Policies and Measures to realise Industrial Energy Efficiency and mitigate Climate Change

The Bali Action Plan provides the principal framework for a post-2012 climate agreement. It focuses on a shared vision for long-term cooperative action and for enhanced national and international action to mitigate climate change, on adaptation, on supporting technology development and transfer, and on the provision of financial resources and investment. The Copenhagen agreement could help provide the foundation for scaling up industrial energy efficiency to levels that reflect its share of the global mitigation potential. To that end, the following recommendations are made: Energy sector policy reform – including the removal of broad-based subsidies – is needed to ensure that market
signals fully reflect the true cost of producing and consuming energy and stimulate investment in energy efficiency markets. National Energy Efficiency Action Plans should be developed that set ambitious, achievable national energy efficiency goals or targets for the industrial sector based on studies which document the full costs and benefits of adopting energy-efficient technologies, practices, and measures. Better public datasets and indicators should be developed on industrial energy efficiency and cost of improvement options. A database of existing successful and potential industrial energy efficiency policies and measures should be compiled and documented. These should be assessed for their scalability, transferability (from one country/region to another, from one industry to another, or from one plant to another) and full costs (including local variations in fuel, technology and implementation costs). The use of technology cost-curves to assess industrial energy efficiency potentials should be extended to include the costs incurred to build the institutions needed to implement industrial energy efficiency policies and measures as well as the cost of the policies and measures themselves. Including these programme, institutional, and other transaction costs is particularly important for developing countries where markets and institutions may not be as mature as in their developed country counterparts. Proprietary energy efficiency technologies and processes that have significant energy-savings potential should be identified systematically and options to facilitate the wider deployment of these technologies in developing countries and transition economies should be explored. More attention should be focused on systems approaches, especially in industries that require a range of energy services (where in potential synergies can be taken advantage of to reduce
Capacity needs to be built in the skills and knowledge needed to tackle industrial energy efficiency. This capacity building should be a strong focus of post-2012 climate change agreements. It should aim to identify and transfer
lessons learned from successful industrial energy efficiency policies and programmes, along with information on best practice technologies and measures that can be applied in the industrial sector. Countries should be required to provide an assessment of potential (in terms of GHGs mitigated) and a description of their existing industrial energy efficiency policies within
their formal National Communications reporting to the UNFCCC. This will help promote the development of national energy efficiency plans, where they do not already exist

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