1 INDUSTRIAL ENERGY EFFICIENCY CONFERENCE ON GREEN INDUSTRY IN ASIA Robert Williams Energy Efficiency and Policy Unit United National Industrial Development Organization Vienna, Austria

2 Why Isn’t Industry More Energy Efficient?  The business of industry is not energy efficiency  Facility engineers typically do not become CEO or CFOs  Budgets are separate for equipment purchases and operating costs  Data on energy use of systems is very limited  Difficult to assess performance or evaluate performance improvements  Opportunities to become more energy efficient are overlooked

3 Why System Energy Efficiency Matters Source: Almeida, et al., 2005 Inefficient?Or energy efficient? Same work is done

4 Systems Optimization  Pumps, compressed air, fans, drive systems, steam systems.  A Cross-cutting approach, not specific to particular sectors or industrial processes, but applicable over the entire industry sector. UNIDO’s focus:  Transfer of knowledge and skills through training. Developing Capability to analyse Industrial Energy Systems rather than offering “Ready-made” Solutions..

5 Why are industrial systems important?  Steam and motor-driven systems account for more than 50% of final manufacturing energy use worldwide  Energy savings potential from cost-effective optimization of these systems for energy efficiency is estimated at EJ of primary energy 1  A global effort to cost-optimize industrial systems for energy efficiency could achieve these energy savings through  the application of commercially available technologies  in existing and new industrial facilities IEA Statistics

6  Most energy efficiency in industry is achieved through changes in how energy is managed in an industrial facility, rather than through installation of new technologies;  Companies that introduce energy management gain a number of benefits: –Develop a baseline of energy use –Actively managing energy use and reduce costs –Reduce emissions without negative effect on operations –Continue to improve energy use/product output over time –Document savings for internal and external use (e.g. emission credits) Industry and Energy Management

7 ISO 50001Energy Management Standard Current Status  Several countries have national energy management standards (Denmark, Ireland, Sweden, US, Thailand, Korea)  The EU has developed a regional energy management standard, pr EN  Energy management standards are under development in China, Spain, and Brazil  ISO has initiated work on an international energy management standard ( ).

8 Components of an EM Standard Typical features include:  a strategic plan that requires measurement, management, and documentation for continuous improvement for energy efficiency;  a cross-divisional management team led by a representative who reports directly to management and is responsible for overseeing the implementation of the strategic plan;  policies and procedures to address all aspects of energy purchase, use, and disposal;

9 Components of an EM Standard  projects to demonstrate continuous improvement in energy efficiency;  creation of an Energy Manual, a living document that evolves over time as additional energy saving projects and policies are undertaken and documented;  identification of energy performance indicators, unique to the company, that are tracked to measure progress; and  periodic reporting of progress to management based on these measurements

10 ISO Project Committee 242  38 participating countries from all regions of the world, (UNIDO - liaison status) –September 2008, 1st Meeting in Washington DC, USA –March, 2009, 2nd Meeting in Rio de Janeiro, Brazil –November 2009, 3rd Meeting, London, UK  Publication 2011 ISO will:  Establish a framework for industrial plants, commercial facilities or entire organizations to manage energy  Have broad applicability across national economic sectors, potentially influence up to 60 % of the world’s energy use.

11 ISO Potential Impact  All indications are that ISO will have an even greater impact on international trade than ISO 9001  The uptake of ISO will be driven by companies seeking an internationally recognized response to: –National cap and trade programs, carbon or energy taxes. International carbon trading –Corporate sustainability programs –Increasing market value of “green manufacturing” and a reduced carbon footprint

12 Thank you. For more information: Robert Williams