th
has been approved for cofinancing by the OPE.
Financial One of the programmes of the Operational Programme for Energy (OPE) was
Support for energy conservation aiming at increasing energy efficiency in the industrial
and services sectors with subsidies of up to 45% for energy conservation
investments. The projects approved for the programme were implemented
between 1997 and 2001and had a total budget of € 127 million of private
investments for activities in energy end-use efficiency and the projects.
Measures under
Consideration
Industrial Within the framework of the Development Law 1892/80, six projects
Projects concerning energy conservation and he use of exhaust gas heat in sectors
such as cement and glass industry, pottery and dryers have been submitted
for approval. For half of these, the financing procedure at the Ministry of
National Economy has been completed, for the rest it is still going on.
Third-Party The financing of all possible interventions in the industrial sector poses a
Financing serious problem. In this context, the mechanism of third-party financing (TPF)
— through which the economic risk of investments in the field of renewable
energies, rational energy use and energy conservation is undertaken by a
third party (mainly the Energy Services Company/ESCO) instead of the end-
user — is under consideration. An appropriate legal framework is being
formulated by the Ministry for Development (formerly the Ministry for Industry,
Energy and Technology), while a favourable evaluation is foreseen for
proposals comprising TPF schemes which are submitted for approval within
the OPE framework. Furthermore, it is planned to extend the TPF mechanism
on the environmental and energy projects supported by Laws 1892/90 and
2234/94. No ESCO has yet been created.
7
PUBLIC SECTOR
Energy By mid-1999, all government and public sector buildings had established
Management Energy Management Offices (EMO) in charge of planning energy saving
Offices measures. Provision had been made for a specific timetable of action;
procedures and responsibilities were specified and plans of action suggested.
Energy As of 2000, new public buildings (2004 for all public buildings including
Certificate existing ones) are required to have an energy certificate i.e. an energy identity
card, stating the energy performance of the building based on an energy audit.
The cost of this instrument is estimated at €1,130 million by 2010; energy
savings are estimated at 0.14 Mtoe/year and the reduction of CO2 emissions
0.53 Mt/year in the Greater Athens area. A proposal for the methodology and
procedures for energy certificates has been prepared under the EU SAVE II
Programme but the final details still have to be issued by the Ministry of
Environment, Physical Planning, and Public Works. The certificate system will
be launched together with an introduction of the new building energy code.
Third Party Third Party Financing is forbidden in the public sector. However, a draft law to
Financing permit third party financing in the public sector is under preparation
TRANSPORT
Measures already
existing and/or
being improved
Since 1994, an exhaust control card (renewed annually) is required for all
vehicles. The implementation of the measure was expanded beyond the Attica
prefecture and in 2001 covered 34 prefectures in total (covering 85% of
vehicles). The card is issued exclusively by certified auto-mechanics repair
shops. By 2001, approximately 4 000 shops have been certified.
Renewal of Law 1921/91 provided for reduced taxes on new car purchases if the buyer
the Car Fleet scrapped an old automobile without a catalytic converter. By 1995, some
395 000 cars had been withdrawn from service and imports of vehicles
equipped with catalytic converters reached 652 000. These figures are
substantial in relation to the 1995 automobile stock of about 2.2 million. The
incentive was stopped in 1993. In 1997 the Finance Ministry proposed a
second round of tax reductions for the period 1999 to 2004, but this has not
yet been implemented as law as other measures, such as the reduction of the
special tax for new car purchases, are also being considered.
Restrictions Access to the commercial centre of Athens by all types of vehicles (including
on the use of taxis and motorcycles, but excluding public buses) has been prohibited since
Private Cars 1995. This measure resulted in a significant improvement in traffic conditions
8
and, in combination with the circulation of flexible mini-buses, promoted the
use of public transportation.
Since the mid-1980s, an alternating traffic system has restricted the use of
passenger cars in central Athens. During the busiest hours, cars with odd-
numbered plates may be used only on odd-numbered days and cars with
even-numbered plates only on even-numbered days. It is not clear, however,
what the impact of the measure has been on energy efficiency and the
reduction of environmental pollution given that the car users buy second cars
with low energy efficiency and often more polluting with a different licence
plate number.
Vehicle Vehicle taxation (Law 2682/99) is differentiated according to engine size and
Taxation environmental performance.
Improvements The efforts of the Ministry for the Environment, Physical Planning and Public
in Transport Works to enhance the existing infrastructure have primarily focused on the
Infrastructure following targets:
(a) Road grid improvements in large urban centres. The major part of these
improvements refers to the broader Athens area. During the three years
1994 to 1996, significant infrastructure work on the existing road network
was carried out, while an additional ECU 50 million has been spent on
road grid improvements during the period 1998 to 2000.
(c) Improvements in the traffic light system. Within the framework of the
programme Attica SOS (an on-going programme developed in 1994 in
order to tackle the serious environmental problems in the Attica region),
improvements in four major road arteries of Athens have been carried out.
In addition, a computerised system for the control of the traffic light system
in the centre of the Piraeus area has been completed. Additional work is
in progress in the town of Thessaloniki, within the framework of the
programme Thessaloniki SOS (an initiative similar to the one for the
region of Attica).
9
Interventions (a) Improvements in the existing Athens metro line. Additional wagons have
in Public been added to the existing trains, increasing capacity during peak hours
Transport by 15%, thus reducing car traffic.
(b) Construction of metro lines. Two new metro lines have been designed to
supplement the already existing Athens underground service. To date,
most of the work has been completed.
(d) Interventions in the traffic network of buses. New bus-lines in Athens were
developed and set into operation, while some of the existing ones were
expanded. These bus-lines cover areas of the centre where there is heavy
traffic during peak hours. The programme, co-ordinated by the competent
body for public transportation in Athens (OASA), is still in progress and six
more bus-lines are going to be completed by 2002.
In order to further promote the use of public buses, OASA placed itinerary
maps in 3 500 bus stations. This action forms part of a large programme
to provide information to passengers. At the end of the programme, all
7 000 bus stations in Athens will be equipped with such maps. In
addition, in order to promote the combined use of public transport means
in Athens (buses, subway, trolleys, train etc.), itinerary maps –
continuously updated – were placed in train and subway stations.
(g) A pilot project cofinanced by the OPE provides for the operation of buses
fuelled by natural gas. It also includes construction of the necessary
infrastructure.
MONITORING/ The Greek government is aware that the biggest challenge to the
ASSESSMENT implementation of its energy efficiency and climate change programmes is the
need for accurate monitoring and assessment mechanisms. For the climate
10
change programme, it is planned to establish a Special Action Unit
responsible for monitoring and assessment. The accepted projects under the
Operational Programme for Energy 1994-1999 (OPE) have been monitored
on a regular basis and their results will be assessed.
In the 2001 in-depth review of the energy policies of Greece, the IEA stated:
11
Energy
IEA Efficiency
Update
BACKGROUND
Energy The Energy Policy Concept was approved by the Parliament in April 1993
Policy (Resolution 21/1993 (IV.9) OGY). It identifies the following strategic
Concept objectives:
For Hungary, the main objective is accession to the European Union; after the
general elections of May 1998, the Energy Policy Concept was reoriented to
be in line with the European legal system.
Energy Saving Based on this National Programme, the Energy Saving Action Plan 2399/1995
Action Plan (XII.12) (ESAP) was adopted by the government in 1996. ESAP consists of
four major sets of measures:
• Penetration of renewables.
• Energy efficiency improvement.
• Energy efficiency labelling.
• Education, information and encouragement of technology innovation.
Hungarian Energy In 1999, following developments in Hungary and the European Union (e.g.
Policy Principles privatisation of the Hungarian energy sector, the EU liberalisation Directives,
the Kyoto commitments, etc.), the government deemed it necessary to adapt
the country's energy policy. This adaptation resulted in the government
approved document The Hungarian Energy Policy Principles and the Business
Model of the Energy Sector (Decision 2199/1999 VIII.6).
Szécheni Plan The 2000 "Szécheni Plan: A National Development Plan" covers all areas
where Hungary’s distance behind the European Union slows down the
development of the economy as a whole and hinders the process of closing
the economic gap. This is not a complex economic political strategy, but a
system of focal areas and breakout points that can be assimilated to the
already existing economic political strategy.
Energy Based on the principles in Business Model of the Energy Sector and related
Conservation and policy decisions, the government adopted the new Energy Conservation and
Energy Efficiency Energy Efficiency Improvement Action Programme (Decision 1107/1999) that
Improvement began in 2000 and is to run for ten years until 2010. This Action Programme is
Action Programme part of the Szécheni Plan, a broad effort to fund modernisation of the
Hungarian economy launched in 2000. The Action Programme also includes
initiatives related to renewables. The Programme lists 15 sectors and areas
for financial support. It targets a 7-8% reduction in energy consumption per
year (approximately 1.8 Mtoe) until 2010 in those 15 sectors and areas.
The Action Programme is reviewed every two years and amended by the
government according to the results of the reviews.
2
From 2003 the support programmes of the earlier Szécheni Plan are being run
under a new name – the National Energy Saving Programme.
Energy Centre To facilitate the administration of this programme, two earlier organisations,
the Energy Centre and the Energy Information Agency, were merged. The
1
Energy Centre founded by government decree 1031/2000 is a non-profit
2
company, with around 50 work stations . Its capital is owned by the founders:
Hungarian The Hungarian Energy Office also plays a role in the energy field; it has the
Energy following responsibilities:
Office
Licensing of companies operating on the gas and electricity markets.
Calculating wholesale and end-user regulated gas and electricity prices
and preparing the corresponding decrees which are then signed by the
Minister of Economic Affairs and Transport.
Protecting interests of consumers.
It covers electricity, gas and heat which is sold by power stations to district
heating (DH) facilities (roughly equal to 50 MW of capacity). Issues related to
DH are otherwise in the hands of the municipalities.
Hungarian The Hungarian Competition Office (HCO) monitors competition and mergers
Competition in the energy sector. The 1994 Electricity Act (act XLVIII of 6 April 1994 on the
Office Production, Transport and Supply of Electric Energy) describes the tasks and
responsibilities of the HCO (Magyar Energia Hivatal) (see below under District
Heating and Combined Heat and Power).
1
Also known as the Energy Efficiency, Environment and Energy Information Agency.
2
The number of staff is high as some are working only part time, on secondment.
3
In the 2002 in-depth review of the energy policies of Hungary, the IEA stated:
• Build on the positive steps already taken in establishing the Energy Centre
and provide it with adequate budget, staff and executive powers to allow it
to fulfil its tasks at both national and international levels.
Energy Hungary has been a signatory state to the United Nations Framework
and the Convention on Climate Change (UNFCCC) since 1994. Under Annex B of the
Environment Kyoto Protocol, Hungary is committed to reduce its carbon dioxide (CO2)
emissions by 6% in the time period 2008-2012 (six gases). As an economy in
transition, Hungary has the right to choose its base year, and has opted for
1985-1987 as its base line period.
The Hungarian Strategy follows dual objectives: on the one hand it defines the
governmental and non-governmental tasks in the light of preparation for
accession to the European Union; on the other it gives a general planning and
conceptual framework until 2012. In particular, the strategy aims to:
4
In the 2002 in-depth review of the energy policies of Hungary, the IEA stated:
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Energy Most of the existing energy efficiency standards are considered obsolete and
Efficiency it has been decided to review and upgrade them all. In this context, and to
Standards match the European Union regulations, the Ministry of Industry, Trade and
Tourism and the Hungarian Energy Office are involved in the preparatory work
to upgrade the standards for buildings, motors and appliances.
The document Hungarian Energy Policy Principles and the Business Model of
the Energy Sector mentions that energy consumption efficiency can be
expected to increase when prices reflect the actual costs of energy
production. Tariffs based on actual costs will significantly improve the pay-
back conditions of energy efficiency investments both in manufacturing
industry and in households.
Parliament has introduced the Act on the Formation and Protection of the Built
Environment LXXVIII. Based on this new Act a ministerial decree
39/1997(KTM-IKIM r.) was introduced on the qualification requirements of the
building materials in line with the European Union Directive (89/106/EEC)
relating to construction products.
Energy To comply with the EU regulations, five ministerial decrees regulate the
Labelling energy labelling of household electric refrigerators, freezers and their
combinations (5/2002 GM decree of the Minister of Economic Affairs and
Transport), the labelling of washing machines and dryers (6/2002 GM decree
of the Minister of Economic Affairs and Transport), the energy labelling of
household dish washers (7/2002 GM decree of the Minister of Economic
Affairs and Transport), and the energy labelling of household lamps (4/2002
GM decree of the Minister of Economic Affairs and Transport).
5
The ministerial decree (12/2002 GM-KöViM-KöM decree) is about fuel
efficiency and carbon-dioxide emission requirements for newly distributed
cars. Based on this decree it will be obligatory for dealers to indicate clearly
for consumers – by labelling the cars and advertising on posters at the dealer
point – the fuel consumption and carbon-dioxide emission data of the product
based on the technical documentation. This data must be displayed on all
advertisements.
Building In order to introduce the building’s certification system required by the Energy
Certificates Saving Action Plan, two feasibility studies have been undertaken to work out
the data sheet related to energy consumption, heat supply, heating, hot water
production, gas and electricity supply. The introduction of such certification
should increase the energy performance of each building.
District Because of its hot water springs, Hungary has more than 60 years of
Heating/ experience with district heating, and the first district heating (DH) system
involved geothermal steam piped from Margit Margaret Island in Budapest.
However, DH was only developed on a large scale in the 1960s, when major
housing construction programmes began.
Today, Hungary has 142 DH companies which operate 240 systems in 109
towns and cities. These companies supply some 644 000 apartments, which
represent about 16% of the roughly 4 million households in Hungary. Total
final consumption of heat was 2.29 Mtoe in 1990, but fell to 1.42 Mtoe in 1997.
Natural gas accounts for 66% of the fuel used for district heating; coal and oil
account for 19% and 11%, respectively; and renewables, waste and other
fuels represent 4% of inputs.
3
The District Heating Law defined rules and responsibilities in district heating; however it could not solve the
problem of cross-financing.
6
Responsibility for municipal DH, including the setting and control of end-user
prices, was also transferred to municipalities in 1998, through the District
Heating Law. The Minister of Economic Affairs exercises the power to settle
prices of heat supplied by power plants over 50 MW. Price determination and
DH licensing falls under the responsibility of the Hungarian Energy Office
4
insofar as it involves an electricity production capacity of 50 MW or more .
District heating companies operating under the authority of municipalities have
to purchase heat at artificially high official prices while their tariffs for selling
heat to their customers are kept low for social and political reasons and in the
context of strong competition from natural gas suppliers in the residential
sector. Gas prices are official prices also decided by the Minister, and kept
artificially low.
The document Hungarian Energy Policy Principles and the Business Model of
the Energy Sector states that it is necessary to improve the whole district
heating system, to modernise it and make it competitive. The complete
reorganisation of the network involves the following actions:
In its action No. 15, The Energy Conservation and Energy Efficiency
Improvement Action Programme of October 1999 considers that the
reconstruction of the district heating system is of high priority, the objective
being to save 10 PJ of energy per annum until 2010. The modernisation of the
systems benefited from a total € 19 million in 2001 on the supplier and
consumer side in the form of non-reimbursable direct capital support, based
on the government’s Szécheni Plan. The maximum of the subsidy was 30% of
the investment cost. The new government has now changed its support to
preferential credits. There are also other funds for improving the district
heating available, such as the Environment Protection Fund, the German Coal
Aid Revolving Fund-GCARF.
Combined Heat Total capacity of CHP in 1999 amounted to 873 MW. CHP produced 4.8 TWh
and Power (CHP) of electricity and 46 PJ of heat in 2000. According to the Ministerial Decree
55/1996, the electricity transmission company (MAVIR) or electricity
distribution companies are required to purchase electricity produced from
renewable sources and from small scale CHP (from 0.5 MW up to 20 MW) at
guaranteed prices. Under the new Electricity Law of 2002 (to enter into force
in 2003), mandatory purchasing will be enforced with guaranteed prices from
0.5 MW up to 50 MW (up to 5 MW only for industrial CHP and hydro-power),
and with market prices above the given limits. Since 1 January 2001,
purchase prices are very attractive (between Ft 14 and-15 per kW) and are
4
The 2002 Electricity Act raised the limit from 20 MW to 50 MW.
7
also applied to heat prices. Future prices for electricity and heat will be
regulated by the Hungarian Energy Office.
In the 2002 in-depth review of the energy policies of Hungary, the IEA stated:
Investigate through the Hungarian Energy Office (HEO) and the Hungarian
Competition Office (HCO) whether prices for heat are being set on a
reasonable cost reflective basis and, if not, devise and implement an
appropriate solution to avoid harmful price distortions between heat and
power affecting negatively investments and modernisation of CHP and
district heating systems.
Education, During the 1990s the awareness activities launched by the central
Public administration decreased. By the middle of this period, many actors
Awareness recognised the need to increase energy efficiency awareness. Promoting
energy efficiency is also of concern to the electricity industry. Both the
Hungarian Power Co. (MVM) and the distribution companies launched local
public relations campaigns that included energy saving related elements.
MVM opened an education facility in Budapest, where information related to
energy saving is provided to the general public. The gas utilities are also
beginning to show some interest in this activity.
Financial/Fiscal
Incentives
Revolving The energy saving programme German Coal Aid Revolving Fund (GCARF)
Fund came into force on 1 August 1991 relying on a German coal support facility.
8
The original target was to provide finance to the private sector to support
energy efficiency investments and at the same time reduce environmental
pollution. The GCARF is administered by the Hungarian Credit Bank and is an
integral part of the bank’s lending operations. Its scope has been expanded to
municipalities, enterprises and institutions they own. The main objectives of
GCARF are to replace traditional energy sources with renewables or waste
related energy sources, to induce energy saving businesses and to reduce
energy waste at the lowest possible cost. The preferential interest under this
facility is one-third of the central bank’s base rate with an additional 2.5%
interest. From 1 August 1991, the date at which the credit application scheme
started until the end of 2002 the total amount of investments approved for “live
projects” by the Professional Jury in charge of managing the programme has
run to Ft 19.5 billion, of which Ft 11.9 billion is made up of preferential credits.
In 2000, the GCARF allocated more than Ft 1 billion in preferential credit for
small and medium-sized enterprises, which resulted in an energy saving
potential of 325 TJ/year and in a total investment of Ft 1.6 billion.
In 2001 with the total sum of Ft 0.89 billion preferential credit started
investments with a value of Ft 1.41 billion. The estimated energy saving
potential was 0.22 PJ/year.
In 2002 the amount of the preferential credit was raised to Ft 1.51 billion. The
total investment of Ft 3.53 billion will result an energy saving of 1.04 PJ/year.
About 83% of the approved energy rationalisation projects have already been
completed and monitored and the value of energy savings with the
commissioned facilities has surpassed the overall target figures laid down in
the bank contracts by 8%.
Energy To modernise the large number of poorly insulated housing blocks, Hungary
Efficiency launched a reconstruction programme (the SZT-EN-1 Programme) within the
Grant for Szécheni Plan. This non-reimbursable grant is given to people wishing to
Households make energy efficiency investments in their houses, such as heating
reconstruction, additional insulation and window and door replacements
(Ft 60 000 per apartment). In 2001, the Energy Centre supported around
4 000 applications; total grants amounted to Ft 1.51 billion. In 2002 out of
8 400 applications 7 900 were supported (the rest were not because of lack of
available grant) and may reached Ft 2 475 billion for 2002. The new
Hungarian government launched the same type of energy efficiency support
scheme with a new name: National Energy Efficiency Programme. This new
programme is also managed by the Energy Centre and the available amount
for the year 2003 is Ft 2.97 billion. The SZT-LA 2 Programme offers non-
refundable grants to carry out energy efficient renovations in residential
buildings made with prefabricated technology and for retrofitting of company
buildings with industrial technology (block houses). In 2001, total grants
amounted to Ft 2 billion.
Pilot In 1996, a Pilot Panel Programme (PPP) was launched to improve the thermal
Panel insulation of buildings. The first phase of the PPP aimed at improving the
Programme thermal performance of almost 5 000 apartment blocks. The Central
Environmental Fund provides almost Ft 60 000 in grants to upgrade the
insulation of each individual dwelling. The average payback time of the
investment is less than ten years. The pilot programme is managed by the
Hungarian Foundation of Enterprise’s Development. The association of
9
producers and sales representatives of insulation materials and technologies
are also involved in the project’s implementation. After evaluation of
experiences gained in 1997, the programme is expected to be extended.
Preferential In the first half of 1996 the government adopted a decision according to which
Interest preferential interest borrowing facilities have to be offered to collectivities
Borrowing wanting to carry out energy-efficient renovations in buildings made of
Facilities prefabricated components.
The state support is designed to help pay the interest on the loans provided by
financial institutions for the implementation of energy efficiency projects, if the
residential building does not meet the heat-engineering standard. The work of
renovation, modernisation and heat insulation has to cover the outside walls,
roofs and ceilings, and the replacement of outside doors and windows.
In the 2002 in-depth review of the energy policies of Hungary, the IEA stated:
INDUSTRY
Measures already In the production sector, a growing number of industrial companies realise the
existing and/or interrelation between energy wastes and profit losses. Many of them know at
being improved least what ought to be done. Recently, as more and more companies become
stabilised, they are starting to implement energy efficiency plans. Certain big
companies such as Mol (oil company), MÁV (national railways), Richter
(pharmaceuticals), Cereol (vegetable oil), Nitrokémia (chemicals) and others
have made good progress in energy efficiency programmes on a voluntary
basis and without governmental co-ordination or obligation.
10
Energy Within the framework of the Szécheni Plan, non-refundable grants are
Audits: provided for energy audits in companies with energy costs of Ft 30 million per
year or higher. In 2001 32 company audits were supported for a total amount
of Ft 119 million. In 2002, the support amounted to 50% of the total audit
(maximum amount per application: Ft 5 million). Eight company audits were
supported with an amount of Ft 20 million.
In the 2002 in-depth review of the energy policies of Hungary, the IEA stated:
Financial The government has designed financial support to promote energy efficiency
Incentives in industry by soft loans or through support systems based on the German
Coal Aid Revolving Fund, the Central Environmental Protection Fund and the
PHARE Energy Efficiency Credit Fund.
PUBLIC SECTOR
Measures already
existing and/or
being improved
PHARE One of the various PHARE projects of the European Union is the PHARE
Revolving Revolving Fund (PRF) established as a soft-loan credit facility to support the
Fund energy efficiency investments by medium-sized and small enterprises from
the private sector and by municipal-owned companies and institutions. The
investments are co-financed by the European Investment Bank (EIB) and/or
by one of the two Hungarian commercial banks selected for the operation of
the credit scheme. A grant of ECU 5.0 million was provided by PHARE in two
portions in 1998 and 2000 and it is used as a revolving fund.
By the end of 2002 over 90 loan applications were submitted to the two banks
operating this credit scheme, of which 77 projects were found eligible for
11
funding. The total investment cost of eligible projects is over € 45.6 million,
with a total loan amount of about € 28.4 million, including € 7.5 million interest-
free PHARE component. The total savings in energy are estimated at
2 241 TJ/year of primary energy, corresponding to a reduction of CO2
emissions of about 203 kt/year.
Energy The Energy Saving Credit Programme (ESCP) was launched at the end of
Saving 1996 as a preferential-loan facility following a government decree by the
Credit Ministry of Industry, Trade and Tourism. In 1997, the main objective of the
Programme ESCP was to support the energy efficiency investments aimed at the
modernisation of energy use in municipality-owned institutions (schools,
hospitals, social and health care buildings, etc.). In the first year, 1977, the
credit line amounted to Ft 780.5 million, provided by commercial bank loans.
The preferential interest rate was at 50% and the cover for it was provided by
the Provisions for Economic Development. An important criterion is that at
least half of the costs saved by the investment should be reached by the
reduction of the energy bill. One other criterion prescribes a minimum
(specific) saving on the primary energy use, therefore the simple fuel
switching projects (without efficiency improvement) are not accepted.
The government adopted a resolution which rules that, first, the energy-saving
projects of the municipality-owned public institutions should be further
encouraged; second, a multi-year programme has to be started for the
modernisation of the district heat supply system; and, third, the principles of
“third-party” financing and the relevant institution have to be elaborated.
The Hungarian Energy Policy document stresses that the Energy Saving
Credit Programme will be extended by the launch of the district heating
reconstruction sub-programme.
Activities In March 1995, the governments of Hungary and the Netherlands expressed
Implemented their wish to realise jointly a series of AIJ projects. The aim of these projects
Jointly (AIJ) would be to promote AIJ as a feasible concept. One of the projects involves
energy conservation in local municipalities. The project is a small-scale
energy efficiency project for municipalities and utilities managed by NOVEM
(National Energy and Environmental Agency of the Netherlands) together with
EGI (Institute for Energy Management, Hungary) consulting and engineering
in Budapest.
12
total of 62 projects are monitored in 12 different cities. In addition, a
combination of a small-scale cogeneration (CHP) project and a demand-side
management (DSM) project at the Technical University of Budapest is
incorporated. These projects were developed by the Dutch utility Westland
and the Budapest gas utility Fögáz and are implemented by a joint venture of
both companies.
One of the most important objectives of the Score programme was the
establishment of a sustainable infrastructural background of energy efficiency
and in this respect the programme was absolutely successful.
The network of the energy efficiency advisory centres was formed from green
NGOs, enterprise development agency offices and from the MTESZ offices.
The SCORE programme made this uniform network possible by providing a
training course for the organisations.
13
UNDP/GEF This programme, funded by UNDP, the Global Environment Facility (GEF) and
Programme on with additional funding from the Hungarian government through the
Public Sector national energy efficiency programme, aims at improving the country's
Energy energy efficiency in the public sector, thus mitigating GHG emissions,
Efficiency mainly CO2. It seeks to remove barriers to energy efficiency in municipal
buildings (including schools, hospitals and other public buildings).
Preparation for the implementation of the programme started in January
2001. The programme has to achieve three broad objectives:
In the 2002 in-depth review of the energy policies of Hungary, the IEA stated:
The programme was launched in 2000 and continued in 2001 with a total
budget of Ft 150 million per year.
Energy To improve the energy management in all local governments, the Action Plan
Management of October 1999 provides grants to help them to design local energy saving
in Local concepts, energy supply plans and for audits on energy losses. The total
Governments available resources are a Ft 125 million loan at a rate of 06% below BUBOR.
The support is a subsidy on the interest at a rate of 50% of the rediscount rate.
Other In addition to the above programmes, other international support facilities are
Programmes available. For example, in the framework of the European Union, there is the
SYNERGY programme designed to help shape energy policy, the THERMIE
programme for the implementation of energy technology related and other
developments and projects, and the SAVE programme which have been
opened up to associate countries of the EU (including Hungary).
Road Transport
Import Because of the high share of relatively old, fuel-inefficient cars, the profile of
Restrictions the vehicle fleet is problematic with regard to air pollution and fuel economy.
The government took steps to limit the inflow of old, polluting cars by
14
prohibiting imports of vehicles more than six years old and those with two-
stroke engines. In 1996, the age limit was tightened to four years.
Mandatory Mandatory vehicle inspections are carried out at licensed service stations;
Vehicle owners whose vehicles do not meet the standards have 15 days to make
Inspection improvements. Since 1992, the number of vehicles passing the yearly
emissions tests has increased and average emission levels have dropped.
Since 1995, emission standards for new and imported used petrol vehicles are
equivalent to those introduced in the European Union in 1993; the application
of emission standards (UN-ECE standard 49.2) for new diesel vehicles
including buses and trucks is strict.
Development The 1996 Transport Policy cites as one of its principal objectives the building
of Transport “at the earliest possible date” of major motorways from Budapest to the
Systems country’s borders. In addition, a system of connecting roads to the primary
radial network is necessary. For Budapest, the completion of the city ring
road is cited as a development plan. Further objectives include increasing
national highway capacity; building bypasses in congested areas; and
repairing and completing existing infrastructure.
Urban The 1996 Transport Policy calls, inter alia, for the following measures:
Transport
• Improvements to parking facilities at railway and bus stations, park and
ride opportunities.
• More attractive fee structure to attract ridership.
• Re-examination of state and local government authority over public
transport.
• Renovation of bridges across the Danube and increased river-crossing
capacity.
Rail Objectives outlined in the 1996 Transport Policy for railway transport
Transport development from 1995 to 2000 include the following:
15
a 160 km/h limit.
• Reorganisation of MAV (Hungarian National Railways); restoration of the
organisation’s solvency.
It is estimated that some 3-4 000 buses provide transportation in the major
Hungarian cities. Most of them currently run on diesel oil and emit CO2 and
other pollutants to an extent that varies with the type of engine and the size of
the bus.
The installation of CNG engines on all Budapest buses that currently have an
old diesel engine would prevent emissions of 6 400 tonne of CO2 per year.
The AIJ partners estimate that in Budapest all full-size buses (90 passengers
or more) together cause CO2 emissions of 120 000 tonne per year.
In the 2002 in-depth review of the energy policies of Hungary, the IEA stated:
Assessment of This research project was initiated by the University of Applied Sciences of
policy instruments Zittau (Germany) for eight energy agencies in transition countries based on
mainly in the field the experience of East-Germany. The basic concept is the analysis of
of energy implemented policy instruments in the field of energy. The consumption
efficiency patterns of transition countries are inadequate because of the application of
inefficient technologies, inadequate energy management within the industry,
due to lack of measuring tools, defective regulating technology, insufficient
building insulation within heat supply in buildings. Subsidised energy prices
give unsuitable signals for households.
16
participants. The instruments examined are the following:
In the 2002 in-depth review of the energy policies of Hungary, the IEA stated:
17
IRELAND Updated July 2002
BACKGROUND
Ireland published its National Climate Change Strategy in October 2000. Its
objectives are to put in place a framework for action required to meet Ireland's
commitment under the Kyoto Protocol. Key energy-related initiatives include:
1. The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
1
· Increased support for renewables including the launch of five Alternative
Energy Requirement (AER) Schemes.
· The reduction of excise duty on LPG (liquefied petroleum gas) in the
December 1998 budget.
· Revised Technical Guidance Documents under the Building Regulations
will result in better insulation in new buildings with projected CO2
reductions of 300 000 tonnes per annum by the year 2012.
· The extension of integrated pollution prevention control licensing (IPCC)
by the Environmental Protection Agency to the power generation sector,
will mean that all large-scale new and existing power generation plants will
be required to operate using the best available technology (BATNEEC,
Best Available Technology Not Entailing Excessive Costs).
· The establishment of Sustainable Energy Ireland to promote renewable
and energy efficiency initiatives; matched by a government commitment of
€ 222.52 million funding.
The Group reported in July 2000, and the report was published together with
the National Climate Change Strategy in early November 2000.
Significant progress has been made in establishing the principles, rules and
modalities for international emissions trading and the Kyoto flexible
mechanisms, including at COP6bis in July 2001, and COP7 in November
2001. The EU Commission also presented a draft Directive on greenhouse
gas emissions trading to the Council in December 2001.
2
Terms of Reference
In light of these developments the Interdepartmental Climate Change Team
re-established the Emissions Trading Advisory Group with revised terms of
reference:
In the 1999 in-depth review of the energy policies of Ireland, the IEA stated:
Environment
INSTITUTIONAL
FRAMEWORK
An Energy Advisory Board was appointed in September 1994 by the then
Minister for Transport, Energy and Communications. The Board contained
representation from the main energy utilities and energy consumers and was
3
charged with overseeing national programmes and providing advice for the
Minister for Public Enterprise on matters of national policy regarding energy
efficiency, renewable energy and related research. The Board has not had
occasion to meet in recent times and the role of advising the Minister on the
matters aforementioned is now the responsibility of the Board of Sustainable
Energy Ireland (SEI).
Sustainable The Irish Energy Centre (now Sustainable Energy Ireland, SEI) is a joint
Energy Ireland initiative of the Department of Public Enterprise and Enterprise Ireland (the
(formerly the Irish National Industrial Development Agency). Funded by the EU through the
Energy Community Support Framework the Centre's mission is to promote the
Centre) development of a sustainable national energy economy. The Centre began
operating in September 1994 and provides technical advice and support on
energy issues in all sectors of the economy, co-ordinates a range of
promotional and educational initiatives and promotes a number of EU energy
programmes in Ireland.
In the 1999 in-depth review of the energy policies of Ireland, the IEA stated:
EU The SAVE (Specific Actions for Vigorous Energy Efficiency) programme of the
SAVE European Union is a major component of the country’s energy efficiency
Programme policy through the implementation of technical measures such as directives
and standards on, inter alia, boiler efficiency, insulation, energy audits,
performance standards and energy labelling.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Building The national building regulations, which came into effect on 1 June 1992,
Codes detail the minimum legal requirements in relation to the design and
construction of new buildings and reconstruction of existing buildings. It is
estimated that 1 million of the current housing stock of approximately 1.2
million dwellings were built prior to 1 June 1992. Part L (and the associated
Technical Guidance Document) of the regulations sets out the requirements
4
relating to Conservation of Fuel and Energy. Overall energy use in new
buildings is estimated to have been reduced by up to 20%, as a result of the
introduction of the regulations in 1992.
On 6 June 2002 the Minister signed into law Regulations amending Part L of
the Building Regulations. The new Regulations will require new dwellings to
be much better insulated. New thermal performance standards for
replacement external doors, windows and rooflights (roof windows) in existing
dwellings where work commences on or after 1 July 2003 were also set.
These improved Regulations are a key part of the commitment to improve the
energy efficiency of the built environment as set out in the National Climate
Change Strategy. These Regulations are projected to reduce CO2 emissions
by 300 000 tonnes per annum by the year 2012.
Efficiency Statutory Instruments covering minimum efficiency requirements for new hot
Standards water boilers fired with liquid or gaseous fuels, and efficiency requirements for
household electric refrigerators, freezers and combinations thereof, are now in
force. The details of these regulations are as follows:
Energy European Union Council Directive 92/75/EEC is the framework directive for all
Labelling energy labelling, and it is transposed in conjunction with the Commission
Directives which implement energy labelling of the various appliances.
5
S.I. No. 122 of 1995 Regulations
European Communities energy labelling of household electric refrigerators
and freezers regulations, 1995.
Transposed on 17 May 1995.
Boiler A number of companies, including the gas company Bord Gáis Éireann
Services (BGE), operate heating installation inspection and maintenance schemes
(including boiler inspections) for their customers. Sustainable Energy
Ireland’s Boilers Initiative comprises a set of integrated measures designed to
support, encourage and educate boiler users and service providers. The
initiative aims to raise operational standards, increase energy efficiency and
improve competitiveness. The measures are complementary and supportive
of each other and are designed to engage those in Industry, Commerce and
the Services Sectors on a Partnership for Progress basis.
The Steam Boiler System Evaluation Scheme ran from 1997 to 2000. It
involved a subsidised boiler audit in which Sustainable Energy Ireland
supported up to 40% of the cost of a boiler-house audit survey. The Scheme
was targeted at the 420 largest operators of steam boilers in the country and
approximately one in seven of these had an audit completed under the
6
scheme. Average savings identified were 9.5% of fuel usage with half of
these savings being achievable at low cost, i.e. with a payback period of less
than six months. The information collected through this exercise has also
contributed significantly to the design of new programmes for this sector.
Low Income A situation review of fuel poverty in Ireland was commenced in 2001, as part
Housing of a process leading to the development and implementation of an extended
Programme € 7.62 million programme administered by Sustainable Energy Ireland
targeting fuel poverty in low income homes nation-wide.
INFORMATION/
MOTIVATION
Energy Awareness Energy Awareness Week, co-ordinated by the Sustainable Energy Ireland
Week (SEI) in association with the Department of Public Enterprise (now the
Department of Communications, Marine and Natural Resources), represents
the most important series of activities for providing domestic consumers
accounting for about 26% of energy use in Ireland with a clear understanding
of the benefits of energy efficiency and the opportunity to make real
behavioural change. Energy Awareness Week was first held in 1992. The
primary objective of Energy Awareness Week in 2001 was to create greater
awareness for consumers of the importance of sustainable energy with
reference to matters such as sources of energy, the various environmental
impacts and national/international obligations. The awareness campaign also
highlighted the benefits of sustainable energy use including: added comfort,
cost savings, environmental protection and future energy availability. The
impact of the week is measured in terms of increased consumer investment in
the target products such as compact fluorescent lamps (CFLs), lagging
jackets and energy efficient appliances. In 2001, during the period of the
promotion there was an increase of over 400% in sales of these items, with
CFL sales growing from an average 52 000 units to a remarkable 293 000
units. This will result in an annual reduction of CO2 emissions of almost
16 000 tonnes.
Branding The Goldshield Home concept was launched in 1986 by the Electricity Supply
Board (ESB) and since then more than 50 000 such homes have been built
and sold by house-builders. The original aim in designing the all-electric
Goldshield concept was to provide the customer with a comfortable,
7
economical-to-run and energy-efficient home, using just one energy source –
electricity. The Goldshield concept included the following items in an
integrated design:
Bord Gais Eireann (BGE) promotes the Home Energy Rated brand as follows:
New homes built with natural gas central heating as standard are “energy
audited” to determine the amount of energy required to maintain a high level
of comfort in the home. The rating is given in terms of the number of kWh
required per square metre per year. The lower the energy rating, the less fuel
required.
Homes that achieve a rating of 250 or less are branded Natural Gas Energy
Rated Homes. This 'brand' has its own logo and is promoted through:
Regional Sustainable Energy Ireland operates a number of regional offices from which
Energy some of the key initiatives are led. These include:
Offices
· The Energy Policy Statistics Support Unit.
· The Public Sector Investment Programme.
· The Renewable Energy Information Office.
Leaflets Sustainable Energy Ireland (SEI) publishes and distributes a wide range of
leaflets on energy efficiency aimed at the domestic, industrial, commercial,
public and renewable energy sectors. They vary from general information to
in-depth technical advice and recommendations.
Television The About the House television series sponsored by SEI reaches a weekly
Series audience of more than 450 000, which research has demonstrated are very
receptive to the message of improved energy efficiency.
The TV series deals with all aspects of home building and home improvement
and as a result of the involvement of SEI carries significant emphasis on all
energy matters. The presenter has also been involved with Sustainable
Energy Ireland in the presentation of local information sessions as part of an
Energy Roadshow during Energy Awareness Week.
Educational For a number of years Sustainable Energy (SEI) Ireland has been developing
Initiatives a wide range of programmes towards active energy education within the
school system. Activities are based on carefully researched and piloted
schemes which integrate closely with the curricula at primary and secondary
level.
8
Measures under
Consideration
Heat Energy SEI led the development of a heat energy rating software package for use by
Rating architects, designers and building contractors. The purpose of this package is
to enable the users to demonstrate compliance with the updated Building
Regulations, as it relates to consumption of fuel and energy for buildings
constructed after the Regulations came into effect. The Building Regulations
are to be revised in January 2003 and Sustainable Energy Ireland will update
the package to address the more stringent requirements.
The energy rating of houses will be promoted with the aim of making energy
efficiency a significant factor in rental and purchase decisions.
PUBLIC SECTOR
Measures already
existing and/or
being improved
Government The Green Paper on Sustainable Energy outlines the need to make significant
Buildings energy savings in the public sector as part of the wider obligation to reduce
Greenhouse Gas emissions. In that context the government decided in July
2001 to require all public sector Departments, agencies, non-commercial state
bodies, health boards and local authorities with responsibility for new building
construction or major refurbishment to use best practice in both materials and
technology and to avail of opportunities being promoted by the Irish Energy
Centre (now Sustainable Energy Ireland). In addition the government decided
that all government departments and state bodies be required to report
annually in their Annual Reports to Government and the Oireachtas (the two
houses of Irish Parliament) on measures to reduce energy usage in buildings
occupied by them.
The Design Study Support Scheme, launched in June 2001, will provide
financial support of € 2.02 million (Ir£1.6 million) to public sector bodies for the
purposes of procuring external professional expertise to examine and report
on the technical and economic feasibility of energy efficient design and
technology solutions in new building and refurbishment projects.
2
On average in 2001, Ir₤1 = US$ 1.138.
9
measures in new or existing buildings.
The Irish Energy Centre (now SEI) administers these schemes and plans will
be developed by them to extend the example given by public sector buildings
to the private commercial sector.
INDUSTRY
Measures already
existing/and or
being improved
Energy SEI organises seminars, workshops and publishes case studies and guides in
Management support of energy managers in industry and commerce. Recent and current
topics covered under these activities include building energy management
systems, boiler efficiency, variable speed drives, compressed air, lighting and
lighting controls and combined heat and power.
10
The performance and targets set are recorded in the Scheme's Annual report
which also summarises the technical and organisational measures undertaken
by firms to achieve their energy savings targets.
The fourth annual report was launched in late 2001 and showed that the
scheme accounts for over a third of the energy use in the industrial sector with
a total energy spent in 2000 of approximately € 234 million. In 2000, the Self-
Audit Scheme resulted in the reduction in CO2 of in excess of 124 000 tonnes,
representing a cumulative energy saving of € 16 million.
In the 1999 in-depth review of the energy policies of Ireland, the IEA stated:
· Discuss with industry the need for mandatory energy efficiency targets
and measures, possibly implemented through enforceable agreements
entered into voluntarily.
Information/ Sustainable Energy Ireland (SEI) has responsibility for various national
Technical information and technical assistance activities. Most of the workshops have
Assistance an industrial focus. Many energy efficiency seminars have been run as part of
or in association with the EU programmes THERMIE and SAVE.
ESB maintained the DSM programme in its original format until the end of
2000. Modifications to the programme were introduced in 2002 related to the
new electricity supply industry structure. The DSM programme secured total
savings of 324 GWh (Gigawatt-hours) over the period 1997-2000 inclusive.
These savings are based on the savings achieved in a single year for the
measures implemented. The corresponding savings in tonnes of CO2
emissions for each of the individual years 1997 through to 2000 were 100 000,
60 000, 50 000 and 40 000 respectively.
During 2001, ESB Customer Supply entered into discussions with the
Commission for Electricity Regulation (CER) on its future role in delivering
energy efficiency services. For the period 2002-2005, CER agreed to allow
ESB Customer Supply funding for ongoing energy efficiency programmes
within ESB’s regulated revenue stream as the Public Electricity Supplier.
ESB Customer Supply also agreed to change the basis of the reporting of
energy savings starting in 2001. This means efficiency savings would be
reported on the basis of lifetime savings for the measures implemented rather
than for a single year as with the 1991-2000 programme. Also, it was agreed
that ESB would report savings for projects significantly influenced by ESB
since the market for energy efficiency products is now well established. In the
1991-2000 programme, huge efficiency savings were claimed, especially in
the residential sector, because of ESB’s key role in market transformation. As
2001 represented a transition year, ESB reported efficiency savings based on
the lifetime of the measures. The total lifetime energy savings achieved in
11
2001 amounted to 126.5 GWh, equivalent to 100 000 tonnes of CO2.
Combined At the end of 1997, there were 53 CHP installations operating in Ireland with a
Heat and total installed capacity of 86.65 MW. The Fourth Alternative Energy
Power Requirement Scheme (AER4) competition was launched in September 1997
to support the competitive development of CHP. The Department of Public
Enterprise (formerly the Department of Transport, Energy and
Communications) appointed the UK Agency ETSU to run the competition on
its behalf. The AER4 competition, the results of which were announced in
August 1998, produced offers of up to 50 MW. The objective of this
competition was to secure 25 Mwe of newly installed electricity-generating
capacity from existing similar systems. In actual fact, only 18.35 Mwe was
commissioned. This period of incentivisation resulted in slow but continuous
growth and by the end of 1999 122 Mwe was installed in 78 plants around the
country.
In the 1999 in-depth review of the energy policies of Ireland, the IEA stated:
TRANSPORT
Measures already
existing and/or
being improved
Road Network
The overall target of the operational programme is to provide a national road
network to give an inter-urban travel speed of 80 km/h. With a total planned
investment of over € 6 billion over the course of the National Development
Plan 2000-2006, this commitment is aimed at improving the road network
between the main urban centres, removing bottlenecks on those routes and
reducing urban congestion by the provision of new river crossings, ring-roads
and relief roads.
12
Modal shift from private to public transport is an important facet of Ireland’s
approach to reducing greenhouse gas emissions. The government’s transport
strategy for 2000-2016 for the Greater Dublin Area (A Platform for Change)
aims to reduce growth in the demand for transport, particularly for private
transport, and to reduce the need for car commuting by improving the
reliability, availability and quality of public transport. The strategy is based on
the two interdependent elements of demand management and public transport
infrastructure/service improvements, and will be reinforced by complementary
land use policies.
Vehicle Car testing which is a requirement under EU Law was introduced in Ireland on
Testing 4 January 2000. Its introduction will enhance road safety and environmental
protection.
MONITORING/ The Green Paper on Sustainable Energy was published by the Irish
ASSESSMENT government in September 1999. In preparing the Green Paper, the views of
interested parties were sought through a public consultative process. In all 67
submissions were received from a wide range of interests.
The report covers the period 2000-2005 and assesses the potential scale of
improvements in energy efficiency in Ireland; reviews the objectives of Irish
energy efficiency policy; reviews international best practice in energy
efficiency measures and their relevance to Ireland; develops
recommendations on future programmes, institutions and funding.
13
Energy
IEA Efficiency
Update
BACKGROUND
NEP’88 The 1988 National Energy Plan (NEP’88) includes the improvement of energy
efficiency and conservation as a primary objective of general energy policy.
Law The basic law on energy efficiency is Law No. 10/1991, entitled Regulations
No. 10/1991 for the implementation of the National Energy Plan with regard to the rational
use of energy, energy savings and the development of renewable energy
sources. It is a framework law to introduce regulations aimed at the efficient
use of energy sources in all end-use sectors including the specific reduction of
energy consumption in production processes, especially in buildings and
heating plants. The law provides for tax relief and the payment by local
authorities of incentives to support the adoption of the most efficient
technological solutions.
Situation and At the end of 2001, the Italian Parliament, via its Commission for the
Perspectives in the Productive Activities of the Chamber of Deputies, promoted a major national
Energy Sector investigation into the energy situation and its perspectives. After intensive
work, the Parliament Commission approved and published on 18 April 2002 a
document entitled Situation and perspectives in the Energy Sector. This
document indicates three strategic paths, including the increase of energy
efficiency in end uses, taking into account that a mix of energy efficiency and
renewable energy sources allows for the costs incurred by the reduction of
greenhouse gas emissions to be minimised.
Energy Italy signed the Framework Convention on Climate Change (FCCC) in Rio de
and the Janeiro during UNCED in June 1992. Parliament approved Italy’s agreement
Environment FCCC by Law No. 65 of 15 January 1994. The Programma Nazionale per la
limitazione delle emissioni di anidride carbonica nel 2000 al valore del 1990
(National Programme for Limiting Carbon-related Emissions to 1990 levels by
2000) was approved by the Interministerial Committee for Economic Planning
(CIPE) in the session of 25 February 1994.
This National Programme describes, inter alia, existing measures for energy
efficiency and sets out in broad terms additional actions that Italy could take.
The First Italian National Communication of January 1995 is based on the
information and programmes contained in the National Programme for
Limiting Carbon-related Emissions which gave high priority to energy
efficiency through the following steps:
At the Fourth Conference of the Parties (COP-IV) to the FCCC held in Kyoto
in December 1997, the European Union as a whole agreed to reduce the
emissions of a basket of six gases by 8% from 1990 levels by the period
2008-2012. In June 1998, the European Union Council of Environment
1
1
Ministers reached a Burden-Sharing Agreement on emission reduction
commitments, to re-allocate internally the 8% reduction agreed at Kyoto. The
reduction commitments are expressed as a percentage of 1990 levels for the
2008-2012 period.
In June 2002, the Italian Parliament approved the Law No. 120 to ratify the
Kyoto Protocol. According to this Law, a suitable national plan aimed at
reducing GHG emissions and increasing absorption will be submitted, before
30 September 2002, to the Interministerial Committee for Economic Planning
(CIPE).
CIPE The guidelines and actions for the containment and reduction of GHG
Deliberation emissions were identified by the CIPE Deliberation 137/98 published on
137/98 10 February 1999. It includes, inter alia, the following measures:
Legislative On June 2001, the Ministry of the Environment enacted a Legislative Decree
Decree providing the list of selected programmes and related funding according to
of June 2001 Decree No. 337/2000. The total amount addressed to supportive actions and
programmes for GHG emissions reduction is worth € 25 million for national
programmes and € 17.5 million for international co-operation programmes
regarding Kyoto mechanisms. For the former, selected programmes relate to
demonstration projects in the fields of cogeneration plants in the production
and civil sectors; improvement in energy efficiency in the industrial,
residential, tertiary and transport sectors and development of engines at low or
zero emission.
The state is still responsible for the elaboration and definition of energy policy
objectives and guidelines, and for action to address and co-ordinate energy
planning at the regional level. The new text of article 117 of the Constitution,
introduced by the Constitutional Law of 18 October 2001 (No. 3) has inserted,
among the subjects of current legislation, the production, transport and
national distribution of energy: this means that the State sets the policy, the
main guidelines and the general objectives by law, while the Regions concur
to determine specific laws and rules for the realisation of the objectives.
1. The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
2
The Region's main responsibilities are as follows:
Responsibility for energy policy lies primarily with the Ministry of Productive
Activities (formerly Ministry of Industry, Commerce and Crafts), in co-
ordination with other Ministries (including the Ministry for the Environment),
interministerial Committees, government organisations and independent
agencies. The Interministerial Committee for Economic Planning (CIPE) co-
ordinates national energy policy with economic policy. It issues deliberations
which give a framework to energy policy.
In the 1999 in-depth review of the energy policies of Italy, the IEA stated:
· Clearly define the responsibilities of the regions and the local authorities
for energy efficiency measures and ensure that they are carried out
effectively in co-operation with ENEA. Ensure that regions focus on the
most cost-effective measures.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Building Regulations on mandatory efficiency codes, drawn up by ENEA, for all new
Standards buildings and renovation of old buildings, were introduced in October 1993.
ENEA is also preparing additional non-mandatory building codes.
At present, two new decrees are being prepared by the Ministry of Public
Works to implement Article 4c 1-2 of Law No. 10/91. These decrees will set
criteria for design and maintenance of buildings and will furthermore reduce
3
the limit values of specific power lost by transmission. Emissions of CO2
should be reduced by 10% in two years in the new built residential sector.
In the 1999 in-depth review of the energy policies of Italy, the IEA stated:
Energy Since 1991, energy audits of buildings have been implemented by ENEA on
Audits the basis of a voluntary agreement concluded between ENEA and the Ministry
of Public Works. In four pilot towns, energy audits were performed in 10 000
apartments.
Inspection Presidential Decree No. 412 of 26 August 1993 implementing Law No. 10/91
of Boilers sets regulations limiting energy consumption with special reference to the
design, installation, running and maintenance of heating plants. Twelve
million heating plants are concerned. The programme, begun in 1994,
requires plants to be inspected every one or two years depending on the size
of the boiler. Air temperature in heated buildings must be 20°C + 2°C.
Sanctions for non-compliance are foreseen but are not yet in place. ENEA
supports the programme by providing training and information to the
municipalities who are responsible for the inspection.
Billing Billing of heating, air-conditioning and hot water costs is covered under Law
No. 10/91. Costs for heating are apportioned by surface. For new buildings
and existing buildings undergoing major renovation, it is compulsory to make
allowance for individual measurement, but it is not compulsory to install the
measuring equipment (Article 2.6 of Law No. 10/91). By requiring it at the
design stage, it will be easier to introduce individual metering if it becomes
mandatory. The local administration is requested to respect the norms. A
limited number of local administrations are tightening controls.
Financial/ Law No. 449/97 allows a fiscal reduction of 41% of the cost (VAT included)
Fiscal related to building restructuring carried out during 1998 and 1999. The
Measures reduction applies only to building owners who have to pay personal tax
(IRPEF) and is subdivided into five to ten annual rates. The reduction is
applicable for costs limited to € 77 468 per building unit per person per year.
About 200 000 requests were submitted in 1998. This law was not specifically
designed for energy purposes but to support the construction sector.
Energy Italy has transposed the EU Directive on Energy Performance Standards for
Labelling and refrigerators and freezers and, in November 1998, the EU Directive on Energy
Certification Labelling for refrigerators and freezers. The Ministry of Industry envisaged an
incentive scheme for households which are willing to replace old appliances
with more energy-efficient ones.
4
In the 1999 in-depth review of the energy policies of Italy, the IEA stated:
INDUSTRY
Measures already
existing and/or
being improved
Energy Under Laws No. 9/91 and 10/1991 and Decree 15/2/92, Italy supported
Audits energy audits in small and medium-sized enterprises. The programmes
2
started in 1992 and ended in 1995. About L 9 billion were provided for such
energy audits. Some 600 audits were undertaken.
Energy To implement Article 19 of Law 10/91, circulars of the Ministry of Industry No.
Managers 219/f of 2 March 1992 and 226/f of 3 March 1992 issued regulations on the
compulsory appointment of energy managers for all industrial, commercial,
public and transport sectors companies and organisations consuming more
than 10 000 toe per year (industry) or 1 000 toe per year (other); 750
companies have appointed energy managers. Energy managers can also
operate within an Energy Saving Company (ESCO) to recognise, plan,
manage and eventually finance energy saving interventions. Companies that
fail to comply with this regulation are not eligible for grants for energy
efficiency investments and are liable to be fined.
The FIRE (Italian Federation for the Rational Use of Energy) association
collects and represents the 2 000 Italian energy managers on behalf of the
Ministry of Productive Activities. The FIRE web site (http://www.fire-italia.it)
contains a forum which actively aims to define energy efficiency indicators for
several energy-saving interventions
Voluntary Since 1998, the Italian government has developed a joint voluntary
Agreements programme with FIAT, the major Italian car manufacturer, for the development
of low consumption vehicles. FIAT is committed to the following goals: by
2000, a general public model with a consumption of 4.5 litres/100 km, by
2005, a model in production with a consumption of 3 litres/100 km and by
2010, the average vehicle produced should consume less than
5.5 litres/100 km. Furthermore, FIAT should build a platform for used car
recycling.
The glass industry has concluded a voluntary agreement with the government
establishing a programme to reduce GHG emissions by about 10% by 2005.
This agreement includes monitoring mechanisms and if the manufacturer fails
to comply with the agreement, the government imposes standards at the
national level.
2
On average in 1999, L 100 = US$ 0.056. In 2001 L 100 = US$ 0.046.
5
In November 1998, the industry entered into a framework agreement with the
government entitled Patto per l'energia ed ambiante that will later lead to
voluntary agreements to reduce CO2 emissions through increased energy
efficiency and use of renewable energy sources.
In July 2000, ENEL, the Ministry of Productive Activities and the Ministry for
the Environment signed a voluntary agreement on demand side management
for collaborating in GHG reduction, through the following actions:
In the 1999 in-depth review of the energy policies of Italy, the IEA stated:
Combined As of December 2001, total installed power of CHP (combined heat and
Heat and power) plants accounted for some 11 900 MW, of which:
Power
· 7 700 MW were from IPPs.
· 4 200 were from auto-producers.
In early 2002, the Regulatory Authority for Electricity and Gas defined the
conditions under which a CHP plant can be considered a cogeneration plant.
The criteria take into account the efficiency of generation and the relevant
savings as compared to a separate production of the same quantity of power
and heat. Furthermore, a minimum value (15%) has been set for the ratio
between the heat and the total energy produced by the plant.
Industrial DSM Legislative Decrees No. 79/1999 and No. 164/2000, enacted to comply with
Promotion and the European Directives concerning the opening of the electricity and gas
Assistance markets, specify that the government concession to companies to undertake
the distribution of electricity and gas shall include the implementation of
measures for the improvement of energy efficiency in end-uses according to
quantitative targets.
6
The quantitative targets, the modalities for designing and implementing the
programmes and the monitoring and assessment procedures of the energy
saving programmes were defined by two Decrees issued on 24 April 2001 by
the Ministry of Productive Activities in collaboration with the Ministry of the
Environment. The Regulatory Authority for Electricity and Gas is drawing up
guidelines for the identification and selection of suitable projects and the
monitoring of the results achieved.
The targets are progressive from 2002 to 2006. In the first year (2002), the
primary energy saving should be 0.50 Mtoe (0.3 for the electric sector and
0.2 Mtoe for the gas sector); in 2006, the energy saved should exceed
2.9 Mtoe/year of which 1.60 Mtoe for the electric sector and 1.30 Mtoe for the
gas sector. The obligations are in force for those distributors providing
electricity or gas to more than 100 000 end-users by 31 December 2001. The
quota of energy saving to be achieved by a single distributor is proportional to
the ratio between the electricity or gas it distributes at a local level and the
total electricity or gas distributed at a national level. Fines are envisaged for
distributors who do not achieve their assigned targets.
The projects designed to comply with the requirements of the Decrees may be
implemented in three ways:
Under the 1991 planning agreement between the Ministry of Industry and
ENEL, negotiated under Law 9/91 and covering 1991-1995, ENEL undertook
to promote savings in electrical end-uses through technical assistance, advice
and information dissemination. Programmes focused on efficient heat pumps
for water heating and air conditioning; compact fluorescent light bulbs; solar
panels in the residential and commercial sectors; capacitors to improve power
factors on customer premises; and cogeneration in small and medium-sized
enterprises.
7
management of public lighting plants has been entrusted to So.l.e.
Financial/ Under Law No. 10/91 and Decree 15/02/92, financial contributions were
Fiscal provided to support investments in energy efficiency and renewables in all
Incentives energy sectors. The main contributions which were made to help industry and
the industry sector were stopped in 1994 at the central level but some regional
subsidies are still in operation. A total of 211 projects have been completed
and 132 projects are currently under way. A total budget of 1 040 million ECU
was presented (in 1991 currency), but 330 million ECU (in 1994 currency) was
effectively engaged and 145 million ECU (in 1996 currency) has already been
allocated. The government’s financial difficulties have led to these successive
postponements of funding for these grants.
Under Law No. 9/91 and the Decree of the Prices Committee No. 6/92, the
public utility ENEL purchases at avoided costs the electricity produced by
renewable sources, waste and cogeneration. This regulation came to an end
in 1997. Proposals for about 16 000 MW were presented but ENEL accepted
only 7 200 MW, i.e. 3 700 MW of cogeneration, 1 400 MW for plants based on
waste and 2 100 MW based on renewable sources. A total of 5 000 MW is
already in operation; plants must be completed by 2001. Avoided costs and
incentive premiums paid by consumers to producers are provided for the first
eight years. This resulted in 1998 in a total surcharge on electricity
consumers of about € 1 200 million.
Information ENEA and FIRE provide information on energy efficiency and organise
updating courses. Several institutions organise local educational courses.
PUBLIC SECTOR
Measures already
existing and/or
being improved
Energy As mentioned under INDUSTRY above, Law No. 10/91 makes it mandatory
Managers for all administrations consuming more than 1 000 toe (primary sources) to
appoint an energy manager. Local administrations in charge of energy
regulation should use the network of energy managers to resolve sectoral
problems.
Local Law No. 10/91 requires communities with a population of over 50 000 to
Energy establish local energy plans with emphasis on renewable energy sources and
Plans combined heat and power (CHP). Due to weak administrative management
and budget constraints, few plans have been developed so far, with the
exceptions of Rome and Turin and some smaller cities like Padua or Rovigo.
However, Italian municipalities were to set up their energy budgets and
8
develop reduction plans for the years 2005 and 2010 by December 1998.
TRANSPORT
Measures already The state is in charge of railways, air, maritime and fluvial transport as well as
existing and/or motorways and national roads. The Italian authorities are well aware of the
being improved need for a better distribution in transport flows between road and rail traffic,
improvement of the public transport system and for increased efficiency of the
vehicles themselves but stress that these tasks are complex and costly to
implement. In recognition of these insufficiencies, transport policy is moving
away from direct state intervention to a more market-based strategy.
In the 1999 in-depth review of the energy policies of Italy, the IEA stated:
· Increase the share of public transport and ensure that regions effectively
co-operate on inter-regional transport issues.
The General The General transport Plan (PGT), revised every three years, sets out national
Transport Plan transport objectives. In accordance with these objectives, Regional Transport
Plans are to be developed by regional authorities, Urban Traffic Plans (PUT)
and Urban Mobility Plans (PUM) by municipal authorities, and mobility plans
by companies with over 300 employees.
The 2001 PGT reiterates many of the 1994 objectives, with the primary goals
of bridging the gap between transport supply and demand and improving
economic efficiency and environmental effectiveness.
Vehicle Vehicle taxation is proportional to engine power and is equal to € 2.58/kW per
Taxation year for unleaded gasoline or Eco-gas-oil vehicles in the entire territory, with
the only exception of Venetia (€ 2.84/kW/year) and Marche (€ 2.79/kW/year).
The tax is increased for polluting vehicles and strongly reduced for low
environmental impact vehicles. For example, the tax on gas-oil vehicle (non-
Eco-gas-oil) amounts to € 7.82/kW/year); for hybrid (gasoline/methane or
gasoline/LPG vehicle, the tax is € 2.58/kW/year and only € 0.65/kW/year for
electric vehicles – after five years – and for methane or LPG vehicles. Electric
vehicles benefit from a zero tax the first five years.
Local Local public transport is not yet as cost-effective as it could be. It suffers from
Public lack of rail infrastructure, relatively low levels of equipment and services, and
Transport heavy reliance on congested road transport (67%). Urban bus use fell by 6%
between 1990 and 2000, whereas private car use for urban trips increased by
37%. While efforts to expand urban railways are showing initial results, the
overall supply remains low; underground lines in Milan, Naples, Rome and
Genoa total some 122 km, whereas tram lines in Turin, Milan, Rome, Naples,
Genoa and Trieste total some 407 km.
Vehicle In 1998, energy performance monitoring in vehicle certification was set up and
Certification is being progressively implemented.
Railway The weakest part of the transport system has always been the railways with
Network low train frequency, lack of punctuality, inadequate train schedules and
obsolete rolling stock. To overcome these problems, which discourage
potential travellers, the government has launched a complex investment plan
9
to expand the railway network and a plan to build high-speed lines is being
implemented. The cost would be L 88 000 billion by 2000 of which
approximately L 39 000 billion was already covered up to 1998.
Incentives for Government incentives were introduced in 1996 to progressively eliminate old
Renewal of cars and reduce the share of vehicles bought after 1990 to 75% by 2000.
Car Fleet Combined with incentives for low-emissions vehicles, they have resulted in
renewal of the car fleet and reductions in air emissions. The proportion of old
passenger cars has fallen to 37.2%; the share of cars equipped with catalytic
converters increased from 8.5% in 1992 to almost 50% in 2000. However, the
number of cars in use and the average engine size have increased. The share
of vehicles over ten years old remains considerable where trucks (50.8%),
buses (60.9%), and two-wheelers (56.6%) are concerned. In the period 2001-
2003, the Ministry for the Environment will support purchases by citizens of
new electric, methane or LPG vehicles and the retrofitting of cars with
LPG/methane investing a further € 7.7 million per year.
Measures under
Consideration
Intermodal Inter-modal transport (i.e. combined sea-land and rail-road transport) has
Transport progressed with the growth of trans-shipment terminals at several Italian ports,
inter-port hubs, and connections with rail and road networks. Container
movements at Italian ports have increased by 219% since 1990.
The Law established the value of the excise taxes for 1999 (€ 0.52 per metric
tonne of coal, petroleum coke and "orimulsion" used in combustion plants) and
those for 2005, to be reached progressively. The increases between 1999 and
2004 were to be decided on a yearly basis by the government and set by
Decrees of the President of the Ministers' Cabinet. However, in September
2000, the CO2 tax increases were suspended by Decree No. 268/2000. The
structure of energy taxation has not changed since 1998, and the government
is presently considering revising the methodology of excise tax increases.
The proceeds from the tax are about L 2 180 billion for 1999 and L 2 271
billion in 2000 and 2001. They will be used to fund a reduction of manpower
cost, a reduction in employers insurance contribution and a contribution to
finance environmental projects.
10
MONITORING/ In recognition of the need to update the guidelines on energy policy and set up
ASSESSMENT a joint framework for both administrative and operational initiatives, the
government approved at the end of March 1998 the organisation of a National
Conference on Environment and Energy that took place in November 1998.
The Conference focused on environmental, social and economic aspects of
the energy sector: the primary goal is to achieve voluntary agreements
among government, companies and unions to pay increased attention to the
importance of energy availability for development, environmental protection
and achievement of national objectives.
In the concluding document, the government set, inter alia, the following
objectives: to promote sustainable development and to account for
environmental concerns in energy policy. The government plans to devote at
least L 5 000 billion from 1999 to 2004 to specific actions which were decided
at the National Conference, including increased efficiency in final energy use,
especially in the transport sector and to start a programme to reduce
greenhouse gas emissions.
11
Energy
IEA Efficiency
Update
BACKGROUND
Long-Term The 1990 Long-Term Energy Supply and Demand Outlook of elaborated by
Outlook the Advisory Committee for Energy, the advisory board of the Minister of
International Trade and Industry (MITI) was first revised in June 1994 and
approved by the Council of Ministers in September 1994. It illustrated the
targets for future supply and demand under the fundamental objectives of
Japan’s energy policy, the so-called “3Es”: economic growth, energy
security and environmental protection.
This Long-Term Outlook was revised again in June 1998 and presents
Japan’s supply and demand outlook for the year 2010, with reference to the
framework of the third Conference of the Parties (COP3) of the UN FCC
agreed in Kyoto in December 1997. On the demand side, it stresses the
need to control energy demand through the implementation of steady energy
conservation measures that are, to the extent possible, technologically and
economically feasible.
1
emissions from energy use in the form of fuel combustion is expected to go
back to the 1990 level.
The new Guideline also indicates that Japan will achieve 0.5% of the 6% cut
through the reduction of emissions not from energy use, 2% through the
development of innovative technologies and citizens' efforts, 3.9% through
forest absorption, and 1.6 % through the so-called Kyoto Mechanism. Since
there is also a 2% increase in some GHG emissions, the total reduction
expected to be achieved is the targeted 6%.
1993 Law In this context, in 1993 it was judged essential to amend the Law Concerning
Concerning the the Rational Use of Energy, known as the Energy Conservation Law, and at
Rational Use of the same time establish the Law Concerning the Rational Use of Energy and
Energy Recycled Resources Utilisation, known as the Energy Conservation
Assistance Law, and apply it to actions assisting business operators who
voluntarily tackle such activities as the rationalisation of energy use and
utilisation of recycled resources.
1998 Revised Law An important development in energy efficiency in Japan was the revised Law
Concerning the Concerning the Rational Use of Energy that was issued on 5 June 1998. The
Rational Use of main points of the revision approved by the Japanese Diet in June 2002 (to
Energy become effective on 1 April 2003) are that more factories, automobiles and
appliances will have to comply with stricter energy efficiency standards. (For
detailed information, see the following developments.)
CO2 Emissions The Joint Advisory Committee showed that the energy-related CO2
Estimated by emissions in FY 2010 would exceed by about 20 million tonnes of carbon
Advisory equivalent (of which about 6 million tonnes would be attributed to the
Committees demand side) the current countermeasure scenario in Japan. It therefore
in March 2001 showed that it is necessary to persist with the existing measures and monitor
the progress of their implementation to maximise their effectiveness, with
additional measures being introduced if necessary.
Government Energy In January 2001, the Ministry of International Trade and Industry (MITI)
Organisation became the Ministry of Economy, Trade and Industry (METI). The Agency
for Natural Resources and Energy (ANRE) has been reorganised into five
units, and is still responsible for comprehensive energy policies to ensure
strategic energy security, realise an efficient supply and promote energy
policies in harmony with the environment.
2
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Energy Efficiency For items designated “specified equipment” by government ordinance, the
Standards and Energy Conservation Law established standards for improved energy
Labelling efficiency for manufacturers and importers (“manufacturers”) and made
energy efficiency labelling mandatory.
The Revised Law of June 1998 sets a new fine for manufacturers and
importers of appliances in the case of non-compliance with government
instructions.
Top Runner One of the main points of the revised Energy Conservation Law in force
Programme since 1 April 1999 is the Top Runner Programme; according to the Long-
Term Energy Supply-Demand Outlook of Japan, the country must adopt
drastic energy-savings measures of 56 million kl to reach the Japanese
commitment of the Kyoto Protocol, thus making energy consumption in 2010
similar to the 1996 level. Foremost among the measures needed are
measures imposed by legal action that aim to realise energy savings of 27
million kl. The Top Runner Programme is expected to achieve a saving of 9
million kl and reduce the emission of GHG by 6% by 2010.
In the Top Runner Programme, the energy efficiency target is based on the
product having the highest energy efficiency of all the products in the same
group that are sold on the market and where efforts are made to reach the
target number by the time set for each type of product. The Programme will
apply to both Japanese and imported products. It will apply to the following
12 categories of product: passenger cars, diesel passenger cars, trucks,
diesel trucks, air-conditioners, fluorescent lights, electric refrigerators, TV
sets, computers, VCRs, magnetic disk units, and copying machines.
3
Since each of the products has a variety of models with different sizes and
functions, it is unreasonable to apply the same single energy efficiency to all
of them: so, the Top Runner Programme divides each product into several
groups and establishes an energy efficiency target for each of the groups.
The principle is that the target is chosen from the model having the highest
energy efficiency of each product group and if a further improvement in
efficiency is expected by the target year as a result of technical progress,
this is added to the current highest efficiency.
Expansion of In June 2002, the Japanese Diet approved the expansion of the Top Runner
the Top Runner Programme to come into force in April 2003. Committees of experts set
Programme target values relative to 2000 level and target years as follows:
Reference: http://clearing.e-gov.go.jp/cgi-bin/HpSchearch.cgi?LANG=
New In the framework of the revised Law, more appliances — for example
Target refrigerators — will be added by Ordinance to the currently designated home
Values and electric appliances. Furthermore, this future energy efficiency target
value will be strengthened, i.e. set at a level higher than that of the appliance
with the highest energy consumption efficiency of the currently
commercialised products (except special items).
Standby Power In Japan, 10% of energy consumed in the domestic sector is standby power.
Reduction Three major manufacturers associations have set voluntary targets for
products requiring standby power to satisfy their functions to reduce this
standby power to 1 W or less by fiscal year 2003 (by the end of FY 2004 for
air-conditioners). Their voluntary target for standby power of the other
products is close to zero by the end of fiscal year 2003.
4
Background of the new system
After an in-depth study of the advantages and disadvantages of the labelling
systems in the United States (the Energy Star Program) and in the European
Union, the Energy Conservation Standard Subcommittee of the Advisory
Committee for Energy, an advisory body to the METI Minister, developed a
proposal to display the rate of the existing Top Runner Standard on labels in
Japan; the proposal was submitted for consideration by the Japanese
Industrial Standards Committee (JIS), as the government's policy is to
promote the new system as a voluntary labelling system based on the JIS.
Implementation
After this matter was studied by the JIS in May 2000, the World Trade
Organisation procedure was fulfilled: the new JIS labelling system was
established in July 2000 and at the same time the details were made public.
Air conditioner (for heating and cooling) 2004 (partly 2007) 63%
Air conditioner (exclusively for cooling) 2007 14%
Television set 2003 16%
Video tape recorder 2003 59%
Fluorescent light fixture 2005 17%
Copying machine 2006 30%
Computer 2005 83%
Magnetic disk device 2005 78%
Electric refrigerator/electric freezer 2004 30%
Energy The International Energy Star Programme is intended to use joint energy
Star conservation standards and a common logo in the approved countries
Programme (Japan and the United States). This has the effect of mutual recognition that
the products satisfy the standards. The Energy Star logo affixed to products
is also valid in the other approved country. Products concerned are personal
computers, displays, printers, facsimile and copying machines. Japanese
products meeting the standards may have the international Energy Star logo
affixed to them in the other approved country. The Energy Conservation
Center, Japan (ECCJ) is responsible for this programme.
Committee on Until now, energy conservation measures have focused on the supply side.
Advanced DSM However, with newly developed technologies, it is possible to implement
5
measures on the demand side: for instance, ECCJ selected 800 households
at random across the country and installed meters that showed power
consumption in both volume and cost terms in real time. A survey found that
these households' electricity consumption in FY 1998 was reduced by an
average of about 20% from the previous fiscal year. Based on this
experience, the Agency of Natural Resources and Energy under METI
(METI/ANRE) set up in March 2000 the Committee on Advanced Demand
Side Management as an advisory body to the Agency's Director General.
The Committee is studying DSM from the consumer's side with particular
emphasis on the residential/commercial sector where energy consumption is
expected to grow strongly in the near future.
Publicity
Activities
The Energy The Energy Conservation Center, Japan (ECCJ) is responsible for
Conservation disseminating information on energy conservation. Newspaper, magazine,
Centre radio and television advertisements were sponsored by ECCJ in both
summer and winter since FY 1977. Promotional activities such as energy
conservation republics, poster contests by the students of elementary school
and high schools have been operated by ECCJ.
ECCJ held the Smart Life 2001 Campaign. This campaign invited consumers
to use energy efficiently and promoted simplicity in many aspects of
Japanese life (clothing, meals, houses, offices, education, etc.). Examples
of this activity include proposals to reduce energy consumption for air-
conditioning; educational initiatives to deepen environmental awareness and
energy efficiency; a proposal for fuel efficient driving.
Energy The Energy Saving Republic is one of the activities of the Energy
Saving Conservation Center, Japan (ECCJ). It is the group of people who implement
Republic energy saving actions, recycling, and better environment to contribute to
solving the problems of energy and global warming. Elementary schools and
local communities are at the centre of this activity which is planned to be
expanded to include corporations, shopping associations or universities.
6
information leaflets on Republics; the Republic's web site; implementation of
energy audits; and subsidies for community's energy conservation activities.
As of 31 December 2000, the number of the Republics amounted to 37, 26
of them for elementary schools.
· The Energy Conservation Day on the first day of every month to create
greater opportunities to review energy conservation activities and ensure
their results.
· The Energy Conservation Month in February as a nation-wide
movement involving general consumers and public institutions,
implementing energy conservation programmes in industry, holding
exhibitions and various campaign events on energy efficiency.
· The General Check-Up Day for Energy Conservation on 1 August and
1 December, for a check-up and review of daily energy conservation
activities and habits.
Housing
Financial/Fiscal
Measures
Energy Two alternative special taxation measures are offered to promote investment
Taxation in the installation of energy-efficient equipment.
System
· A tax deduction amounting to 7% of the equipment acquisition cost
(which should not be more than 20% of the income tax or corporate tax
payable).
· A special depreciation that allows the company to depreciate a
maximum of 30% of the acquired value, in addition to the normal
depreciation in the year of acquisition.
Home and Building METI provides subsidies through the New Energy and Industrial Technology
Energy Development Organisation (NEDO) to introduce Home Energy Management
Management and Building Energy Management Systems. These help manage energy
Systems consumption of appliances such as lighting, air conditioning, and hot-water
supply by using information technology systems. These systems enable
automatic management of several appliances at the same time leading to
energy savings and reduced environmental impact.
Commercial
Standard For five kinds of buildings (offices, shops, hotels, hospitals or clinics, and
Values schools) standards for prevention of heat loss and efficient utilisation of
energy in air conditioners, mechanical ventilators, lighting systems, hot water
tub equipment and elevators were established in July 1993, based on the
Energy Conservation Law, setting thermal performance values and energy
consumption efficiencies.
7
Fiscal/ Taxation measures for energy investment have been set up for building
Financial equipment with high energy efficiency, including heat pumps, floor heating,
Measures and thermal storage air-conditioning and hot-water equipment.
Since FY 1993, the Japan Development Bank has provided long-term low-
interest loans for the total construction costs of buildings having high energy
efficiency and incorporating measures to reduce the environmental burden
("eco-care buildings").
Energy Design costs are subsidised for efficient energy use systems located in
Efficiency areas undergoing extensive urban renewal.
and the
Management Project feasibility studies are subsidised for "environment-harmonised district
of Cities development", which provides a large number of energy-efficient buildings
while integrating the efficient use of energy at the district level.
The action plan enacted in 1995, originated by the Basic Environmental Plan
which was enacted in 1992, has also been carried out. Surveys of its
implementation status have been conducted and published annually.
In the 1999 in-depth review of the energy policies of Japan, the IEA stated:
8
Energy Energy conservation effect in residential/commercial sector: 18.6million kl in
Conservation total.
Effect Proposed
by the Committee Share of existing measures: 14 million kl
· Improvement of equipment efficiency via Top-Runner performance
control: 5.4million kl
· Improvement of energy conservation performance of houses and
other buildings: 8.6 million kl
Share of new measures: 4.6 million kl
· Widening of equipment subject to Top-Runner performance control:
1.2 million kl
· Accelerated introduction of high efficiency equipment: 500 000 kl
· Reduction of standby power consumption: 400 000 kl
· Introduction of residential energy management systems: 900 000 kl
· Introduction of commercial energy management systems:
1.6 million kl
INDUSTRY
Measures already
existing and/or
being improved
Energy- In 1979, the Ministry of International Trade and Industry (MITI) issued
Control standards for items that included rationalisation of fuel combustion and
Designated heating, prevention of heat loss and recovery and utilisation of waste heat.
Factories They applied to designated energy management factories (a factory or place
of business with an annual fuel consumption equivalent to at least 3 000
kilolitre of crude oil or an annual electricity consumption of at least 12 GWh).
This concerns about 3 500 factories.
Under the 1993 law, for an operator who fails to prepare a rationalisation
plan, the appropriate ministers are authorised to publicise the case and
issue an order. He is also subject to a penalty. It is mandatory for
designated energy management factories to report annually to the
appropriate ministers on their energy consumption.
Newly The revised Energy Conservation Law of June 1998 established a new
Established category of “designated energy-management factories”, those with an
Energy Control annual fuel consumption equivalent to over 1 500 kilolitres of crude oil or an
annual electricity consumption over 6 GWh, designated by Ordinance. This
concerns about 9 000 medium-sized factories and business sites. The
measures to promote energy conservation include:
9
in factories.
· Obligation to select energy managers.
· Obligation to attend lectures on energy conservation.
· Obligation to record the conditions of energy use.
The Energy Conservation Law stipulates that the METI Minister can instruct
a designated energy management factory to create a rationalisation plan if
such a factory is found to be substantially lacking in its efforts to rationalise
its energy use; however, this provision has never been implemented and the
procedure has to be established. As the need to strengthen energy efficiency
is becoming more urgent than ever, it is necessary to establish a transparent
process and criteria so that factories can be instructed to create
rationalisation plans when necessary.
Energy Energy audits for small and medium-sized companies began in 1978 and
Audits approximately 5 600 assessments have been carried out nation-wide. The
target companies are those with a capital of less than ¥ 100 million or less
than 300 employees. They are free of charge.
These energy audits are carried out by the Energy Conservation Center,
Japan (ECCJ).
For large and medium-sized companies, detailed energy audits are also
carried out by ECCJ. A fee is charged.
Two or three experts carry out a preliminary survey that is then followed by a
detailed survey of the production process. A list of areas in need of
improvement is drawn up and prioritised. Concrete measures are suggested
to address these priorities and a proposal is made presenting the expected
benefits from the measures as well as the investment required to implement
them.
10
Energy The Law Concerning Rational Use of Energy and Recycled Resources
Conservation Utilisation of 25 June 1993, known as the Energy Conservation Assistance
Assistance Law Law, will be in force for ten years. Its main purpose is to assist business
operators who voluntarily undertake such activities as rationalisation of
energy use and utilisation of recycled resources.
a) Very low interest rate: The interest rate, as of 16 February 1996, is far
lower than the lowest interest for fiscal investments and loans (3% for
the specific activities of factories, etc., and also for those of buildings).
Financial institutions (Japan Development Bank, etc.) who lend the
necessary funds have the interest partially covered by the Oil Special
Account (budgetary action with no legal provision).
b) Bond under Industrial Foundation Improvement Fund.
c) Exemptions from taxation.
Low A system of low interest loans has been instituted by some banking
Interest institutions such as the Japan Development Bank for the installation of
Loans energy efficiency equipment. Other banks, such as the Smaller Business
Finance Corporation and the People’s Finance Corporation, provide loans to
promote energy efficiency use, mainly in support of environment protection
measures.
11
saving efforts are provided with support to further these activities.
Financial/ At the end of March 1998, installed cogeneration capacity for the residential
Fiscal and commercial sector in Japan was approximately 790 000 kW, about 3.51
Support million kW for the industrial sector (except steam turbine) and about 4.3
for CHP million kW at the total of power generation.
12
Specific Measures concerning the Promotion of New Energy Utility.
Debt guarantee is also provided by the New Energy and Industrial
Technology Development Organisation (NEDO).
· Taxation system to encourage investment in structural reform of energy
supply and demand: special depreciation of 30% of the cost obtained at
the first year or tax exemption of 7%.
· Long-term financial assistance at a low rate provided by government
financial institutions such as the Japan Development Bank.
In the 1999 in-depth review of the energy policies of Japan, the IEA stated:
13
Measures
Under consideration
Revised Law The June 2002 revision of the Law Concerning the Rational Use of Energy to
Concerning the become effective on 1 April 2003 requires that plans to build non-residential
Rational Use of buildings with a floor space of 2 000 square meters or more would have to
Energy in Non- include specific energy-saving measures. Non-residential buildings that
Residential would fall under the planned regulations include offices, stores, hotels and
Buildings hospitals.
in Industry The government expects 2 000 to 3 000 plans for building or renovating non-
residential buildings of that size to be submitted annually to local
governments. The local governments would press for measures such as
thermal insulation in the outer walls. If the measures are found to be
substandard, they would order the plans changed.
The June 2002 revision of the Law concerning the Rational Use of Energy,
to become effective on 1 April 2003, stipulates that the first category
designated energy management factory, which is currently limited to
manufacturing and four other industrial factories that use substantial
amounts of energy will be expanded to all industries, including large-scale
office buildings and other similar sites. Those designated businesses will be
subject to the mandatory preparation and submission of future energy
conservation plans (mid and long-term) and regular reporting.
TRANSPORT
Measures already The original 1979 Law Concerning the Rational Use of Energy presented
existing and/or energy efficiency standards for gasoline-fuelled passenger vehicles and
being improved made labelling mandatory to indicate energy efficiency by the manufacturer
and importer (“manufacturer”). The 1979 fuel efficiency standards were set
towards 1985 and actually increased the average fuel efficiency of
passenger cars by 12.3% from 1978 to 1985.
The 1993 Law Concerning the Rational Use of Energy strengthened the
guarantees for mandatory labelling. If a manufacturer fails to comply with a
recommendation for labelling, the law empowers METI and the Minister of
Transport to publicise the case and issue an order. A manufacturer who fails
to obey an order is subject to a penalty. The energy consumption standards
were issued on 27 January 1993; the current fuel efficiency targets for
passenger cars for FY 2000 classified by vehicle weight are as follows:
· Passenger cars weighing less than 827.5 kg (light and economy cars):
fuel efficiency target = 19.0 km/litre.
· Passenger cars weighing 827.5 kg up to 1 515.5 kg: fuel efficiency
target = 13.0 km/litre.
· Passenger cars weighing 1 515.5 kg and over (standard-sized cars):
fuel efficiency target = 9.1 km/litre.
14
On average, the fuel efficiency improvement rate of passenger cars in FY
2000 was enhanced by 8.5% compared to that in FY 1990.
For gasoline-fuelled trucks, standards set fuel economy targets for FY 2003
at an average improvement of 4.8% to 5.8% over the 1993 results,
depending on the type of vehicle.
Revised The revised Law Concerning the Rational Use of Energy of June 1998
Fuel requires the government to set further strict standards equal to more than
Efficiency the best performance in each size category. Diesel automobiles will also be
Targets required to set similar standards. The new standards may be 25% for
gasoline cars and 15% for diesel cars to improve energy efficiency from
1995 to 2010. These measures are expected to cost ¥ 500 billion a year for
manufacturers and may lead to consumers paying more for cars and
premium gasoline.
Other In the framework of the revised Law Concerning the Rational Use of Energy
Transport of June 1998, the following measures have to be implemented:
Modes
· Promotion of clean energy cars: Measures such as subsidies, tax
incentives and low interest loans will increase the number of electric and
hybrid cars to 1 million by 2010.
· More efficient logistics, distribution: Development of an information
infrastructure to promote television conferences and satellite office or
Small Office Home Office (SOHO) which could lead to reducing the
amount of traffic and encouraged use of railway and ocean
transportation.
· Encouraged use of public transport: The Traffic Demand Management
(TDM), including demand control of traffic and differentiation of start
times of office work to avoid traffic jams, and the Intelligent
Transportation System (ITS: advanced navigation system, and
automated toll collection system).
15
MONITORING/ ECCJ conducted a field survey on energy saving diagnosis of 16 industry
ASSESSMENT factories (chemistry, iron, steel, oil refinery, electronic appliances
manufacturing, etc.) between 1997 and 2000. Results and proposals for
further savings for each industry were published in 2001.
In the 1999 in-depth review of the energy policies of Japan, the IEA stated:
Takeo Ijuin
ANRE/METI
1-3-1 Kasumigaseki 1-chome
Chiyoda-ku
Tokyo, 100
Tel: +81 (3) 3501 1728
Fax: +81 (3) 3580 5308
E-mail: ijuin-takeo@meti.go.jp
16
REPUBLIC Updated July 2002
of KOREA
BACKGROUND
Rational As the Republic of Korea relies on imports for about 97% of its energy, it has
Energy for many decades given high priority to energy conservation, particularly after
Utilisation Act the two oil crises of 1974 and 1979. In December 1979, the Korean
of 1979 government began to implement comprehensive energy conservation
programmes based on the Rational Energy Utilisation Act, amended several
times thereafter, the legal basis for the enforcement of the government's
current energy efficiency policy.
Law on the The Law on the Rationalised Use of Energy and the Enforcement Ordinance
Rationalised Use (Industry and Energy Department notice No. 2000-101 of 23 November 2000)
of Energy form the basis of the country's energy efficiency policy. Its main articles are:
Five-Year The first Five-Year Energy Conservation Programme was initiated in 1992
Conservation with special focus on energy-intensive industries to cope with problems faced
Programmes during the nation's restructuring into a less energy-intensive economy. This
1
effort called for an investment of 2.344 billion Won over a five-year period to
realise savings of 10.6% through improved energy efficiency and reduced
1
On average in 2000, Korean won 100 = US$ 0.088.
1
consumption levels.
In the 2002 in-depth review of the energy policies of the Republic of Korea,
the IEA stated:
Energy Korea signed the UN Framework Convention on Climate Change (UN FCCC)
and the in June 1992 and ratified it on 14 December 1993. Korea submitted the first
Environment National Communication in March 1998 but has not yet set a target to stabilise
emissions of greenhouse gases (GHGs). Korea considers itself a developing
country with a need for continued economic growth and increasing energy
consumption to support that growth. The country, after initiating research
programmes to prepare its National Communication under the FCCC,
submitted it in March 1998.
As the government is well aware of the urgent need to cope with the various
issues of environment protection, it has been implementing various policies
and measures to mitigate GHG emissions. The government has focused on
energy conservation policies as one of the most effective measures for
mitigating GHG emissions as CO2 emissions per unit of GDP remain high
(almost double the level of IEA countries in 1999: 0.72 kg of CO2 per 1995
USD for Korea against 0.44 for IEA countries).
To cope more efficiently with the issues of the Convention on Climate Change,
the government established in April 1998 the Inter-Ministerial Committee on
the Framework Convention on Climate Change led by the Prime Minister
which includes related government agencies, academia, and industry. In
December 1998, the government formulated the Comprehensive National
Action Plan to develop action plans for the reduction of GHGs and make use
of the Kyoto mechanisms. Korea puts forward the principles of:
2
· Inclusion of all kinds of gases in every sector.
Centre for To maximise efforts to reduce GHG emissions, the Korea Energy
Climate Change Management Corporation (KEMCO) established the Centre for Climate
Mitigation Change Mitigation Projects (CCCMP) at the beginning of 1999. CCCMP has
Projects so far developed the energy consumption and CO2 emission inventory by
plant, technology and industrial process, supported the government's policy
making for climate change in the industry sector, particularly in regard to
demand-side management and raised public awareness on climate change
and CO2 emission reduction.
3
In the 2002 in-depth review of the energy policies of the Republic of Korea,
the IEA stated
Institutional
Framework
MOCIE The Ministry of Commerce, Industry and Energy (MOCIE) is the authority
governing energy matters, in charge of energy policy planning and industry
supervision, climate change issues, price control, as well as energy industry
reform. Two main offices are responsible for energy policy: the Energy and
Resources Policy Office in charge of improving energy efficiency and the
Electricity Industry Restructuring Bureau.
KEMCO reports directly to MOCIE and must receive annual approval for its
expenditures under the Energy Management Fund. KEMCO also participates
in the development of policies and programmes through its interaction with
MOCIE.
About 50% of KEMCO funding comes from MOCIE and the balance comes
from services it renders, such as operating the Mok-dong DH/CHP facility on
behalf of the Seoul city government. KEMCO also owns and operates one
4
CHP plant and another is under construction. It earns some revenues from the
sale of heat and power, including Mok-dong. In charge of implementing the
energy efficiency policies, KEMCO is the principal funding allocating institution
with 600 billion Won spent on energy conservation in 2000.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Building
Standards
New Buildings Insulation in new buildings has been required since 1979. Building inspections
are required when buildings under construction are 50% completed to ensure
that standards insulation products and insulation thickness have been used.
Since 1985, the government requests that building permit applications for
large buildings be accompanied by an energy savings plan for the building:
the purpose is to encourage builders to go beyond the minimum required
prescriptive standards specified by the Law on the Rationalised Use of
Energy.
Since in 1992, an energy saving plan has to be submitted for new buildings
with a surface area in excess of 10 000 square metres.
Building design standards have been changed from prescriptive (for walls,
ceilings, and windows, etc.) to total building performance standards. Building
standards vary according to three climatic regions: central, southern and
Cheju.
Existing Since 1992, large buildings using more than 4 million kWh/year were
Buildings designated for intensive audits and supervision.
Under the Five Year Energy Conservation Plans, some 630 buildings that use
more than 6 million kWh /year and which have saved 10% of their electricity
use, compared with the previous year, would retain 20% of that saving
through reduced electricity charges.
Energy Energy audits and surveys have been conducted mainly by KEMCO. There
Audits are three different types of energy audit programmes for industry, commercial
buildings and transportation.
5
The Thermal Energy Audit for heat application equipment or facilities consists,
inter alia, of the following:
· Efficiency tests for boilers, furnaces and kilns; energy loss analysis and
efficiency improvement options; efficiency test of heat application facilities;
waste heat recycling and insulation; heating load analysis of buildings;
economic feasibility of new investment.
The Thermal Video System (TVS) Audit examines the surface temperature of
applied facilities to check operational conditions to an accuracy of 0.1 degree
Celsius. It includes:
In the building sector, energy audits are conducted for a fee in large
residential and commercial buildings at the request of the buildings owner or
manager, while free energy audits are offered for government and public
buildings. Depending on the results of the audits, technical assistance and
energy efficiency actions, such as thermal insulation and double-glazed
windows, are provided.
Applicants can apply for loans of up to 90% of the cost of investment capital at
5.5% interest and a five-year payback period.
6
(September 1992). It applies not only to domestic products but also to
imported products.
KEMCO checks the test report and publishes the energy efficiency grade on
the Internet ( www.kemco.or.kr/efficiency ). Manufacturers or importers should
label each product according to this energy efficiency grade.
Monitoring:
Marketplace inspections are taking place to ascertain whether all products
covered by the law are correctly labelled and that the labels accurately reflect
the product's energy efficiency.
Product inspections are made: random sampling tests are carried out to
ascertain whether testing results match the efficiency and rating reported by
the manufacturer or importer.
KEMCO produces and disseminates VTR films, movies, and various public
relation materials including fans, hats, and street campaign banners;
however, mass media such as TV, radio, newspapers and diverse types of
publications are the major instruments. It also organises exhibitions and
various cultural events on a regional basis to publicise successful cases of
energy conservation.
7
November is designated "Energy Conservation Month". The first Friday of
every month is designated "Energy Conservation Day". An energy
conservation exhibition, ENCONEX, has been organised by KEMCO each
year since 1975 to advertise up-to-date energy conservation technologies and
equipment and to provide information on specified technologies for interested
companies in the industrial, building and transport sectors.
INDUSTRY
Measures already
existing and/or
being improved
Energy In industry, there are two kinds of energy audits, in-depth audits and free
Audits audits. The in-depth audits or technical service audits are generally conducted
at the request of the users, while free audits are offered to small and medium-
sized industrial firms whose annual energy consumption is 250-5 000 toe or 1-
30 million kWh. Between 1980 and 1998, energy audits took place in 3 639
firms. These audits were carried out by private companies that received
financial support if they were able to identify energy savings above 5% within
three years of the implementation of new equipment.
A total of 196 companies consuming more than 30 000 toe per year are
targeted for energy audits in the second five-year plan through 2001. Under
this plan, the government will seek to reduce the overall energy consumption
of the designated companies by 10%.
Voluntary The voluntary agreement (VA) for energy conservation and GHG reduction, a
Agreement joint programme between the government and industry, is managed by
MOCIE and the Ministry of Environment.
A company intending to join the agreement should submit a firm action plan
within three months of submitting to KEMCO a letter of intent, specifying their
energy consumption and GHG emission reduction target. The action plan
must contain information on the operating organisation, energy efficiency
enhancement target, GHG emission reduction target, and detailed process
design. After evaluation of the action plan by KEMCO, the qualified company
and KEMCO conclude the VA contract.
A company which joins the agreement will be supported by low interest loans
and tax incentives for energy conservation and GHG reduction. Technological
support as well as public relations promotion for the company will be offered.
8
Energy Service ESCOs were introduced in Korea in 1992 under the Law on the Rationalised
Companies Use of Energy (Article 22) of 1991 to extend government-led energy
(ESCOs) conservation programmes to private companies. Boosting up the market for
ESCOs is one of the top priorities in Korea's energy conservation policy. As of
2000, a total of 102 ESCOs had been registered as private companies and
investments reached 85 622 million Won for 519 cases through credit loan
mortgaging on energy cost reduction. The major interventions of these
companies are high efficiency lighting, power production by new and
renewable sources of energy and waste heat utilisation.
There are various forms of ESCO financial support, such as support for
operations in small and medium-sized ESCOs, credit loan mortgaging on
energy cost reduction, and factoring system to lighten debt burden for ESCOs.
Tax incentives:
The government provides tax reductions for energy users who have invested
in energy conservation facilities. ESCOs and their customers are beneficiaries
of tax reduction under the "Exceptional Taxation Limitation Law".
Public To promote ESCOs, KEMCO has held "Energy Mart" annually since 1996.
Relations Energy Mart is a fair in which ESCOs meet their potential customers and
propose energy conservation investment plans.
Energy-Saving This programme, operational since 1 April 1999 under the basis of Article 13
Office Equipment of the Law on the Rationalised Use of Energy and MOCIE's notification No.
2000-33, 2000.3.16 (Regulation on the Promotional Spreading of Energy
and Home Saving Office Equipment and Home Electronics), is a voluntary partnership
Electronics between manufacturers and KEMCO to reduce the standby electricity used by
Programme a product.
The 14 items subject to this programme are: computers, monitors, printers, fax
machines, copiers, scanners, multifunction devices, energy saving and
controlling devices, televisions, videocassette recorders, home audio
products, DVD players, microwave ovens, and battery chargers. Energy
saving standards have been fixed for the 14 items. Consumers can identify
the energy saving products easily by the energy saving label attached. In
addition, the products can be identified through the energy saving list posted
on the Internet site.
9
Green Energy The Green Energy Family Movement (GEF) was initiated by KEMCO in 1995
Family (GEF) to contribute to addressing global environment problems by enhancing energy
Movement efficiency through the diffusion of energy-efficient facilities. GEF is a
partnership movement to engage the voluntary participation of citizens,
companies, NGOs and the press in CO2 reduction and energy savings.
Demand-Side The energy supply companies KOGAS, the state-owned monopoly Korea Gas
Management Company, KEPCO, the Korea Electric Power Corporation, a majority state-
owned company and KDHC, the Korea District Heating and Cooling
Corporation implement load management programmes, including peak
clipping, peak shifting, load shaping and DSM tariff systems.
In 2000, KEMCO conducted DSM activities in the areas of electricity, gas and
district heating systems. Electricity DSM projects mainly focus on industrial
audits for estimation of DSM potential of large plants; electricity audits and
surveys of DSM potential for large buildings and for small and medium-sized
buildings.
Integrated Integrated energy supply refers to district heating and cooling (DHC) and
Energy industrial complex combined heat and power (CHP). To promote the
Supply programme, the government established the "Integrated Energy Supply Act" in
1991.
10
DHC, introduced in 1985, is now supplying heat and electricity to 912 000
households in 18 districts, covering 8.1% of total households.
Integrated energy suppliers can receive low interest loans, tax incentives and
support for the relaxation of environmental regulations.
Training and KEMCO is in charge of various kinds of training and education courses, such
Education as:
Early Education:
A total of 26 elementary and six middle schools were designated by the
Ministry of Education as "Demonstration Energy Conservation Schools" in
1999. Besides financial assistance of about US$5 417 per school, KEMCO
supports educational aids, such as books, video-tapes and diskettes for the
designated schools.
Energy KEMCO supports the energy conservation business through the collection,
Information analysis, processing and dissemination of information through Internet
Service ( http://innonet.ne.kr ), PC communication networks and publications. Analysed
and processed information is also offered to end-users such as universities,
industries, research centres and the general public.
11
PUBLIC SECTOR
Measures already Two measures have been adopted to promote energy conservation in public
existing and/or institutions: the Energy Utilisation Planning Consultation Programme and the
being improved Energy Conservation Guideline for Public Organisations.
Energy Under the Law on the Rationalised Use of Energy of 1993, the Energy
Utilisation Utilisation Planning Consultation Programme was launched in 1993 to
Planning examine energy utilisation plans and provide technical guidance and
Consultation assistance prior to launching a project or constructing a building that exceeds
Programme a certain size. For instance, targeted projects are: urban development over
2
600 000 m ; tourist site development over 500 000 square metres; railway
construction with an extension of over 10 kilometre; harbour construction with
annual loading capacity of over 1 million tonnes, etc.
Energy The Energy Conservation Guideline for Public Institutions founded in 1997
Conservation requires that collective public institutions establish, implement and estimate an
Guideline for annual plan for energy conservation. Targeted institutions are central
Public administrative offices and public institutions; local governments (state, city)
Institutions and their corporations; government agencies and government corporations.
The main features of the Guideline are: establishment and implementation of
an energy conservation plan; agreement on and management of annual
energy conservation targets; energy conservation initiatives by ESCOs;
energy loss reduction and energy efficiency improvement through energy
management audits.
12
TRANSPORT
Fuel The Law on the Rationalised Use of Energy (Articles 17 and 18) and MOCIE's
Efficiency notification No. 1998-99 of 27 October 1998 established fuel efficiency targets
Targets to encourage automobile manufacturers to make vehicles more efficient. The
target was to improve fuel economy within each vehicle category by 5% by
1996 and 10% by 2000 over the 1991 base year. The overall weighted
average fuel economy target would be 14.3 km/litre in 1996 based on the
1991 estimate of 13.6 km/litre.
The following organisation should test the fuel efficiency and report the result
to the Korea Energy Management Corporation and the applicant:
Compared with cars of grades 2-5, a grade 1 car emits less emission (0.7 to
3.2 tonnes, or 20 to 50 % less per year) and reduces annual fuel costs by as
much as 17-50%.
Promotion of The government encourages the purchase of light fuel-efficient cars. Various
Small Car incentives including tax reduction for light cars, such as a 2% registration fee
Ownership instead of the 5% for large or medium-sized vehicles and a 50% deduction in
the licence fee are provided.
Car Since February 1992, public sector employees have participated in the
Pooling voluntary Car Shift System Programme to encourage those with private
vehicles to take every tenth day off and ride with a colleague. The system has
also been encouraged in large industries and is promoted through a variety of
public information campaigns.
Public Since 2000, the government funds the replacement of current diesel-powered
Transport buses by CNG buses. The ultimate plan is to replace 20 000 city buses by
Systems 2007. At first, 5 000 buses will be replaced by early 2002 in cities hosting the
2002 World Cup.
13
In the 2002 in-depth review of the energy policies of the Republic of Korea,
the IEA stated;
14
LUXEMBOURG Updated August 2001
BACKGROUND
The general Energy Efficiency Law of 5 August 1993 has five targets: to
(QHUJ\ guarantee a sufficient, secure and economic energy supply; to promote
(IILFLHQF\ energy savings and the rational use of energy; to favour the use of renewable
/DZ energy sources, co-generation and the production of primary and secondary
energy; to alleviate the negative impact of the production and consumption of
energy on the environment and to co-ordinate all these activities in the
framework of the European Union.
1DWLRQDO3ODQ The National Plan for Sustainable Development, finalised in 1998, lays out a
IRU6XVWDLQDEOH strategy for sustainable development in the different economic areas of
'HYHORSPHQW Luxembourg. It sets objectives and proposes measures which are described
in detail below. The government considers these proposed measures as
guidelines to meet the following objectives:
General
• To introduce an energy tax compatible with EU regulations.
• To favour the use of the best available technology.
• To increase information and dissemination efforts.
• To favour investments for energy savings. The creation of a fund to
promote renewable energy and energy efficiency is under discussion.
Buildings
• To improve the energy efficiency of new and existing buildings.
• To reach a 30% reduction between 1990 and 2020 in the energy
consumed to heat a constant surface in buildings.
Industries
• To improve voluntary agreements.
Transport
• To set annual taxes on vehicles according to their fuel consumption and
emissions to incite the purchase of less polluting vehicles.
• To increase by 30% the share of public transport use for medium
distances between 1997 and 2010.
• To reduce the use of transport and to reduce travel distances.
• To reduce the use of the most polluting transport means.
• To link Luxembourg’s rail network to the high-speed rail network and to
improve international railway connections.
In the 2000 in-depth review of the energy policies of Luxembourg, the IEA
stated:
*RYHUQPHQW In 1999, the Ministry of Energy was changed to a Department of Energy within
6WUXFWXUH the Ministry of Economic Affairs. The Ministry of Environment is in charge of
policy to curb air pollution and CO2 emissions. Both ministries have authority
for energy efficiency and renewable energy issues.
In the 2000 in-depth review of the energy policies of Luxembourg, the IEA
stated:
• Continue to work towards close and effective co-operation among all the
ministries involved in energy policy.
1. The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
reduction commitments are expressed as a percentage of 1990 levels for the
2008-2012 period. Under the Burden-Sharing Agreement, Luxembourg is
committed to reducing its emissions by 28%, the highest level of reduction in
the EU.
The plan lists 29 measures, some of which have already been taken or have
been envisaged in the 1998 National Plan.
In the 2000 in-depth review of the energy policies of Luxembourg, the IEA
stated:
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
9ROXQWDU\ The Grand Ducal regulation of 11 August 1996 organises energy audits in
(QHUJ\ residential and commercial buildings carried out by engineers, advisers or
$XGLWV specialised bodies agreed by the Minister of Energy, according to a Ministerial
regulation dated 13 December 1996.
The State subsidises up to 50% of the cost of the audit with a limit of
2
Lfr 150 000 per building or enterprise when the owner has completed the
work proposed by the expert in charge of the audit.
The former Minister of Energy developed these energy audits on the basis of
voluntary agreements concluded with the various professional sectors
concerned: industry (FEDIL), banks (ABBL), insurance (Groupement des
Assurances), hospitals (Entente des Hopitaux), trade (Confédération du
Commerce) and hotels (HORESCA).
2
On average in 2000, Lfr 1 = US$ 0.023
In residential buildings, the possibility of improving energy efficiency by this
system is high since 75% of flats are owned and not rented. Owners have a
direct interest in investing in energy efficiency in buildings as they get the
benefit of energy savings.
During the period 1990 to 2000, the overall energy efficiency gains in the
participating industries amounted to 14%. FEDIL concluded that the voluntary
agreement was an appropriated means to raise energy efficiency awareness
in industry. The voluntary agreement will probably continue to 2006 and
monitoring will be reinforced by individual energy audits.
(QHUJ\ In the framework of the three Directives 95/12/CE, 95/13/CE and 94/2/CE of
/DEHOOLQJDQG the European Union, Luxembourg has adopted several Grand Ducal
6WDQGDUGV regulations to comply with energy efficiency labelling of electric household
appliances:
,QIRUPDWLRQ The Compagnie Grand Ducale de l’Electricité (CEGEDEL), owned by the state
0RWLYDWLRQ (41%) and private companies, which supplies the public network with
electricity, is actively involved in information/motivation on energy efficiency
for electricity consumers. Its action in this field includes information leaflets
sent out with the electricity bills, mass media campaigns, information/
motivation lectures in schools, exhibitions on energy efficiency at fairs and in
shopping centres, etc.
PUBLIC SECTOR
Measures already
existing and/or
being improved
(QHUJ\ The aim of the 3rogramme d’actions d’(conomies d’(nergie dans les
6DYLQJVE\ &ommunes (PEEC) set up by the Grand Ducal regulation of 11 August 1996
0XQLFLSDOLWLHV is to launch initiatives and measures adopted by the municipalities to promote
the rational use of energy and renewable sources of energy. The Energy
Agency which is in charge of developing this programme assumes the
following tasks:
In 1997, in the framework of PEEC, three projects were eligible for a total
subsidy of Lfr 1.4 million after examination by a special Commission
established by the Grand Ducal regulation. This concerns an information/
motivation campaign in nine municipalities on the rational use of energy and
renewable sources of energy, the installation of solar panel collectors in a
swimming pool and the installation of a wood-burning central heating system
in a primary school. In 1998, a total subsidy of Lfr 10.3 was granted to five
municipalities.
INDUSTRY
Measures already
existing and/or
being improved
9ROXQWDU\ The voluntary agreement signed in March 1996 by the former Minister of
$JUHHPHQWV Energy and FEDIL (Fédération des Industriels Luxembourgeois) includes a
target for an average 10% improvement in energy efficiency by 35 of its
members between 1990 and 2000.
No individual targets were set. Companies have been free to choose the best
means to improve their efficiency. FEDIL has monitored the progress of each
enterprise and provided an annual composite report to the Ministry of
Economic Affairs. FEDIL issued a complete report in 2000, including
recommendations for further progress.
Two other voluntary agreements were signed with the “Entente des hopitaux”
and with the financial sector for an average of 20% energy efficiency
improvement by their members in both sectors between 1991 and 2001.
In the 2000 in-depth review of the energy policies of Luxembourg, the IEA
stated:
The Grand Ducal regulation of 1994 sets the buy back tariff for electricity from
non-industrial co-generation and renewable sources. CEGEDEL (but not
SOTEL) has a purchase obligation. The buy back tariff for co-generators with
a capacity of 1 to 150 kW (cat. 1) averages Lfr 2.95 per kWh; from 151 to
1 500 kW (cat. 2), the tariff averages Lfr 2.3 per kWh for day supplies and Lfr
1.2 per kWh for night supplies. There is an annual subsidy of Lfr 4 500 per kW
installed if electricity is supplied during peak load. Electricity plants using
renewable sources receive the same subsidies as co-generators.
The company LUXENERGIE was set up in July 1990 to promote CHP on the
Kirchberg plateau. On 31 December 1997, 16 CHP unit were operational in
the domestic sector with a total installed capacity of about 10 MW. On 31
December 2000, 40 CHP units (cat. 2) were in operation with a total installed
capacity of 46.2 MW and 6 CHP units (cat. 1) were in operation with a total
installed capacity of 158.5 kW.
The National Plan for Sustainable Development of 1998 sets the target to
increase the share of co-generation in electricity consumption from 7% in
1997 to 15% in 2010.
The Grand Ducal regulation of 11 August 1996, which set up the PEEC,
promotes CHP units in municipal buildings through the grants mentioned
above on the condition that they operate more than 2 000 hours per year with
an annual efficiency of more than 80%.
In the 2000 in-depth review of the energy policies of Luxembourg, the IEA
stated:
3UHIHUHQWLDO The Law of 24 December 1996 modified and completed the law of
$PRUWLVDWLRQ 4 December 1967 and introduced special depreciation allowances for
company investments in new technologies for improving energy efficiency, the
use of renewable sources of energy and the recovery of waste energy in
industrial processes. To date, few enterprises have asked to benefit from this
law although this special depreciation allowance is far from being negligible.
TRANSPORT
Measures already
existing and/or
being improved
3URPRWLRQ The Ministry of Transport supports public transport, which is already well
RI3XEOLF developed in the City of Luxembourg, by low fares (which cover less than 15%
7UDQVSRUW of the costs), higher frequency of buses and trains and the creation of car
parks outside town centres connected with city buses.
)LVFDO3ROLF\ The 1998 National Plan considers an increase in taxes on cars to internalise
RQ9HKLFOHV better the environmental cost of transport.
2WKHU A wide range of measures such as the use of bio-fuels, electric vehicles, and
0HDVXUHV the introduction of car-pooling, etc., is being considered.
MONITORING/ In the 2000 in-depth review of the energy policies of Luxembourg, the IEA
ASSESSMENT stated:
BACKGROUND
7KLUG In December 1995, the Netherlands Government published the Third White
:KLWH Paper on Energy Policy, (Parliamentary Document II 1995/1996, 24 525,
3DSHU nos. 1 and 2) proposing a variety of reforms in the energy sector. The aim
was to achieve a sustainable energy economy within competitive energy
markets. In particular, it strives to improve energy efficiency by one third by
2020; and shift policy instruments from the supply side to the demand side.
The White Paper also deals with the increase of renewable energy in total
primary energy supply, the increasing liberalisation and internationalisation of
energy markets.
(QHUJ\ On 7 April 1998, the Minister of Economic Affairs presented the Memorandum
&RQVHUYDWLRQ on Energy Conservation (Energiebesparingsnota, EBN) to Parliament. This
3DSHUV Memorandum explored the possibility of increasing the emphasis placed on
energy efficiency and outlined proposals to meet the new efficiency target
fixed in response to the Third Conference of the Parties COP-3 (Kyoto,
December 1997, see below).
1
On average in 2001 Gld 1 = $0.406.
1
an Update of the Second Netherlands’ National Communication on Climate
Change Policies in May 1998 (Ministry of Housing, Spatial Planning and the
Environment et al., The Hague). This update stated that in the period 1990-
1996, the CO2 equivalent of the six gases rose by 6.9% (temperature-
corrected figure). This was to a largely due to the 7.6% increase in CO2
emissions, which stemmed mainly from the transport and power generation
sectors. In 1996, CO2 contributed 75% to total CO2 equivalent emissions.
Between 1990 and 1997, CO2 alone rose by 11%.
At COP-3 (Kyoto, December 1997) the European Union accepted the target of
an 8% reduction in greenhouse gas emissions by 2008-12. Following the
European Environment Council of 17 June 1998 which adopted the EU
2
Burden-Sharing Agreement , and also the Kyoto Protocol, the Netherlands is
obliged to reduce CO2 and non-CO2 greenhouse gases by 6% in the first
budget period 2008 to 2012. Prior to the adoption of the Kyoto Protocol in
1997, the Netherlands only had a CO2 target. Due to strong CO2 emissions
growth between 1990 and 1997, the country adopted a six gases approach. At
present, greenhouse gas emissions are up 15% compared to 1990.
The White Paper on Climate Policy also contains emissions growth forecasts
for each sector. It states that by 2010, unless extra policy measures are
adopted, emissions in the industrial sector will grow by 33%, in the energy
sector by 24%, in the transport sector by 15%, and in the residential sector by
9%.
,QVWLWXWLRQDO Much of the responsibility for energy efficiency policy in recent years has lain
)UDPHZRUN with the Ministry of Economic Affairs, which had primary responsibility for tax
incentives, long-term agreements, the regulatory energy tax and public
information and awareness campaigns. Other ministries had an important role,
especially the Ministry of Housing, Spatial Planning and the Environment.
1. The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
2
Conservation Action Programme, is a clear allocation of responsibilities to the
different ministries directly involved. This implies that the Ministry of Economic
Affairs is to be primarily responsible for energy efficiency improvements in the
industrial and commercial sectors. The Ministry of Housing, Spatial Planning
and Environment takes responsibility for energy efficiency in the residential
and public sector. The Ministry for Transport, Public Works and Water
Management and the Ministry for Agriculture, Nature Management and
Fisheries and the Ministry of Finance are involved in numerous fiscal
measures to stimulate energy conservation and renewables. A re-shuffling of
responsibilities in Spring 2000 greatly furthered these objectives.
)LQDQFLQJ For the implementation of the CO2 reduction plan, an additional Gld 1 billion
per annum were set aside. The initial amount in 1996 was Gld 720 million;
another Gld 250 million were added later. The plan includes two subsidy
schemes. One is the Ministry of Economic Affairs’ Decree on CO2 Reduction
Plan Subsidies. This includes a number of sub-programmes: industrial
residual heat, heat pumps, advanced heat and power, process integration,
energy-intensive industry, drying/baking/melting/membranes, construction and
wood. The other scheme is the Ministry of the Environment’s investment
contribution scheme for non-industrial residual heat infrastructure. Resources
are also available for transport projects with a strong energy conservation
element.
The regulatory energy tax came into effect on 1 January 1996. The purpose of
this tax is to provide financial incentives for energy conservation and the
reduction of CO2 emissions. It is also part of an environmental tax reform to
shift the tax burden away from direct taxes, e.g. on labour, towards indirect
taxes, especially on environmentally harmful goods and services. The
regulatory energy tax does not contribute to the general budget. Revenues are
recycled to taxpayers in the form of relief from other taxes.
The regulatory energy tax was phased in and only reached its full effect in
1998. However, in that same year, the Dutch government decided to double
energy taxes (regulatory energy tax and environmental tax on fuels) over the
following three years from Gld 3.4 billion of revenue per year to Gld 6.8 billion
in 2001. In practice, the increase applies almost solely to the regulatory
energy tax (estimated revenue in 2001: Gld 5.4 billion) and not to the
environmental tax on fuels (revenue in 2001: Gld 1.5 billion). The tax burden
of this increase is to be shared proportionally between households and
industries: 68% for households and 32% for industries.
About 85% of the revenue from the increase will be used to lower direct taxes
paid by households and industries. The remaining 15% will be used to
3
In comparison, the total tax revenue of the Dutch government in 1998 was Gld 180 billion.
3
promote energy efficiency. For industries, Gld 300 million will be used mainly
for tax credits for investments in energy-saving equipment. Households can
apply for support to investment in energy-efficient appliances such as
refrigerators and washing machines, and investments in insulation such as
double glazing and roof insulation (Energy Premium Scheme). They can get
free advice on which investments in their homes are most effective in reducing
energy consumption. Gld 200 million per year is available for this scheme,
including the advice.
In the 2000 in-depth review of the energy policies of the Netherlands, the IEA
stated:
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
4
$SSOLDQFH The Energy Savings Appliances Act provides the basis for general regulations
/DEHOOLQJ for energy efficiency and labelling of appliances. Based on EU initiatives the
following measures can be mentioned. Energy labels for refrigerators/
freezers, washing machines and tumble dryers are in force. For lamps and
dishwashers energy labelling was to become obligatory on 1 September 1999
and 1 January 2001 respectively. Concerning voluntary labels on office
equipment, negotiations with Energy Star by the European Commission are
continuing.
(IILFLHQF\ Minimum efficiency standards for hot water boilers are still in force. For
6WDQGDUGV refrigerators and freezers, minimum efficiency standards came into force on
4 September 1999. For standby energy consumption of television sets and
VCRs, a voluntary agreement has been approved by the European
Commission. Concerning energy consumption of washing machines a
voluntary agreement is under consideration at the European Union.
,QGLYLGXDO At the moment, there is no national legislation for individual metering. The
0HWHULQJ energy distribution companies support individual metering through financial
incentives.
6XVWDLQDEOH In mid-1996, in co-operation with the Ministry of Housing, Spatial Planning and
%XLOGLQJ the Environment, a programme of model projects for sustainable and energy
efficient construction of dwellings and buildings began.
In the commercial, education and health care sectors there are now six LTAs
(with a target of 25-30% energy savings), covering some 30% of total energy
consumption. With the exception of one LTA (KLM Royal Dutch Airlines and
Schiphol Airport), no monitoring results for the 1989-1995 period are available.
The greenhouse horticulture LTA (with a target of 65% energy efficiency in the
period 1990-2010) covers some 80% of total energy consumption in the
agricultural sector. Monitoring data shows that energy efficiency improved by
42% between 1980 and 1997.
In 1998, two new LTAs were established in the agricultural sector, Bulbs and
Mushrooms. The targets are 22% and 20% respectively in the period 1995-
2005. New in these LTAs are the sustainable energy targets (4% and 5%). A
covenant with the associations of social housing organisations was also
agreed in 1996.
5ROHRI Energy distribution companies (gas and electricity) are grouped together as
3XEOLF EnergieNed. This organisation executes the Environmental Action Plans
8WLOLWLHV (MAP). MAP started in 1991 and was revised several times resulting in
MAP I, MAP II and MAP 2000, the most recent revision.
In MAP 2000, there was a target of 17 million tonnes of CO2 reduction in 2000.
In the period 1991-1997, 73% of this target was realised (12.5 million tonnes).
5
The main focus is on addressing the energy use of small-scale end-users
through advisory services and subsidy schemes for energy conservation. MAP
is financed by a MAP-levy of a maximum of 2% of the energy tariff. The
specific target groups are households, public and office buildings and industry.
On the production side, there are three main areas: heat market (CHP and
heat distribution), new technologies and renewable energy.
Fiscal/ Grants have been available since 1 March 1996 for the renovation of existing
Financial houses.
Measures
The Green Investment Scheme (low interest loans for environmentally
desirable projects) had a budget of Gld 12.5 million in 1996 and Gld 15 million
in 1997; the Vamil Scheme (free depreciation on environmental investments)
had a budget of Gld 30 million in both 1996 and in 1997.
The VROM (Ministry of Health and Land Planning) budgets contain insulation
subsidy schemes for housing. The temporary incentive Subsidy Scheme for
Sustainable Construction has budgeted Gld 125 million for the period 1996-
1998. About 70% of this budget is expected to be spent on energy saving
measures.
(QHUJ\ The first of three annual steps towards the increase in the existing Regulatory
3UHPLXP Energy Tax was taken in 1999, as provided in the 1999 Tax Plan. Some of
6FKHPH the additional revenues from this increase will be used to finance the Energy
Premium Scheme. This scheme provides a grant for buyers of energy-efficient
appliances. For the time being, this mainly involves the so-called "A-label", or
comparable appliances. Consumers who buy energy-efficient appliances and
take energy conservation measures in their homes receive support under this
scheme. The energy companies, which collect the regulatory energy tax
through energy bills, are to implement the programme. A total of Gld 200
million per year has been allocated for the scheme as from 1999.
INDUSTRY
Measures already
existing and/or
being improved
6
the Association of the Provinces of the Netherlands.
The average target of LTAs is a 20% increase in energy efficiency by the year
2000 from 1989 levels. The government agrees not to introduce other
regulations on energy efficiency in industry, and the industry voluntarily agrees
to reduce its energy intensity.
The first LTAs were signed in 1992 and as of mid-1998 the status was as
follows:
After intensive monitoring, the achievements were made visible; in 1997, the
energy efficiency of Dutch industry improved by 14.5% with respect to the
reference year 1989. This meets the expectations of the LTA programme. In
2000, annual savings of about Gld 1 500 million were anticipated for Dutch
industry. Industry sectors demonstrated a positive perception of the LTA
approach. In an evaluation, they expressed their support to the approach and
so far no sector has dropped out of an agreement.
Many of the LTAs expired in 2000. In the coming years, a total of 17 are
expected to be renewed and five new ones will be contracted. The new LTAs
will include some new themes:
7
associations, associations of municipalities and three Ministries: Economic
Affairs, Environment and Agriculture. These LTAs run until 2012.
/LJKW It is difficult to cover the whole industrial sector with LTAs. Hence, a different
0DQXIDFWXULQJ approach, the Light Manufacturing Industry Strategy is applied to the
6WUDWHJ\ remaining part, about 10% of the total and mainly comprised of small and
medium-sized firms. For this segment, the overall target is a 19% energy
conservation improvement in 2000 compared to 1989. NOVEM has developed
an action plan for these industries.
The first approach will be to offer energy conservation instruments via industry
associations. Possible examples are an energy registration system, an
energy management system and an overview of suitable conservation
technologies.
Various financial incentives and energy services are provided within the
framework of MAP 2000 by the energy distribution sector, aimed at energy
management and conservation for small companies without long-term
agreements.
The energy distribution sector (MAP 2000) takes care of information and
monitoring; energy advice and energy scans; leasing and pre-financing of
energy management techniques for heat recovery.
&RPELQHG The Third White Paper on Energy Policy of 1995/1996 set out an extremely
+HDWDQG ambitious objective for CHP: by 2010, 15 000 MW of CHP capacity were to
3RZHU&+3 be installed. This objective was repeated in the 1998 Energy Conservation
White Paper (EBN) and forms part of the global competition scenario and thus
the Dutch basket of measures for reaching the Kyoto target.
This capacity increase, which represents more than four times the installed
CHP capacity in 1990, was to be stimulated through a multitude of incentives
and support measures, as described below:
The 1989 Electricity Act contained a variety of incentives for CHP. These
expired when the Act expired in July 1998. The incentive measures included:
8
The Second Memorandum on Energy Conservation (SMEC) adopted in 1993
set the target for CHP at 8 000 MW and 30% of generation by 2000. This
objective has been reached as the present capacity of CHP is 8 000 MW.
However, severe competition with relatively low electricity prices, combined
with high gas prices caused a slow-down in the development of CHP. The
Minister of Economic Affairs announced measures to support CHP. A
temporary tax refund for co-generation power was introduced in the
Regulatory Energy Tax. For the years 2001 and 2002, the refund was 0.57
Eurocent for each kWh supplied to the grid. To be entitled to the refund, the
plant must have a minimum efficiency of 60%. A maximum of PLOOLRQLV
refunded per installation. This has resulted in an almost unchanged operation
of the co-generation plants.
In the 2000 in-depth review of the energy policies of the Netherlands, the IEA
stated:
• Carefully weigh the costs and benefits of CHP expansion. Make the costs
as transparent as the benefits.
*DVXQLH NV Nederlandse Gasunie, the company responsible for the domestic supply of
3ODQ natural gas, is carrying out an Environmental Plan for Industry aiming at
improved energy conservation in industry.
&OHDQHU Cleaner Production is a joint initiative of the state government (the Ministries
3URGXFWLRQ of Economic Affairs and of Housing, Physical Planning and the Environment)
3URJUDPPH63 and the provinces (the Interprovincial Consultation or IPO). The Cleaner
Production programme started in 1996 and will end in 2003. It is intended to
encourage small and medium-sized businesses to become more
environmentally (including energy) aware.
9
taking part.” This means that they must be as energy-efficient as the most
energy-efficient comparable facilities that exist in the year 2012. However,
they need not go beyond their best competitor’s energy efficiency record; it will
be sufficient to equal the best competitor’s level. All corporate facilities
located in the Netherlands, with an annual energy consumption of at least
0.5 PJ may take part in a Covenant. The Benchmarking Covenant is a new
energy efficiency measure forming part of the basic package of CO2
measures.
6XEVLG\ The Tender Scheme for Industrial Energy Conservation (TIEB) was evaluated
6FKHPHV in 1998. As from 1998, there will be a tender scheme to stimulate
demonstration and market introduction projects for industrial energy
conservation. The budget will be Gld 10 million a year. The maximum
amounts of the subsidy are 30% for a demonstration project and 20% for
market introduction or Gld 1 million.
Measures under
Consideration
*UHHQ The new electricity and gas liberalisation laws both contain provisions for the
&HUWLILFDWHV establishment of a “green certificates” trading scheme. Under such a scheme,
all ultimate gas and electricity consumers would acquire a certain number of
“green certificates”, depending on their total consumption. Although a
mandatory scheme was under discussion, the current government prefers a
voluntary certificates system. These certificates could be used to finance
energy-efficient technologies and renewables projects. Emissions would be
made tradable either when the scheme begins or shortly afterwards. The
market for green certificates began operating in 2001.
Details of the proposal, which has been under discussion for more than five
years, are being developed. The system will require an organisation that acts
as a “green energy” bank to issue certificates to producers, register
transactions, and collect the certificates again from consumers.
A possible model for the green certificates trading scheme is the “green label”
system now operated by the energy distribution companies. The system
supports their mutual goal regarding a renewable energy target. It is a closed
system only involving the energy distribution companies. The green labels are
tradable.
10
In the 2000 in-depth review of the energy policies of the Netherlands, the IEA
stated:
Measures already In 1996 three transportation policy documents Freight Transport in Balance,
existing and/or Working Together on Accessibility, and Memorandum on Vehicle Technology
being improved and Fuels were produced.
Various measures and programmes are carried out with the aim of reducing
the number of vehicle-km travelled with special attention being paid to the
improvement of public transport.
'ULYLQJ The government intends to influence driving behaviour through more stringent
%HKDYLRXU enforcement of speed limits, increased tyre pressure, and in-car instruments
such as cruise control and econo-meters. Increased tyre pressure reduces
fuel consumption by reducing friction between the car and the road surface
and is expected to contribute 0.3 million tonnes of CO2 savings. At present,
tyre pressure is too low in about half of all cars. Driving behaviour of truck
drivers is targeted with in-company training and education courses.
3XEOLF Measures are being taken to improve the cost of public transport to make it
7UDQVSRUWDWLRQ more attractive than private passenger transport.
)UHLJKW The Ministries of Economic Affairs, of Transport and Public Works, and of
7UDQVSRUW Housing, Regional Development and the Environment have set up a joint
venture with the three major employers’ organisations involved in freight
transport: the TRANSACTION joint project is investigating possibilities of
concluding Long-Term Agreements for improvement of freight transport. The
improvements being studied aim at reducing the number of road kilometres
without lowering the total volume of transport and at bringing about a
11
reduction of pollution and energy consumption. It is expected that the first
LTA for improvement of freight transport will be concluded in 1999.
In the 2000 in-depth review of the energy policies of the Netherlands, the IEA
stated:
12
NEW Updated June 2002
ZEALAND
INTRODUCTION
(QHUJ\(IILFLHQF\ The government established the Energy Efficiency and Conservation Authority
DQG&RQVHUYDWLRQ (EECA) in October 1992 as an independent agency charged with determining
$XWKRULW\ and implementing practical measures to achieve greater energy efficiency in
New Zealand. It was governed by a Board that reported directly to the
1
Minister of Energy .
With the expiry of funding for the Energy Efficiency Strategy, government
funding for EECA fell from 1997 to 1999. This downward trend has since
been reversed. As part of the 2000/2001 budget, the government has
boosted EECA’s budget by extra funding of NZ$ 3 million per year from
2000/01. Initially, the extra funding supported:
The government allocated a further NZ$ 3 million per year to fund energy
efficiency and renewable energy programmes, mainly through EECA but also
through the Ministry for the Environment. In the first year NZ$ 400 000 -- of
the additional NZ$3 million -- was used to fund consultation and
communication on climate change.
In 1998/99 EECA streamlined its activities into the following four areas of
activity:
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• Energy-Wise Homes -- to administer the Energy Saver Fund that provides
for the installation of household energy efficiency measures and
encourage improvement in the energy efficiency of whiteware products
and buildings.
• Energy-Wise Information -- to keep a range of target audiences fully
informed with timely information on energy efficiency and new renewable
energy developments through publications such as "Energy-Wise News"
and “EECA Update”; the EECA website (www.eeca.govt.nz); e-mail
newsletters; monitoring and analysis publications; technical publications
and seminars.
• Energy-Wise Government -- to service the energy efficiency needs of a
range of national and local government organisations and client groups
(e.g. through the Crown Loan Scheme to fund energy efficiency projects in
the public sector; Government Leadership Scheme; the Energy-Wise
Councils Partnership -- which targets the local government sector, and
giving advice to government processes including the climate change
policy debate).
(QHUJ\ The Energy Efficiency and Conservation Act passed by the Parliament on
(IILFLHQF\DQG 11 May 2000 entered into force on 1 July 2000.
&RQVHUYDWLRQ
$FW The Act provides the legislative basis for promoting energy efficiency and
renewable energy and includes:
In the 2001 in-depth review of energy policies of New Zealand, the IEA stated:
In the 2001 in-depth review of energy policies of New Zealand, the IEA stated:
2
these matters; monitoring and reviewing the state of energy efficiency,
energy conservation, and renewable energy use.
• A regulations-making power, for example, for minimum energy
performance standards and energy efficiency labelling, and powers to
monitor and review the state of energy efficiency, energy conservation
and renewable energy use and to promote public awareness of the
importance of energy efficiency and conservation and the use of
renewable energy, and practices and technologies that further these
matters.
The Ministry for the Environment has responsibility to provide primary policy
advice to government on energy efficiency and related issues while EECA has
a complementary policy advice role informed by its own operational
knowledge and expertise.
1DWLRQDO A draft National Energy Efficiency and Conservation Strategy was prepared
(QHUJ\ and released on 1 April 2001 for a large public consultation. The National
(IILFLHQF\DQG Energy Efficiency and Conservation Strategy -- Towards a sustainable energy
&RQVHUYDWLRQ future (the Strategy) was officially released on 27 September 2001. The term
6WUDWHJ\ of the Strategy is five years, but it may be replaced before that time if so
decided by the Minister of Energy.
The Strategy has two high-level targets, one relating to energy efficiency and
the other to the level of energy supply from renewable energy sources; the
energy efficiency target is at least a 20% improvement in economy-wide
energy efficiency by 2012, the final year of the first commitment period of the
Kyoto Protocol. This energy efficiency target establishes a benchmark but is
not a mandatory requirement.
On 30 April 2002 the government announced that its preferred target for
renewable energy is an additional 30 PJ of consumer energy from renewable
sources (relative to year 2000 levels) by 2012. The government’s preferred
mechanisms to achieve this target are expanded renewable energy
programmes under the Strategy and a contestable projects mechanism.
Public consultation on the preferred target and mechanisms runs until mid-
June 2002.
(QHUJ\ New Zealand ratified the UN Framework Convention on Climate Change (UN
DQGWKH FCCC) in September 1993 and submitted its national communication entitled
(QYLURQPHQW Climate Change: The New Zealand Response. New Zealand’s First National
Communication under the Framework Convention on Climate Change, in
September 1994. This first communication integrated energy efficiency policy
as the main instrument to reach the reduction emission target.
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measures New Zealand had taken to meet its commitment under the UN
FCCC since the end of 1994.
New Zealand signed the Kyoto Protocol in May 1998. On 8 May 2000, the
Prime Minister announced that the government aims to ratify the Kyoto
Protocol by mid-2002. The government is committed to passing the legislation
needed to enable New Zealand to ratify the Protocol by this date. New
Zealand’s target under the Protocol is to hold emissions of six greenhouse
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gases , on average, at 1990 levels between 2008 and 2012. To achieve this
goal, New Zealand intends either reducing emissions and/or purchasing
permits to offset any emissions that exceed 1990 levels.
The Resource Management Act 1991 (RMA) provides one means for local
and regional government response to climate change through granting
resource consents and developing plans and policies. The government does
not consider the use of this Act appropriate for meeting international
obligations and the Act is currently under review.
RESIDENTIAL
SECTOR AND
RELATED
ACTIVITIES
%XLOGLQJ In 2000, the New Zealand government passed regulations enhancing energy
&RGH efficiency provisions under the Building Code. This increased insulation
requirements in the cooler parts of the country, set maximum heat loss levels
for hot water systems and set limits on building heat loss and lighting levels in
commercial buildings.
Over the last year EECA and the Building Industry Authority have been
working on a further enhancement of the energy efficiency provisions of the
Building Code. The measures under consideration include minimum heat loss
levels for windows and a refinement of the economic criteria used to set
insulation levels. EECA is aiming to have these matters ready for
implementation by 2003. EECA is also reviewing the effectiveness of the
application of the 2000 enhancement to assess whether any further
information or training activities are needed.
(QHUJ\ In 1995, the government created an Energy Saver Fund (the Fund or ESF) to
6DYHU be administered by EECA. The Fund was designed to “kick-start” residential
)XQG energy efficiency activities. Grants are allocated by competitive tender to help
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The six Greenhouse gases are: CO2 (carbon dioxide), CH4 (methane), N2O (nitrous oxide), HFCs
(hydrofluorocarbons), PFCs (perfluorocarbons), and SF6 (sulphur hexafluoride) .
4
finance practical measures designed to improve the efficiency of energy use in
New Zealand homes. One of the funding criteria is whether projects address
market barriers (other than cost) to energy efficiency improvements, such as
lack of information, and whether the project would result in the more
sustainable provision of energy efficiency services.
Funding for the programme was judged to be increasing faster than the
developing energy efficiency services market could absorb it, and funding has
subsequently been reduced. ESF grants totalling NZ$ 1.85 million were
allocated during 1996/97 and nearly NZ$ 4 million was allocated in 1997/98.
The budget for 1998/99 was NZ$ 2.5 million. Additional funding of NZ 1.15
million per year was approved for financial year 2000/2001 onwards for
residential sector initiatives including the ESF, Maori housing, pilot residential
schemes for state housing as well as other energy/community based
measures. This brought to NZ$ 2 million per year the total to be allocated to
such measures. EECA also manages a NZ$ 1.1 million fund dedicated to a
particular Maori healthy housing scheme with a strong energy efficiency and
employment focus.
Over the first five years of operation, the Energy Saver Fund made grants to
improve energy efficiency in some 49 000 households, saving consumers
some NZ$ 50 million over the lifetime of the measures and around 300 000
tonnes of carbon dioxide. The total cost per kWh of the energy savings made
was under four cents -- very much less than the typical retail price of
electricity. The cost to government to achieve these savings is estimated by
EECA to be under two cents per kWh. Possible changes to the future
targeting and operation of the programmes may be made as the National
Energy Efficiency and Conservation Strategy is implemented.
PUBLIC SECTOR
The programme was established in 1993 with the following key elements: the
inclusion of energy efficiency objectives in chief executives' performance
contracts (now replaced with Memoranda of Understanding with individual
government bodies); funding of capital investments to improve energy
efficiency, provision of training and advice by EECA in conjunction with other
agencies, and encouraging energy cost accountability and annual monitoring
of energy performance outcomes.
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As part of this programme, EECA and its predecessor organisation have lent
NZ$ 11 million since 1989 to public institutions in central and local government
to invest in energy efficiency projects, funded by the Crown Energy Efficiency
Loan Scheme. A further NZ$ 1 million will be spent during fiscal year 2000/01
in the wider public sector to encourage the application of energy efficiency
projects. Annual energy savings resulting from these investments are
estimated at NZ$ 4 million and reductions in CO2 amount to some 22 000
tonnes per year.
(QHUJ\:LVH Local governments have been targeted through the Energy-Wise Councils
&RXQFLOV programme. Priority has been given to information dissemination
3URJUDPPH (newsletters, seminars, fora), and better monitoring, reporting, benchmarking
and ranking among member councils. Special efficiency projects in the areas
of street-lighting, water and sewage pumping are also being given priority.
COMMERCIAL
AND INDUSTRIAL
SECTORS
Measures already
existing and/or
being improved
&RUSRUDWH The Energy-Wise Companies Campaign was launched in August 1994 and
&RPPLWPHQW serves to promote commitment to energy efficiency at the top management
level within companies. An effective partnership has been established
between the government and industrial and commercial sectors, which directs
management attention to the identification and implementation of cost-
effective energy-efficient practices and technologies. The main features of the
campaign are:
Over 600 of the country’s largest companies are now actively committed to the
campaign. They are implementing energy management practices and
drawing support, as needed, from EECA’s best-practice advisers and
technical literature including case studies of good energy management
practice. Annual returns from client companies indicate that energy savings of
NZ$ 23 million were achieved over the last year and, of these savings, NZ$ 4
million was directly attributed to EECA's involvement.
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EECA is working through the Energy Management Association to establish
accreditation for auditors and to run seminars on new technologies. EECA
maintains a directory on energy service and product suppliers as well as a
database of consultants.
9ROXQWDU\ In July 1994, as part of its CO2 Policy Package, the government announced a
$JUHHPHQWV programme of Voluntary Agreements (VAs). The government encouraged a
WROLPLW&2 broad range of business sector groups and companies to enter into voluntary
HPLVVLRQV agreements to reduce their emissions of carbon dioxide. Voluntary
agreements required companies or sector groups to specify the amounts of
CO2 that they would avoid emitting as a result of improvements or alterations
in current practices over the period 1990-2000.
The agreements were not legally binding and there was no penalty for under-
achieving. There was an expectation that they would be renegotiated if
annual reporting showed a major variation from what was expected to be
achieved.
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TRANSPORT
Measures already
existing and/or
being improved
Vehicle Fleet Preliminary work for selecting effective measures has shown that expected
Fuel Modelling improvements in the technical performance of the vehicle fleet over time, and
the use of road space demand management measures, could lead to
considerable reduction in carbon dioxide emissions from the land transport
sector.
Measures under
Consideration
(FRHIILFLHQW For eco-efficient vehicles, the major short-term proposal of the Strategy is to
YHKLFOHV investigate measures to improve vehicle fuel efficiency. A report was
produced in late 2001 examining the options for applying vehicle fuel
efficiency standards and labelling as an option to encourage the purchase of
more efficient vehicles. Government subsequently decided to continue work
on the development of proposals for a practical labelling regime – along with
proposals for monitorinhg the fuel efficiency performance of the national
vehicle fleet. Ultimately, transforming the energy systems of vehicles is
fundamental to energy sustainability. While New Zealand has little impact on
the pace of such technology changes, the Strategy approach is to be pro-
active in adopting new innovations.
In the 2001 in-depth review of energy policies of New Zealand, the IEA stated:
• Determine the nominal (test) fuel economy of cars purchased new, and of
cars purchased used, to see how the two groups compare; develop
policies to encourage purchase of more efficient cars from either group.
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MONITORING/ During 1997 an independent review of EECA’s activities was commissioned,
ASSESSMENT including a review of EECA's administration of the Energy Saver Fund. The
review found that core EECA activities such as information programmes,
commercial and industrial partnerships and the Energy Saver Fund are highly
regarded by intended audiences, but some smaller programmes had
questionable benefits. The results of the review contributed to the reconfigured
EECA that is in a stronger position to contribute to a sustainable energy system
and sustainable development in New Zealand.
In addition, EECA also monitors energy end-use and efficiency patterns and
trends through data collection, use of indicators and sectoral analyses.
Results are published in a quarterly report and also provide valuable insights
useful in the design of new or amended energy efficiency programmes.
In the 2000 in-depth review of the energy policies of New Zealand, the IEA
stated:
9
Energy
IEA Efficiency
Update
BACKGROUND
1991 An Energy Act came into force on 1 January 1991. It was designed to
Energy restructure Norway's electricity supply industry by introducing a clear
Act distinction between power production and sale, which is organised through a
market, and the grid, which is considered a natural monopoly. The Act also
allows customers at all levels to select their suppliers.
The 1991 Energy Act also changed the role of the utilities with respect to
energy efficiency activities and introduced specific requirements for local
energy utilities to provide customers with information and advice on efficient
use of energy.
1993 White In 1993, the Norwegian government submitted a White Paper to the Storting
Paper (Norwegian Parliament), entitled Energy Efficiency and New Renewable
on Energy Energy Sources. This Paper proposed a redirection of energy efficiency
Efficiency measures towards information, education and motivation campaigns, and a
Policy grant scheme for the introduction of energy efficient technology, and to
eliminate grant schemes for energy efficiency investments in various sectors.
Studies showed that the grant schemes for energy efficiency investments had
limited effect due to a high percentage of “free-riders”.
Environment Norway ratified the Framework Convention on Climate Change in July 1993
and Energy and signed the Kyoto Protocol in April 1998. It submitted its first National
Efficiency Communication under the Framework Convention on Climate Change on
21 September 1994. For the third Conference of the Parties (COP-3) of the
UNFCCC held in Kyoto (Japan) in December 1997, Norway submitted its
Second National Communication in April 1997. The Norwegian commitment in
the Protocol is to limit the increase in greenhouse gas emissions to 1%
between 1990 and the first commitment period (2008-2012).
In December 1999, the Quota Commission presented its report. One of the
recommendations in the report was that, to fulfil the Norwegian commitment
under the Kyoto Protocol, an extensive national quota system should be
introduced with regulation by quotas from 2008. It was recommend that the
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system include all six greenhouse gases. The quota system would be able to
accommodate almost 90% of Norwegian greenhouse gas emissions. To gain
useful experience, regulations for reporting and control routines were
recommended to be in put place well before 2008. The Commission
recommends that in an international system, where there are no limitations on
countries’ use of the Kyoto mechanisms, all concerned should be allowed to
make direct use of the Kyoto mechanisms. In its June 2001 climate policy
(see below) the government accepted most of the Commission's
recommendations.
1999 White In a White Paper on Energy Policy submitted to the Parliament in March 1999,
Paper on the government stated that it intended to pursue an energy policy that would
Energy support an ambitious environmental policy. Norway must prepare for a future
Policy in which energy, and electricity in particular, will be in shorter supply and
become a more valuable commodity. The necessary shifts in energy
production and use must take place in a way that has an acceptable impact on
public welfare. The government's objectives for limiting energy use, and
bringing about a shift in energy production and use are to:
The statements on limiting energy use and a shift in energy use and new
energy production were confirmed when the Parliament discussed the White
Paper on Energy Policy in March 2000. The financial package was also
confirmed. The only change is that natural gas projects can also be supported
by the NKr 5 billion grants.
2001 and 2002 On June 2001, the government presented a White Paper to the Storting on the
White Papers on national climate policy (St.meld. nr. 54 (2000-2001)). It describes the action
Climate Change that will be taken to deal with the obligations set by the Kyoto Protocol for the
Policy period 2008-2012. Carbon dioxide taxes, agreements with industry, emission
trading, and technology development are the key measures with which the
government proposed to meet Norway's environmental commitments.
The White Paper of June 2001 and a supplementary White Paper on Climate
Change Policy of March 2002 were both approved by the Parliament in June
2002.
2
A broad-based domestic emissions trading system covering about 80% of the
emissions will be introduced for the Kyoto-period 2008-2012.The system will
be designed to be compatible with the international emission trading system
under the Kyoto Protocol, and is based on the recommendations of the
commission of experts appointed to devise an emission trading system. The
government will also ensure that its policy is backed up by a coherent set of
instruments and measures with a long-term perspective as a basis for
accepting new and tougher commitments after 2012.
Financial/ The funds allocated to energy efficiency measures were particularly high in
Fiscal 1990-93 when temporary grants were provided for efficiency improvements in
Measures the residential, commercial, industrial and service sectors. In 1990, the grant
1
scheme amounted to a total of NKr 263.1 million and in 1992 to NKr 456.8
million.
Based on the findings in the work prior to the 1993 Report to the Parliament,
the different grant schemes were terminated. The government budget
declined to NKr 60 million in 1995, but increased every year thereafter. In
1999, the state funds for energy efficiency measures (including a support
scheme for the introduction of new energy technology and bio energy)
2
increased to NKr 248.5 million. The state funds were NKr 340 million in 2000
and NKr 347.2 million in 2001. In particular, projects concerning district
heating and wind energy have been given priority over the last few years.
Decentralised From 1994 to 2001 the responsibility for energy efficiency policies was divided
Organisation between the Norwegian Water Resources and Energy Directorate (NVE) and
the electricity companies through voluntary action. NVE largely delegated the
responsibility of executing the energy efficiency programmes to different
operating agents. Activities are primarily focused on buildings, industry,
information and education and the introduction of energy efficient technology.
Enova On 27 March 2001, the Storting approved the creation of Enova SF, a public
enterprise that has responsibilities concerning energy efficiency and new
renewables. Enova, located in the city of Trondheim, has been operational
since 1 January 2002. Its aim is to secure a more cost-effective use of public
funding, so as to achieve greater reductions in energy use and more
generation of new renewables. Enova is an operative enterprise, but it has to
make use of several local and regional partners. This re-organisation has to
be seen in the light of the fast growing national use of energy over recent
years, electricity in particular, and the environmental context (national and
international) that exists for new energy generation.
1
On average in 1992, NKr 1 = US$ 0.161.
2
On average in 2000, NKr 1 = US$ 0.113 and in 2001.NKr 1 = US$0.111.
3
Enova will stimulate market forces and have the freedom to find the necessary
measures to reach the energy objectives approved by the Storting in Spring
2000 (see above). The money to achieve the objectives comes from a fee on
the electricity distribution tariffs and from ordinary grants over the state
budget. The Storting has indicated an amount of approximately NKr 5 billion
(approximately € 680 million) over a ten-tear period. The income is directed to
a separate energy trust established on 1 January 2002. Enova is in charge of
this trust, which secures a long-term financial frame over the years to come.
The activities of Enova will be evaluated after a four-year period.
Measurements and verification of energy savings will be a high priority for
Enova.
In the 2001 in-depth review of the energy policies of Norway, the IEA stated:
• In establishing the new agency for promoting energy efficiency and new
renewables,
set clear objectives for the agency, along with clear time scales for
achieving its objectives; require the agency to develop a range of
measures for improving energy efficiency, chosen according to their
cost-effectiveness, with a particular focus on electricity consumption.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Building New building codes came into force on 1 July 1997. The 25% reduction of
Codes energy use in new buildings will be accomplished mainly by more stringent
insulation requirements in walls, windows, floors and roofs. The U-values
2
(W/m K) for heated areas (>20ºC) are:
These values can only be used if the total window, glass-roof and glass-wall
areas do not exceed 20% of the building’s net floor space. However, it is
possible to compensate large window areas with more insulation in the other
building elements.
Standards and Energy labelling for refrigerators, freezers and their combinations, washing
Labelling for machines and tumble dryers has been introduced following the European
Household Union Directives on this matter. Standards and labelling of lamps came into
Appliances force in January 2001.
Energy The Energy Efficiency Network for Buildings (EENB) was established in 1996.
Efficiency Through formalised co-operation, participants such as private owners of
Network commercial buildings, house building co-operatives, local authorities and
for Buildings building administrators exchanged information and experience on energy
efficiency projects completed in various buildings. The networks are also
used as a forum for developing strategies for energy administration in
buildings. Participants are obliged to submit information on their use of
energy in buildings. This information is fed into a national statistics database
on energy use in buildings. Yearly reports have been available since 1998.
4
In the 2001 in-depth review of the energy policies of Norway, the IEA stated:
Electricity In 1995 a pilot project with four energy utilities participating in three regions
Billing was completed which aimed at developing a more simplified and informative
electricity bill for household consumers. The goal was to give customers a
better understanding of both energy efficiency and a liberalised electricity
market. Customers participating in the pilot project receive frequent electricity
bills based on actual electricity consumption. The bills included a graphical,
temperature related figure which enabled the customers to compare their use
of energy over time. Information regarding energy efficiency measures, the
possibility of changing suppliers and information on tariffs was included in the
bill. A similar project carried out by the Nordic Council showed an energy
saving potential of 5-10%.
From 1 June 1999 all utilities are required to send their customers a simplified
electricity bill. Electricity bills are now sent to every customer quarterly, or
even more frequently, and are based on actual consumption instead of an
estimated consumption for each period. The aim of this measure is to increase
customers' awareness of their electricity consumption.
The Norwegian State Housing Bank offers various loan and grant schemes for
residential energy efficiency measures. From 2002 the housing bank also
offers NKr 140 000 in extra loans and NKr 10 000 in grants to homebuilders
who invest in water heating systems based on bioenergy, solar or that use
heat pumps.
INDUSTRY
Measures already
existing and/or
being improved
Industrial In 1999, the government tested a new concept to increase energy efficiency in
Energy industry. The main focus has been efficiency in core industrial processes. The
Efficiency programme is designed to detect the energy influence of using different raw
Analysis materials singly or in combination. The philosophy behind the programme is to
Model increase energy efficiency, reduce the cost of raw materials (feedstock),
increase output in production and increase competitiveness in the industry.
Pilot projects have been carried out in companies that produce:
These projects have shown that certain materials have a significant impact on
specific energy consumption, stability and output of the process. Average
5
energy reduction of electricity was between 5 and 10%, sometimes with little
or no capital investment. One of the pilot companies could save 50 GWh/year
and thereby save NKr 30 million annually with no investments made. The
programme will be continued, with the power intensive industry as the main
target.
Industrial Energy In 1989 an Industrial Energy Efficiency Network was established. The network
Efficiency currently has a membership of 650 companies from 13 industries. Through
Network their membership in the network, the companies are offered various forms of
assistance. There are two phases: in the first, the company has to establish
an energy monitoring system. In this phase the government supports the
company with training for key personnel and covers part of the consultant
fees. In the second phase, the company undergoes an energy audit.
Benchmarking is also a central network activity.
Voluntary As a component of its climate change action plan, the government hopes to
Agreements develop voluntary agreements with industry for improved energy efficiency
and emissions reductions.
To date, only one agreement has been concluded, with the aluminium industry
in 1997. The industry has agreed to reduce its greenhouse gas emissions by
55% by 2005, compared to its 1990 emissions. In 2000, a reduction in
emissions of 52% per tonne was achieved, exceeding the target in that year of
50%. Voluntary agreements with industry have proven to be difficult to
negotiate, possibly due to the discussion on quotas for domestic emissions
trading system.
In the 2001 in-depth review of the energy policies of Norway, the IEA stated:
TRANSPORT
Measures already
existing and/or
being improved
Purchase The purchase tax on cars was initially fixed according to the value and weight
Tax of different models. Although no precise estimates of its effects are available,
the weight component may be an incentive to purchase lighter, more energy-
efficient cars. In addition, since 1996 the tax has been differentiated to
replace its value-base element with an energy performance component.
In the 2001 in-depth review of the energy policies of Norway, the IEA stated:
6
Taxation on The government considers cost-efficiency to be essential in regulating the
Fuels and environmental impact of transport. This also applies to energy efficiency.
Registration Economic matters, therefore, have an important role as an instrument in
Tax environmental policies in Norway. The duties on petrol and diesel, as well as
the registration tax on vehicles, are high. External effects at a national level
are an important basis for the setting of vehicle taxes.
Measures under
Consideration
Road Norway has many toll rings in order to finance road infrastructure. The Ministry
Pricing of Transport and Communications is for the time being undertaking the
necessary steps to ensure a legal basis for the introduction of road pricing.
The purpose of a road pricing system will be to internalise external costs
created by road traffic in order to reduce congestion and improve local
environment. The Ministry also considers parking policy to be an essential
measure for reducing congestion and thereby environmental problems.
CO2 TAX
Measures already The CO2 taxes introduced in 1991 are at present the main instruments aimed
existing and/or at limiting CO2 emissions in Norway. The tax rates are high compared to
being improved similar tax rates that have been introduced or proposed in other countries.
The carbon dioxide tax covers approximately 64% of Norway's carbon dioxide
emissions and 48% of total greenhouse gas emissions. The tax rates vary
according to the different emission sources. In 2002 the tax rates are as
follows: The highest tax rate (NKr 315/tonne CO2) is levied on petrol; the tax
rate on oil and gas production in the North Sea is respectively NKr 277 and
NKr 308/tonne CO2. Reduced taxation ratios on mineral oil are applied to the
pulp and paper industry, the fishmeal industry, domestic shipping of goods
and continental shelf supply fleet. The main emissions that are exempted from
the CO2 tax are those from industrial processes. Taxation on coal and coke for
energy purposes amounts to NKr 0.49 per kg.
The Storting has recommended that the government adopt the 1996 Green
Tax Commission's proposal to exempt the buildings of heat pumps, district
heating systems, micro and mini hydropower plants, wind turbines and bio-fuel
plants from the 7% investment tax.
The carbon dioxide tax and other "green" taxes are treated as general
revenue and earmarked for any specific purpose. Revenue from the carbon
dioxide tax was expected to reach NKr 7 000 million in 2001.
7
Statistics Norway has evaluated the effect of the carbon dioxide tax. The
evaluation suggests that a carbon dioxide tax on private transport increasing
fuel price by 6% to 7% will reduce the use of fuel by 2% to 3% each year.
Most of the effect is achieved by reducing the transport volume by 1.5% to
1.9%. Although the analyses indicate that the tax has had an effect, the
calculations are uncertain. The long-run effects on fuel efficiency have not
been studied.
In the 2001 in-depth review of the energy policies of Norway, the IEA stated:
From January 2002 the new government body Enova is able to choose the
most cost-effective measures to reach different government objectives.
However Enova will not deal with transport issues. The Ministry of Petroleum
and Energy will receive reports indicating the results Enova is achieving
annually.
8
(QHUJ\
IEA (IILFLHQF\
8SGDWH
BACKGROUND The Portuguese Energy Programme adopted by Parliament in July 1994 had
the following goals: improve energy efficiency, diversify energy sources
(mainly the introduction of natural gas) and promote indigenous renewables.
The measures to reach these objectives have been financed mainly through
the SIURE programme (Incentive System for the Rational Use of Energy –
see below).
1
Between 1994 and 1999, total public funding was about Esc 140 billion (ECU
704 million), of which 44% came from EU FEDER funding. Public funding for
the introduction of natural gas accounted for 69% of the total, promotion of
renewable sources accounted for 22.6%, energy savings 7.5% and technical
2
assistance less than 1%. The Portuguese government decided to continue
the programmes, giving more emphasis to energy savings and progressively
reducing funding for the introduction of natural gas which is done within the
scope of the PLANO OPERACIONAL da ECONOMIA (POE) in the SIME and
MAPE schemes that are briefly described below.
The Directorate General for Energy (DGE) within the Ministry of Economy is in
charge of energy issues. Its main responsibilities include:
1
On average in 2000 Portuguese escudos (Esc) 1 000 = US$4.577. and in 2001 US$ 4.466.
2
The technical assistance programme aims mainly at funding administrative costs, e.g. management of the
programmes, preliminary studies, information to the administration, advertising campaigns and assessment.
In the 2000 in-depth review of the energy policies of Portugal, the IEA stated:
At COP-3 (Kyoto, December 1997) the European Union accepted the target of
an 8% reduction in greenhouse gas emissions by 2008-2012. In the
European Environment Council of 17 June 1998, which adopted the EU
3
Burden Sharing Agreement , Portugal was allowed to increase its emissions
by 27% for the 2008-2012 period over the 1990 levels.
3
The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
2
In the 2000 in-depth review of the energy policies of Portugal, the IEA stated:
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
This regulation was the first step to improve thermal comfort in buildings,
quantifying the needs of the building in terms of energy and consumption and
taking into account the rational use energy. A revision of this regulation is in
preparation to strengthen the energy parameters.
In the 2000 in-depth review of the energy policies of Portugal, the IEA stated:
• Ensure that building codes are periodically revised to take into account
technical improvements. Ensure that these codes are effectively
implemented and that their implementation is effectively monitored at local
level.
$FFOLPDWLVDWLRQ The Regulation on the Energy Systems for Air Conditioning of Buildings
(RSECE) was published in Decree-Law No. 118/98 of 1998. This regulation
establishes the rules to be complied with in calculating the size of energy
systems for air conditioning to achieve higher energy efficiency ratios.
(IILFLHQF\ Efficiency labelling has been in force since 1994, by the Decree-Law No.
6WDQGDUGVDQG 41/94 of 11 February 1994. This Framework Decree-Law encourages
/DEHOOLQJ producers to manufacture and consumers to purchase more energy-efficient
appliances.
3
A “Minimum Efficiency for Heating Boilers” has been in force since 1996 and
sets minimum efficiency requirements for hot water boilers.
In the 2000 in-depth review of the energy policies of Portugal, the IEA stated:
%RLOHU The 1963 Decree-Law No. 45115 requires all steam boiler plants with a total
2
6XUYH\ heating surface greater than 100 m to have periodic energy efficiency tests to
adjust air and fuel to give optimum combustion performance and to have
energy-efficient boiler plants. The Decree-Law was revised in 1990 to improve
the measurement of stack gases of the boiler plants according to the
parameters of temperature, pressure, humidity, flow as well as their
composition (CO, CO2, O2, N2) and the control of the pollution parameters. At
this stage of implementation, the results of these tests are not available.
,QIRUPDWLRQ In 1998 DGE promoted several energy efficiency activities; the Centro para a
Conservao de Energia was in charge of some rational use of energy projects,
for example: Energy Auditing in the Hotel Sector, Energy Auditing in Textiles,
Ceramics, Dairies and Wood and Cork Sector and two training courses on the
rational use of energy in industry.
Based on these audits, new values for the target specific consumption for
ceramics and textiles were published. Work is going on to reach new values
for the glass sector.
0HDVXUHVXQGHU
FRQVLGHUDWLRQ
PUBLIC SECTOR In designing energy efficiency policies in 1994, the government decided to put
greater emphasis on municipalities. Through the Directorate General for
Energy, it designed an Action Plan (Plano de Acção nos Municipios (PAM)) to
foster the creation of local energy entities and the implementation of energy
policy measures at the local level, using financial support available under the
Energy Programme.
This action is going on under the new incentive programme. Projects aimed at
reducing reduce the consumption by public lighting and water supply systems
are being developed.
INDUSTRY
Measures already
existing and/or
being improved
4
Ministerial Order No. 359/82 of 7 April 1982. The primary objective of these
regulations is to instil in energy-intensive companies the concept of energy as
a cost factor. The regulations establish goals for companies to reduce
progressively their specific energy consumption. In addition, the regulations
require companies to audit their energy use twice a decade, to prepare and
carry out annual plans for rationalising their energy consumption and to
achieve the energy savings. All energy consuming facilities meeting one or
more of the following conditions are covered:
The regulation obliges companies to control the results of the energy savings
measures and assures the successful execution of the rationalisation plans.
The objective was to reduce the specific consumption of energy by at least 5%
over the five-year period.
The main industrial sub-sectors covered by the RGCE regulation are Food
and Drinks, Textiles, Wood and Cork, Pulp and Paper, Chemistry and
Cement, Ceramics and Glass.
The rational use of energy measures carried out were mainly energy
management systems, co-generation projects, thermal insulation, heat
recovery systems and installation of more efficient equipment.
The Directorate General for Energy has been monitoring the implementation
of RGCE in industrial installations where energy consumption is higher than
1 000 toe per year; the monitoring in done on the basis of a five-year plan.
In the 2000 in-depth review of the energy policies of Portugal, the IEA stated:
• Carefully assess the results of the energy audits in industry to improve the
effectiveness of energy efficiency measures in this sector.
• Increase information to energy consumers on energy efficiency measures.
Focus on measures to improve energy efficiency in small industries, such
as providing information and expertise.
6,85( SIURE (Incentive System for the Rational Use of Energy) was the national
assistance system for energy projects. Its basic objective was to encourage
energy efficiency and promote the development of new sources or forms of
energy in all economic sectors (except the domestic sector), by providing
grants to companies carrying out related projects.
5
Decree-Law No. 188/88 of 27 May 1988 updated by Decree-Law No. 35/95
established the incentive system.
SIURE provided grants for energy auditing in the tertiary and transportation
sectors, energy research and feasibility studies, investments in energy
efficiency, co-generation projects, diversification of primary energy sources
and energy demonstration projects. SIURE helped to reduce high energy
dependence on oil products and improve energy efficiency. It made possible
6
245 ktoe energy savings per Esc 54x10 investment over the period 1994/98.
For this period the amount of incentives awarded to the projects was around
6
Esc 10x10 and includes grants and loans at zero interest rate.
The grants and loans for the energy efficiency projects in the industrial and
tertiary sectors represented about 82% of the total, with an energy savings
potential of 227 ktoe per year, for about Esc 49 million of investment.
SIURE was evaluated every year by the Energy Programme Manager. The
system ended in 2000 and has been replaced by MAPE.
• Energy audits and studies on more efficient use of energy and advertising
campaigns.
• Measures to demonstrate the technical viability of the implementation of
the monitoring and targeting system of PEDIP.
• Energy managers training to improve the skills in energy management of
human resources.
The PEDIP II programme ended in 2000 and has been replaced by SIME.
6
To be eligible for SINDEPEDIP loans and grants, enterprises needed to
4
comply with Decree Law 58/82 . Enterprises that received the funds had to
report every six months on progress made, particularly on the evolution of
specific energy consumption.
0$3( MAPE, which is the successor to SIURE, is the national assistance system for
energy projects. Its basic objective is to encourage energy efficiency and
promote the development of new sources or forms of energy in all economic
sectors (except the domestic sector), by providing grants to companies
carrying out related projects.
6,0( SIME support schemes, which replace PEDIP II and SINDEPEDIP, consist of
grants or interest-free loans in amounts and percentages depending on the
types of operation and the volume of investments.
&RPELQHG Decree Law 189/88 of 1988 has provided for must-take obligations by the grid
+HDWDQG company REN (Rede Electrica Nacional) and favourable buy back tariffs set
3RZHU according to the price paid by end-use customers. Decree 186/95 of 1995 set
minimum efficiency values and the minimum heat utilisation necessary for co-
generators to qualify. The buy-back tariff for co-generators is as follows:
The standards defining the conditions for the exploitation of the co-generation
plants and respective tariffs have recently been revised.
4
Some other PEDIP programmes had environmental aspects. In these cases compliance with these regulations
was also required.
7
TRANSPORT
Measures already
existing and/or
being improved
RGCT The RGCT is being implemented in the public and private transport
enterprises where energy consumption is higher than 500 toe per year. The
RGCT requires these companies to carry out energy auditing and to publish a
plan for the rationalisation of their energy use every three years. The
Directorate General for Energy (DGE) monitors the audit results and the
plans when the companies apply for financial support.
9HKLFOH Control of vehicle energy efficiency using new technologies and mandatory
&RQWURO periodic inspections aimed at reducing the environmental impact of the
transport sector have been implemented.
The Directorate for Energy monitors the auditing and this triennial
rationalisation plan.
3XEOLF7UDQVSRUW The use of natural gas in vehicles began in the public transport systems of
Braga and Porto in 2000 and in Lisbon in 2001. The extra cost involved in
purchasing buses that use natural gas is partially financed through the OPE
Programme.
In the 2000 in-depth review of the energy policies of Portugal, the IEA stated:
8QGHUJURXQG In the Lisbon metropolitan area, which accounts for roughly 20% of the
7UDQVSRUW Portuguese population, there has been a surge in public investment in mass
transport. The underground system doubled its length in 1999, with improved
links to the railway and bus network. In Porto, a metropolitan railway system
is scheduled to start operating by 2001.
7UDIILF Until 1998, SIURE funds allocated for energy diversification and energy
0DQDJHPHQW savings in transport amounted to Esc 5.2 million. Funds were mostly granted
for information systems to improve the mobility of captive fleets.
The use of automation, the creation of lanes and corridors for public transport,
reversible direction zones, etc., aim to facilitate traffic flows particularly in
urban areas.
MONITORING/ When funds are granted by the Directorate General for Energy (DGE), energy
ASSESSMENT efficiency programmes are evaluated during the programme and afterwards
by DGE and the National Institute for Engineering and Industrial Technology
(INETI) on the basis of energy and CO2 emissions saved.
8
For information For further information, please contact:
9
Energy
IEA Efficiency
Update
BACKGROUND
According to Royal Decree 557/2000, 28 April 2000, energy policy is the
responsibility of the Ministry for the Economy, and implemented through the
office of the Secretary of State for the Economy, Energy and Small
Businesses, which, based on RD 689/2000, 12 May 2000, in turn acts through
the Directorate General for Energy Policy and Mines.
From 26 July 2002 and by Royal Decree 777/2002, the Institute for
Diversification and Saving of Energy (Instituto para la Diversificación y Ahorro
de la Energía, IDAE) reports to the Ministry for the Economy through the State
Secretary of Energy, Industry Development and of Small and Medium
Enterprises.
IDAE and the Directorate General for Energy Policy and Mines work in co-
ordination on the implementation of policies and actions to promote the
rational use of energy and diversification of energy sources.
As a national agency, IDAE seeks to strengthen links with the other agencies
with competencies in industry and energy in order to integrate and co-ordinate
actions at regional and local level. In Spain there are currently 20 regional and
local agencies whose aim is to promote actions in the fields of energy
efficiency and diversification of sources.
Energy After the Kyoto commitment of December 1997, the European Union Council
1
and the of Ministers agreed on 17 June 1998 on the Burden-Sharing Agreement
Environment towards achieving the 8% European Union commitment to reduce emissions.
In this context, Spain is obliged to ensure that its CHG emissions do not
exceed the 1990 level (306 Mt of CO2 equivalent) by more than 15% for the
2008-2012 period.
National Royal Decree 177/1998 of 16 February 1998 founded the National Climate
Climate Council (CNC) an associated body of the Government Department, belonging
Council to the Ministry of the Environment. It would establish a set of national plans
and programmes to adopt the necessary measures at a sector level to
confront climate change and at the same time fulfil the international
commitments signed by the government, basically the Kyoto Protocol and the
United Nations Framework Convention on Climate Change.
Spanish Climate Royal Decree 376/2001 of April 2001 established the Spanish Climate
Change Change Prevention Office (Oficina Española del Cambio Climático, CCPO). It
Prevention Office will be under the Ministry of the Environment, the General Directorate for
Environment Quality and Assessment. The composition and structure of the
new organisation were defined by Ministerial Order of July 2001.
The tasks of CCPO are, inter alia, to act as secretariat for the National Climate
1. The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
1
Council, to follow-up of UNCC and promote Spanish policies and measures to
accomplish the commitment under the UNCCC and the Kyoto Protocol; and to
collaborate with the autonomous regions in giving advice.
The central government formulates the policies for mitigating climate change.
However, the regional governments (see below) are allowed to adapt policies
to their specific geographic area as long as they do not distort the intent of the
national policies. The regional governments also play an important role in the
implementation of policies in their region, such as licensing installations for
producing energy from renewables and CHP, and promoting energy efficiency
and transport planning.
In the 2000/2001 in-depth review of the energy policies of Spain, the IEA
stated:
Spain's GHG emissions have grown with its economy. According to IEA
statistics, Spain's energy related CO2 emissions have grown by 28.6% from
1990 to 1999. Meeting the Kyoto target requires the total GHG emissions to
be reduced by 17 Mt from the 1998 level.
The National Climate Council is currently preparing the Kyoto Protocol National
Strategy. However, no clear timeframe for completion of the plan has been set.
The question of target-setting, by sector, by region or a possible combination, is
still under consideration. However, the reports Policies and measures for the
Fight Against Climate Change: A first Advance and the Plan for the Promotion of
Renewable Energy in Spain have been developed.
Plan for the The Plan for the Promotion of Renewable Energy in Spain (Plan de Fomento
Promotion of de las Energías Renovables en Espana, PFER), which was prepared by IDAE
Renewable (see below) on the basis of Law 54/1997 on the Electricity Sector (Ley
Energy 54/1997, del Sector Eléctrico) sets a target of 12% of Spain’s energy demand
being met from renewable sources by 2010, in line with the EU target defined
in the European Community's White Paper for Renewable Energy Sources,
The Plan was approved by the Council of Ministers on 28 December 1999.
2
In the State of the Nation Debate in July 2002 a Resolution specifying the
opportunity of elaborating a proposal about the same subject, with a
temporary horizon of a decade, was approved. The appropriate answer to
these requests recognises the necessity of having an effective strategy of
action programmes with the objective of promoting efficiency and saving
energy; it must include in its elaboration and performance the different
administrations (central, regional and local) and the sector actors. A
programme on monitoring and control will be designed to analyse the
weaknesses of the programmes and correct them accordingly.
In the 2000/2001 in-depth review of the energy policies of Spain, the IEA
stated:
Institutional The Spanish State comprises 17 autonomous regions, each with a local
Framework parliament. The State has general jurisdiction over energy, while the regions
have jurisdiction over issues exclusively within their territories.
The task of promoting energy efficiency and the rational use of energy in
Spain, together with the diversification of energy sources and promotion of
renewable energy, is the responsibility of IDAE, in compliance with the
functions enumerated in its articles of association (RD 802/86; RD 252/97 and
RD 2100/98).
Three bodies are in charge of four different public financing sources for the
energy saving programmes:
In the 2000/2001 in-depth review of the energy policies of Spain, the IEA
stated:
3
IDAE IDAE is a state agency appointed by and reporting to the Ministry of Science
and Technology. It carries out the functions entrusted to it through diffusion
actions, technical advice, and the implementation of innovative projects:
In the 2000/2001 in-depth review of the energy policies of Spain, the IEA
stated:
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Thermal Today's standards for energy savings in buildings were established by Royal
Insulation Decree 2429 of 1979, which sets mandatory minimum requirements (NBE-CT-
of Buildings 79) for thermal insulation. New more strict mandatory standards, in
compliance with the “SAVE Directive” will be introduced in 2002. The
autonomous regions will be responsible for the enforcement of these
standards. They will be based on an evaluation of the building project at the
planning phase and on random check-ups of new buildings.
4
Energética de Viviendas, CEV) and Energy Rating of Buildings (Calificación
Energética de Edificios, CALENER).
In the 2000/2001 review of the energy policies of Spain, the IEA stated:
Energy The transfer to Spanish legislation of the different European Union Directives
Efficiency referring to energy efficiency labelling began with Royal Decree 124/1994 of
Labelling 28 January 1994, transferring European Union Directive 92/75/EC of
22 September 1992 (and the latter amendments) on energy efficiency
labelling on domestic electrical appliances.
Public Under the Plan for Public Housing (Plan Vivienda de Protección Oficial 1998-
Housing 2001) potential beneficiaries of “qualified” finance include pilot schemes to
promote sustainable housing (i.e. housing compatible with both economic
requirements and the need to preserve the environment) by applying building
techniques that reduce the use of materials (primarily those whose use or
manufacture causes pollution), give greater energy savings, and reduce water
usage, including the design of homes that are suited to the bio-climatic
conditions of the area in which they are located.
Other Based on Royal Decree 1751/1998 of 31 July 1998 referring to the Regulation
Measures of Thermal Installations in Buildings (RITE), the guidelines of the SAVE
Directive referring to the Valuing of Energy Consumption for Heating, Air
Conditioning and Hot Water and of Periodic Boiler Inspections, have been
incorporated into Spanish legislation.
5
installations with a nominal power of less than 100 kVA to the low-tension grid.
The regulations applicable to the procedure whereby owners of installations
apply for the connection point, and the technical conditions for connection,
avoid possible discrimination by electricity distribution companies against
access by small producers of electricity from renewable sources.
Information/
Motivation
Travel Under the name of “Travel throughout the Energies” this educational exhibition
throughout with a wide-ranging interactive content, graphic support, stage setting, as well
the Energies as a virtual host who answers to all the questions put by visitors in real time,
has been presented by the Institute for the Diversification and Saving of
Energy (IDAE).
PUBLIC SECTOR
Measures already
Existing and/or
being improved
Voluntary The main agreements signed by IDAE during 2001 and up to February 2002
Agreements are as follows:
6
the joint development of a Municipal Energy Action Plan.
• Framework co-operation agreement with Majadahonda (Madrid) Council
for the development of a Municipal Energy Action Plan.
• Framework co-operation agreement with the Spanish Federation of
Municipalities and Provinces (Federación Española de Municipios y
Provincias, FEMP) for the promotion and dissemination of energy-efficient
technologies and renewable energy sources (RES) among Spanish
municipalities.
• Specific agreement with Saragossa (Zaragoza) Council and Saragossa
University for conducting feasibility studies regarding the application of
renewable energy sources (RES) and energy saving criteria in the
Valdespartera housing development.
• Co-operation agreement for the promotion of energy efficiency and
renewable sources of energy (RES) in Soto del Real.
• Territorial agreement with the Solar Energy Studies Centre (Centro de
Estudios de la Energía Solar, CENSOLAR) for the publication, distribution
and publicising of the IDAE’s technical specifications for solar thermal
systems and both stand-alone and grid-connected photovoltaic systems.
INDUSTRY
Measures already
existing and/or
being improved
Voluntary From 1994 to date, IDAE has signed voluntary agreements to improve energy
Agreements efficiency in nine industrial sectors, which form part of ten industrial
associations. These represent 56% of the total consumption in Spain's
industrial sector. Sectors that have signed voluntary agreements are pulp and
paper, structural ceramics, hollow glass, tanning, cement, food, chemicals,
automobile accessories and textiles.
7
cement industry.
• Energy efficiency day congress for the agro-food industry.
The financing activity of IDAE during the year 2001 was associated with the
development of 33 different projects, representing a total investment of € 25.4
million, with the following share among the main technology areas:
Cogeneration Although the total installed cogeneration capacity was only 369 MWe at the
end of 1990, it was 5 520 MWe at the end of 2001 generating about 11% of
electricity. About 4 540 MW of new capacity was installed in 1991-2000,
which is two to three times the initial target. Co-generation capacity financed
through IDAE's third-party financing was 300 MWe, or 6.7% of the total
installed in 1991-2000. In addition, support from IDAE, the so-called “special
system”, has provided premiums to co-generators. However, high natural gas
prices in 2000 and 2001 discouraged installation of new co-generation plants.
According to the Plan for the Promotion of Renewable Energy in Spain
mentioned above, co-generation has a potential to reach 17% of the electricity
demand in 2011: that means a total installed capacity of 7 100 MW in 2011.
The co-generation plants are eligible for premiums if they qualify under the
special generation system. Conditions are put on the electric efficiency but not
on the fuel efficiency of the CHP plants. The requirements on electric
efficiency depend on the size of the installation, the ratio of own energy
consumption to the electricity output to the network, fuel and technology used.
The premium also depends on the installed capacity. In 2001, the premium
paid to small co-generators (<10 MWe) was 24 euro cents per MWh for a
maximum of 70% of their total annual production. To larger co-generators
8
(between 10 and 25 MWe) it was on average 18 euro cents per MWh for
maximum of 50% of their total annual production. The premium system will be
revised in 2002. The co-generators have two possibilities to sell the surplus
electricity, either through the pool or in direct contracts with the retailing or
distribution companies.
IDAE has closely monitored the progress of the CHP market and identified
some constraints to the competitiveness of co-generation. First, it considers
the fuel prices for co-generators, essentially the price on natural gas, to be too
high compared to the price of fuels used in conventional power plants.
Second, the efficiency requirements for co-generation should be stricter than
they are today. Third, the buy-back tariff should take into account the
environmental externalities and transmission network costs that are avoided in
co-generation: electricity generated by co-generators is usually consumed
close to the production site and so does not burden the transmission system.
In the 2000/2001 in-depth review of the energy policies of Spain, the IEA
stated:
• Review subsidies for co-generation with a view to phasing them out fully.
TRANSPORT
Measures already
existing and/or
being improved
Replacement For some years the government has maintained its PREVER Programme
of old cars (formerly RENOVE) through the Ministry of Science and Technology. The
programme's aim is to encourage the replacement of old cars to achieve
environmental improvements and better road safety. In accordance with
Royal Decree Law 6/97 of 9 April 1997, the programme applies to automobiles
over ten years of age and light industrial vehicles over seven years. It
reduces the car registration tax by up to € 721 when scrapping of the old
vehicle (priority is given to leaded gasoline vehicles) is guaranteed.
Public Some examples of urban traffic management measures have been included in
Transport the traffic movement city plans of Granada, Vitoria, San Sebastian, Oviedo
and Barcelona. Madrid, Salamanca and Bilbao, for example, already have
buses fuelled by natural gas in their city transport fleets. In other cities such
as Valladolid and Bilbao, similar plans are being studied.
• La Ciudad, sin mi coche (The City, without my car): the organisers of this
event in Spain were IDAE and the Ministry of the Environment. The most
significant results, extrapolating from those of the 16 cities that took part,
were an 18% reduction in traffic; an 18.7% increase in passengers using
public transport; and a 4..3 million litres reduction in fuel consumption.
• Mejor sin coche (Better without a car): rational use of private cars and
improvement in urban mobility in the city of Gijón (Asturias). Awareness
raising project in which members of the public who took part obtained a
series of personal advantages, such as discounts for public transport,
sports centres and theatres, as well as taxis and shops taking part in the
scheme.
• Smile project: its aim was to gather information on best practice in urban
mobility so as to offer it to the public in the form of publications,
presentations and international conferences.
9
• Intatme project: IDAE participated in this project led by the Madrid
Transport Consortium (Consorcio de Transporte de Madrid) with the
principal objective of studying new forms of mobility using collective
means of transport.
In the 2000/2001 in-depth review of the energy policies of Spain, the IEA
stated:
• Promote the use of alternative transport fuels for energy efficiency and
environmental benefits.
Fiscal Reduced VAT on tickets for public transport can promote its use. Some public
Incentives transport, namely all rail and bus transport and travel between the mainland
and the Balearic Islands by air and sea, is subject to a reduced VAT rate of
7%. The full 16% VAT rate applies to all other domestic passenger transport
by air and sea. The annual vehicle taxes, levied by the municipalities, were
originally introduced solely for fiscal reasons but because they are
progressive, based on weight and engine size, they can also be considered to
enhance energy efficiency. Due to the level of the annual vehicle taxes, about
Ptas 12 000 per year at the most, the impact on energy efficiency
improvement may be modest.
Information/ Training programmes currently operating for efficient driving have received
Training support from the Spanish Confederation of Goods Transport, the Driving
Schools’ Association and the Government Traffic Department.
MONITORING/ IDAE carries out extensive monitoring of the actions developed nation-wide in
ASSESSMENT the fields of energy efficiency and diversification of energy sources.
In addition to the work that IDAE has historically carried out regarding the
monitoring of energy efficiency indicators and producing inventories of
combined heat and power (CHP) and renewable energy facilities, the
implementation of the Plan for the Promotion of Renewable Energy in Spain
2000-2010 (Plan de Fomento de las Energías Renovables en España 2000-
2010) has meant adapting the monitoring of renewable energy activities in
Spain to the requirements stated in the Promotion Plan.
In this new framework, since the autumn of 2000, IDAE has published a
newsletter on energy efficiency and renewable sources of energy entitled
Boletín de Eficiencia Energética y Energías Renovables, in which it
summarises the progress made, main milestones passed, and overall trends
regarding energy efficiency, CHP and RES at national level.
In the 200/2001 in-depth review of the energy policies of Spain, the IEA
stated:
10
Further For further information, please contact:
information
Carlos García Barquero
IDAE
Paseo de la Castellana, 95
E – 28071 Madrid
Tel: +34 (91) 456 49 00
Fax: +34 (91) 555 13 89
E-mail: cgbarquero@idae.es
11
Energy
IEA Efficiency
Update
BACKGROUND
1991 Energy policy was formulated by the Riksdag (Parliament) in the 1991 Energy
Energy Policy Bill with the purpose of creating the conditions for long-term sustainable
Policy political decisions on energy policy, whose goal was defined to be to secure
Bill the availability of electricity and other energy in the long and short term at
prices that are competitive on the world market.
It was observed in the decision that the time for the start of the nuclear power
phase-out, and the pace at which the phase-out would proceed, were to be
determined by the results of electricity conservation efforts, the availability of
electricity from environmentally acceptable power production, and the ability to
maintain internationally competitive prices.
Government The guidelines established in the 1991 Energy Policy Bill were re-evaluated.
Bill on a A parliamentary Energy Commission was appointed in the spring of 1994 to
Sustainable examine the ongoing programmes for transformation of the energy system
Energy Supply, and analyse the need for changes and additional measures.
March 1997
On the basis of the work of this Energy Commission, in the spring of 1996 the
government invited the parliamentary parties to participate in deliberations
aimed at setting the foundations for sustainable long-term energy policy
decisions. In February 1997 these deliberations resulted in an agreement in
the Riksdag on guidelines for energy policy.
Guidelines The 1997 Guidelines for Energy Policy focus, inter alia, on the following
for Energy developments:
Policy
• The guidelines set down in the 1991 Energy Policy Bill remained
unchanged.
• The energy policy decision required the closure of the two nuclear
reactors, the first before 1 July 1998 and the second before 1 July 2001.
However, closure of the second reactor was conditional upon the loss of
its electricity production being compensated by new electricity production
from renewable sources and reduced use of electricity. On 16 June 1999
the Swedish Supreme Administrative Court pronounced its judgement
concerning the first reactor at Barsebäck. Barsebäck 1 reactor was shut
down in November 1999. In October 2000, the government issued a
written communication (2000/01:15) announcing its opinion that the
conditions for closing the second reactor had not yet been fulfilled.
According to the government, decommissioning should, however, be
1
possible by no latter than the end of 2003. In October 2001, the
government again presented a written communication (2001/02:22) on the
renewed assessment of the conditions for the closure of Barsebäck II.
Again, the government found that the conditions for closure had yet to be
fulfilled. A further assessment of the conditions will be made during 2003.
• The launching in January 1998 of a seven-year programme for an
ecologically sustainable energy system. The programme includes work
intended to reduce electricity use and also to provide new electricity
production. The programme consists of two parts:
The total cost of the programme was SKr 9.2 billion, of which SKr 5 billion
was for long-term research, development and demonstration programmes.
2002 Energy Bill On 21 March 2002, the Swedish government presented its Energy Policy Bill
Co-operation for a Secure, Efficient and Environment-Friendly Energy Supply
(2001/02:143). This report, approved by Parliament on 11 June 2002, re-
affirmed the country's established energy policy objectives:
• Create the conditions for efficient energy use and cost-efficient Swedish
energy supply with low adverse impact on health, the environment and the
climate.
• Facilitate the transformation into an ecologically sustainable society,
promoting sound economic and social development in Sweden.
• Contribute to the creation of stable conditions for a competitive business
sector, and to the renewal and development of Swedish industry.
• Contribute to broadening co-operation within the Baltic region with regard
to energy, the environment and the climate.
2
though the rationalisation of existing policy measures and the
dissemination of knowledge both nationally and regionally.
• Strengthening the competitiveness of combined heat and power (CHP) by
exempting such plants from certain taxes on energy products. The issue is
to be decided in connection with the budget decision for 2003.
Government The lead responsibility for developing energy policy rests with the Minister of
Energy Industry, Employment and Communications. STEM is the central government
Administration body responsible for most functions within the energy area. A number of
administrations have a role in implementing the energy policy programmes.
The Swedish Board of Housing, Building and Planning is responsible for
building codes and related issues. The regional authorities are responsible on
behalf of the Swedish Board of Housing, Building and Planning for the
implementation of those parts of the sub-programmes which concern private
households. The Swedish Consumer Agency is responsible for testing,
labelling and certification of energy use in household equipment, etc. The
transport authorities (Vägverket, Sjöfartsverket, Luftfartsverket, Banverket)
have responsibility within their sectors to promote energy efficient use. A
merger process, in effect since 1 January 2001, resulted in some restructuring
related to energy efficiency and energy-related research:
Given the emphasis put on co-operation in the Baltic region, the programme of
co-operation with the Baltic region and Eastern Europe in the energy field
administered by STEM includes, inter alia, a programme for more efficient use
of energy, conversion from fossil fuels to other forms of energy and
environmental improvements in plants producing electricity and heat. A
budget of SKr 350 million has been allocated to this programme.
3
In the 2000 in-depth review of the energy policies of Sweden, the IEA stated:
Energy Sweden has applied policies and measures for climate change since 1988,
and the when the issue was discussed in the Riksdag for the first time. A more
Environment comprehensive programme was adopted by the Riksdag in May 1993 when
the Bill regarding Strategies against Climate Change was adopted. The goal
established by the Riksdag was that by 2000 emissions of carbon dioxide from
fossil fuels should be stabilised at the 1990 level and decline thereafter,
pursuant to the UN Framework Convention on Climate Change (UN FCCC).
The main strategy to achieve the carbon dioxide goal is to limit the need for
fossil fuels and replace them with renewable energy sources, along with better
management and more efficient use of energy.
In December 1997, under the Kyoto Protocol, the European Union agreed to
reduce greenhouse gas emissions by 8%. Under the EU Burden-Sharing
2
Agreement of 17 June 1998, Sweden is allowed to increase its emissions of a
basket of greenhouse gases to 4% above 1990 levels. The commitment
period for the target is 2008-2012.
Government Bill On 30 November 2001 the government issued a Bill on a Climate Change
on a Swedish Strategy (2001/02:55) formulating a climate strategy for the future. The
Climate Change government proposed that Swedish GHG emissions should be at least 4%
Strategy lower in 2008-2012 than in 1990. This national target should be reached
without using carbon sinks or flexible mechanisms. The strategy includes a
diverse array of measures to achieve the reduction goals. The primary tool will
be climate investment programmes undertaken by municipalities, which can
apply for funds for investments to reduce emissions. Funding is projected to
be SKr 200 million in 2002, SKr 300 million in 2003 and SKr 400 million in
2004. Additional measures include a system of green electricity certificates
for production from renewable sources, a strategy for alternative fuels and
greater dissemination to the public of information on climate change.
Furthermore, a commission will be established to analyse the areas in which
the efficiency of fossil fuels can be improved or where they can be replaced by
other fuels. The national target should be monitored and milestones for this
monitoring process should be the years 2004 and 2008. If the emissions
development is worse than expected, additional measures may be introduced
2. The Burden-Sharing Agreement covers CO2, CH4, N2O, PFCs, HFCs and SF6.
4
or the target revised. Industry's competitiveness should also be taken into
account.
Environmental In May 2001, the government presented its Bill Environmental Quality
Quality Objectives (2000/01:130) and in November 2001 the Parliament agreed to the
Objectives Bill proposals. The decision enhances the structure of the 15 Environmental
Quality Objectives voted by the Parliament in April 1999. Between three and
eight sub-targets have been established for each objective. Concrete
measures and strategies to reach the targets by 2010 have also been set out.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Appliance SKr 40 million has been assigned for information on, and trials, testing and
Labelling marketing of energy-using products and systems over a five-year period
starting in July 1997. The National Consumer Board is responsible for the
programme.
District It was in the 1940s that local authorities began to look at district heating (DH).
Heating Its use spread during the 1950s and 1960s as a result of the excellent
opportunities presented by the extensive investments in new housing and
other buildings being made during that period. The biggest growth in district
heating occurred in the period 1975 to 1985.
5
Until the beginning of the 1980s, most DH systems were operated as local
authority services. However, during the 1980s and 1990s, most were
restructured as limited companies owned by local authorities. In 2001, there
were about 220 companies supplying heat in Sweden, 68% of them owned by
local authorities, 13% privately owned, 10% owned directly or indirectly by the
State and 9% operated as local authority services.
Total installed CHP capacity today is about 3 484 MW where 57% is CHP
production based on biofuel. There is still a considerable potential to use more
biofuel for CHP in municipal district heating systems. CHP in industry is
normally 10% co-generation from annually 40 TWh of heat (100% biofuel)
from burning black liquor in the cellulose industry.
A programme for investment grants for CHP based on biofuel in the period
1998 to 2002 resulted in an increased electricity production capacity in
municipal DH plants of nearly 290 MW during 2001. The investment grants
were basically € 325 per installed MW electricity production capacity based on
biofuel, but not more than 25% of total investment cost.
In the 2000 in-depth review of the energy policies of Sweden, the IEA stated:
6
activities carried out by STEM and support for organisations, such as regional
energy centres, for dissemination of information.
A budget of SKr 250 million has been allocated for local authority energy
advisory services. Municipalities can thus apply for funding for local energy
advisory services from the central national government.
Research and The programme for research, development and demonstration of new
Development technologies includes grants for all those stages. An important goal of the
programme is to reduce the cost of new efficient technology and to achieve a
market introduction. Energy efficient products and systems in the residential,
commercial and industrial sectors are one of the priority areas.
PUBLIC SECTOR
Eco Energy The Eco energy municipality programme started in March 2001. Seventy
Programme municipalities applied for participation and ten were selected for the first year
of the programme. The responsibility of the municipalities is to decide on an
energy policy, carry out measures to improve energy efficiency and introduce
renewable energy sources. The municipalities will be offered seven different
educational packages.
INDUSTRY
Measures already
existing and/or
being improved
Standards and Voluntary standards have been established for lighting, fans, pumps,
Regulatory ventilation systems and other products used in production. Production
Instruments standards have been established in the engineering, plastics, metals, saw-
mill, rubber, and pulp and paper industries. Mandatory standards and
regulatory measures, which have been widely used in industry for emission
control, are now part of the programme for efficient energy use in industry.
Research and Research and development efforts are concentrated in three R&D
Development programmes – Climate 21, ELAN efficient use of electricity and Process
integration. The Climate 21 programme for more efficient refrigerating
machinery and heat pumps started in 1997. A central element of the
programme is the dissemination of information on costs and energy efficiency,
and the environmental impact of applications and systems to participating
companies. The results of the various development projects should be
directly applicable to the development of hardware, technologies and systems
design at the very cutting edge of what is possible to achieve. Process
7
integration is an umbrella name for methods for the design and conversion of
industrial processes in respect of capital and running costs, energy yields,
production capacity and environmental emissions.
Should no action be taken, no sanctions exist against the company other than
lost goodwill.
In 1998 energy saving in the ten companies reporting energy savings were
0.098 TWh (12% of their total consumption) of which 0.036 TWh was
8
electricity. The savings per energy efficiency measure range from 4% to 28%.
9
Corporate Corporate commitments have been launched by large chain stores with their
Commitment own manufacturing facilities. They have agreed with their suppliers, customers
and Recognition and NUTEK and STEM that energy-efficient products are to be used or
produced in virtually all stages of production and distribution. Under voluntary
agreements signed by several large enterprises, energy-efficient methods are
required for all semi-manufactured goods bought by the companies, as well as
for all production processes used in the companies. Products used in the
distribution and marketing of goods, such as lighting and ventilation, must also
be energy-efficient. Finally, for products sold by the companies, an adequate
and representative selection of energy-efficient technology is offered to their
customers. Participating companies receive a small subsidy to defray some of
the cost of adjusting their inventories and production methods to include
energy-efficient products and processes.
TRANSPORT
Measures already
existing and/or
being improved
1998 In 1998, the Riksdag adopted a new transport policy based on Transport
Transport Policy for Sustainable Development, a revised strategy for the long-term
Policy infrastructure plans which entails a continuation of the previously decided
investment in the expansion of the railway network. Electrically powered rail
transport is energy-efficient and has a very small impact on the environment.
This was one of the reasons why the government adopted a ten-year
investment plan for railway infrastructure amounting to SKr 36 billion in 1998.
This will enable Banverket to complete the work of adapting the railway for
high-speed trains. Since freight traffic is currently struggling with capacity
problems on several lines, SKr 10 billion is directly targeted at freight traffic
programmes. In addition, there are many projects involving improvements for
both passenger and freight traffic.
For the road network, the strategy entails a reorientation from big investments
in the national trunk roads to increased efforts to improve the existing road
network as regards accessibility, environment and traffic safety. A plan for the
period 1998-2007 has been prepared by regional and central authorities.
Information The Consumer Agency and the Swedish National Road Administration provide
consumers with information about the energy consumption of vehicles. The
Swedish National Road Administration and STEM co-operate with driving
teacher associations to accelerate knowledge about more energy-efficient
driving behaviour. Information campaigns are also carried out to encourage
companies to improve efficiency in their logistics and transport planning.
Fuel consumption figures for new cars must be given by the producers
according to Guidelines for Information about Fuel Consumption, Carbon
Dioxide Emissions and Environmental Class for New Cars published by the
Consumer Agency. Since 1977 the Consumer Agency has gathered and
published these figures annually in a brochure which has to be available in
every outlet selling new cars in Sweden. Car suppliers also have to provide
information about fuel consumption in all advertisements for specific models of
new cars. The brochure also contains advice on how to save money and fuel
and on how to protect the environment. It is distributed free of charge by
central and local consumer authorities and the information is also available on
Internet.
10
Taxation In Sweden, taxation of road traffic is an important element of transport policy,
providing an instrument to influence the composition and turnover of the motor
vehicle fleet, thus improving its average fuel efficiency. Since 1991, the tax on
petrol includes a carbon dioxide tax estimated to have generated about 11%
of the state’s revenues from road traffic-related taxes in 1996. VAT of 23.46%
was imposed on petrol in 1990, and has since been raised to 25%.
Up until October 1993, a tax was paid on diesel-powered trucks, cars and
buses, based on distance driven (kilometre tax). This tax required border
controls and was replaced by a diesel oil tax after Sweden joined the
European Union. Sweden also levies sales tax, annual vehicle tax and user
charges. Sales taxes are levied on light vehicles only. The annual vehicle tax
is differentiated according to vehicle weight and fuel. Only heavy goods
vehicles are charged so-called user charges (Eurovignette).
Changes have been made to the taxation of company cars so that drivers pay
for petrol either directly or indirectly. Further changes have been proposed by
the government in a white paper.
Rail transport is excluded from energy taxes, but there is a user fee system.
Parliament reduced this fee in 1998 in order to increase the relative
competitiveness of rail transport.
Energy taxes do not apply to maritime and air transport. Shipping pays
environmentally differentiated seaway charges, and aviation pays route
charges according to the Eurocontrol procedure.
MONITORING/ The various energy efficiency programmes are systematically evaluated each
ASSESSMENT year and the results submitted to the government. One of the main tasks
assigned to STEM is to monitor the implementation of the various measures
and to report on the effects of the closing down of the reactors in Barsebäck.
11
markets and energy systems, and to analyse relationships between energy
technology, the environment, climate and economic growth.
The Swedish Energy Agency has recently elaborated a report on its energy
efficiency activities over the four year period, 1998-2001. However, due to
difficulties in baselines (which could have happened anyway) it has not been
possible to assess the overall results except in very rough figures.
12
SWITZERLAND Updated November 2001
Energy The Energy 2000 Action Plan (Federal Council Decree of 6 November 1990)
2000 was in force from 1991 to 2000. Its goal was to stabilise the use of fossil fuels
(and hence CO2 emissions) by 2000 and to reduce them thereafter. Its strategy
was based mainly on energy efficiency but also on increasing the contribution of
non-hydro renewables to electricity generation, raising hydroelectric generation
and upgrading the capacity of existing nuclear power plants.
• Voluntary measures for the efficient use of energy and for the use of
renewable forms of energy. The implementation of these measures rests
with seven “marketing departments”: Public Sector, Residential Buildings,
Industry, Small Industries and Services, Hospitals, Motor Fuels and
Renewables.
• State framework conditions for a supply of energy that is sufficient, safe and
acceptable economically and environmentally, and also for a non-wasteful,
efficient use of energy.
• Discussion of controversial themes (e.g. nuclear energy, measures for
saving energy) with interest groups and those affected.
Total federal government financing for the Energy 2000 Action Plan amounted
1
to SF 558 million for the period 1991-2000, less than what was planned when
the plan was launched (SF 170 million per year). Funding aimed mostly at
promoting voluntary actions. Around one-third of the funding was dedicated to
the promotion of renewables through information, advice, multi-level training,
quality guarantees and subsidised installations.
In the 1999 in-depth review of the energy policies of Switzerland, the IEA
stated:
SwissEnergy The Energy 2000 Action Plan which was limited to ten years ended in 2000. It
was replaced by the Swiss Energy Action Plan ("SwissEnergy") which was
launched by the federal government on 30 January 2001 (Federal Council
Decree of 16.01.2001). The annual budget for SwissEnergy amounts to SF 55
million.
Since the cantons and municipalities still have major responsibility for energy
policy, they have to implement Energy 2000 programmes, the SwissEnergy
plan and the Federal Energy Law (see below) for them to become effective and
applicable. This, and the country’s broad, consensus-based approach, requires
consultation among all those active in energy markets and policy. SwissEnergy
thus brings together representatives from all levels of government, federal,
cantonal and local, as well as from utilities, supply companies, industry,
consumer groups and environmental organisations.
Federal To replace the Decree on Energy Use of 1991, which expired at the end of
Energy 1998, a new Federal Energy Law was adopted by the Parliament in July 1998
Law and entered into force on 1 January 1999. The Energy Law envisages
measures to reduce energy consumption in the following areas:
The new Energy Law made the following changes to the 1991 Decree:
• It calls for more extensive co-operation with the private sector, reaffirms the
principle of subsidiarity (cantons are free to act as long as there is no
federal regulation) and gives priority to voluntary actions rather than
regulations.
• It gives more responsibilities to the cantons in the field of regulations, in
particular for buildings.
• It allows the Confederation to fund measures in favour of the efficient use of
energy. The Energy Law requires an annual funding to the cantons on the
condition that they have set a programme in favour of energy efficiency and
renewables and when at least 50% of the cantonal funding is dedicated to
households. Direct Confederal funding to projects should be an exception.
Funding from the Confederation and the cantons cannot exceed 40% of the
investment cost (exceptionally 60%).
Energy Agencies The Energy Law and the Law on CO2 envisage the possibility of giving various
in the Framework tasks to private organisations to implement the SwissEnergy programme. In this
of SwissEnergy context, four Agencies have been created:
• The Agence de l'énergie pour l'économie (AenEc), Energy Agency for
Economy.
• The Agence suisse des énergies renouvelables et de l'efficacité
énergétique (AEE), Swiss Agency for Renewable energy and Energy
efficiency.
• The Agence de l'énergie pour les appareils électriques (EAE), Energy
Agency for electric appliances.
• The Agence suisse pour l'éfficacité énergétique (S.A.F.E.), Swiss Agency
for Energy Efficiency: information site: www.topten.ch
The AenEC, established in 1999, is supported by the Union suisse des arts et
métiers, energy associations for large energy consuming branches, machinery
industry and the Swiss company of manufacturers. Its main activity is the
preparation and conclusion of Agreements. It implements a monitoring system
for the benefit of the AenEC members involved in SwissEnergy or for
independent partners. The target is that, by the end of 2003, half of the
companies must be informed about AenEc activities and about the Agreement
process, and at least 40% of the industry and service consumption must be
covered by Agreements. For the period 2001-2003, the total budget financed by
the economy amounts to SF 13 million.
Law on CO2 The federal law on CO2 emissions (Law on CO2) came into force on 1 May
2000. Under this law, total CO2 emissions should be reduced 10% by 2010
compared to 1990. CO2 emissions from petrol and diesel must be cut by 8%
and from other combustible fuels by 15%.
Directive The target of the new Directive is to provide the economic actors with a stable
framework to implement measures adopted on a voluntary basis. It sets up two
types of framework:
Responsibility for energy matters has traditionally been with the cantons and
municipalities. In a referendum held on 23 September 1990 the Swiss adopted
a Constitutional Energy Article, in force since May 1991, authorising the federal
government to carry out a national energy policy in pursuit of specific goals,
such as energy efficiency and an economic and environmentally benign energy
supply.
Subsidiarity plays an important role: the Constitution states that unless the
legislative power is explicitly attributed to the federal level, the cantons are
sovereign, i.e. entitled to legislate in an area of policy. Co-operation (between
the different political levels and between the government and the economy) is of
considerable importance in Switzerland.
In the 1999 in-depth review of the energy policies of Switzerland, the IEA
stated:
Although Switzerland is not a member of the EU, most new Swiss laws or
changes in existing laws have voluntarily been made compatible with EU law.
This is to facilitate possible future adhesion to the European Union and may
also be explained by the strong economic ties with many European Union
countries, despite the formal political absence of Switzerland in the European
Union.
RESIDENTIAL/
COMMERCIAL
Measures already
existing and/or
being improved
Consumer electronics
The energy label was introduced at the beginning of 1994. Up to the end of
2000, the label was part of the Energy 2000 programme. The same label is now
used in the framework of the new programme SwissEnergy. The definition of
the criteria is co-ordinated in the Group for Energy Efficient Appliances (GEEA)
which includes eight European countries.
Office equipment
There is a trend to use more and more the Energy Star label, a joint US
Department of Energy/US Environmental Protection Agency programme,
instead of the energy label. The industry prefers the Energy Star label because
the criteria are easier to fulfil.
In the 1999 in-depth review of the energy policies of Switzerland, the IEA
stated:
Model Decree on The model decree on efficient energy use in buildings contains certain
Efficient Energy requirements concerning building shells and installation technologies used in
Use in Buildings the construction sector. With respect to the shell, there are two options to
2
choose from: observing either a specific heating energy requirement (MJ/m
2
per year) or individual U-values (W/m K).
With respect to household technology, the decree contains certain requirements
such as condensation gas boilers, maximum distribution temperatures,
adjustment controls in each room, requirements for air-conditioning systems,
etc. These sections are supplemented by the Clean Air Act, which calls for
homologation for heating boilers. Here, certain strict requirements have to be
observed with respect to exhaust and standby losses, and the Clean Air Act
also stipulates that periodic inspections must be carried out, in which exhaust
losses and air pollution levels have to be measured (carbon monoxide, soot,
non-burned oil particles, nitrogen dioxide).
Most of the cantons have already adopted and introduced this model decree
based on the standards of SIA 380/1, and the aim now is to work together with
the cantons to adapt it to the latest status of technology. The focus here is to
be on lowering the U-values and tightening up threshold parameters for heating
energy requirements, as well as on the promotion of renewable energies. For
example, one proposal that has been put forward is to demand that 20% of
heating energy requirements should be covered by the use of renewables. If a
developer does not want this, then he should be required to save this amount
by using more effective insulation. Another proposal involves drawing up
electricity consumption specifications for buildings in the services sector.
With the Programme of the Cantons for the 2nd Half of Energy 2000, adopted in
April 1996 by the Conference of Cantonal Energy Directors, cantons agreed on
strengthening their efforts in eight areas, including retrofitting in existing
buildings (already implemented in four cantons) and introduction of the
Recommendation SIA 380/4 related to the efficient use of electricity in public
buildings (already implemented in 14 cantons).
Consumption- At present, around 450 000 dwellings in Switzerland (out of a total of 1.2 million
Based that could be converted) use consumption-based heating cost allocation. It is
Heating and possible to achieve savings in heating energy of around 14% on average, even
Hot Water in times of low energy prices.
Cost Allocation
In its Energy Law, the federal government has only stipulated an obligation of
consumption-based heating cost allocation for new buildings. Cantons are
required to draw up corresponding provisions. However, they are at liberty to
introduce an obligation of consumption-based heating cost allocation for
existing buildings, and some of them have in fact done so, or are in the process
of doing so, even though house owners are against this.
The greater part of the educational material and documentation is being taken
over by professional organisations and, to some extent, by Energy 2000. It is
intended to improve continuously the training of specialists in the field of energy
in order to meet the constantly increasing practical demands. A new course
launched in 1995/96 in the field of household technology addresses
practitioners for the first time.
Management In the field of residential buildings, Energy 2000 has signed 120 partnerships
Partnership with property management organisations. Workshops provide target groups, for
example building caretakers and managers, with case studies in planning and
management of building renovation, thus emphasising their economic
advantages.
Low-Energy The project on ecological building methods is preparing the new standards of
Home tomorrow. Fifty pilot homes demonstrate that up-to-date technologies allow
buildings at competitive prices with a maximum consumption of energy for
2
space and water heating of 220 MJ per m per year, i.e. less than one-quarter
of the average consumption of a conventional modern house. Several banks
have offered to co-operate, making available “eco-credits” at reduced interest
rates. The cantons launched an initiative for the promotion of MINERGIE
standards and labels. According to this concept, heat consumption would not
2
be higher than 160 MJ/m per year without jeopardising comfort and
competitiveness.
Financial/ Since 1 January 1995, regulations on tax allowances for the costs of
Fiscal investments in existing private buildings for the efficient use of energy and the
Measures use of renewable sources have been revised, based on a Federal Ordinance.
PUBLIC SECTOR
Measures already
existing and/or
being improved
Energy In most cantons, municipalities are in charge of implementing the cantonal rules
Cities on buildings. In the framework of Energy 2000, the 47 municipalities labelled as
Energy Cities aim to serve as examples to reach the targets of SwissEnergy.
One of the purpose of SwissEnergy is to increase the number of Energy Cities
from 47 to 110 by 2005 (corresponding to an increase from 1.2 to 2 million of
inhabitants. The Energy City label will be improved to cover the regions and
expanded to the European level. The possibility to conclude agreements on
CO2 reduction at the municipal level will be considered.
Other Recommendations for the purchase and operation of electrical equipment have
Measures been addressed to employees of the federal administration to promote the
efficient use of electricity in federal offices.
Current measures to retrofit public buildings aim to save 50% of heating energy.
Evaluation of the results of these measures is being carried out over a two-year
period.
Energy concepts exist for the federal railways, the postal services (PTT) and the
Federal Office of Construction.
INDUSTRY
Measures already
existing and/or
being improved
Energy Since 1988 limited energy audits (only rough analyses) have been in place for
Audits industry. There are no financial or fiscal incentives to promote energy audits.
Voluntary The industry section of Energy 2000 focused its efforts on the “energy model”
Measures and the energy management course, which are more or less self-supporting.
The industrial partners of this section are: cement, pulp and paper, plastic
injection moulding and various chambers of trade and industry.
Around 120 large companies, for which the annual energy costs are over
US$ 100 000, representing 18% of the energy consumption of this sector, are
involved in voluntary actions which include sharing information about energy
savings. This section achieved between 15 and 30% of its objectives for 2000.
TRANSPORT
Measures already
existing and/or
being improved
Energy Within the national Energy 2000 Action Plan, several projects and programmes
Saving to increase energy efficiency in passenger and freight transport have been
Programmes sponsored by the government, with an annual budget of around SF 6 million,
co-financed by the private sector. These actions were started in the early
1990s and continued through 2000.
In the 1999 in-depth review of the energy policies of Switzerland, the IEA
stated:
In the 1999 in-depth review of the energy policies of Switzerland, the IEA
stated:
BACKGROUND Every five years the State Planning Organisation (SPO), with the assistance of
expert organisations from all sectors, including the energy sector, prepares a
Development Plan. The most recent Development Plan is the Eighth Five-
Year Development Plan for the period 2001-2005. After approval by the Board
of Ministers the Plan was published in the Turkish Official Gazette in 2000.
Within the Eighth Five Year Development Plan, the specific measure
(No. 1823) on energy efficiency reads as “with a view to control and reduce
the greenhouse gas emissions originating from transport, energy, industry and
settlements, arrangements shall be made towards increasing energy
efficiency and ensuring energy saving”.
Energy and The overall objectives of energy-related environmental policies in Turkey are
Environment to ensure sufficient, reliable and economic energy supplies to support
sustainable economical and social development while protecting and
improving the environment.
The country’s environmental policy considers that energy policy should take
into account environmental problems and that a balance should be found
between increases in energy demand necessitated by economic development
and environmental concerns.
Although Turkey was a Member of the OECD in 1992 when the UNFCCC was
adopted (and as such was included among the countries of the Convention’s
Annexes I and II), it is still not fully industrialised. On the basis of this
argument, Turkey refrained until recently from being a party to the UNFCCC,
and requested to be deleted from the Annexes of the Convention. It was been
decided in COP7 in Marrakech in 2001 to remove Turkey from the Annex II list
and recognise its special circumstances as an Annex I Party. UNFCCC is
expected to be ratified soon in the Turkish Grand Assembly.
1
This fairly new position of Turkey will bring her some advantages, including
the introduction of foreign investments for energy efficiency and clean
technology projects through joint implementation, as well as emission trading.
Although Turkey has agreed in principle for a long time that it will attempt to
limit emissions, it has so far not developed a mandatory greenhouse gas
abatement strategy. For this reason, there are no specific greenhouse policies
such as carbon taxation or emissions trading schemes. Nevertheless, there
are policies, actions and other measures known to be already under way,
even if most of them are undertaken for local and economic reasons.
In the 2000/2001 in-depth review of the energy policies of Turkey, the IEA
stated:
· To reflect its respect for the spirit of the United Nations Framework
Convention on Climate Change (UNFCCC), Turkey should continue
striving to limit the growth of greenhouse gas emissions, and where
possible take additional measures. In particular, the government should
develop an implementation strategy that allows it to assume a greenhouse
gas emissions target no later than the second commitment period of the
Kyoto Protocol.
General energy and electricity planning studies are being carried out using the
Model for Analysis on Energy Demand (MAED) and the Wienn Automatic
System Planning Package (WASP) Models. To determine the environmental
impacts of these studies, a joint project supported by the World Bank with
Argonne National Laboratory/US Department of Energy aims at designing a
new energy and environment model for Turkey. Studies on this project are still
on-going and are expected to be finalised soon. Within this framework,
different kind of scenarios will be set up to mitigate the emissions arising from
energy.
In the 2000/2001 in-depth review of the energy policies of Turkey, the IEA
stated:
· Increase the resources for the Ministry of the Environment and strengthen
collaboration with the Ministry of Health on air quality issues.
· Continue harmonising standards and regulations for environmental quality
with those of the EU and other international bodies.
Institutional The Ministry of Energy and Natural Resources (MENR) is the main
Framework organisation which is responsible for formulation and implementation of
general energy policies. The State Planning Organisation (DPT) also takes
energy efficiency policies into account in drafting the national plans.
2
On the other hand, the Energy Conservation Co-ordination Board (ECCB)
consisting of representatives of related ministries, governmental organisation,
private sectors, universities and associations, which was established by the
Prime Minister's Office on 9 April 1981, commenced its activities to promote
public awareness of energy conservation following the second oil crisis. The
Energy Conservation Co-ordination Board (ECCB) carries out activities such
as organising the annual Energy Conservation Week and contests for
students to increase public awareness. The Board has functioned under the
supervision of the General Directorate of Energy Affairs of MENR since the
beginning of the 1980s. Last year supervision of ECCB was transferred to
EÝE/NECC by MENR.
The public sector budget for improving end-use efficiency is small and deals
mainly with NECC’s expenditures on studies, energy audits, publications and
professional training. NECC also benefits from international loans and
expertise. ECCB is in charge of public campaigns on energy savings.
In the 2000/2001 in-depth review of the energy policies of Turkey, the IEA
stated:
RESIDENTIAL/
COMMERCIAL
Measures already
in place and/or
being improved
Heat In the residential/commercial sector, more than 80% of the energy consumed
Insulation is for heating. According to an EÝE study carried out in 1997 based on
Standards questionnaires, energy use per unit of building area could be reduced by
nearly half by applying to all buildings the new Heat Insulation Standards on
building envelopes, issued in 1999 and effective in June 2000. (See below.)
Revision of the Standard for Heat Insulation in Buildings was finalised in April
1998 and issued by the Turkish Standards Institute. This new insulation
standard and supporting regulation introduced in June 2000 makes it
2
mandatory to reduce heating requirements by 100-150 kWh/m a year,
according to the four degree-day regions of the country. The existing building
stock is increasing at an average rate of 5% annually. It is expected that a
50% improvement in energy efficiency in new buildings will be achieved.
Boilers Boilers and stoves using wood, coal or fuel oil need a certificate based on a
and Stoves test of heat efficiency. The heat efficiency certificates are issued jointly by the
Ministry of Industry and Trade and the Turkish Standards Institute. Products
not having this certificate cannot be marketed.
3
Information EÝE/NECC has been conducting various kinds of promotional studies. In this
context, approximately 60 publications were published (Industrial Energy
Management Course Book (four parts), Series of Technical Tips, Technical
Manuals are a few that can be mentioned). The technical manual is the most
popular publication; it was also used in the universities as a source book for
energy management lectures. These publications have been distributed to
individuals and industrial establishments at their request at a reasonable cost.,
Videos and posters were also prepared and distributed nation-wide by
EÝE/NECC free of charge. Moreover, various national and international
seminars, conferences, and workshops have been organised, mainly co-
ordinated by EÝE/NECC. One of the recent main energy conservation
awareness activities of EÝE/NECC is energy conservation project contests in
industry run over the last two years. Successful Energy Conservation Project
Awards have been presented to the winners by the President and the Minister.
Last year the theme of the Project Award was “The successful case in
Cogeneration”. Awards were presented by Ministers on 23 May 2002.
Every year for the past 20 years, energy conservation week activities have
been organised by ECCB, MENR and EÝE/NECC. These activities cover
various contests among schools, and seminars and conferences related to
energy conservation in different sectors. At the 2002 Energy Saving Week, in
January, the Board organised television programmes on energy efficiency.
ECCB meets every month and prepares plans for activities with the aim of
increasing public awareness of energy conservation. In 2002, the Turkish
radio and television organisation will prepare six TV spots on energy efficiency
subjects with the financial support of some private sector associations,
members of the Board. Contests on painting, essay and projects on energy
conservation for primary and high schools have also been organised over the
last ten years with the co-operation of the Ministry of National Education. The
awards for the winners were distributed at the Energy Conservation Week by
the Ministers of National Education and Energy and Natural Resources.
Measures under
Consideration
Energy Survey During 1998 and 2000, in Cupertino, a study was carried out by the State
Statistical Institute (SSI) on the analysis of energy consumption in residential
buildings in all geographical regions of Turkey. In this project, a representative
sampling method was used and energy consumption analysed in terms of fuel
and electricity, the insulation status, heating systems and the structural
properties of the residential buildings. SSI evaluated the statistical data
collected and the report was submitted to EÝE in 2001.
4
Energy Under the co-ordination and supervision of EÝE/NECC, and with the
Labelling/ participation of representatives of the related manufacturers and public
Standards organisations, working groups have been set up on energy efficiency of
household appliances, air conditioners and lightning. The related analytic
work reveals that new regulations are needed to increase energy efficiency for
the afore-mentioned equipment. In this context, studies to prepare energy
efficiency labelling standards and regulations for electrical appliances have
already been initiated by the Turkish Standards Institute and the Ministry of
Industry and Trade within the framework of the Harmonisation Programme for
EU legislation. Regulation on energy efficiency labelling for refrigerators was
issued on 24 March 2002. The other labelling regulations related to washing
machines, dryers, dish washers and lamps have been prepared and should
soon be published by the Ministry of Trade and Industry.
The energy efficiency regulation for outdoor (street) lighting is under review.
In the 2000/2001 in-depth review of the energy policies of Turkey, the IEA
stated:
Subsidies In the 2000/2001 in-depth review of the energy policies of Turkey, the IEA
stated:
INDUSTRY
Measures already In a 1996 study, EÝE/NECC assessed the potential for energy conservation in
in place and/or industry at 4.2 million toe (nearly 24% of industrial energy use that year) and
being improved an approximate cash value of $1 billion/year. The total investment required to
achieve this conservation potential would be close to $2.3 billion. The payback
period for these investments would range from a minimum of one year to a
maximum of three years. The measures required to bring these savings about
would include the adoption of various forms of waste heat recovery, increased
use of co-generation of electricity and heat/steam, and the use of more
efficient boilers.
Energy Since 1990, EÝE/NECC’s Energy Audit Teams have been conducting energy
Bus audits (the Energy Bus Programme) in various plants of the Turkish industrial
Programme sector with vehicles equipped with the appropriate measuring equipment. The
surveys, of approximately one week duration, have usually been carried out
by teams of three engineers in the factories. The main objectives of the
energy audits focused on creating energy conservation awareness in industry
-- assisting the establishment of energy management units and identifying
energy efficiency projects in their plants, making surveys and compiling data
to identify the energy saving potentials of sectors and industry as a whole.
The Energy Bus Programme, carried out at the pre-audit level, consists of
following stages:
· Receiving application from the factory.
5
· Pre-visit to the plant.
· Confirmation of the study.
· Data collection and measurement.
· Data analysis and energy conservation projects identification.
· Pre-audit report submission
Training Under the NECC Training Bus Programme initiated in 1993, approximately
Bus 700 engineers had already been trained by the end of 2000 in energy
Programme efficiency subjects such as insulation, boiler house combustion, electrical and
steam systems. Seminar notes and technical manuals were prepared.
A project was started in August 2000 in co-operation with NECC and JICA to
establish a new training centre with a model plant for energy conservation.
The construction and installation of the training centre and model plant has
been completed and NECC’s personnel trained to operate the model plant.
The training centre started its activities in October 2001. It is planned that
6
most energy managers will be trained over a five-year period through this
project. It is expected that the programme will increase energy efficiency by
10% throughout Turkish industry by 2010.
In the 2000/2001 in-depth review of the energy policies of Turkey, the IEA
stated:
DSM Some publications on electrical energy savings have been prepared and a
regulation on day and night electric tariffs in residential sector issued.
The “Electricity Market Law” (Law No. 4628) came into effect on 3 March 2001
for the purpose of unbundling, generation, transmission and distribution
activities and to ensure progress towards a liberalised electricity market within
the framework of fair, transparent and non-discriminatory market conditions.
Through the latest reforms, the power sector will soon undergo much more
profound reform than ever before, leading to the introduction of competition
and increasing private involvement. Within the framework of the Law, auto-
producers are being considered and encouraged.
Database In 1995, EÝE gave technical assistance to the State Statistical Institute (SSI)
Survey during the establishment of the Institute's energy statistics division. With the
purpose of monitoring energy consumption in the industrial sector, a project
was initiated in Cupertino with SSI and SPO to compile a new data base
system for information on plants consuming annually 500 toe or more energy.
Evaluation of the information for the period 1995-1998 has been finalised and
the results published by SSI. The evaluations for the years of 1999 and 2000
are under way.
7
PUBLIC SECTOR
Another project will soon be started in co-operation with the German Technical
Organisation (GTZ), the Erzurum Municipality and EÝE/NECC. The duration
of this project will be three years. Its aim is to enable municipal authorities as
well as users of public and private buildings to take measures designed to
reduce the use of energy in buildings. Implementation of the project will be
realised in Erzurum and studies related to standards, regulations and training
will be carried out in Ankara.
TRANSPORT
Measures already
existing and/or
being improved
Road The first stage of Ankara’s subway was inaugurated in September 1996 and is
Transport now being expanded. Another subway is also in use and additional lines are
being built in Istanbul.
Railway The government plans to increase the number of modern locomotives and the
length of electrified rails. It also plans to increase the operating efficiency of
the public railway company and to reduce its losses.
Measures under
Consideration
Energy A statistical survey of energy consumption patterns in the transport sector for
Survey 1998 was carried out by the State Statistical Institute in Cupertino together
with EÝE/NECC. The final report was submitted to EÝE in 2001.
MONITORING/ In the 2000/2001 in-depth review of the energy policies of Turkey, the IEA
ASSESSMENT stated:
· Closely monitor energy supply and demand and revise the forecasts to
take account of the progress of liberalisation, energy efficiency
improvements, structural changes in industry and other major factors in
order to better inform all players' investment.
8
Although, there is not yet a regular or systematic nation-wide energy efficiency
monitoring system in Turkey, certain statistical studies have been carried out
by EÝE/NECC and SIS to analyse energy consumption patterns in sub-
sectors.
At the end of 1997, a nation-wide statistical study for the analysis of energy
consumption in residential buildings was implemented by SIS. It is envisaged
that the consolidated data from the survey would be used to assess the
energy efficiency status in the building sector.
9
Energy
IEA Efficiency
Update
Energy At the Third Conference of the Parties (Kyoto, December 1997) the European
and the Union as a whole agreed to reduce the emissions of a basket of six gases by
Environment 8% from 1990 levels by the period 2008-2012. In June 1998, the European
Union Council of Environment Ministers reached a Burden-Sharing Agreement
on emission reduction commitments to re-allocate internally the 8% reduction
agreed at Kyoto. The reduction commitments are expressed as a percentage
of 1990 levels for the 2008-2012 period. Under the Burden-Sharing
Agreement, the UK is committed to reducing its emissions by 12.5%. The
government has also set itself a challenging domestic target to reduce CO2
emissions to 20% below 1990 levels by 2010.
The UK signed the FCCC at Rio de Janeiro in 1992 and submitted its first
national communication in February 1994. In compliance with the FCCC
obligations, the UK’s second and third national communications were
published in February 1997 and October 2001 respectively. Following a period
of consultation with a wide range of stakeholders, the UK government,
together with the devolved administrations, published the UK Climate Change
Programme in November 2000. Further details on the final version can be
found at http://www.defra.gov.uk/environment/climatechange/cm4913/index.htm
Key elements of
the UK Climate
Change Strategy
Industry The following actions have been taken; for more information, see below under
Issues Industry.
1
• The Carbon Trust was established in April 2001 as a non-profit organisation
to lead on business and public sector energy efficiency and support the
creation of a low carbon economy in the UK. The Carbon Trust now
manage the non-domestic part of the old Energy Efficiency Best Practice
programme re-launched as Action Energy. Action Energy provides energy
efficiency advice and support to business and the public sector.
• The Climate Change Levy (CCL) effective from 1 April 2001 aims to
encourage energy efficiency and help meet the United Kingdom's targets to
reduce GHG emissions.
• The Climate Change Agreements between energy-intensive sectors of
industry and the Secretary of State are a new policy mechanism for
achieving environmental objectives.
• The Enhanced Capital Allowances Scheme introduced on 1 April 2001
gives 100% capital allowance in the first year for investments in any of the
technologies in the published list.
All these policies and measures will be dealt with below under the sections
Residential/Commercial and Industry.
Transport The UK Climate Change Programme aims at cutting emissions from the
Issues transport sector through:
• The UK Powering Future Vehicles Strategy, which sets the framework for
promoting the development, introduction and take-up of low carbon
vehicles and fuels.
• European-level agreements with car manufacturers to improve the average
fuel efficiency of new cars by at least 25% by 2008-2009, backed up by
changes to vehicle excise duty and the reform of company car taxation and
better information for consumers to encourage the purchase of more fuel-
efficient vehicles.
1
• Transport 2010, the 10 Year Plan: £180 billion of investment and public
spending on transport over the next ten years to cut congestion and reduce
pollution (see below under Transport)
Performance and On 25 June 2001, the government announced that the Performance and
Innovation Innovation Unit (PIU), attached to the Cabinet Office, was to carry out a review
Unit (PIU) of the strategic energy policy issues for Great Britain. The review was set
Review within the context of meeting the challenge of global warming, while ensuring
secure, diverse and reliable energy supplies at competitive prices. The main
aim of the review was to set out the objectives of future energy policy and to
develop a strategy that ensures current policy commitments are consistent
with longer-term economic, environmental and social goals. The review
considered the role of coal, gas, oil and renewable sources of energy in the
UK’s future energy balance as well as combined heat and power and the
enhancement of energy efficiency. The review also considered what role, if
any, the nuclear industry should play in meeting the objectives of the
1
On average in 2001, £1 = US$ 1.441.
2
environment and security of supply.
The PIU project stated three main energy policy challenges and attempts to
develop ways of addressing these. The government also underlined that
competitive markets will continue to be central to energy policy. The three
challenges are:
The review put forward a programme to accelerate the UK’s energy efficiency
improvements. At its centre was the suggestion of a challenging new target to
improve domestic consumers' energy efficiency by 20% between 2002 and
2010, and by a further 20% between 2010 and 2020. This would approximately
double the existing rate of improvement. The gains in terms of energy savings
in a year could reach about 0.25% of GDP by 2020, over and above the cost of
the investment needed to unlock these savings.
See http://www.cabinet-office.gov.uk/innovation/2002/energy/report/index.htm
for further details on the PIU report.
Energy White In response to the PIU report, a public consultation was launched to consider
Paper - Our the issues raised and help inform the development of a new energy strategy
Energy Future – for the UK, the Energy White Paper. This consultation, which closed on
Creating a Low 13 September 2002, received submissions from over 6 500 individuals and
Carbon Economy organisations The White Paper was published on 24 February 2003 and is the
first comprehensive, forward-looking statement of energy policy in the UK for
over 20 years.
A major underlying theme of the White Paper is the need for the country to
move towards a low carbon economy. To this end, the government has
accepted a recommendation made in the Royal Commission on Environmental
nd
Pollution’s (RCEP) 22 report in 2000 that the UK should put itself on a path to
a reduction in carbon dioxide emissions of some 60% from current levels by
about 2050, with real progress by 2020. (A formal response to the RCEP
report was published alongside the White Paper.) Other key messages
relating to energy efficiency in the White Paper include:
• Energy Efficiency will have a key role to play in achieving the UK’s carbon
reduction goals. The government expects more than half the emissions
reductions in the existing Climate Change Programme – around 10 MtC per
annum by 2010 – to come from energy efficiency. Further ahead, the
government believes that energy efficiency can contribute around half of
the additional 15-25 MtC savings likely to be needed by 2020.
3
• The current Energy Efficiency Commitment (EEC) runs until 2005. The
government will consult on an expansion of the EEC to run from 2005 to at
least 2008, possibly at twice its current level of activity. A possible
extension of the EEC beyond the domestic sector will also be considered.
• The government will continue to work with the English Fuel Poverty
Advisory Group to find the most effective ways to deliver the Fuel Poverty
Strategy objectives, including the target that no household in Britain should
be living in fuel poverty by 2016-2018.
• The government remains committed to a target of 10 GWe of good quality
combined heat and power being installed by 2010. Further measures will
also be introduced to help address the current market difficulties and
support the achievement of our target.
• The government will strengthen its analytical and strategic capabilities in
the field of energy policy to ensure that the aims it has set out in the White
Paper are delivered. This will be achieved through the establishment of a
Sustainable Energy Policy Network (SEPN) of departmental policy units.
The Department of Trade and Industry (DTI), the Department of
Environment, Food and Rural Affairs (Defra), the Foreign and
Commonwealth Office (FCO), Treasury, Office of the Deputy Prime
Minister (ODPM), the Department of Transport (DfT) and the Devolved
Administrations are all likely to be involved in this network.
See http://www.dti.gov.uk/energy/whitepaper/.
RESIDENTIAL/
COMMERCIAL
Measures already
Existing and/or
Being improved
Building Minimum legal requirements for the energy performance of new buildings have
Regulations been in force since 1965, with the standards tightened regularly every few
years. The current building regulations, which came into force in July 1995,
raised the minimum standard so that new buildings must be 25-35% more
energy-efficient than before.
Proposals for revisions to the regulations were published in June 2000 for
further consultation. As a result, the government laid down the Building
(Amendment) Regulations before Parliament on 11 October 2001 (SI 2001 No
3335); the accompanying Approved Documents L1 and L2 that give guidance
on ways of meeting the requirements were published on 31 October 2001.
These changes came into effect on 1 April 2002. The new Regulations form
an important part of the Climate Change Programme and include a number of
enhanced features. New dwellings will be required to meet improved
standards of insulation and heating and a new standard for lighting. Different
routes to compliance are available, including the use, for housing, of the
Carbon Index Method, calculated following the SAP procedure (see below).
For buildings other than dwellings, similar improvements are required for
insulation and there are new requirements for heating, lighting and air-
conditioning, including the provision of energy meters, and testing and
commissioning. A Carbon Performance Rating Method is included in the
documents as a way of showing compliance for office buildings and there are
other ways of carbon accounting for other types of buildings.
4
Standard The Standard Assessment Procedure (SAP), introduced in July 1995, is the
Assessment government standard for home energy rating. Under the Building Regulations,
Procedure new dwellings and conversions in England and Wales have since 1995 been
(SAP) required to have a SAP Energy Rating. The government is also working with
mortgage lenders to encourage them to incorporate SAP energy ratings and
energy efficiency advice into their survey reports and to offer "green loans" or
other financial services to improve energy efficiency. The government is also
working with house-builders to encourage them to use high SAP ratings as a
means of promoting the achievements of those in construction already building
to high standards of energy efficiency and to encourage others to follow their
example. A new version of SAP was published in 2001, updating the
calculation tables and incorporating additional features such as an extended
scale (to encourage even higher standards) and a carbon index to be used for
the new Building Regulations (see above).
Energy Minimum energy efficiency standards for refrigerators and freezers have been
Efficiency in place since 3 September 1997 to comply with EU directives. Similar
Standards standards came into force for fluorescent lighting ballasts on 21 May 2002.
For new central heating boilers, a transitional period operated from 1 January
1994 to 31 December 1997 when manufacturers could supply compliant or
non-compliant boilers. From 1 January 1998, all boilers have to comply with
the requirements of the directive.
The new Climate Change Programme plans the development of energy labels,
standards and other product-related measures designed to deliver "market
transformation" in the energy efficiency of lighting, appliances and other key
traded goods.
In April 2000, the Energy Efficiency Partnership for Homes was launched by
the Trust. The Partnership, which is facilitated by the Trust, brings together all
those with an interest in promoting domestic energy efficiency and aims to
create a long-term framework for implementing energy efficiency in homes.
Government funding for the Trust in 2002-03 was made up of over £24 million
for work with the domestic and small business sectors and over £29 million on
transport-related programmes. The Trust also levers in considerable sums of
investment from outside bodies – an estimated £75 million in 2000-01.
5
In 2000, a review of the Trust's government funded programme concluded that
the Trust has a valuable contribution to make to the government's objectives in
promoting energy efficiency and that there was a continuing case for
government funding in pursuit of those objectives which cannot be made
through other funding sources. No major weaknesses were identified by the
review, which was carried out by Defra's in-house consultancy unit.
“Warm Front” -- Warm Front is a radical reshaping of the former HEES (Home Energy
New Home Efficiency Scheme) which it replaced on 1 June 2000. It offers complete
Energy Efficiency packages of home insulation and heating improvements to those households
Scheme most vulnerable to cold-related ill health. The package offered to a household
is tailored to the property type.
Warm Front has two levels of assistance, acknowledging that the poorer over-
60s are unlikely to see significant increases in income as in other groups. The
two levels are:
The focus of the scheme reflects that the private sector has the greatest need,
with nearly 70% of the fuel poor. In the early part of the scheme assistance
was also made available to the social sector up to a maximum value of £45
million or support over two years whichever came sooner. No new
applications for support in the social sector were accepted after October 2001.
This is a devolved area and Warm Front operates in England only. Wales,
Scotland and Northern Ireland have their own programmes.
UK Fuel Among the most important policy initiatives in UK energy policy is the UK Fuel
2
Poverty Poverty Strategy launched by the government on 21 November 2001 . The
Strategy phenomenon of fuel poverty in the UK is the result of a combination of multiple
factors. The UK housing stock is the oldest in Europe, and especially older
residential buildings and houses are poorly insulated as well as difficult to
insulate. Low-income households spend a comparatively large part of their
budget on space heating in any case, but in addition they are drawn to the low-
rent, poorly insulated end of the housing market, which is more expensive to
heat than the average housing stock.
Hence, fuel poverty stems from many factors, including the state of the
housing stock, available income (including social security benefits) and its
distribution, as well as energy prices. The government has defined a fuel-poor
household as “one that cannot afford to keep adequately warm at reasonable
cost”, i.e. one that needs to spend more than 10% of its income on all fuel use
and to heat its home to an adequate standard of warmth. Adequate standards
of warmth are defined as 21 C in the living room and 18 C in the other
occupied rooms, in accordance with the temperatures recommended by the
World Health Organisation. Taking into account the above definition, the
number of fuel-poor households in England in 2000 was 3.9 million if housing
2
Department of Environment, Food and Rural Affairs (Defra), Department of Trade and Industry (DTI): The UK
Fuel Poverty Strategy. London, November 2001.
6
benefits were not included as part of income and 2.8 million if they were. In
1998, the same numbers were 4.5 million and 3.3 million, respectively on the
same basis. In 1996, the number of fuel poor households in the UK was
estimated to have been around 5½ million on the first basis.
The government has set out in its 2001 Fuel Poverty Strategy document how
it, and, in particular, DTI, Defra and the devolved administrations, intend to
reduce fuel poverty in the UK. The document sets a target to seek an end to
fuel poverty for vulnerable households by 2010. Fuel poverty in other, less
vulnerable households will be tackled once progress is made on the priority
group. The specific interim targets are:
In the 2002 in-depth review of the energy policies of the United Kingdom, the
IEA stated:
• Avoid, where possible, using energy policy measures to pursue social and
other policy objectives. If this is unavoidable, clearly delineate the trade-
offs and costs of such measures.
This new approach, developed by Transco plc, the national gas pipeline
operator, required a change in the tax rules relating to the leasing of heating
equipment. The new rules mean that Affordable Warmth leases, which are
targeted at local authorities and Registered Social Landlords (RSLs), are a fuel
poverty/energy efficiency programme attractive to both landlord and tenant,
because the installation is cheaper (owing to the lease basis and capital
7
allowances) and can be financed more flexibly. Transco is redesigning the
financial framework which will allow a further reduction in cost. More
information can be found at www.affordablewarmth.co.uk .
Design The Design Advice Service offers professional, independent and objective
Advice advice on the energy-efficient and environmentally conscious design of
Service buildings. The service covers both new-build and refurbishment projects and
is part of the Action Energy programme managed by the Carbon Trust.
Are you doing The Are you doing your bit? multi-million pound publicity campaign was
your bit? launched in 1998 with the aim of motivating people to make small but
important behavioural changes in their everyday lives to benefit their local and
global environment. Simple campaign messages encourage individuals to
“Fight global change by saving energy” and to:
In the 2002 in-depth review of the energy policies of the United Kingdom, the
IEA stated:
PUBLIC SECTOR
Measures already The public sector – including central and local government, schools, hospitals
Existing and/or and universities – accounts for a relatively small percentage of the UK’s total
Being improved greenhouse gas emissions, less than 5%. It has a responsibility to lead by
example in reducing emissions of greenhouse gases and is subject to the
climate change levy. This gives an added impetus for managers to ensure
that energy is used efficiently.
A number of energy consumption targets have been set for the public sector.
Central The government set a target for reducing energy consumption in its own
Government buildings by 20% on 1990/91 levels. By March 2000, savings of 17% had been
made, equivalent to just over 0.3 million tonnes of carbon. The government
has now set a new target of reducing CO2 emissions from its estate by 1% a
year against 1999-2000 levels and expects to introduce a new energy savings
target in due course, based on the results of the current exercise to
benchmark its estate.
Health The government has set a mandatory target for National Health Service (NHS)
Sector bodies in England to reduce primary energy consumption by 15% of 2000
levels by 2010 (equivalent to 0.15 million tonnes of carbon).
8
Local Authorities
Home Energy The Home Energy Conservation Act (HECA) 1995 requires all UK local
Conservation authorities with housing responsibilities to prepare, publish and submit to the
Act 1995 Secretary of State, an energy conservation report identifying energy
conservation measures which they consider practicable, cost-effective and
likely to result in significant improvement in the energy efficiency of all
residential accommodation in its area. Significant improvement was defined in
guidance as 30% (34% in Northern Ireland) over ten years from an agreed
baseline of either April 1996 or April 1997. Authorities have developed their
strategies and set targets for improving energy efficiency. Using the help and
guidance available through central government programmes, and by building
on their existing activities and developing partnerships, authorities are now
implementing the measures identified in their strategies and reporting on
progress being made. In the first four years to March 2000, authorities
reported an overall energy efficiency improvement in the domestic sector of
just over 6%.
Energy The Energy Saving Trust is establishing effective methods for generating
Saving interest, capacity and action within local authorities to enable them to take
Trust forward the challenges raised by HECA and the climate change programme.
The Trust’s programme is designed to identify and pilot a range of support
activities for local authorities, including infrastructure support and grant
funding, and to enable and encourage local government to work with the
private sector to generate local consumer activity.
INDUSTRY
Measures already
Existing and/or
Being improved
The Carbon The industry-related elements of the UK Climate Change Programme focus on
Trust the Carbon Trust to deliver carbon savings from business.
The aim of the Carbon Trust is to help the UK move towards a sustainable, low
carbon economy whilst maintaining business competitiveness. In the short-
term, the organisation will concentrate on helping business save energy and
money. In the longer term, it will develop the UK’s capacity to meet the
problems of climate change, considering not only commercial and
technological factors but also wider socio-economic factors that hinder the
move towards a low carbon economy.
The Trust’s first year’s funding is up to £50 million, from Climate Change Levy
receipts and from the government’s Energy Efficiency Best Practice
Programme (EEBPP). The Trust has taken over the non-domestic part of the
EEBPP, and is now the UK’s main energy efficiency information, advice and
research programme for organisations in the public and private sectors. The
Carbon Trust also administers and promotes the government’s Enhanced
Capital Allowance (ECA) scheme for energy saving technologies that has been
operational since April 2001.
Climate The Climate Change Levy (CCL), effective from 1 April 2001, was introduced
Change on energy use in the non-domestic sector (industry, commerce, agriculture and
Levy (CCL) the public sector). Its aim is to encourage energy efficiency and help meet the
United Kingdom's targets to reduce GHG emissions. It applies to gas,
electricity, liquefied petroleum gas (LPG) and coal. The rates of the levy are
based on the energy content of the different energy products. They are
equivalent to 0.43 p/kWh for electricity, 0.15 p/kWh for gas, 1.17 p/kilogram for
coal and 0.96 p/kilogram for LPG. Fuel oils do not attract the levy as they are
9
already subject to hydrocarbon oil duty. The levy is added to energy bills
before VAT is applied.
Residential energy users, charities and very small businesses (using domestic
amounts of energy) are exempt from paying the levy. There are also further
exemptions for transport, for the production of taxable commodities and
hydrocarbon oils, use in "good quality" combined heat and power plants, and in
non-fuel uses. Energy-intensive businesses can reduce their levy payments by
participating in voluntary Climate Change Agreements. Companies can obtain
an 80% discount if they enter into Climate Change Agreements that extend for
a period of 12 years. There is a separate 50% discount for a period of up to
five years for horticultural producers. The levy package, including the Climate
Change Agreements, is expected to save at least 5 million tonnes of carbon
per year by 2010.
The revenues generated from the levy are recycled back to businesses via a
0.3 percentage point cut in the main rate of employers’ National Insurance
Contributions and additional support for energy efficiency measures. The
government calculates that there will be no net gain to the public finances from
this reform. The levy package as a whole will be broadly neutral for the
manufacturing and service sectors of the economy. The revenues also provide
money for improving business energy efficiency. The sum of £50 million was
available under the levy package in 2001-02 to support the provision of energy
efficiency advice, promoting the take-up of low carbon technologies and the
promotion of renewable energy projects. A further £70 million in 2001-02 was
allocated to finance a system of 100% first-year enhanced capital allowances
(ECAs) against tax for firms making energy saving investments. This was
increased by £20 million in the 2002-03 budget, although this includes support
for both energy-saving technologies and low-emission vehicles and fuel
infrastructure. The scheme is worth around £200 million in the period 2001-
2003, depending on take-up.
In the 2002 in-depth review of the energy policies of the United Kingdom, the
IEA stated:
• Consider again modifying the Climate Change Levy to reflect the carbon
content of fuels.
The rationale for this eligibility criterion is that the processes in question are
subject to a regulatory requirement to use energy efficiently. This requirement
does not apply to other non-domestic energy users. The levy discount is
designed to maintain the competitiveness of the energy-intensive sectors while
providing an incentive at the margin to improve efficiency further. The eligible
sectors cover all the main energy-intensive sectors of industry that are subject
to international competition.
10
cover specific industry sub-sectors. Around 5 500 “underlying agreements”
have been concluded with participating companies. The agreements cover
around 13 000 individual facilities, and more sites are joining.
Facilities that are covered by a Climate Change Agreement are entitled to pay
the reduced rate of Climate Change Levy until the end of March 2003. At the
time of writing (February 2003) sectors are being assessed on target
performance for the first “milestone” period of each agreement. Company
energy efficiency data have been supplied via sector organisations and will
permit actual energy savings to be compared against milestone targets. In this
process companies are required to report the performance of their facilities to
the relevant sector association. The sector associations will in turn report
performance to the Department of the Environment, Food and Rural Affairs
(Defra). Also, throughout the course of the agreements, the data are subject to
independent audit by auditors acting on behalf of the Secretary of State. Defra
undertook an informal progress review in January and February 2002 to
ensure that robust sector data processing systems were in place. This has
been repeated in January/February 2003.
The sector performance will be tested against the sector target adjusted for
exits and entrants, carbon trading under the UK Emissions Trading Scheme,
where applicable, product mix and/or throughput. If the sector (or sub-sector)
has failed to meet this adjusted target, the individual facilities will be assessed.
If the target has not been met, the relevant facilities will not be required to
leave the agreement. They can remain within the agreement, but they will not
be eligible for the levy discount for the next two-year certification period. If the
facilities catch up with projected energy savings targets at the next review
stage, then they can be re-certified and will, once again, pay the levy at the
reduced rate. In specific and isolated cases where regulatory or planning
requirements imposed by the government have prevented the facilities from
meeting their targets participants may be allowed to retain Levy discount.
However, the facilities will still need to demonstrate that they have made
satisfactory progress and that they have met qualitative requirements such as
the development of an energy management plan.
Companies that have entered into Climate Change Agreements will be able to
use the Emissions Trading Scheme to help them meet their emission targets.
Emissions trading is expected to be the principal mechanism for dealing with
fluctuations in performance within each target period. The agreements will
therefore have an important role to play in establishing emissions trading in the
UK as the agreements cover around 60% of the energy used by manufacturing
industry.
In the 2002 in-depth review of the energy policies of the United Kingdom, the
IEA stated:
11
Enhanced Using experience gained in other European countries, the UK introduced on
Capital 1 April 2001, a system of Enhanced Capital Allowances. While most capital
Allowances expenditure in the UK can be written off against capital allowance on a
Scheme reducing balance basis, energy-saving investments eligible under ECA allow
100% first year allowances against taxable profits in the first year of
expenditure. Initially, the scheme covers eight technologies: CHP, boilers and
add-ons, pipe insulation, motors, variable speed drives, lighting, refrigeration
and thermal screens. The technologies and criteria will be reviewed annually
and the Energy Technology Product list updated monthly. Administered jointly
by the Carbon Trust and the Inland Revenue, the scheme will be worth around
£70 million in 2001-2002 and £130 million in 2002-03, depending on take-up.
For more information see: www.eca.gov.uk
Energy The Energy Efficiency Best Practice Programme (EEBPP) launched in 1989
Efficiency was the UK's main energy efficiency information, advice and research
Best Practice programme. In July 2002 the programme was split into domestic and non-
Programme domestic sectors that are now managed by the Energy Saving Trust and the
(EEBPP) Carbon Trust respectively.
The EEBPP had a target, set in 1989 and subsequently upgraded, to stimulate
annual energy efficiency savings worth £800 million at 1990 prices, equivalent
to 5 million tonnes of carbon (MtC) a year by 2000, 4.5 MtC of which is in
industry and 0.5 MtC. In the residential sector; EEBPP supports the Negotiated
Agreements and its targets are thus linked with achievement of the sector
targets; it also assists those organisations subject to the full Climate Change
Levy in mitigating its effects.
European The success of the Best Practice approach to preparing and delivering
Best independent, high quality information and advice has been recognised
Practice throughout the world. Australia, Brazil, Canada, China, and New Zealand have
Initiative all adopted elements of the idea and adapted them to local conditions. More
recently, the European Community has taken up the idea. Building on a
feasibility study led by the UK and with major contributions from seven EU
countries to test the best approach on a European scale, a pilot phase,
supported by the EC SAVE Programme, and by national contributions will
focus on Europe-wide benchmarking of processes and on an international
Extranet linking energy agencies. Fourteen countries are participating,
including some EU Accession States.
12
• Agree to report annually on their progress towards meeting their targets.
Guidelines for These guidelines were designed to help and encourage companies to
Company measure and report publicly on their greenhouse gas emissions from energy
Reporting on consumption, transport and industrial processes. They provide guidance on
greenhouse gas sources of emissions, how to gather the data, and also how to convert the data
emissions (for example, from electricity bills) into CO2 equivalents. The guidelines
encourage companies to set public targets for emissions reductions, and since
their launch in 1999, have become widely used amongst the growing number
of companies that produce environmental reports.
Action Action Energy is the main source of energy efficiency advice and support for
Energy business and the public sector in the UK. When the Carbon Trust took over
management of the non-domestic part of the EEBPP they relaunched it as
Action Energy. As well as providing all of the services available under the
EEBPP, including site visits and access to the extensive library of energy
efficiency literature, they have since added an interest-free loan scheme for
Small to Medium sized Enterprises to help towards energy efficiency projects.
Loans of between £5 000 and £50 000 (repayable over five years) are
available to help SMEs overcome the initial costs of energy efficiency projects.
Energy Both gas and electricity suppliers have a statutory responsibility to provide
Efficiency energy advice to consumers. The Energy Efficiency Commitment (EEC)
Commitments implemented from April 2002 replaced the previous programme known as the
Energy Efficiency Standards of Performance, EESOP; according to these
programmes, gas and electricity suppliers are required to encourage or assist
domestic customers to take up energy efficiency measures. The Utilities Act
2000 transferred responsibility for the EEC from the Regulator to the
government. The Energy Efficiency Commitment should provide a challenge
to energy suppliers while stimulating, in a sustainable way, the development of
the energy efficiency industry. By directing 50% of the energy benefits to a
priority group of low-income consumers, it will help reduce fuel poverty.
The overall target for the Commitment is 62 TWh, with 50% of the energy
savings being targeted at customers receiving benefits or tax credit. The EEC
will cut greenhouse gas emissions by around 0.4 MTC a year by 2005. The
Regulator's role is to administer the Commitment, apportion the overall target
to each supplier, determine which energy efficiency measures qualify and the
savings attributable, and monitor suppliers' performance against their targets.
13
The government has indicated in its Energy White Paper a desire to consult on
extending the Commitment to 2008, at possibly twice its current level of
activity, and beyond the bounds of the domestic sector.
Combined In 1993 the government set a target of 5 000 MW installed capacity as part of
Heat and the Climate Change Programme. In 2000, CHP qualifying power capacity
Power (CHP) exceeded 4 600 MW on over 1 500 sites, and was expected to be 5 000 MW
by the end of 2001. While just under 50% of the CHP installations in the UK
are small plants, with an electrical qualifying power capacity of less than
100 kW, schemes larger than 10 MW account for over 80% of the total CHP
installed electrical capacity. In 2000, 6% of the total electricity generated in the
country came from CHP schemes. The government has set a target of
10 000 MW of CHP capacity by 2010 as an important part of the Climate
Change Programme. It has introduced a number of measures to promote CHP
power plants:
• The new £50 million UK-wide Community Energy Programme which aims
to promote community heating through grants to install new schemes and
refurbish obsolete infrastructure and equipment. This aims to benefit up to
100 000 people, mostly on low incomes, while contributing to reductions in
greenhouse gas emissions.
• The Revision of Planning Policy Guidance Note 3: Housing, June 2000,
which provides some leverage for local planning authorities to encourage
developers to explore the feasibility of energy efficient options, including
newly built CHP/district heating.
• That power station developers who are seeking consent under the
Electricity Act 1989 and the Energy Act must now demonstrate that they
have explored the opportunity for CHP and sought to identify heat loads for
the waste heat.
In the 2002 in-depth review of the energy policies of the United Kingdom, the
IEA stated:
The exemption under the Climate Change Levy and inclusion in the Enhanced
Capital Allowances Scheme conform to this recommendation
In the Performance and Innovation Unit (PIU Review), combined heat and
14
power (CHP) was seen as a low-cost option for carbon abatement, but not
zero carbon. In the long term, it would benefit from policies that put a price on
carbon. The report suggested that current market and institutional barriers to
CHP should be removed.
Further measures were introduced in the Energy White Paper, which will be
taken into account in the final CHP Strategy. The government proposes to
issue this later this year.
TRANSPORT
Measures already
Existing and/or
Being improved
White The government’s White Paper on the future of transport: A New Deal for
Paper 1998 Transport: Better for Everyone, July 1998, recognised that the environmental
impacts of the growth in road traffic may be a threat to sustainable
development and emphasises the need to reduce those impacts.
Three key themes to emerge from the White Paper relevant to climate change
were:
Transport 2010, Transport 2010, the 10-Year Plan designed by the Department for
the 10 Year Plan Environment, Transport and the Regions and published in 2000 is an
investment plan for delivering the White Paper commitment to an integrated
transport system. The Plan focuses on surface transport, and improvements
in surface access to ports and airports.
The 10-Year Plan envisages the necessary level of investments, total private
and public expenditure, to be £180 billion over the next ten years. The
breakdown is as follows: public investment: £64.7 billion, private investment:
£56.3 billion, public resource/revenue: £58.6 billion. The Plan sets the strategic
framework, and individual projects and programmes are to flow from decisions
taken by a variety of agencies, the private sector, and through Regional
Transport Strategies and Local Transport Plans, as well as public and private
partnerships.
All modes of transport will benefit from this massive new investment. Spending
on railways will total £60 billion, spending on roads, local and national, will total
£59 billion and local transport spending will also be increased substantially to a
ten-year total of £59 billion.
15
The Plan includes a wide range of measures that will help to reduce
greenhouse gas emissions, including:
Vehicle The increase in carbon dioxide emissions from traffic growth has been
Fuel compounded by the limited improvements in vehicle fuel efficiency, especially
Efficiency for passenger cars, since the mid-1980s.
European The European Voluntary Agreements with European, Japanese and Korean
Voluntary vehicle manufacturers will reduce new car CO2 emissions by 25% to 140g
Agreement to CO2/km by 2008 (2009 for KAMA, the Korean manufacturers association). The
reduce CO2 voluntary agreements have proved a highly effective mechanism for improving
emissions from the fuel efficiency and CO2 performance of new cars. They have provided
new cars manufacturers with a stable long-term framework within which to plan,
research and introduce fuel saving innovations. This approach, which focuses
on the levels of carbon emitted rather than on dictating particular technologies,
gives manufacturers the flexibility to develop the best and most cost-effective
solutions.
The government is supporting the aims of the agreements through the UK’s
taxation system and through other schemes to encourage people to buy more
16
fuel-efficient cars. It is estimated that the voluntary agreements, along with the
changes to vehicle excise duty and company car taxation outlined below, will
result in savings of around 4 MtC by 2010.
Powering The UK Powering Future Vehicles strategy was launched in July 2002. The
Future strategy – which was produced jointly by DfT, Treasury, Defra and DTI – is
Vehicles aimed at promoting the UK’s shift to low-carbon vehicle technologies and
fuels, to reduce transport’s impact on the global and local environment.
It sets out government targets that by 10% of new cars sold in the UK by 2012
will be low-carbon vehicles, defined as 100 or less grams of CO2 per km at the
tailpipe (compared with the current new car average of 178gm). It also sets the
target that by 2012, 600 new buses joining the fleet yearly (around 20%) will
also be low-carbon.
Delivering these objectives involves more than one part of government, and
the Prime Minister has set up a Ministerial Low Carbon Group to oversee the
delivery of the low-carbon agenda. The Ministerial Group will report annually to
Parliament.
The strategy looks further forward to the long-term shift to ultra-low carbon
vehicles and ultimately to zero emission transport. The government will put in
place further targets beyond the decade, accelerating the shift towards
technologies such as hydrogen fuel cells.
Economic The government is using the taxation system to support the aims and
Instruments objectives of the EU CO2 from cars strategy and to encourage consumers to
buy smaller or more fuel-efficient vehicles.
One measure, which has already delivered reductions in emissions from road
transport, is the fuel duty escalator – annual fuel duty increases above the rate
of inflation. The escalator was introduced in 1993, first at an annual rate of 3%
above inflation and then at 5%. It was increased to 6% in July 1997 and has
been very successful. It sent a clear signal to manufacturers to design more
fuel-efficient vehicles, and to motorists to avoid unnecessary journeys and to
consider alternatives to the car. Taken in isolation, increases in duties between
1996 and 1999 are estimated to have produced annual carbon savings of
between 1 and 2.5 MtC by 2010.
The Chancellor announced in his 1999 Pre-Budget Report that the appropriate
level of fuel duties would be set on a Budget by Budget basis, taking account
of the government’s economic, environmental and social objectives. Revenues
from any real increases in fuel duty will go into a fund to be ring-fenced for
improving public transport and modernising the road network.
17
Under Budget 2002 the new low rate of VED for cars producing less than 120
g/km CO2 is £60/year for cars using alternative fuel, £70/year for cars using
petrol and £80/year for cars using diesel.
From April 2002, the existing system of company car tax, based on 35% of the
car's price, subject to business mileage and age-related discounts, will be
abolished. The new system will apply to all company cars, including second
company cars. Company cars first registered after January 1998 are to be
taxed on a percentage of their list price according to one of 21 carbon dioxide
emission bands, measured in grams per kilometre (g/km). The reform will
remove the perverse incentive in the current system to reduce the tax due by
driving unnecessary, extra business miles and it will provide a significant
incentive to company cars drivers to choose more fuel-efficient vehicles.
It is estimated that the CO2-based reforms to VED and company car taxation,
along with the European-level voluntary agreements with car manufacturers,
will result in savings of around 4 million tonnes of carbon a year by 2010.
The strategy for action in the transport sector is being underpinned by the
government’s "Are you doing your bit?" campaign. This major publicity
campaign aims to help raise people’s awareness of the issues by encouraging
people to use their cars less and by conveying wider messages relating to the
impact on fuel consumption of driving more smoothly and better car
maintenance. The government is spreading these messages through a variety
of different media, including TV and radio advertisements, high profile
promotions in the national press, poster sites and bus side ads, and in
literature sent out by the Driver and Vehicle Licensing Agency and the Driving
Standards Agency.
18
Motorvate In 2000 the UK government launched a green fleet certification scheme known
as Motorvate designed to help UK business cut CO2 emissions and make
considerable savings on their fleet costs. Company cars make up nearly half
of all new car sales in the country and therefore have a knock-on effect on the
second-hand market. Improving the fuel efficiency of the business vehicle fleet
could therefore have significant impacts on the environment while helping UK
business to improve profitability; an average fleet of 200 vehicles can save
£34 000 a year by meeting Motorvate targets.
Companies can sign up for Motorvate for a modest fee to reduce their fleet
CO2 emissions by at least 12% over three years. For their membership fee
they receive fleet management guidance, a telephone advice service, on-site
assistance and public recognition for achieving an environmental reward.
Further details can be found at www.greenerfleet.org.uk
Developing and The Energy Saving Trust supports the development of markets for cleaner fuel
promoting new vehicles through its TransportEnergy PowerShift initiative. PowerShift
technologies and provides grants towards the additional cost of purchasing gas, hybrid and
alternative fuels battery electric vehicles. The initiative has been running since 1996 and by the
end of the 2002 FY had part-funded the purchase of over 12 000 vehicles.
The NVTF is not limited to specific technologies and it supports any vehicle-
based technology with the potential to deliver significant lifecycle carbon
savings and to become a commercially viable product within a maximum of
five years.
Transport Land use planning will be vital in changing the way people travel, both now and
Planning in the future. In line with national guidance, locating development where it can
be easily accessible on foot, by bicycle and public transport will allow people to
make sustainable transport choices. It will also help to increase the
effectiveness of other transport policies that are designed to reduce the
amount of trips made by car. Town centres and retail development include a
sequential approach to choosing sites for retail, leisure and other town centre
uses. The first preference should be for town centre locations, followed by
edge-of-centre sites, district and local centres and, only then, out-of-centre
sites in locations that are accessible by all forms of transport. The revised
PPG13 on transport aims to integrate land use planning and transport at a
national, regional and local level to promote sustainable transport choices and
to reduce the need to travel, especially by car. This note advises that major
travel generating development should be located where it offers a choice of
transport modes.
In the 2002 in-depth review of the energy policies of the United Kingdom, the
IEA stated:
• Enhance the efforts to curb the energy consumption and CO2 emissions
from the transport sector. To achieve this, the government should
implement its 10-year Transport Plan swiftly and according to schedule,
with an emphasis on reducing greenhouse gas emissions and improving
energy efficiency.
MONITORING/ The UK sets targets for its government programmes and undertakes regular
ASSESSMENT monitoring to ensure that value for taxpayers’ money is maintained. Impact
Assessments are undertaken each year to measure the effectiveness of the
19
Programmes in stimulating energy savings. For example, the Impact
Assessment of the Energy Efficiency Best Practice Programme has shown
that the programme has helped stimulate savings in UK business and the
public sector worth about £750 million p.a. – equivalent to around 4 million
tonnes carbon a year. These savings have been achieved at a cost to the
taxpayer of a few tens of pounds per tonne.
Under the Climate Change Programme, the new programmes dealing mainly
with energy efficiency will generally have to report progress regularly against
interim targets towards the UK's Kyoto target (and the UK government's own
20% carbon reduction target for 2010). Some of the programmes involve tax
discounts (e.g. the Climate Change Levy) so will be subject to close scrutiny by
the tax authorities.
In the 2002 in-depth review of the energy policies of the United Kingdom, the
IEA stated:
20
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In the 2002 in-depth review of the energy policies of the United States the IEA
stated:
CLIMATE
CHANGE POLICY
National The first national communication entitled Climate Action Report — Submission
Communications of the United States of America under the UN Framework Convention on
Climate Change was published in October 1994.
The third national communications entitled U.S. Climate Action Report -- 2002
was released in June 2002. The US third national communications reports
that US climate change programmes reduced the growth of greenhouse gas
(GHG) emissions by an estimated 240 teragrams (million metric tons) of CO2
equivalent in 2000 alone. The report can be electronically downloaded from:
http://www.epa.gov/globalwarming/publications/car/index.html
Interim Report of In June 2001, the President issued the Interim Report on a Review of U.S.
the Cabinet Level Climate Change Policy, conducted at the Cabinet level. In the Interim Report,
Review of US the President has directed the Secretaries of Energy and Commerce and the
Climate Change Administrator of the Environmental Protection Agency (EPA) to improve
Policy climate change technology research and development, enhance basic
1
research, strengthen applied research through public-private partnerships,
develop improved technologies for measuring and monitoring gross and net
greenhouse gas emissions, and support demonstration projects for cutting-
edge technologies. The Interim Report is accessible at
http://usinfo.state.gov/topical/global/climate.
Global Climate In February 2002, the Global Climate Change Initiative was announced. The
Change Initiative new US approach to the challenge of global climate change contains
proposed policies that will harness the power of markets and technology to
reduce greenhouse gas emissions. As part of this initiative, the United States
commits to cutting greenhouse gas intensity of the economy by 18% over the
next ten years. Greenhouse gas intensity is the ratio of greenhouse gas
emissions to economic output. This reduction exceeds the 14% projected
reduction in greenhouse gas intensity in the absence of the additional
proposed policies and measures. The GHG intensity goal seeks to lower the
rate of emissions from an estimated 183 metric tons per million dollars of GDP
in 2002, to 151 metric tons per million dollars of GDP in 2012. The 18% GHG
intensity target would put the United States on a path to slow the growth of
greenhouse gas emissions. By significantly slowing the growth of greenhouse
gases, this policy will put America on a path toward stabilising GHG
concentration in the atmosphere in the long run, while sustaining the
economic growth needed to finance investments in a new, cleaner energy
technology and systems. This goal is comparable to the average progress that
nations participating in the Kyoto Protocol are required to achieve.
Information on the Global Climate Change Initiative can be found at:
http://www.whitehouse.gov/news/releases/2002/02/climatechange.html
The National The Interim Report of the Cabinet Level Review of the US Climate Change
Climate Change Policy included a Presidential Directive to the Secretaries of Energy and
Technology Commerce to develop a National Climate Change Technology Initiative
Initiative (NCCTI) (NCCTI). As of October 2002, NCCTI is continuing its in-depth review of
federal research and development activities, and is developing approaches to
pursue advanced technologies that can yield cost-effective means to mitigate
the risks associated with climate change. NCCTI will find creative ways to
motivate the development of innovative technologies, a process of open
solicitations for technologies to compete against each other using the criteria
of emissions reduction, avoidance, or sequestration potential is being
pursued. High priority technologies that are now being pursued include:
hydrogen-based energy systems, biofuels, low-speed wind turbines, fuel cells
for transportation, zero net energy buildings, CO, capture and geologic
sequestration, terrestrial sequestration research in forest management, and
agricultural land management.
2
In the 2002 in-depth review of the energy policies of the United States the IEA
stated:
RESIDENTIAL/ Residential and commercial buildings consumed 36% of the nation’s energy in
COMMERCIAL 1999 and utilise almost two-thirds of all the electricity generated. The
production of energy consumed in buildings, primarily electricity, represents a
major source of acid rain, smog, and greenhouse gas emissions, and includes
47% of US sulphur dioxide emissions, 22% of nitrogen oxide emissions, and
35% of carbon dioxide emissions. The growth in the economy, as well as the
nation’s rising population is leading to more, larger, and better equipped
homes and commercial buildings, resulting in increasing energy consumption
in this sector. Introduction of new energy efficiency technology can have
significant economic and environmental benefits. In terms of economic
impact, Americans spend approximately one-quarter trillion dollars per year to
heat, cool, light and operate appliances and other equipment in buildings.
Sample of
Measures already
existing and/or
being improved
Buildings DOE develops, implements and co-ordinates the R&D to improve the energy
Research and efficiency of building components and integrated systems. Its R&D addresses
Development both the building envelope (walls, windows, roofs) and equipment (heating
and cooling equipment, lighting, etc.) and their integration into optimal "whole
building" designs. This "whole buildings" approach allows builders to
simultaneously reduce construction and energy costs and helps build energy
systems that deliver the proper amount of service (e.g. heating, cooling,
lighting, etc.) where needed. The approach also identifies ways that systems
can work harmoniously to provide increased energy and construction savings
as well as improve the quality and comfort of the buildings.
Low Income Home The Low Income Home Energy Assistance Program (LIHEAP) is a federal
Energy Assistance block grant programme that helps low-income consumers pay the costs of
Program (LIHEAP) heating and insulating their homes in the winter, and cooling their homes in
3
the summer. Approximately 4 million low-income households receive
assistance through the LIHEAP each year. LIHEAP is administered by the US
Department of Health and Human Services. http://www.ncat.org/liheap/
Building During the 1970s almost all states and local governments established energy
Codes efficiency standards for new residential buildings. The 1992 Energy Policy Act
makes it mandatory for states to certify that their energy codes have been
updated to meet or exceed minimum levels of efficiency. To help states
update their codes law and ensure that codes are enforced, DOE is working
with state and local governments, home builders, and material suppliers to
improve energy code compliance. This is important since residential and
commercial buildings account for about 17% of US primary energy use. Two-
thirds of new US residential construction, amounting to some 900 000 homes
annually, falls under federal, state and local residential energy codes. Some
122 million square feet of additional commercial construction each year falls
under commercial energy codes. More information on buildings codes is
available at http://www.energycodes.gov/
In the 2002 in-depth review of the energy policies of the United States, the IEA
stated:
The standards revision process was modified in 1997. DOE improved, and
made more transparent, the standard-setting process, and developed a
comprehensive framework for standards analyses.
Since the process was revised, DOE has issued final rules for refrigerators,
refrigerator-freezers and freezers, room air-conditioners and electric ranges,
electric ovens and microwave ovens. For refrigerators, refrigerator-freezers
and freezers and room air-conditioners, DOE found that more stringent
standards were justified. The new standards for refrigerators, refrigerator-
freezers and freezers have been effective since 1 July 2001. The new room
air-conditioner standards became effective on 1 October 2000. DOE decided
4
not to institute energy efficiency standards for electric ranges, electric ovens
and microwave ovens. DOE determined potential estimated savings were not
sufficient to merit the added burden of costs to be placed on industry and
consumers.
x Rebuild America
x Energy Star for Residential Market
x Energy Star for the Commercial Market
x Energy Star Labelled Products
Rebuild In Rebuild America, DOE is working with states and community partnerships
America to promote cost-effective energy efficiency investments in public housing,
commercial buildings, and multifamily residences. More than 465 partnerships
have been formed. Partnerships have completed nearly 420 million square
feet of building renovations and are committed to another 420 million square
feet of renovations. For more information about Rebuild America, visit
www.energystar.gov
Energy Star Energy Star for the Residential Markets programme provides guidance for
for Residential homeowners on designing efficiency into kitchen, additions, and whole-home
Markets improvement projects and works with major retailers and other organisations
to help educate the public. It also offers a web-based audit tool and a home
energy benchmark tool to help the homeowner implement a project and
monitor progress. Builders have constructed more than 55 000 ENERGY
STAR®-labelled new homes in the United States. For more information about
Energy Star, visit www.energystar.gov
Energy Star for The Energy Star for the Commercial Market leads building owners through a
Commercial comprehensive, five-stage strategy to capitalise on building system
Market interactions so as to maximise energy savings from a given amount of
efficiency investment. The programme works with more than 5 500
organisations across the country, and in 1999 introduced a system that allows
the benchmarking of building energy performance against the national stock.
For more information about Energy Star, visit www.energystar.gov
Energy Star The Energy Star® label is being used by EPA and DOE to promote products
Labelled and services that save energy and money and help the environment. The
Products Energy Star Labelled Products programme has been expanded in recent
years to more than 30 product categories. Examples of covered products
5
include appliances, heating and cooling equipment, consumer electronics,
home office equipment, windows, lighting, water coolers, dehumidifiers,
ventilation fans, ceiling fans, business office equipment, roof products, etc.
More than 630 million products with the government-backed Energy Star have
been purchased to date and thousands of companies are to adopt more
energy efficient practices. For more information about Energy Star, visit
www.energystar.gov
Measures under The National Energy Policy contains several recommendations aimed
Consideration specifically at improving energy efficiency in the residential sector. They are
listed below.
Additional Funding The National Energy Policy recommends an increase in funding for the
for Weatherization Weatherization Assistance Program and the Low Income Home Energy
Assistance Assistance Program (LIHEAP).
Program and
LIHEAP
Expand Scope Regarding standards, the National Energy Policy recommends that the
of Appliance President direct the Secretary of Energy to:
Standards
x Take steps to improve the energy efficiency of appliances.
x Support appliance standards programme for covered products, setting
higher standards where technologically and economically justified.
x Expand the scope of the appliance standards programme, setting
standards for additional appliances where technologically feasible and
economically justified.
In the 2002 in-depth review of the energy policies of the United States, the IEA
stated:
6
INDUSTRY Industry is one of the largest energy-consuming sectors, accounting for about
35% of all US energy use.
Sample of
Measures already
existing and/or
being improved
Best Practices The BestPractices Program works with industry to identify plant-wide
Program opportunities for energy savings and process efficiency. Through the
implementation of new technologies and systems improvements, companies
across the United States are achieving immediate savings results.
7
funding to states and their industries for projects that develop and
demonstrate advances in energy efficiency and clean production technologies.
The programme selects projects through an annual solicitation and
competition ensuring the selection of highest benefit projects. State and
industry partnerships are eligible to receive a one-time grant of up to
$525 000. The industrial partner may receive a maximum of $500 000 in
federal funding. Non-federal cost share must be at least 50% of the total cost
of the project. In total, NICE³ has sponsored over 100 projects, with more
than half going to small businesses. Since 1991, NICE³ has leveraged $26.3
million in federal funds, with $81.8 million in state and industry funds.
http://www.oit.doe.gov/nice3/
Energy Star Energy Star for Industry is an EPA voluntary partnership programme that
for Industry enables industrial companies to evaluate and cost-effectively reduce their
energy use. It helps establish energy performance benchmarks, strategies for
improving energy performance, and provides technical assistance and
recognition for companies' reductions in energy. Energy Star for Industry is a
new initiative that integrates and builds upon the former Climate Wise
programme and offers a more comprehensive partnership for industrial
companies.
Measures under
Consideration
CHP Incentives The National Energy Policy contains a recommendation to direct the Secretary
of Treasury to work with Congress to encourage legislation that promotes
increased energy efficiency through combined heat and power (CHP) projects,
by shortening the depreciation life for CHP projects or providing an investment
tax credit.
PUBLIC SECTOR
Sample of
Measures already
existing and/or
being improved
Energy Efficiency In March 1994, a Presidential Executive Order 12902 called for reduced
and Water energy use in federal buildings. Under the order 12902, each federal agency
Conservation at shall develop and implement a programme with the intent of reducing energy
Federal Facilities consumption by 30% by the year 2005 compared to 1985 levels, based on
energy consumption per-gross-square-foot of its buildings in use, to the extent
that these measures are cost-effective. Various measures have been
implemented by individual federal agencies to reach this goal. The federal
government is well on its way to meeting this goal because, since 1985,
federal energy consumption has declined by almost 17%.
http://www.eren.doe.gov/femp/resources/exec12902.html
Energy-Efficient In August 2001, the President signed Executive Order 13221 regarding
Standby Power energy-efficient standby power devices. The Order directs federal agencies to
Devices purchase products that use no more than one watt in their standby power
consuming mode. If such products are not available, agencies shall purchase
products with the lowest standby power wattage. Agencies shall adhere to
these requirements where cost-effective and practicable.
http://www.eren.doe.gov/femp/resources/exec13221.html
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Measures under
Consideration
Information Several National Energy Policy recommendations are aimed at raising public
to the Public awareness on energy efficiency include:
TRANSPORT In 2001, the transportation sector consumed 27% of the nation’s energy and
accounted for two-thirds of our petroleum consumption. Over 95% of
transportation energy is derived from petroleum, transportation, and this
contributes significantly to the US need for imported oil.
Sample of
Measures already
existing and/or
being improved
FreedomCar The FreedomCAR and Vehicle Technologies (FCVT) Program partners with
Research industry, research entities, state governments, and other federal agencies to
Partnership support the development and use of advanced vehicle technologies and fuels
which could reduce, and eventually eliminate, the demand for petroleum,
decrease emissions of criteria air pollutants and greenhouse gases. In
FreedomCAR, the DOE works with the US Council for Automotive Research
(USCAR). The new partnership supersedes and builds upon the successes of
the Partnership for a New Generation of Vehicles (PNGV) that began in 1993.
It is, however, different in scope and breadth. FreedomCAR shifts
government research to more fundamental, higher risk activities, with
applicability to multiple passenger vehicle models and special emphasis on
development of fuel cells and hydrogen fuel infrastructure.
http://www.ott.doe.gov/freedom_car.shtml
Automobile Corporate Average Fuel Economy (CAFE) standards for cars and light trucks
Fuel remain in force. Vehicle fuel economy labelling is also an important
Efficiency component of the fuel economy programme. The current automobile standard
Standards is 27.5 miles per gallon (8.6 litres per 100 km), and the light truck standard is
20.6 mpg (11.4 litres per 100 km). Neither of these standards has changed
significantly since the mid-1980s. These standards played a significant part in
increasing automobile and light truck fuel efficiencies beyond spontaneous
industry trends, mostly between 1979 and 1982 but continuing through the
first half of the 1980s when some manufacturers exceeded CAFÉ standards.
Later, as real fuel prices started to fall, CAFÉ caused manufacturers to
accelerate use of more advanced technologies and manage their sales
(through marketing and pricing) so that their average fleet fuel economy
continued to meet the standards. Recent trends suggest little or no
improvement in overall fuel economy levels because of the increased market
share of light trucks and sport utility vehicles. CAFÉ standards have been
frozen by Congress during the three fiscal years (FY) 1996 to 1998. These
fiscal years correspond to model years 1998-2000 since the standards are
issued 18 months in advance of their implementation.
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Clean Cities DOE’s Clean Cities Program supports public–private partnerships that deploy
Program alternative-fuel vehicles (AFVs) and build supporting infrastructure, including
community networks. Clean Cities works directly with local businesses and
governments, guiding them through each step in the process of building the
foundation for a vibrant local organisation, including goal setting, coalition-
building, and securing commitments. Current and potential members of the
Clean Cities network also help each other by sharing local innovations,
addressing and relaying obstacles they encounter in pursuing alternative-fuel
programmes, and exchanging “do’s” and “don’ts,” based on experiences in
these programmes. Clean Cities continually pioneers innovations and aspires
to make strides nationally as well as locally.
Measures under
Consideration
Review CAFÉ The National Energy Policy recommends the President direct the Secretary of
Transportation to review and provide recommendations on establishing
Corporate Average Fuel Efficiency standards and look at other, market-based
approaches to increasing the national average fuel economy of new motor
vehicles.
Tax The National Energy Policy recommends the adoption of a tax credit for fuel-
Credits efficient vehicles as well as a temporary, efficiency-based income tax credit for
purchase of new hybrid fuel cell vehicles between 2002 and 2007.
In the 2002 in-depth review of the energy policies of the United States the IEA
stated:
MONITORING/
EVALUATING
AND ADJUSTING
Emissions There are several mechanisms for monitoring emissions and sequestration
trends. In addition to various official bodies which continuously gather and
analyse data on energy production and consumption and greenhouse gas
emissions, electricity utilities and companies participating in voluntary
programs to undertake continuous monitoring and report on their efforts to
reduce greenhouse gas emissions http://www.epa.gov/
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policymakers. EIA produces a wide range of energy and energy-efficiency
publications, based on sound statistical surveys and data analysis.
http://www.EIA.doe.gov/
Enhancing DOE’s Improvements are being investigated for creating a comprehensive and
Registry of GHG transparent programme to register and credit real greenhouse gas reductions.
Emissions and The new registry programme will achieve the objective of "measurement
Emission accuracy, reliability, and verifiability". Proposed improvements also include
Reductions developing fair, objective and practical methods for reporting baselines,
calculating real results, and awarding transferable credits for actions that lead
to real greenhouse gas reductions. After completion of this process that will
fully engage the many stakeholders who are concerned about climate change,
DOE plans to adopt new guidelines by January 2004, for reporting 2003
annual data. Information on efforts underway to enhance DOE GHG
emissions registry is found at:
http://www.pi.energy.gov/enhancingGHGregistry/index.html
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