1. Combining IPPC and Emission Trading: An assessment of energy efficiency and CO 2 reduction potentials in the Austrian paper industry Otto Starzer, E.V.A.

2. Content Ù Introduction Ù Methodology Ù Benchmarking process Ù Main results and conclusions

3. Introduction ÙEU wide emissions trading scheme (COM(2001)581 final) r new instrument entered the “energy efficiency market” ÙTough negotiations before 31 March 04 between authorities and industry Ùemissions targets “delicate” matter: r first time cap on growth: industry tried to get as many allowances as possible r authorities had to fulfil Kyoto commitments ÙNeed for transparent information on potentials (BAT/IPPC)

4. Methodology: to evaluate the Energy efficiency status of industry

5. Methodology: theoretical top-down approach ÙBenchmarks for each type of installation ÙBenchmarking is not perfect ÙChecklists on best practice measures were commented by each company (“early actions”) # criteria: pay back time

6. Methodology: practical bottom-up approach Ùcompanies undertook energy audits carried out by a consultant ÙThe audits covered 80% of the energy consumption within the Austrian Paper Industry ÙE.V.A. checked audit reports and carried out on site interviews

7. The Benchmarking Process: first attempt

8. Change of Method Ùmake the data and results compatible with UBA / IIÖ data collection Ùuse published IPPC benchmarks for comparison Ùthird benchmark introduced to compare the efficiency of the energy production process Ù Some questions remained open: r with or without energy losses (e.g. integrated plants) r black liquor recovery systems

9. Benchmarking groups for Austrian paper mills

10. Main results and conclusions (1) ÙAustrian paper mills show very good results Ù25 installations included Ùonly in 3 cases process heat out of BAT range, in 4 cases electricity ÙHigh differences from BAT reference values only found among companies where the product spectrum differed considerably from the spectrum used for the BAT reference. In these cases BAT values not representative. ÙDifferences also can be explained by partly integrated plants

11. Main results and conclusions (2) Ù13 (15) plants even had better values then the lower BAT value Ùquestion: is BAT best available techn.? r necessary to compare the BAT references also with the benchmarks of paper mills from other EU countries Ùa revision of the BAT values and a clearer definition of the system borders can be recommended, especially if they should further be used in the international context such as for benchmarking exercises (e.g. for next NAP, 2nd trading period 2008-2012)

12. Main results and conclusions (3) ÙThe emissions trading scheme can actually present a strong driver towards industrial energy efficiency ÙThe IPPC documents and their respective BAT references could play a crucial role in monitoring the effects of the EU emissions trading scheme ÙHowever, it needs credible and transparent benchmarks to do so and they have to be applied throughout the EU