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G8 EE Recommendations

G8 EE Recommendations

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INTERNATIONAL ENERGY AGENCY

In support of the G8 Plan of Action

energy eFFiCienCy PoliCy reCoMMendaTions

2008

INTERNATIONAL ENERGY AGENCY

In support of the G8 Plan of Action

energy eFFiCienCy PoliCy reCoMMendaTions

Switzerland. Austria. New Zealand. Finland. n To improve the world’s energy supply and demand structure by developing alternative energy sources and increasing the efficiency of energy use. Turkey. Luxembourg. Japan.org/Textbase/about/copyright. Sweden. Canada. Ireland. 9 rue de la Fédération.asp . Germany. © OECD/IEA. Denmark. Italy. The European Commission takes part in the work of the OECD. Ireland. Poland is expected to become a member in 2008. United Kingdom and United States. social and environmental challenges of globalisation. Republic of Korea. Czech Republic. Hungary. Netherlands. Please note that this publication is subject to specific restrictions that limit its use and distribution. Czech Republic. Belgium. Austria. France. Netherlands.iea. n To operate a permanent information system on the international oil market. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns. n To promote rational energy policies in a global context through co-operative relations with non-member countries. ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where the governments of thirty democracies work together to address the economic. Canada.INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA) is an autonomous body which was established in November 1974 within the framework of the Organisation for Economic Co-operation and Development (OECD) to implement an international energy programme. Spain. The European Commission also participates in the work of the IEA. seek answers to common problems. Japan. France. Norway. identify good practice and work to co-ordinate domestic and international policies. n To promote international collaboration on energy technology. The terms and conditions are available online at http://www. Denmark. Slovak Republic. The basic aims of the IEA are: n To maintain and improve systems for coping with oil supply disruptions. n To assist in the integration of environmental and energy policies. Portugal. Slovak Republic. Portugal. Poland. New Zealand. Italy. Mexico. Head of Communication and Information Office. such as corporate governance. Belgium. Iceland. 2008 International Energy Agency (IEA). France. The Organisation provides a setting where governments can compare policy experiences. Turkey. 75739 Paris Cedex 15. Sweden. The OECD member countries are: Australia. The IEA member countries are: Australia. Finland. the information economy and the challenges of an ageing population. industry and international organisations. Spain. Greece. It carries out a comprehensive programme of energy co-operation among twenty-seven of the OECD thirty member countries. Greece. Luxembourg. Hungary. Germany. Norway. United Kingdom and United States. Switzerland. Republic of Korea.

4 Energy performance test standards and measurement protocols. the IEA recommends action on: 3 © OECD/ IEA 2008 .5 Energy efficiency improvements in glazed areas. industry and power utilities. 5.4 Energy efficiency indicators. addresses a significant gap in existing policy. recommendation is justified if it: That is. is supported by a degree of international consensus. 1. The IEA recommends action on: 4. 2. The consolidated set of recommendations from these Summits covers 25 fields of action across seven priority areas: cross-sectoral activity.3 Policy packages to promote energy efficiency in existing buildings. for electronic and networked equipment. To save a significant portion of this energy.1 Measures for increasing investment in energy efficiency. transport. monitoring. About 60% of world oil is consumed in the transport sector. 4. The fields of action are outlined below: 1. To achieve significant savings in this sector. Buildings account for about 40% of energy used in most countries. In particular. 2. The IEA recommends action on energy efficiency across sectors. The IEA recommends action on: 3. 3.1 Best practice lighting and the phase-out of incandescent bulbs. 2. a • • • • is likely to save a large amount of energy at low cost.3 Compliance. lighting. Appliances and equipment represent one of the fastest growing energy loads in most countries. 3.2 Passive Energy Houses and Zero Energy Buildings. 2007 and 2008.1 Mandatory energy performance requirements or labels. the IEA recommends action on: 2. All of the IEA recommendations in this package meet strict criteria. 1. 1.1 Building codes for new buildings. 3. The IEA recommended policy measures to the G8 Summits in 2006. which mandates the pursuit of a clean. This package was developed under the Gleneagles G8 Plan of Action. clever and competitive energy future.5 Monitoring and reporting progress with the IEA energy efficiency recommendations themselves. buildings. 4. appliances. 2.2 National energy efficiency strategies and goals.2 Ensuring least-cost lighting in non-residential buildings and the phase-out of inefficient fuel-based lighting. addresses existing market imperfections or barriers. enforcement and evaluation of energy efficiency measures. 2.3 Televisions and “set-top” boxes. 1. Saving energy by adopting efficient lighting technology is very cost-effective.4 Building certification schemes. including standby power.2 Low-power modes. 3. the IEA calls for action on: 1.Executive Summary The IEA recommends that G8 leaders adopt and urgently implement this package of measures to significantly enhance energy efficiency.

2 GtCO2/yr by 2030. Mandatory fuel efficiency standards for light-duty vehicles. Fuel economy of heavy-duty vehicles. these measures set out an ambitious road map for improving energy efficiency at a global scale.2 Energy performance of electric motors. 6. 7. 6. This is equivalent to one fifth of global reference scenario energy-related CO2 emissions in 2030. action is needed on: 6. Taken together. 6.3 Assistance in developing energy management capability. Action is needed to promote: 7. Energy utilities can play an important role in promoting energy efficiency.2 5.1 5. the proposed actions could save around 8. Eco-driving.1 Utility end-use energy efficiency schemes Implementation of IEA energy efficiency recommendations can lead to huge cost-effective energy and CO2 savings. The IEA estimates that if implemented globally without delay. 4 © OECD/ IEA 2008 .3 5.4 Fuel-efficient tyres.5. In order to improve energy efficiency in industry.4 Policy packages to promote energy efficiency in small and medium-sized enterprises. 6.1 Collection of high quality energy efficiency data for industry.

These. 6. Cleaner fossil fuels.Background – Energy Efficiency Policy and the IEA G8 Gleneagles Programme At their Gleneagles Summit in July 2005. Alternative energy scenarios and strategies. Enhanced international co-operation. At the meeting of the IEA Governing Board at the Ministerial Level in May 2005. The Energy Efficiency Imperative The imperative to promote energy efficiency remains a priority for all governments. environmental and economic objectives. 2006 St Petersburg and 2007 Heiligendamm) reaffirmed the critical role that improved energy efficiency can play in addressing energy security. The recent IEA publication Energy Use in the New Millennium (IEA. 5. and other high-level energy and environment meetings. 2007) found that improvements in energy efficiency in 14 major economies from 1990 had reduced energy demand in 2004 by 14% compared to that which would have taken place if the efficiency improvements had not occurred. have declared an intention to take more active measures regarding energy efficiency. in Annex 4. Energy efficiency in buildings.. transport and industry. recent IEA analysis has demonstrated that significant cost effect potential for energy efficiency still 5 © OECD/ IEA 2008 . 3. implementing energy efficiency buys governments time while they configure their economies for a low-carbon future. the Ministers committed themselves to “stronger actions now to curb our growing energy import dependence… including through increased energy efficiency measures” and later put it even more plainly.. they adopted a Plan of Action. Recent meetings of G8 Heads of State (2005 Gleneagles. Agreeing to act with resolve and urgency. This document reports on the outcome of the IEA three-year programme of work in support of the second focus area of the IEA G8 Gleneagles programme: energy efficiency policies. The G8 leaders asked the International Energy Agency (IEA) to be a partner in this Dialogue and to play a major role in delivering the Plan of Action. In the context of climate change. appliances. Specifically. Carbon capture and storage. promote innovation. Political support for energy efficiency is well founded for two compelling reasons. includes a report on progress with implementing recommendations made to 2006 and 2007 summits. “We commit to reinforcing our efficiency effort”. 2. G8 leaders addressed the challenges of climate change and securing clean energy and sustainable development. First. 4. the G8 noted in their Gleneagles Communiqué that they will “. conservation …”. Despite past achievements with energy efficiency and efforts by governments. Renewable energy. For example. energy efficiency. Second. energy efficiency policies have already proved to deliver significant energy savings. This initiative focuses on six broad areas: 1. A Dialogue was also launched that was open to other significant energy consumers. improving the efficiency with which we use energy is the least-cost strategy that can immediately have an impact. this document outlines the energy efficiency policy recommendations and.

Following the charge to demonstrate clear and measurable outcomes. all concrete recommendations draw on extensive ongoing IEA research and analysis. it is important to view the recommendations presented here as a cohesive suite of measures because the barriers to energy efficiency are pervasive. The majority of this potential can be realised through the adoption of technologies which are available today. as is investment in R & D. stakeholders and government officials in the process of developing and refining proposals. wherever appropriate. the development and implementation of energy efficiency policies must be at the top of the policy agenda. the IEA document Cool Appliances (IEA. reviews of international policy experience.remains untapped. For these reasons. addresses a significant gap in existing policy. The IEA Secretariat recommends that governments implement the full set of measures. justified if it: That is. IEA analysis suggests that continued efforts are required on energy efficiency. 12 recommendations made to Heiligendamm (2007).1 These recommendations are described in detail in the following section and listed in Annex 1. early implementation is the key to reaping the energy saving benefits of these recommendations. 2007). as was demonstrated in Mind the Gap (IEA. All recommendations are subject to a rigorous set of criteria. a global cost-effective lighting energy savings potential of 38% was found. 2006). In other words. if governments want to significantly improve energy efficiency. Only by implementing these recommendations without delay will governments realise significant energy savings over the next critical 5 years. While all these components are important for the Secretariat’s analysis. a proposal is • • • • is likely to save a large amount of energy at low cost and with considerable economic advantages to consumers. IEA publications and workshops engage experts. As such. First. but energy savings will not be realised without the comprehensive implementation of concrete policies. This analysis builds on technical/economic modeling. addresses existing market imperfections or barriers by enabling consumers to make informed decisions and fully benefit from their investments. 2003) identified that current energy efficiency policies only exploit about one third of the cost-effective energy savings potential from improving the efficiency of household appliances. literature reviews and dialogues with stakeholders. is supported by a degree of agreement that internationally coordinated actions will lower costs to governments. no single policy implemented in isolation will be effective at achieving this aim. Several important observations need to be made about the set of recommendations presented below. For example. 6 © OECD/ IEA 2008 . significant barriers to energy efficiency remain in the market place. Petersburg (2006). In Light’s Labour’s Lost (IEA. The IEA Energy Efficiency Policy Recommendations The IEA recommends specific energy efficiency policy action across 25 fields of action and seven priority areas. Second. manufacturers and consumers. However. dispersed and complex. stakeholder input plays a particularly important part. 1 This is the consolidation of an overlapping set of 4 recommendations made to St. and 16 presented at Hokkaido (2008). Such open consultation enhances the proposals’ status and improves chances of adoption. Continued analysis is important.

7 © OECD/ IEA 2008 . Some proposals do not lend themselves to estimating energy savings potentials. the saving potential estimates should be regarded as indicative only. If implemented globally. it is important to note the level of specificity in a recommendation.2 GtCO2 /year by 2030. the IEA estimates that the proposed actions could save around 8. we have identified that the cost-effective savings are significant. it is not appropriate to estimate the additional energy savings from the measure relating to national energy efficiency action plans. For example. the Secretariat has attempted to estimate savings potentials. or the provision of better information on end-use energy consumption. This is equivalent to global reference scenario energy-related CO2 emissions in 2030 (see figure 1 below) presented in the IEA 2007 Word Energy Outlook (WEO). 2006-2008. Despite the difficulties with estimating energy efficiency potentials. The level of detail in the text of a recommendation reflects the degree of certainty the IEA has in the effectiveness of the proposed policy measure based on the analysis currently available. recommendations are accompanied by an estimate of the cost effective energy savings potential. Actual achievement of the energy savings will depend on many factors including the rate and effectiveness of implementation in each country. such recommendations provide an enabling framework for targeting and implementing policy and. even without quantitative estimates of energy savings potential the Secretariat may still consider a recommendation because it meets other criteria. Nevertheless. However. Where empirical evidence exists. Thus. Impact on World Final Energy Consumption Source: IEA Fourth.Third. 550 2030 savings estimate Final Energy Consumption (Exajoules) 500 Buildings 34% World Energy Outlook Projection 450 Equipment 13% Lighting Transport Industry 10% 24% 20% 400 92 EJ 350 300 2000 2005 2010 2015 2020 2025 2030 Figure 1: IEA Energy Efficiency Policy Recommendations. without delay. it is important to note that where possible. therefore. are an important component of the full set of measures.

Also. recommendation 12 presented at Heiligendamm. the IEA has also prepared a high-level report on progress relating to the implementation of the previous recommendations (presented in 2006 and 2007. 2 Previously. the IEA continues to promote the new Implementing Agreement for Efficient Electrical End-Use Equipment as a mechanism to support international co-operation on policy development and implementation. the IEA is involved with the establishment of the Sustainable Buildings Network – an IEA task under the Heiligendamm Communiqué.5 below2. The IEA has worked steadily to assist governments to implement these recommendations. As an associated task.The IEA will continue to refine its analysis to provide greater focus and detail in all of its recommendations. see Annex 4). 8 © OECD/ IEA 2008 . It is the intention of the IEA that we will continue to provide governments with implementation support. and responding to recommendation 1. For example.

v) Promoting risk mitigation instruments. despite the fact that their operating costs may be significantly lower). 1.The IEA Recommendations for Enhancing Energy Efficiency 1. the critical lack of familiarity and training in energy efficiency opportunities by personnel in financial institutions. implementation and evaluation they can help to: make the vision for energy efficiency explicit. iv) Collaborating with the private financial sector to establish public-private tools to facilitate energy efficiency financing. financiers’ lack of familiarity with energy efficiency investments. focus attention on the important issues. and vi) Putting in place institutional frameworks to ensure regular co-operation and exchanges on energy efficiency issues between the public sector and financial institutions. Recommendation a) Governments should facilitate private sector’s involvement in energy efficiency investments by: i) Adopting and publicising to the private sector. National energy efficiency strategies are useful because during their development. • • • • Among these barriers. the initial cost barrier (investors avoid energy-efficient investments because the initial costs of these technologies may be greater than other options. risk exposure and discount rate issues. to reduce existing uncertainties in quantifying the benefits of energy efficiency investments and stimulate increased private sector involvement. such as securitisation or public-private partnerships. and the lack of market information on available financial products for energy-efficient investments. This refers to the reluctance of investors and financial institutions to invest in energy-efficient technologies because of: • the unconventional format of energy-efficient investments (often the ancillary benefits of energy-efficient technologies are difficult to quantify and thus not amenable to standard cost-benefit analysis). identify gaps in current work programmes.2 National Energy Efficiency Strategies and Energy Efficiency Goals National energy efficiency strategies can accelerate the implementation of energy efficiency practice across all sectors. iii) Reviewing their current subsidies and fiscal incentive programmes to create more favourable grounds for private energy efficiency investments. a common energy efficiency savings' verification and measurement protocol. as well as the perceived high risks of energy-efficient investments are key barriers which need to be addressed by governments.1 Increased Investment in Energy Efficiency Among the many impediments to the adoption of cost-effective energy efficiency investments is the “finance barrier”. ii) Encouraging financial institutions to train their staff and develop evaluation criteria and financial tools for energy efficiency projects. Cross-sectoral Policies to Support Energy Efficiency 1. identify necessary tasks and resources. and allocate 9 © OECD/ IEA 2008 .

and III. Enforcement and Evaluation Many policies and measures now exist for improving energy efficiency. Assess energy consumption by end-use in all sectors. Recommendation: a) Governments should ensure that both voluntary and mandatory energy efficiency policies are adequately monitored. iii) Ensuring transparent and fair procedures for assessing compliance. or at all. Not only may poor compliance result in lost energy savings and greenhouse gas reductions. At a minimum. misleading conduct and related economic losses. Establish objectives and adequate methods for evaluating the success of the plan. hinder market development and foster a loss of confidence in the use of energy efficiency policy tools more widely. this should include: i) Considering and planning for optimal compliance. Recommendation a) Governments should set goals and formulate action plans for improving energy efficiency in each sector of their domestic economies. ii) Establishing legal and institutional infrastructure for ensuring compliance with energy efficiency requirements. including specification of the methods. When such a gap emerges. i) Best practice action plans should: I. monitoring and evaluation procedures at the time new policies and measures are formulated. supplier/installer error and various market barriers. frequency and scope of monitoring activities. the issue of poor compliance is frequently overlooked. measured impacts. measurable and achievable energy efficiency objectives. both of a voluntary and mandatory nature. enforced and evaluated so as to ensure maximum compliance. Alongside the continued evolution of energy efficiency policy measures is the common emergence of a gap – at the point of implementation – between expectations of what a policy measure will achieve and its actual. It may also encourage free-riding. these objectives enable evaluation of a strategy’s progress. 1. Effective strategies can involve the establishment of specific. the coverage is by no means complete. Similarly. Though several countries have adopted energy efficiency strategies. b) Energy efficiency policy agencies should be adequately resourced. Identify the economy's energy-saving potentials.implementation and monitoring responsibility. However. 10 © OECD/ IEA 2008 . By illuminating trends in energy use and efficiency. anticipated energy savings may not be achieved. despite the fact that suboptimal compliance and monitoring procedures frequently hinder the full attainment of energy efficiency policy objectives. utilising on-going IEA work for developing sectoral energy efficiency benchmarks and compiling best practices. A marked improvement in energy efficiency requires a concurrent improvement in funding for policy agencies. including poor consumer awareness.3 Compliance Monitoring. At the same time. policy agencies developing these strategies need to be adequately resourced. A range of factors have been identified as contributing to this implementation gap. either within the anticipated timeframe. II. examples exist to indicate that it is possible to ensure effective and cost-efficient compliance and monitoring procedures.

and ii) At a minimum. G8 countries have invested in the development of concrete recommendations. 1. Collecting data carries a cost for companies. Therefore. Recommendation: a) Governments should ensure that their energy efficiency policies are supported by adequate end-use information by substantially increasing their efforts to collect energy end-use data across all sectors and relating to all energy types. organisations and countries. 1. However. v) Establishing and implementing a suite of enforcement actions commensurate with the scale of non-compliance and the value of lost energy savings. Such an understanding requires accurate data on energy end-use and the associated activities. timeliness and quality of the required energy and other data. governments should ensure that they are able to complete and submit the annual energy efficiency data template developed by the IEA in co-operation with other organisations. Despite this progress. As yet there is no formal monitoring or reporting function to assess progress with implementing the IEA proposals. i) This will require governments to increase the resources allocated to energy end-use data collection. lack of data – or not having the right data – may lead to misinformed policy decisions and suboptimal choices that proved to be far more costly than the long-term.iv) Ensuring regular and public reporting of monitoring activities. and vi) Establishing and implementing a robust system for evaluating policy and programme success during and after implementation. 11 © OECD/ IEA 2008 . governments should ensure that their energy efficiency policies are supported by adequate end-user information. Likewise. the availability of detailed end-used data has increased in many countries in the past few years. the IEA has developed in-depth energy efficiency indicators to provide state-ofthe-art data and analysis on energy use.4 Energy Efficiency Indicators Developing effective energy efficiency policies requires a good understanding of how energy is used and the various factors that drive or restrain demand. the IEA has identified significant gaps in the completeness. efficiency development and policy. Regular progress reports would help G8 and plus 5 countries to assess their performance. Recommendation: a) Governments should agree to track progress in implementing each of the concrete recommendations and to provide the IEA with regular updates.5 Monitoring and Reporting Progress with IEA Energy Efficiency Recommendations Following the request from the G8 Gleneagles Summit for IEA advice on energy efficiency. To this end. Such progress reporting could also enable the IEA to continue to assist countries by identifying emerging issues and future areas for action. including instances of non-compliance.

2. Energy-efficient Buildings Estimates suggest that the potential savings from this package of measures could save around 32 EJ/year and 1. 4 3 This is a little more than twice the total building contribution to the World Energy Outlook (WEO) Alternative Policy Scenario (APS) in 2030. most of the standards are below the economically optimal level when considered over a 30-year building life. IEA analysis reveals that the cost-effective energy savings potential for these end-uses is enormous3. existing buildings. In doing so. building certification. The energy efficiency of new buildings should be addressed at the appropriate level of government via energy efficiency standards in building codes that set minimum energy performance standards for all new buildings. or split incentives between owners and tenants. Recommendation a) i) Governments that do not currently have mandatory energy efficiency standards for new buildings in building codes should urgently set. windows and other glazed areas. passive energy houses and zero energy buildings. Furthermore. One implication of this problem is that energy-related decisions tend to be based on immediate building costs rather than on long-term energy efficiency considerations. Germany and Belgium combined4.1 Building Codes for New Buildings Promoting energy efficiency in new buildings is especially feasible and needs to be at the forefront of building energy efficiency policies. Most OECD countries already have mandatory energy efficiency standards for new buildings. Improving the energy efficiency of buildings requires work by all nations and/or federal states. There is significant potential to increase the comprehensiveness and stringency of energy efficiency requirements in building standards and to approach the conservation optimum calculated over a building’s 30-year lifetime. 2.4 GtCO2/year by 2030. such standards. such standards address market failures by setting a minimum standard for all buildings. but only 70% of the potential in Energy Technology Perspectives for 2050. 12 © OECD/ IEA 2008 . A common failure that building standards help to address is the principal-agent problem. some jurisdictions still lack mandatory energy efficiency standards for new buildings. This is more than the CO2 emissions in 2005 from France. enforce and. regularly update. However. and ii) Those governments that currently have mandatory energy efficiency standards for new buildings should significantly strengthen those standards.Buildings account for 40% of the energy used in OECD countries. The package of priority measures for promoting energy efficiency in the buildings sector covers: • • • • • building codes for new buildings. energy efficiency standards apply only to certain types of buildings. b) Energy efficiency standards for new buildings should be set by national or state governments and should aim to minimise total costs over a 30-year lifetime. In other countries. Recommendations relating to the additional energy saving potential for lighting and appliances appear in the Appliances and Lighting sections below.

such standardisation has at least two other benefits. Apart from improving policy design. is technically and commercially feasible. lack of knowledge of energy-efficient options and lack of skills to install and maintain energy-efficient technologies. standardised analysis can assist in transferring information on experiences and solutions for improved energy efficiency in the building sector. or even no net energy. these very low energy-consumption “passive energy houses” (PEH) (that use 65-80% less energy than a standard house) are often less expensive than those of traditional design. The limited uptake of low-energy buildings can be attributed to the fragmented nature of this sector (multiple decision makers involved in the construction of a single building) and the limited consideration given to longer-term energy-related running and lifetime costs. Countries should set efficiency standards for existing buildings to ensure that energy efficiency is improved during any renovation or refurbishment. Further studies are urgently needed to support policy recommendations for improved energy efficiency in existing buildings. they account for a larger share of the building stock than in other countries. “Zero energy buildings” (ZEB) are currently more expensive than traditional buildings. However. In countries where there has been government support for these buildings. The technology for low-energy buildings has been widely available for some time. there is also a need to encourage maximum energy-efficiency performance in new buildings and to ensure that these buildings are available in the market place. However. c) Passive Energy Houses or Zero Energy Buildings should be used as benchmark for energy efficiency standards in future updates of building regulations. Experience has shown that active government support can increase the uptake of lowenergy buildings. Second. These barriers include split incentives between owners and tenants. but their costs are dropping. Information is particularly needed to compare energy efficiency policies and to identify global best practices. standardisation can reduce the uncertainties associated with quantifying the benefits of energy-efficient investments. 2. Recommendation a) Governments should support and encourage the construction of buildings with very low or no net energy consumption (Passive Energy Houses and Zero Energy Buildings) and ensure that these buildings are commonly available in the market.2 Passive Energy Houses and Zero Energy Buildings Mandatory energy efficiency standards set the minimum energy performance of new buildings. Comparative analysis of building-related energy efficiency policies.3 Existing Buildings Worldwide. limited interest in energy consumption. the total energy consumption of existing buildings can be halved over 30 years. Construction of these high-energy-efficiency performance buildings which use very low. Countries must act now to collect more information on the energy efficiency of their building stock. existing buildings represent a major source of energy saving potential: through renovation. Despite the technical and often commercial feasibility of improving an existing building’s energy efficiency. b) Governments should set objectives for PEH and ZEB market share of all new construction by 2020. requires information to be collected and analysed in an internationally harmonised manner. First. Improving energy efficiency is often most feasible during refurbishment. PEH and ZEB command a very small (less than 1%) market presence worldwide. many market barriers hamper its realisation.2. on barriers to improved efficiency and on the success of existing conservation initiatives. despite the financial benefits of low running costs and technical feasibility. 13 © OECD/ IEA 2008 . Over time.

Surprisingly. particularly through the replacement of windows in existing buildings. and ii) Also. provision of information material. Furthermore.Recommendation a) Governments should systematically collect information on energy efficiency in existing buildings and on barriers to energy efficiency. in general. this information will not be provided. b) Standardised indicators should also be calculated for energy efficiency in buildings for international comparison.e. and ii) Structures that ensure that energy efficiency information is available to all actors in the building sector at all times. construction or purchase as well as purchase and refurbishment decisions for existing buildings. in the building market place. This includes new-building design. monitoring and selection of best practices. Indeed. One policy that promises to be particularly effective is the mandatory provision of energy efficiency ratings of buildings to prospective purchasers/tenants. Experience has shown that if this is not mandatory. from architects to tenants) having limited knowledge or interest in energy efficiency. 14 © OECD/ IEA 2008 . installing energy-efficient windows. Policies to enhance energy efficiency’s visibility could include public information campaigns. The lack of attention given to energy efficiency is often due to the important decision makers in the building sector (i.5 Windows and other Glazed Areas Installation of energy-efficient glazing provides significant energy-saving potential. Recommendation a) Governments should take actions to make building energy efficiency more visible and to provide information on major energy saving opportunities. This should include: i) Mandatory energy certification schemes that ensure that buyers and renters of buildings get information on the energy efficiency of buildings and major opportunities for energy savings. establishing information centres or energy efficiency legislation covering the supply of energy. 2.4 Building Certification Schemes Initiatives need to be taken to ensure that energy efficiency is more visible. provides one of the most effective means of improving the energy efficiency of existing building stock as windows are often replaced several times during the life of a building. i) This package should set standards to ensure that energy efficiency improvements are achieved during the refurbishment of all buildings. 2. The most appropriate way of providing this information is through a certification scheme for building energy efficiency performance. retrofitting energy-efficient windows is cost-effective in all climates. this situation occurs despite the fact that energy costs are in general a major proportion of the building’s lifetime costs. when old windows are being replaced. This is because energy efficiency is often overlooked when making major building-related decisions. c) Based on this information governments should construct a package of initiatives to address the most important barriers to energy efficiency in buildings. Such a scheme needs to be complemented with robust energy efficiency performance auditing and measurement procedures and could be supported by incentives to implement efficiency. building purchase decisions or maintenance. the package should increase awareness of efficiency in the building sector and raise the market profile of a building’s energy performance.

including standby power. All countries should place an emphasis on ensuring that requirements are regularly updated in line with international best practice. 3. while those countries without appliance energy efficiency regulations should duplicate requirements used elsewhere. b) Adequate resources should be allocated to ensure that stringency is maintained and that the requirements are effectively enforced. ii) A requirement for window and glazed-products manufacturers to provide energy efficiency labelling for their products. A package of polices should be implemented to achieve such ends that includes minimum energy efficiency standards for glazing and windows taking into account the costs over the window’s lifetime. This policy package should include: i) Minimum energy efficiency standards for windows and other glazing that are based on least lifetime costs. and public-sector procurement policies.2 GtCO2/year by 2030. Recommendation a) Governments should set up a policy package to improve energy efficiency in windows and other glazed areas.Countries should establish policies that encourage the use of highly energy-efficient windows and other glazed areas. The suite of appliance-related recommendations outlined below covers: • • • • mandatory energy performance requirements or labels. comparative energy labels across the spectrum of appliances and equipment at a level consistent with international best practices. for electronic and networked equipment. 15 © OECD/ IEA 2008 . This is equivalent to around double India’s CO2 emissions in 2005. 3. and represent one of the fastest growing energy loads. existing mandatory regulations should be extended to cover the majority of end-use equipment. While national strategies to promote energy efficiency in appliances require a mix of policy measures. Therefore. low-power modes. and rigorously enforced. and iii) Governments establishing demonstration projects for efficient windows and implementing energy-efficient window procurement policies. demonstration projects. and modes of operation. It is estimated that at least onethird of this could be saved cost-effectively by 2030. Energy-efficient Appliances Residential appliances account for over 30% of electricity consumption in most countries. Recommendation a) Governments should adopt mandatory energy performance requirements and.1 Mandatory Energy Performance Requirements or Labels Mandatory energy performance requirements and labels have proved to be a highly costeffective policy tool for encouraging the reduction of average energy consumption in equipment without reducing consumer choice or triggering sustained increases in prices. especially at the time of replacement. in order to realise the optimal energy savings potential. where appropriate. television "set-top " boxes and digital television adapters. the effective implementation of mandatory energy efficiency regulations for appliances should be the cornerstone. televisions.8 EJ/year and 2. If implemented globally. these recommendations could save around 12. energy performance test standards and measurement protocols. requirements to label glazing and windows.

and providing this on a consistent and timely basis for the number of products available is largely impractical. measures to encourage effective power management of home digital networks are required to ensure that energy consumption from networked devices does not escalate. rather than rely upon consumer action.2 Low-power Modes for Electronic Equipment Limiting the energy used in standby power mode targets electronic appliances when they are not performing their primary function.lbl. but is sufficiently flexible to allow product development and innovation in product design.html for a collection of papers on this topic. the amount of electricity use per product—and the value of the electricity — are so small that it seldom attracts consumer attention over other features. The first is the implementation of the horizontal 1-Watt standby limit to cover the very large number of appliance types used today. Preliminary research in the US suggests that electricity consumption from home entertainment devices may grow by 100% over the next 10 years. 6 7 5 See. Paris.org/textbase/subjectqueries/standby. and http://standby.asp 16 © OECD/ IEA 2008 . is increasingly important as these types of devices proliferate in the residential and commercial sectors. the Gleneagles Plan of Action instructed the IEA to “promote the application of the IEA 1-Watt Initiative”.com/mag/405PET33. manufacturers have little incentive to offer low standby power products because they receive less market benefit for improved energy efficiency compared to investments made in developing other selling features. plus significant amounts in the other sectors5. 2001. Recognising that standby power represents 2–11% of residential electricity use in IEA member countries. most policies focus on a limited number of major appliances which account for approximately 30% of the total. There are between 40-50 different types of appliances each contributing a small amount to the overall standby power consumption in many residences7. the incremental cost is quickly recovered through reduced electricity charges. There are a number of key elements to effectively minimise standby power consumption. Even if information were available. As a result. http://powerelectronics. before the proliferation of See Things That Go Blip in the Night: Standby Power and How to Limit It.3. and other aspects). In nearly all cases. International Energy Agency. While progress has been made in reducing the power consumption of some electronic devices in line with a 1-Watt target. data bases. Consumers have limited information about standby power use from existing labels. for example. This is feasible with modern technology and is the most cost-effective means of maximising energy savings by consumers.iea. Thirdly. inventory. An horizontal 1-Watt approach not only captures all the “smaller” appliances. This issue requires attention now. without industry-wide protocols to enable power management commands to be communicated between devices within a network. without decreasing the functions provided by appliances. The incremental cost of achieving low standby levels is generally very small if integrated into the normal design cycle (and is sometimes negative because of savings in transportation.gov/ACEEE. The second element is the adoption of policies which encourage effective power management so that appliances go into standby mode automatically when not in use.6 Several barriers prevent market-based solutions from minimising standby power use.pdf See presentations on www. Reducing standby power use to 1-Watt in all appliances would save 5–70% depending on the mix of products and behaviour. or endorsement programmes.

providing consumers with more product choice and a range of new services. leading to a dramatic increase in the market for Digital Television Adaptors (DTAs). The development of new formats and devices. Ensure such protocols are developed and implemented. Recommendation a) Governments should adopt the same “horizontal” 1-Watt limit and apply it to all products covered by an International Electrotechnical Commmission definition of standby power with limited exceptions. with a priority placed on the establishment of industry-wide protocols for power management. so there no incentive See http://www. energy use. In the competitive market for set-top boxes. and II. c) Governments should ensure that network-connected electronic devices minimise energy consumption.org/Textbase/work/workshopdetail. Already many countries are experiencing considerable growth in energy consumed by home entertainment equipment. The increase of digital TV. so that technology under development has the technical potential to access low-power modes. often connected in home networks. 8 17 © OECD/ IEA 2008 . leading to forecasts that this may become the largest component of residential sector energy use in the future unless governments move to implement policies. This rapid market development places considerable pressure on product design and supply and is a disincentive to energy efficiency. Instruct relevant public and private standards authorities to ensure that industry-wide protocols are developed to support power management in appliances and equipment. 3. Smaller televisions are being replaced by larger flat screens and surround sound. and potential savings.3 Televisions. the current trend is towards more complex boxes. will continue to grow potentially resulting in increasing electricity consumption. I. While many of these products will be DTAs. together with that of pay-TV services globally means that more than a billion set-top boxes will be purchased world-wide in the next ten years8. videorecorders by DVDs and hard disc storage. From 2008 to 2012 many countries will switch to digital-only transmission. Set-top boxes. are becoming commonplace in many homes. i) In order to enhance governments should: energy efficiency across electronic networks. Television “set-top” Boxes and Digital Television Adaptors (DTAs) The advent of the digital era has heralded a new generation of home entertainment equipment. Typically they are required to receive programmes from a pay-TV provider. b) Governments should adopt policies which require electronic devices to enter lowpower modes automatically after a reasonable period when not being used. often able to download programming content and including recording facilities. used to convert a television transmission signal into a format that can be displayed on a domestic television.iea.asp?WS_ID=285 for descriptions of technologies. or to convert signals from a free-to-air digital transmission for viewing on an analogue television. rather than minimising lifetime costs. free-to-air transmissions by pay-TV options. Many set-top boxes are purchased by a television service provider (TVSP) and leased to householders who pay the energy bill. including networked devices. manufacturers tend to focus on reducing the first cost to customers. Design improvements to increase efficiency often introduce complexities and delays to market entry without significantly increasing sales.proprietary standards.

In addition. As all TVSPs operate on a licence or franchise agreement with government agencies. current technologies vary in efficiency and therefore savings can be realised through implementing policies to promote the best performing products presently available.for the TVSP to reduce the running cost of equipment. Further. with respect to energyefficient set-top boxes. and ii) Ensure that the consumer can easily switch the unit to the lower power level. c) Governments should implement energy efficiency policy measures for TVs and settop boxes designed to: i) Promote the best performing current TV products and technologies. are policies that establish a minimum efficiency standard for Digital Television Adaptors. although they may not be watched. 18 © OECD/ IEA 2008 . some governments have already implemented policy measures. These regulations should: i) Specify the maximum power levels while “on” and “off”. the number of televisions is growing in most countries. although householders are often unaware of the cost implications. Policies are also required to encourage TVSPs to consider energy efficiency. This lead should. Unconstrained by space limitations and falling prices. ii) Stimulate the market entry of new television technologies which aim to halve TV energy consumption compared to current performance levels. Often consumers have little choice in the selecting the model of set-top box. Recognising the energy savings to be made in this area and the importance of taking early action. and iii) Minimise the energy used by TVSP customers in receiving TV services by ensuring that such requirements are included in relevant franchise or licensing agreements that allow TVSPs to operate. In addition. Televisions are also switched on for longer periods of time. be followed by all countries. These types of set-top boxes never effectively go into standby mode. which ensures that public funds are used to support energy efficiency objectives. These developments are leading to increases in energy use of approximately 5% per annum which will cause the global energy consumption of televisions to double by 2020. primarily targeted at DTAs. these bodies should include energy performance requirements within such contracts. Increased use of games consoles and programme recording devices have tended to extend viewing hours. while often keeping existing televisions. consumers continue to purchase televisions with larger screens for primary use. technologies with even higher efficiency levels are on the horizon and require policies which stimulate the market sufficiently to make them commercial. covering both the hardware provided to customers and effective power management. some countries are considering subsidising the purchase of DTAs in advance of the switching-off analogue television signals. Consequently. televisions have undergone a rapid transformation in recent years as flat screen technology replaces bulkier traditional screens. Recommendation a) The IEA concludes that international best practice. however. As noted earlier. as currently there are no effective market drivers for them to do so. However. b) A second aspect of best practice is to ensure that government-subsidised units meet higher efficiency requirements. a growing proportion of set-top boxes consume electricity even when the television is not being watched in order to receive occasional programme information and updates from the TVSPs.

The combined global expenditure on lighting energy is just less than 1. Some 2. In total. Even more energy could be saved by optimising installed light-levels and increasing the use of daylight. the costs of the lighting service once the equipment. to determine whether they are consistent with national policy requirements. lighting is responsible for almost 1900 Mt of CO2 emissions each year: equivalent to emissions from 70% of the world’s cars.4 million barrels of oil per day are also used to provide lighting in households in developing countries and to power lights on vehicles. The most lighting energy is used in commercial buildings (43%).3. energy. The IEA publication Light’s Labour’s Lost estimates that at least 38% of global lighting energy consumption could be saved cost-effectively for the end-user by greater use of efficient lighting technologies. which are mature technologies with a proven track record of cost-effective savings. where appropriate. A great amount of light is currently wasted through lights being left on when spaces are unoccupied and by electric lighting not responding to increased daylight levels. which is a technology holding great promise that already occupies some niche lighting markets and is progressing rapidly. in order to assist performance comparison and benchmarking for traded products while also reducing compliance costs. National energy efficiency policy objectives will be undermined by energy measurement standards that fail to reflect actual energy use and/or provide a true in-use efficiency ranking of equipment. In the near future. End-users in all lighting sectors have very little information about lighting energy use and there is widespread ignorance about the technologies and opportunities to improve lighting performance. followed by: residential buildings (31%). In this context consumers buy products with the lowest first cost and those which are most familiar. 4. and ii) support the development and use of international measurement standards. Information on lighting life-cycle costs (i. 19 © OECD/ IEA 2008 . Slightly over half was in OECD economies. Recommendation a) Governments should: i) Review energy measurement standards currently used.0% of global GDP at US338 billion. Best Practice in Energy-efficient Lighting Lighting represents almost a fifth of global electricity consumption.4 Test Standards and Measurement Protocols The effective implementation of energy efficiency policies for appliances and equipment relies upon the use of accurate energy performance measurement standards and protocols. This consumption corresponds to more electricity than is generated by either nuclear power or hydroelectric power and about as much as generated from gas9. Large savings are possible through the use of effective automatic lighting controls. Each of the major economic regions of the IEA is a leader in some areas of energy-efficient lighting but each also has major opportunities to improve the efficiency of their lighting service in other areas. installation and maintenance costs are taken into account) is much 9 The IEA estimates 2650 TWh of final electricity was used for lighting globally in 2005. A variety of barriers hinder market-based solutions to the adoption of efficient lighting. industrial buildings (18%) and outdoor lighting (8%). The efficient lighting technologies considered in this analysis are mature and widely commercially available.e. There are many types of lighting designated for different applications and as the publication Light’s Labour’s Lost demonstrates there are significant savings opportunities in each. significant additional savings could be possible through the use of solid-state lighting. these may not be the most efficient and cost-effective.

Many commercial buildings are not owned by the occupants and hence decisions regarding equipment performance (including lighting) are taken without consideration of their operating costs.3 trillion from 2008 to 2030.2 Non-residential Buildings and Phase-out of Inefficient Fuel-based Lighting The majority of electricity used for lighting is for in-door lighting in non-residential buildings i. Lighting equipment manufacturers will supply what the market demands. Cumulatively this would reduce global net lighting costs by US1. Conventional incandescent lights are highly inefficient with only 5% of the input energy being converted into light and the rest being converted into waste heat. i) In aiming for this objective.2 GtCO2/year by 2030. In the hypothetical case that all these lamps were to be replaced by CFLs it would save roughly 800 TWh and 470 MtCO2 emissions in 2010 rising to 1200 TWh and 700 MtCO2 in 2030. install and operate such systems. however. and avoid 6. optimisation of design light levels. Globally incandescent lamps are estimated to have accounted for 970 TWh of final electricity consumption in 2005 and given rise to about 560 Mt of CO2 emissions. appropriate use of natural daylight and the application of good lighting design. installation and operation.e. they usually make greater profits on the moreefficient higher-quality products and thus often welcome preferential purchase of efficient lighting technologies.less readily available and thus it is far less apparent as a determinant in equipment acquisition decisions. ballasts and luminaires (lamp housings comprising reflector. within public. If current trends continue incandescent lamps could use 1610 TWh of final electricity by 2030. and ii) Also government and industry actions must be coordinated internationally to ensure a sufficient supply of good quality higher efficiency alternative lamps. such as lamp energy performance requirements. whether it is efficient or not. Recommendation a) The IEA recommends that governments endorse the objective of across-the-board best practice in lighting. use of intelligent lighting controls. b) Governments should move to phase-out the most inefficient incandescent bulbs as soon as commercially and economically viable. 4. Outdoor lighting is also a rapidly growing area of lighting energy use which presents significant cost-effective energy savings opportunities. About 61% of this demand was in the residential sector with most of the rest in commercial and public buildings.4 GtCO2 emissions at negative abatement cost of –US205 per tonne. there is a need both for appropriate time scales and performance targets to be established. The problem is compounded because building contractors have an incentive to keep equipment costs to a minimum and the solutions as simple and fast to implement as possible so they can meet deadlines and minimise expenditure. 4. A large proportion of outdoor street lighting in OECD and non-OECD economies is still provided by 20 © OECD/ IEA 2008 . There are highly costeffective opportunities to save lighting energy in these spaces from the use of efficient lamps. CFLs are between 4 to 5 times more efficient. Realising the majority of these savings opportunities can only be addressed through policy measures which target the performance of the lighting system as a whole and that place responsibilities upon the agents who design. the IEA estimates the lighting measures could save around 9. If implemented globally. commercial and industrial buildings. but aim to address key principal-agent problems which otherwise mitigate against optimised lighting system design. procurement.1 Best Practice and Incandescent Phase-out A first priority for energy-efficient lighting policy is phasing out conventional incandescent lamps.3 EJ/year and 1. anti-glare device and optics). Such measures are complementary to policies which address the energy performance of specific lighting components.

b) Governments should support international efforts to stimulate the adoption of higher efficiency alternatives to fuel-based lighting in off-grid communities e. Recommendation a) Governments should put in place a portfolio of measures to ensure energyefficient least-cost lighting is attained in non-residential buildings. Globally. to provide illumination. 1. II. such as kerosene lamps. Furthermore it provides inadequate illumination levels for many applications such as reading and gives rise to significant in-door air pollution. industrial. should draw no more than 10W of power per square metre of internal floor area when averaged over the whole building. The portfolio of measures should include the following: i) The inclusion of energy performance requirements for lighting systems within building codes and ordinances applicable to the installation of lighting in the commercial. Hasten the phase-out of inefficient street lighting technologies such as mercury vapour lamps. public. Approximately 1. Specify that general service lighting systems in new non-residential buildings. 21 © OECD/ IEA 2008 . A global effort to support the transition away from fuel-based lighting to more sustainable alternatives.inefficient mercury vapor lamps. or substantial retrofits of existing non-residential buildings. presently there are limited distribution channels for this technology and the initial costs can be prohibitively high for households reliant on fuelbased lighting most of which lack access to credit and have constrained cash flow. and which aimed to address technology access and financing issues. via supporting the diffusion of solar powered solid state lighting devices. These requirements should: I.g. Such lighting is extremely inefficient and costly. outdoor and residential sectors. would have a positive impact on the lives of hundreds of millions of people and help support the attainment of a variety of international development and energy policy goals. Include targeted measures to stimulate better control of lighting and the avoidance of illumination of unoccupied spaces. which results in ~190 Mt of annual CO2 emissions. III.3 million barrels of oil a day are used for off-grid fuel-based lighting. including a full peer review comparing local recommendations with those applied internationally to ensure that there are no excessive lighting levels recommended in national guidelines. However. Be based upon a review of recommended lighting levels. and IV.6 billion people have no access to electricity through the grid. As a consequence these people rely on fuel-based lighting technologies. Replacing these by more efficient modern alternatives such as ceramic metal halide lamps or high pressure sodium lamps reduces energy costs by roughly 40% and typically has an internal rate of return on the investment of around 50%. In areas where access to the grid is not viable in the near term. new solid-state lighting technology can provide high-quality solar-powered task lighting at a significantly lower cost over its life-cycle than fuel-based lighting and without the associated negative environmental impacts.

for almost any level of traction or durability. 22 © OECD/ IEA 2008 . However. so energy efficiency considerations often receive low priority in consumer information programmes. so there is a clear economic advantage to consumers. the rolling resistance of tyres in the replacement market is higher than those offered on new cars (especially in North America). so the fuel savings from low rolling resistance tyres are lost after the original tyres wear out. and 5. and environment. Some vehicles in other regions are also sold with efficient tyres. Unfortunately. Additional fuel is required when tyres are under-inflated. Where there is still concern in these areas analysts expect that technological advances in the near-future will achieve such compatibility for all tyres. Experts have reached a consensus that international test procedures for measuring tyre rolling resistance are necessary for effective deployment of fuel-efficient tyres. mandatory fuel efficiency standards for cars and small trucks. with a view to establishing labelling. Safety and durability of tyres are important considerations. it is impossible for consumers to make savings when it is time to replace tyres. and possibly maximum rolling resistance limits where appropriate. As a result. tyres with both high and low rolling resistances are available.4 GtCO2/year by 2030. Tyres with lower rolling resistance are generally available at little extra cost. Energy-efficient Transport ii) Adopt measures to promote proper inflation levels of tyres. The purchasing environment discourages thoughtful decisions regarding efficiency investments. Further investigation into the correlation between rolling resistance. Recent data presented at an IEA workshop demonstrated that. safety and durability in relevant tyre categories under appropriately defined conditions is necessary. these policies could save around 23 EJ/year and 1. industry. Auto manufacturers in the United States and Japan already carefully minimize rolling resistance of tyres in new cars because this is an effective way to comply with fuel economy regulations. Recommendation a) Governments should: i) Adopt new international test procedures for measuring the rolling resistance of tyres. An additional impediment to coordinated international efforts to improve tyre efficiency has been the absence of an internationally recognised procedure to measure rolling resistance. Following this realisation. 5. Achieving such savings requires urgent policy attention in four areas: implementing measures for the deployment of fuel-efficient tyres.1 Fuel-efficient Tyres Roughly 20% of a motor vehicle’s fuel consumption is used to overcome rolling resistance of the tyres. mandatory fuel efficiency standards for heavy duty vehicles and promoting ecodrive. If implemented globally. This is equivalent to about 16% of total reference scenario CO2 emissions from transport in 2030.There are significant energy savings potentials in the transport sector. There is now consensus that policies can achieve as much as a 5% reduction in overall vehicle fuel consumption. Government responsibility for tyres is often widely dispersed among ministries of transportation. for road-vehicle tyres. or public sources of information. there is no way for consumers to identify tyres with low rolling resistance because there are no labels and few web sites. many activities to establish the test procedures are now underway and more activities are expected at international fora including the International Standard Organisation and the World Forum for Harmonization of Vehicle Regulations (UNECE/WP29).

where they do exist. manufacturers have already been able to introduce some vehicles that meet the standards. The manufacturers’ response to the standards may also illustrate the availability of unexploited fuel efficiency technologies. and risk aversion by both manufacturers and buyers. As a result. many governments are now exploring both voluntary and mandatory programmes to accelerate fuel efficiency improvements in trucks and other heavy duty vehicles. 5. make those standards more stringent. manufacturers should have enough advance warning in order to cost effectively respond to the new requirements. 23 © OECD/ IEA 2008 . Recommendation a) Governments should: i) Introduce new mandatory fuel efficiency standards for light-duty vehicles if they do not already exist. Many barriers prevent the rapid introduction of costeffective energy efficient technologies. and iii) Harmonise. Experts agree that while it is likely that fuel efficiency improvements with a payback period of 3-4 years will be implemented by commercial operators. or. Japan introduced fuel efficiency standards for HDVs and tax-incentive measures for vehicles meeting the fuel efficiency standards. 5. as many aspects of the future standards as possible.3 Mandatory Fuel Efficiency Standards for Heavy-duty Vehicles Heavy-duty vehicles are responsible for 30% of world-wide fuel use. governments should introduce: i) Fuel efficiency standards. and ii) Related policies including labelling and financial incentives based on the vehicle’s fuel efficiency.I. fluctuating fuel prices. vehicle manufacturers operate in a global market. making the fitting of tyre-pressure monitoring systems on new road vehicles mandatory. Alignment of different vehicle fuel efficiency standards would reduce compliance costs for manufacturers by providing consistent regulatory conditions across countries. although it is desirable to implement them as early as possible. In 2006. acting in cooperation with international organisations including UNECE. This should include governments. ii) Announce the more stringent content of the proposed standards as soon as possible.2 Mandatory Fuel Efficiency Standards for Light-duty Vehicles Implementation of appropriate mandatory fuel efficiency standards for cars and small trucks (light-duty vehicles) in all countries is a necessary condition for achieving significant energy savings in this sector. Recommendation a) For heavy duty vehicles. Although the Japanese standards require as much as 12% fuel efficiency improvement over 2002. In addition. with lower compliance costs manufacturers will be able to direct more resources towards development and distribution of fuel-efficient vehicles at affordable prices. This will also benefit drivers. such as lack of information. When implementing mandatory standards. where appropriate. measures with a payback period of 4-6 years will probably require some form of support. The transport sector has already achieved significant improvements in vehicle fuel efficiency but large potential improvements remain.

There is broad consensus among experts that in-car instruments such as gear shift indicators.2 Minimum Energy Performance Standards for Motors Industrial electric motors are estimated to consume around 40% of all global electricity (about 6000 TWh in 2005) and thereby give rise to some 4400 Mt of CO2 emissions. iron and steel. Also the IEA information paper on Measuring Energy Efficiency Performance stressed the importance of accessible data. in cases where there is no support beyond the initial training. Without accurate data it is difficult to target and develop appropriate energy efficiency policies for this significant energy-using sector. It remains. it has become an integral part of transport-sector fuel consumption reduction strategies in several countries. Overall. cement. on the margins of transport policy development in many other countries.6 GtCO2/year by 2030. cruise controls and on-board computers giving feedback on the current fuel consumption help reduce fuel consumption. Because eco-driving immediately brings significant amounts of fuel savings. 6. Implementing these four areas globally is estimated to cost-effectively save around 18. the IEA recommends policies for electric motors. petro-chemicals. enhanced energy management and policies that target small and mediumsized enterprises. fuel savings could drop to around five percent on average. 6. industry’s final energy use has grown by 61% between 1971 and 2004. Recommendation a) Governments should ensure that eco-driving is a central component of government initiatives to improve energy efficiency and reduce CO2 emissions. In addition.4 Eco-driving Eco-driving is a term used to describe initiatives that support energy-efficient use of vehicles. IEA analysis shows that substantial opportunities to improve industrial energy efficiency remain. However. 6. average fuel savings of 10% are feasible. Here. This being around 20% of industry and non-energy use reference scenario CO2 emissions in 2030.5. A number of strategies are available to maintain the habit of eco-driving once training is over. However. Much of this potential can be captured through policies for promoting use of energy-efficient industrial appliances and improving overall efficiency through energy management. Recommendation a) Governments should support the IEA energy efficiency indicator work that underpins critical policy analysis by ensuring that accurate energy intensity time series data for industrial sectors is reported regularly to the IEA. It is a way of driving that reduces fuel consumption and greenhouse gas emissions.9 EJ/year and 1. high quality energy efficiency data for industry is required.1 High-quality Energy Efficiency Data for Industry The IEA 2007 book Recent Analysis into Indicators for Industrial Energy Efficiency and CO2 Emissions highlighted a significant gap in the availability of high-quality energy efficiency data. paper. pulp and paper and other minerals and metals – account for more than two thirds of this amount. Overall electric-motor driven systems account for 15% of all industrial final energy demand. Experts agree that over the mid-term (<3 years). however. Energy-efficient Industry Industry accounts for nearly one third of total global primary energy supply and 36% of CO2 emissions. The large primary materials industries – chemicals. i) Government support for eco-driving should include promotion of driver training and deployment of in-car feedback instruments. 24 © OECD/ IEA 2008 .

but only account for about 20% of electricity use and have lower efficiency than three-phase motors. have adopted minimum energy performance standards (MEPS) for industrial electric motors. The internal rate of return from the use of a HEM compared to a standard motor is usually well over 100%. However. A certain proportion of the savings potential can be realised through the adoption of better energy management practices as are discussed and recommended in sections 6. compressors and circulators. It is estimated that were all countries to adopt best practice MEPS for industrial electric motors it would save between 240 and 475 TWh of electricity demand by 2030. The average energy efficiency of new motors in countries applying such MEPS is notably higher than in those without such requirements and the policy instrument has been shown to be practicable to implement and to be a cost effective means of saving energy.3 and 6. there is a tendency in unregulated markets for purchasers to choose motors with a low first cost and to under-invest in high efficiency motors. additional policy measures are required. comprising a quarter of the world’s population. low loads and low rotation speeds. high efficiency motors (HEM) are almost always more cost-effective for end-users because motor energy costs typically account for over 95% of a motor’s life cycle cost. Some of these can target standardised motor driven applications such as pumps. Within any given output power rating there is currently a spread of several percentage points in efficiency between the more and less efficient motors. However. roughly 10% of global electricity demand. This occurs because of the existence of a variety of market barriers that include: • • • lack of awareness among motor procurers of savings potentials from the use of more efficient motors.4. giving rise to corresponding savings from 150 to 300 Mt of CO2 emissions. Recommendation a) Governments should consider adopting mandatory minimum energy performance standards for electric motors in line with international best practice. and the fact that many motors are integrated into equipment produced by original equipment manufacturers (OEMs) before being sold to the final end-user. 25 © OECD/ IEA 2008 . are thought to be achievable from optimisation of electric motor-driven systems. Single-phase induction motors are the most widely used motor type. provisionally estimated to be in the order of 20 to 30% of electric motor energy savings i. fans.Three-phase induction motors provide the majority of motive power and have full-load efficiency levels (defined as motive power out divided by electric power in) of from 80 to 96% such that the lower efficiency levels are attained at low motive output power.e. b) Governments should examine barriers to the optimisation of energy efficiency in electric motor-driven systems and design and implement comprehensive policy portfolios aimed at overcoming such barriers. Despite being slightly more costly to purchase than standard motors. A large part of this saving is achieved through better matching the output of motor driven systems to fluctuations in mechanical loads via the use of power electronics and adjustable speed drives. Many more are in the process of developing such requirements. company organisational structures which manage the equipment procurement budget separately from the operation and maintenance budget. but there are many other less standardised applications where more effort will be required to determine effective policy portfolios. Even larger energy savings. As a result several countries.

EM addresses the way an industrial plant or facility is managed to identify and exploit cost-effective energy savings opportunities. within this policy companies would need to demonstrate that effective organisational structures have been put in place to ensure that decisions regarding the procurement of energy-using equipment are taken with full knowledge of the equipment's expected life-cycle costs and that procurement managers have an effective incentive to minimise the lifecycle costs of their acquisitions. conducting diagnostics to identify cost-effective energy savings opportunities. certification and quality assurance. While there is no comprehensive international survey of savings potentials from the adoption of EM practices. b) In addition. most companies still under invest in EM due to limited understanding of the issues and opportunities. IEA figures estimate global technical savings potentials of about 275 Mtoe in primary industrial energy demand from the adoption of effective EM practices. Lesser savings can be accrued from adoption of EM in primary industrial processes. governments should encourage or require major industrial energy users to implement comprehensive energy management procedures and practices that could include: i) The development and adoption of a formal energy management policy. training. II. and the optimisation of energy-using capital acquisition and replacement decisions on a lifecycle cost rather than purely capital-cost basis. monitoring.6. the adoption of effective EM procedures enables companies to improve the basis of their energy-related decisions and in many cases results in significant cost reductions. The savings which can be induced from the introduction of policy measures to encourage EM will be less than this. It involves: • • • • • • the establishment and implementation of a coherent energy policy. and/or because of principal-agent barriers that lead to misalignment of incentives. documented savings from the adoption of such measures in OECD economies varies between 5 and 22% of final energy use for major energy using industries. creating management structures that reward all relevant actors for the minimisation of energy life-cycle costs and develop necessary competences. progress with implementation of this policy should be reported to and overseen at company board level and reported in the company report. evaluation and optimisation of energy performance at the process and systems level. an inflated perception of transaction costs. 26 © OECD/ IEA 2008 . However. Recommendation a) Governments should consider providing effective assistance in the development of energy management (EM) capability through the development and maintenance of EM tools. Some of the largest savings through EM are to be made from the optimisation of energy using systems such as industrial electric motor-driven systems.3 Energy Management There are significant cost-effective energy savings to be realised in industry through the more wide-spread adoption of best practice in energy management (EM). however. I. steam systems. and process heating systems. they are likely to be in the range of 3 –7% of industrial energy demand.

are widely promoted and easily accessible for all SMEs. but conversely there is a greater energy management skills and capacity deficit in SMEs. I. Recommendation a) Governments should consider developing and implementing a package of policies and measures to promote energy efficiency in small and medium-sized enterprises (SMEs). This package should include: i) A system for ensuring that energy audits. This arises because there is less focus on energy management practices in SMEs where energy is usually a small part of total overheads and low staffing levels result in less specialisation on particular cost-management practices. they have knowledge of how much energy is sold. and iv) Appropriate incentives to adopt least-life cycle cost capital acquisition and procurement procedures. Hence there is a strong argument for government to put in place targeted support and incentives to help overcome this deficit. As experience with such schemes has increased there has been a tendency to strengthen the incentives for utilities to design and deliver effective low-cost energy savings. they typically have competence in marketing and in engineering. they have access to the customer (providing they have a retailer function). Several benchmarking studies have found that there is a wide spread in the energy intensity of SMEs for the production of the same type of products. ii) The provision of high quality and relevant information on energy efficiency best practice. evaluate and report industrial energy consumption and efficiency at the individual company sector and national level. It has also been found that the adoption of simple energy management practices can lead to significant economies. Governments have developed fewer policy measures targeted at industrial SME energy use than in the heavy industry sector. and iii) The establishment of a scheme to monitor.ii) The appointment of full-time qualified energy managers at both the enterprise and plant-specific level as appropriate. 6. 7. ideally. carried out by qualified engineers. Energy Utilities and Energy Efficiency Many economies have had successful experiences in stimulating energy utilities to deliver end-use energy savings among their customer base through energy efficiency schemes.4 Small-and Medium-sized Enterprises (SMEs) Light industry consumes about 30% of industrial energy use but has a disproportionately high level of energy savings potential. iii) The provision of energy performance benchmarking information that. Many 27 © OECD/ IEA 2008 . appropriate energy performance benchmarks should be developed. to whom and at what time and hence can strategically target conservation efforts. The arguments for engaging utilities in such schemes are: • • • • they have significant financial and human resources. monitored and reported at levels deemed suitable in each sector. would be structured to allow international and national economy comparisons. As a part of this effort.

If properly structured. The costeffectiveness of such schemes is usually high with reported benefit-cost ratios of from 3 to 5 being typical. on an equal basis to energy supply options. or iii) Allowing energy efficiency measures to be bid into energy pools. The obligations are designed to be consistent with any corresponding mandatory or voluntary CO2 emission target imposed on utilities. or ii) Placing energy efficiency obligations on energy utilities. utilities can recover the costs of such schemes and maintain comparable revenues and profits compared to the situation where they are pure energy vendors by sharing the cost-benefits with the final customer. the stringency of which is periodically raised based on continuing cost effectiveness in delivering energy services. For example in the USA the 25 states which have operated significant utility efficiency schemes targeting the residential sector over the period 1973 to 2004 had an average annual growth rate in per capita residential electricity consumption of just over half of that experienced in the 25 states which did not. or iv) Other appropriate policy measures that encourage utilities to play an active part in funding and/or delivering end-use efficiency improvements among their customer base. and where. There is evidence that over time utility energy efficiency schemes can deliver sustained energy savings which result in significantly lower energy intensities among the targeted end-users than in comparable economies that have not implemented such schemes. Such obligations may be tradable and structured such that utility costs are recoverable through the rates. In such circumstances utilities have every incentive to ensure the energy savings are delivered at least cost and the success of the programmes is higher. 28 © OECD/ IEA 2008 . II.schemes now combine a requirement to meet an energy-saving target with the use of market-based instruments to enable utilities to trade savings obligations and to allow competition in the delivery of energy services towards savings targets. I. Recommendation a) Governments and utility regulators should consider implementing mechanisms that strengthen the incentives for utilities to deliver cost-effective energy savings to end-users such as: i) Establishing regulation which decouples utility revenue and profits from energy sales and allows energy savings delivery to compete on equal terms with energy sales.

Annexes Annex 1: Consolidated list of Energy Efficiency Recommendations prepared by the IEA for the G8 under the Gleneagles Plan of Action Matrix Summarising how Recommendations Map to Core Selection Criteria Matrix for charting Contribution of Recommendations to Necessary Conditions Implementation of the IEA Energy Efficiency Recommendations to the G8: Progress Report Annex 2: Annex 3: Annex 4: 29 © OECD/ IEA 2008 .

30 © OECD/ IEA 2008 . utilising on-going IEA works for developing sectoral energy efficiency benchmarks and compiling best practices. and ( ) vi) Putting in place institutional frameworks to ensure regular co-operation and exchanges on energy efficiency issues between the public sector and financial institutions. ( ) i) Best practice action plans should: I. enforced and evaluated so as to ensure maximum compliance. Enforcement and Evaluation a) Governments should ensure that both voluntary and mandatory energy efficiency policies are adequately monitored.3 Compliance Monitoring.Annex 1: Consolidated List of Energy Efficiency Recommendations prepared by the IEA for the G8 under the Gleneagles Plan of Action (Symbols show recommendations prepared in 2006 ( ). and III. ( ) v) Promoting risk mitigation instruments. 2008 ( )) 1. ( ) ii) Encouraging financial institutions to train their staff and develop evaluation criteria and financial tools for energy efficiency projects. monitoring and evaluation procedures at the time new policies and measures are formulated. ii) Establishing legal and institutional infrastructure for ensuring compliance with energy efficiency requirements.1 Increased Investment in Energy Efficiency a) Governments should facilitate the private sector’s involvement in energy efficiency investments by: i) Adopting. ( ) iii) Reviewing their current subsidies and fiscal incentive programmes to create more favourable grounds for private energy efficiency investments. Identify the economy's energy savings potentials. Assess energy consumption by end-use in all sectors. II. ( ) 1. b) Energy efficiency policy agencies should be adequately resourced. such as securitisation or public-private partnerships.2 National Energy Efficiency Strategies and Energy Efficiency Goals a) Governments should set goals and formulate action plans for improving energy efficiency in each sector of their domestic economies. ( ) 1. and publicising to the private sector. ( ) iv) Collaborating with the private financial sector to establish public-private tools to facilitate energy efficiency financing. to reduce existing uncertainties in quantifying the benefits of energy efficiency investments and stimulate increased private sector involvement. At a minimum. a common energy efficiency savings verification and measurement protocol. this should include: ( ) i) Considering and planning for optimal compliance. 2007 ( ). Establish objectives and adequate methods for evaluating the success of the plan. Cross-sectoral Policies to Support Energy Efficiency 1.

( ) b) Governments should set objectives for PEH and ZEB market share of all new construction by 2020. including instances of non-compliance. ( ) ii) Those governments that currently have mandatory energy efficiency standards for new buildings should significantly strengthen those standards. ( ) 2. ( ) b) Energy efficiency standards for new buildings should be set by national or state governments and should aim to minimise total costs over a 30-year lifetime. governments should ensure that they are able to complete and submit the annual energy efficiency data template developed by the IEA in co-operation with other organisations. ( ) c) Passive Energy Houses or Zero Energy Buildings should be used as benchmark for energy efficiency standards in future updates of building regulations. v) Establishing and implementing a suite of enforcement actions commensurate with the scale of non-compliance and the value of lost energy savings. Energy-efficient Buildings 2. enforce and regularly update such standards. including specification of the methods. ( ) 2. 1. ( ) 2. monitoring and selection of best practices. iv) Ensuring regular and public reporting of monitoring activities. ii) At a minimum. ( ) b) Standardised indicators should also be calculated for energy efficiency in buildings for international comparison.5 Monitoring and Reporting Progress with IEA Energy Efficiency Recommendations a) Governments should agree to track progress in implementing each of the concrete recommendations and to provide the IEA with regular updates. ( ) i) This will require governments to increase the resources allocated to energy end-use data collection. frequency and scope of monitoring activities. and vi) Establishing and implementing a robust system for evaluating policy and programme success during and after implementation.4 Indicators a) Governments should ensure that their energy efficiency policies are supported by adequate end-use information by substantially increasing their efforts to collect energy end-use data across all sectors and relating to all energy-types.2 Passive Energy Houses and Zero Energy Buildings a) Governments should support and encourage the construction of buildings with very low or no net energy consumption (Passive Energy Houses and Zero Energy Buildings) and ensure that these buildings are commonly available in the market.iii) Ensuring transparent and fair procedures for assessing compliance. 1.1 Building Codes for New Buildings a) i) Governments that do not currently have mandatory energy efficiency standards for new buildings in building codes should urgently set.3 Existing Buildings a) Governments should systematically collect information on energy efficiency in existing buildings and on barriers to energy efficiency. ( ) 31 © OECD/ IEA 2008 .

the package should increase awareness of efficiency in the building sector and raise the market profile of a building’s energy performance. ii) A requirement for window and glazed-product manufacturers to provide energy efficiency labelling for their products. This policy package should include: ( ) i) Minimum energy efficiency standards for windows and other glazing that are based on least lifetime costs. ( ) i) In order to enhance energy governments should: ( ) efficiency across electronic networks. ( ) i) This package should set standards to ensure that energy efficiency improvements are achieved during the refurbishment of all buildings. 3. 32 © OECD/ IEA 2008 . and ii) Also. Energy-efficient Appliances 3.c) Based on this information governments should construct a package of initiatives to address the most important barriers to energy efficiency in buildings. This should include: ( ) i) Mandatory energy certification schemes that ensure that buyers and renters of buildings get information on the energy efficiency of buildings and major opportunities for energy savings. 2. with a priority placed on the establishment of industry-wide protocols for power management. 2.2 Low-power Modes for Electronic Equipment a) Governments should adopt the same “horizontal” 1-Watt limit and apply it to all products covered by an International Electrotechnical Commmission definition of standby power with limited exceptions.4 Building Certification a) Governments should take actions to make building energy efficiency more visible and to provide information on major energy saving opportunities. and iii) Governments establishing demonstration projects for efficient windows and implementing energy-efficient window procurement policies. where appropriate. and ii) Structures that ensure that energy efficiency information is available to all actors in the building sector at all times.5 Windows and other Glazed Areas a) Governments should set up a policy package to improve energy efficiency in windows and other glazed areas. ( ) 3. ( ) b) Adequate resources should be allocated to ensure that stringency is maintained and that the requirements are effectively enforced. ( ) b) Governments should adopt policies which require electronic devices to enter lowpower modes automatically after a reasonable period when not being used. comparative energy labels across the spectrum of appliances and equipment at a level consistent with international best practices.1 Mandatory Energy Performance Requirements or Labels a) Governments should adopt mandatory energy performance requirements and. ( ) c) Governments should ensure that network-connected electronic devices minimise energy consumption.

b) A second aspect of best-practice is to ensure that government-subsidised units meet higher efficiency requirements.I. including networked devices. b) Governments should move to phase out the most inefficient incandescent bulbs as soon as commercially and economically viable ( ). and II. to determine whether they are consistent with national policy requirements. where appropriate. and ii) Support the development and use of international measurement standards. i) In aiming for this objective. 4. Stimulate the market entry of new television technologies which aim to halve TV energy consumption compared to current performance levels. Ensure such protocols are developed and implemented. Best Practice in Energy-efficient Lighting 4. ( ) c) Governments should implement energy efficiency policy measures for TVs and settop boxes designed to: ( ) i) ii) Promote the best performing current TV products and technologies. and Ensure that the consumer can easily switch the unit to the lower power level. 3. Television “set-top” Boxes and Digital Television Adaptors (DTAs) a) The IEA concludes that international best practice with respect to energy-efficient set-top boxes are policies that establish a minimum efficiency standard for Digital Television Adaptors.2 Non-residential Buildings and Phase-out of Inefficient Fuel-based Lighting a) Governments should put in place a portfolio of measures to ensure energy-efficient least-cost lighting is attained in non-residential buildings.3 Televisions.4 Test Standards and Measurement Protocols a) Governments should: ( ) i) Review energy measurement standards currently used. and iii) Minimise the energy used by TVSP customers in receiving TV services by ensuring that such requirements are included in relevant franchise or licensing agreements that allow TVSPs to operate. 3. These regulations should: ( ) i) ii) Specify the maximum power levels while “on” and “off”. in order to assist performance comparison and benchmarking for traded products while also reducing compliance costs.1 Best Practice and Incandescent Phase-out a) The IEA recommends that governments endorse the objective of across-the-board best practice in lighting ( ). The portfolio of measures should include the following: ( ) 33 © OECD/ IEA 2008 . Instruct relevant public and private standards authorities to ensure that industry-wide protocols are developed to support power management in appliances and equipment. and ii) Also government and industry actions must be coordinated internationally to ensure a sufficient supply of good quality higher efficiency alternative lamps. 4. there is a need both for appropriate time scales and performance targets to be established.

and IV. II. ii) Adopt measures to promote proper inflation levels of tyres ( ).2 Mandatory Fuel Efficiency Standards for Light-duty Vehicles a) Governments should: ( ) i) Introduce new mandatory fuel efficiency standards for light-duty vehicles if they do not already exist. This should include governments. b) Governments should support international efforts to stimulate the adoption of higher efficiency alternatives to fuel-based lighting in off-grid communities e. Specify that general service lighting systems in new non-residential buildings. and possibly maximum rolling resistance limits where appropriate. and ii) Related policies including labelling and financial incentives based on the vehicle’s fuel efficiency.g. for road-vehicle tyres. III. make those standards more stringent. with a view to establishing labelling. public. outdoor and residential sectors. Energy-efficient Transport 5. including a full peer review comparing local recommendations with those applied internationally to ensure that there are no excessive lighting levels recommended in national guidelines. where appropriate. as many aspects of the future standards as possible. and ( ) I. acting in cooperation with international organisations including UNECE. Be based upon a review of recommended lighting levels. 5. governments should introduce: ( ) i) Fuel efficiency standards.i) The inclusion of energy performance requirements for lighting systems within building codes and ordinances applicable to the installation of lighting in the commercial. Hasten the phase-out of inefficient street lighting technologies such as mercury vapour lamps. or substantial retrofits of existing non-residential buildings. Include targeted measures to stimulate better control of lighting and the avoidance of illumination of unoccupied spaces. via supporting the diffusion of solar powered solid state lighting devices. 5. ( ) 5. should draw no more than 10W of power per square metre of internal floor area when averaged over the whole building. 34 © OECD/ IEA 2008 . where they do exist.3 Mandatory Fuel Efficiency Standards for Heavy-duty Vehicles a) For heavy duty vehicles. industrial. or. making the fitting of tyre-pressure monitoring systems on new road vehicles mandatory. and iii) Harmonise. These requirements should: I. ii) Announce the more stringent content of the proposed standards as soon as possible.1 Fuel-efficient Tyres a) Governments should: i) Adopt new international test procedures for measuring the rolling resistance of tyres.

( ) 6.1 High-quality Energy Efficiency Data for Industry a) Governments should support the IEA energy efficiency indicator work that underpins critical policy analysis by ensuring that accurate energy intensity time series data for industrial sectors is reported regularly to the IEA. As a part of this effort. ( ) 6. and iii) The establishment of a scheme to monitor. 6. monitored and reported at levels deemed suitable in each sector. I. training. Progress with implementation of this policy should be reported to and overseen at company board level and reported in the company report.3 Energy Management a) Governments should consider providing effective assistance in the development of energy management (EM) capability through the development and maintenance of EM tools. 6. ( ) i) Governments support for eco-driving should include promotion of driver training and deployment of in-car feedback instruments. ( ) b) Governments should examine barriers to the optimisation of energy efficiency in electric motor-driven systems and design and implement comprehensive policy portfolios aimed at overcoming such barriers. ( ) b) In addition. ii) The appointment of full-time qualified energy managers at both the enterprise and plant-specific level as appropriate. certification and quality assurance. governments should encourage or require major industrial energy users to implement comprehensive energy management procedures and practices that could include: i) The development and adoption of a formal energy management policy: I. This package should include: ( ) 35 © OECD/ IEA 2008 .4 Small and Medium-sized Enterprises a) Governments should consider developing and implementing a package of policies and measures to promote energy efficiency in small and medium-sized enterprises (SMEs). appropriate energy performance benchmarks should be developed. Energy efficient Industry 6. II. Within this policy companies would need to demonstrate that effective organisational structures have been put in place to ensure that decisions regarding the procurement of energy-using equipment are taken with full knowledge of the equipment's expected life-cycle costs and that procurement managers have an effective incentive to minimise the lifecycle costs of their acquisitions. sector and national level.4 Eco-driving a) Governments should ensure that eco-driving is a central component of government initiatives to improve energy efficiency and reduce CO2 emissions.5. evaluate and report industrial energy consumption and efficiency at the individual company.2 Minimum Energy Performance Standards for Motors a) Governments should consider adopting mandatory minimum energy performance standards for electric motors in line with international best practice.

or iv) Other appropriate policy measures that encourage utilities to play an active part in funding and/or delivering end-use efficiency improvements among their customer base. and iv) Appropriate incentives to adopt least-life cycle cost capital acquisition and procurement procedures. The obligations are designed to be consistent with any corresponding mandatory or voluntary CO2 emission target imposed on utilities. 36 © OECD/ IEA 2008 . ii) The provision of high quality and relevant information on energy efficiency best practice. Such obligations may be tradable and structured such that utility costs are recoverable through the rates. are widely promoted and easily accessible for all SMEs. and where. carried out by qualified engineers. I. on an equal basis to energy supply options. Energy Utilities and Energy Efficiency a) Governments and utility regulators should consider implementing mechanisms that strengthen the incentives for utilities to deliver cost-effective energy savings to end-users such as: ( ) i) Establishing regulation which decouples utility revenue and profits from energy sales and allows energy savings delivery to compete on equal terms with energy sales.i) A system for ensuring that energy audits. 7. the stringency of which is periodically raised based on continuing cost effectiveness in delivering energy services. II. iii) The provision of energy performance benchmarking information which ideally this information would be structured to allow international and within economy comparisons. or iii) Allowing energy efficiency measures to be bid into energy pools. or ii) Placing energy efficiency obligations on energy utilities.

or based on review of literature and expert assessment Recommendations Long-term savings potential Cost-effective potential (Total EJ/yr saved by 2030) Cross-sectoral 1.Annex 2: Summary of Recommendations against Analysis Criteria Key = included in other recommendations = analysis forthcoming.3 Compliance monitoring.1 Increased investment in energy efficiency NA NA perceived high risk of EE projects Lack of info & training of financiers H Variable— depending on the level of incentives for private investors High level of cooperation needed H/M Significant international experience Variable – depending on existing institutional infrastructure and capacity Long-term savings potential CO2 savings potential (Mt/yr) Addresses significant market imperfection Addresses significant policy gap Based on peerreviewed analysis Degree of political agreement (H/M/L) Ease of implementation 1.2 National energy efficiency strategies and energy efficiency goals 1. enforcement and evaluation NA NA NA NA lack of compliance & enforcement H 37 © OECD/ IEA 2008 .

2 5.8 2230 38 © OECD/ IEA 2008 .5 Monitoring reporting progress with IEA energy efficiency recommendations Buildings 2.4 Indicators 1.6 635 330 lack of information available lack of policies to promote double glazing in existing buildings H/M H H/M M Relatively straightforward Relatively straightforward complex complex Appliances 12.5 Windows and other glazed areas 26.3 Existing buildings 2.4 14.2 Passive energy houses and zero energy buildings 2.9 1397 254 H Lots of international experience Relatively straightforward 2.4Building certification 2.1.7 7.1 Building codes for new buildings NA NA NA NA lack of information H H Straight forward 32.

STB: Split incentive problem.8 3. television “settop” boxes and digital television adaptors 3.4 Test standards measurement protocols and NA NA Incorrect test standards leads to misleading information and inefficient allocation of resources lack of foresight about energy implications of emerging technology lack of coordination between governments and standards making bodies Most policy looking too short-term to consider this H Straight forward 39 © OECD/ IEA 2008 .3 Televisions.1 Mandatory energy performance requirements or labels 1618 9.3 H Lots of international experience Relatively straightforward 3.2 Low Power modes electronic equipment for 2.6 481 630 TVs: Lack of information combined with low consumer priority. H/M M Currently very few policies in this area Relatively straightforward Straight forward 3.3.

8 1500 631 a variety of principal agent and first-cost barriers some countries have adopted some of the measures inpart but none all and in-full some countries have adopted some of the measures inpart but none all and in-full H Some aspects straightforward 10 Greater complexity for measures to stimulate lighting controls and alternatives to fuel-based lighting Complex 4.3 3.1 3.2 Non-residential buildings and phase-out of inefficient fuel-based lighting 5. 40 © OECD/ IEA 2008 . optimisation of lighting level recommendations.1 Best practice and incandescent phase out 9.1 Fuel-efficient tyres 23.4 869 a variety of principal agent and first-cost barriers H/M Transport 5.Lighting 4.8 1470 240 M Complex 10 LPD limits.

1 500 H Increasing international experience.1 High-quality energy efficiency data for industry 6. 5.9 NA 1608 NA principalagent problems.3 600 lack of information on efficient driving poor price signals for effects on true cost of driving inefficiently some countries have adopted some of the measures inpart but none all and in-full M Complex Industry 6.4 Eco-driving 9.5.2 Minimum energy performance standards for motors 18.3 225 H/M Complex 41 © OECD/ IEA 2008 .3 Mandatory fuel efficiency standards for heavy-duty vehicles 3.9 260 high discount rates Currently very few policies in this area M Complex 5. high initial cost H/M Straightforward 1.2 Mandatory fuel efficiency standards for light-duty vehicles 8. Relatively straightforward.

3 Energy management 8. H Straightforward 6.4 Small and medium-sized enterprises 8. H/M Complex Power utilities 7.6. and verification) Yet very few actual policy implementat ion. training. Few integrated scheme (auditing. Low financial capacity in SME.9 755 low priority of energy issues Not all countries implemented .7 628 low priority of energy issues.1 Power utilities and energy efficiency NA NA M Variable – depending on national/region al context 42 © OECD/ IEA 2008 .

1 Increased investment in energy efficiency 1.4 Indicators 1.Annex 3: Key Key Matrix for Charting Contribution of Recommendations to Necessary Conditions = fully addresses the necessary condition = partially addresses the necessary condition Necessary conditions Recommendations Better price signals Improved information provision Reduce transaction costs Enhanced access to finance Improved public and private decisionmaking frameworks Proactive energy management Improved capital stock Enhanced skills Cross-sectoral 1.2 National energy efficiency strategies and energy efficiency goals 1.5 Monitoring reporting progress with IEA energy efficiency recommendations Buildings 2. enforcement and evaluation 1.1 Building codes for new buildings 43 © OECD/ IEA 2008 .3 Compliance monitoring.

4 Test standards and measurement protocols Lighting 4.5 Windows and other glazed areas Appliances 3.2 Passive energy houses and zero energy buildings 2.2 Low Power modes for electronic equipment 3. television “set-top” boxes and digital television adaptors 3.1 Best practice and incandescent phase out 4.3 Televisions.2 Non-residential buildings and phase-out of inefficient fuel-based lighting 44 © OECD/ IEA 2008 .2.1 Mandatory energy performance requirements or labels 3.4 Building certification 2.3 Existing buildings 2.

4 Small and medium-sized enterprises Power utilities 7.2 Minimum energy performance standards for motors 6.Transport 5.4 Eco-driving Industry 6.1 High-quality energy efficiency data for industry 6.1 Power utilities and energy efficiency 45 © OECD/ IEA 2008 .2 Mandatory fuel efficiency standards for heavy-duty vehicles 5.1 Fuel-efficient tyres 5.3 Energy management 6.2 Mandatory fuel efficiency standards for light-duty vehicles 5.

which proceeds on a recommendation-by-recommendation basis.700 megatonnes (Mt) of carbon dioxide (CO2) per year by 2030. and the widely accepted importance of addressing climate change and improving energy efficiency on a global scale. Mexico and South Africa (the G+5) in the Gleneagles Dialogue on Climate Change Energy Efficiency and Sustainable Development. In Heiligendamm. In this context. globally. provides a concise summary of general trends. the International Energy Agency (IEA) presented a total of 16 recommended energy efficiency policies to the St Petersburg (4) and Heiligendamm Summits (12) in 2006 and 2007 respectively. 46 © OECD/ IEA 2008 . No country has fully implemented all of the IEA recommendations and to this end. G8 leaders stated their willingness to “take forward the concrete recommendations on energy efficiency presented by the IEA”. which provide best practice examples of what can be cost-effectively achieved. the EU and the G+5 countries. It further noted that the IEA would then “present an assessment of progress to the 2008 G8 Summit in Japan”. That assessment then formed the basis for this progress report. Yet numerous examples of positive developments exist. as well as in other IEA member countries. A full range of activity is evident – from measures that substantially implement components of some recommendations. IEA and G+5 countries would cost-effectively save more energy in the view of the IEA Secretariat. to announcements regarding the future development of relevant measures. to drafted measures not yet in force. the involvement of Brazil. The report concludes that progress in implementing the IEA recommendations varies across countries and between recommendations. If fully implemented. China. positive developments and areas requiring further improvement in relation to each of the IEA first 2006 and 2007 recommendations.Annex 4: Implementation of the IEA Energy Efficiency Recommendations to the G8: PROGRESS REPORT February 2008 Executive Summary Responding to requests from G8 leaders. the absence of any relevant action at all. and which serve to reinforce the worth of energy efficiency measures as a means of mitigating human-induced climate change. in late 2007 and early 2008. the report considers progress in G8 countries. additional policy implementation in all G8. India. The report. In light of the response of the IEA Energy Ministers to the recommendations. to. in some cases. the IEA conducted a preliminary assessment of progress with implementation of its recommendations. The last of the IEA 2007 recommendations noted that “governments should agree to track progress in implementing each of the concrete recommendations and to provide the IEA with regular updates”. these recommended actions could save up to 5. addressing energy security and encouraging sustainable development.

these measures could be updated or further strengthened. The IEA 2006 and 2007 policy recommendations require only existing technologies and should be considered for early implementation in G8. IEA. and those on minimum energy performance and standby power requirements for appliances. enhanced enforcement and compliance procedures remain a universal issue.More specifically: • In the case of several of the IEA recommendations. for example. This particularly applies with regard to the recommendations on fuel-efficient tyres. 47 © OECD/ IEA 2008 . G+5 and other countries to achieve major energy savings. If properly implemented. IEA and other governments in adopting relevant measures to further implement these recommendations. In several fields of activity. and on the strengthening of building regulations. but there are still few or no instances of mandatory requirements. but globally. not only in G8 countries. these measures could achieve significant savings in the future. Yet in most instances. fuel efficiency standards for light duty vehicles and low power modes for electronic equipment. there are instances where policy measures have been drafted or are being considered but have not yet been operationalised. Across all of the IEA recommended fields of activity. Finally. • • • Energy efficiency has a huge potential to bring cost-effective savings in a relatively short timeframe. this applies to the recommendations on new and existing buildings. and the scope of their application broadened. which the IEA considers would further help to realise the full potential of energy savings in these sub-sectors. certain countries have introduced voluntary measures. The IEA will continue to support G8. The IEA recommends that countries implement these measures as soon as possible. Notably. on the phase-out of incandescent lamps. Developing and implementing energy efficiency policies now is critical. on tyre pressure monitoring systems and international test procedures. particularly in the buildings and appliances sub-sectors. The IEA considers such procedures to be a central aspect of successful policy development and implementation in all energy efficiency sub-sectors and encourages all countries to intensify efforts in these areas. many countries have implemented a range of pertinent measures.

clever and competitive energy future”. the proposed actions could. Another 12 recommendations were presented at the Heiligendamm G8 Summit in June 2007. The GPOA further requested the IEA to identify best practice energy efficiency policies for buildings. G8 leaders addressed the challenges of climate change and securing clean energy and sustainable development. Agreeing to act 3with resolve and urgency now3. they adopted the Gleneagles Plan of Action (GPOA). particularly in the transport and building sectors” and themselves committed “to reinforcing our efficiency efforts”. G8 leaders and IEA Energy Ministers have responded to the IEA energy efficiency recommendations.Introduction Background Information on the IEA Energy Efficiency Work for the G8 At their Gleneagles Summit in July 2005.700 megatonnes (Mt) of CO2 /year. IEA Energy Ministers stated that they “strongly welcome and consider implementing as soon as possible. address a significant gap in existing policy. In particular. Mexico and South Africa (G+5). In the statement on Global Energy Security made at the St Petersburg Summit. lighting. who were present at the Summit. transport. Each recommendation had to: be likely to save a large amount of energy at low cost. appliances and vehicle efficiency. 48 © OECD/ IEA 2008 . Responding to these requests. It is estimated that if implemented globally. these 16 recommendations cover six key areas of energy efficiency activity: buildings. Energy Ministers further requested that the IEA prioritise “energy efficiency. industry and cross-sectoral issues. At the May 2007 Governing Board. in their communiqué of 3 May 2005. which sets out a range of measures to transform the way energy is used. finance the transition to cleaner energy. India. without compromising levels of service. The G8 leaders requested the International Energy Agency (IEA) to be a partner in this Dialogue and to play a major role in delivering the GPOA. Together. power a cleaner future. and to identify opportunities for energy efficiency in industry. They also launched the Gleneagles Dialogue on Climate Change. appliances and equipment. address existing market imperfections or barriers. the… recommendations on improving energy efficiency that the IEA has prepared as part of the programme supporting the G8 Gleneagles Plan of Action”. and increase efforts to adopt the most stringent energy efficiency standards that are technically feasible and economically justified” for energy intensive products. Clean Energy and Sustainable Development and invited countries with significant energy needs to participate. be saving 5. emphasising the importance of demonstrating clear and measurable outcomes in this regard”. Energy efficiency was among the six areas of focus designated to the IEA in the GPOA. Meanwhile. by 2030. promote research and development. and be supported by a high degree of international consensus. In the Heiligendamm Summit Declaration. This is equivalent to the total CO2 emissions of the United States (US) in 2004. manage the impact of climate change and tackle illegal logging. The IEA analysis indicates that implementing all of these recommendations would be among the most cost-effective means of curbing energy demand and mitigating CO2 emissions. IEA Energy Ministers. All recommendations were presented to the IEA Energy Ministers in May 2007. extension and deployment of best practice energy efficiency labelling programs. Before being finalised. including Brazil. each recommendation passed a set of strict criteria. G8 leaders stated that they would “take forward the concrete recommendations on energy efficiency presented by the IEA and consider drawing on these when preparing national energy efficiency plans”. China. G8 leaders requested the IEA to provide further advice on “alternative energy scenarios and strategies aimed at a clean. the IEA presented four recommended energy efficiency policies to the St Petersburg G8 Summit in July 2006. according to national circumstances. had “stressed the important role of the IEA in meeting energy security and sustainability challenges. G8 leaders undertook to “encourage the development.

the IEA also considered progress in the G+5 countries. Nonetheless. Preparation and Structure of this Report In carrying out the empirical assessment of progress that underpins this report. it is acknowledged that the information contained in this report may be incomplete. The IEA would welcome further information from governments regarding initiatives that they consider form a part of their implementation of the IEA energy efficiency recommendations. This report does not provide an exhaustive summary of activities at the sub-federal level. which sets out broad trends. providing a concise summary of general trends. other IEA member countries and the EU. That assessment then formed the basis for this progress report.The last of the IEA 2007 recommendations noted that “[g]overnments should agree to track progress in implementing each of the concrete recommendations and to provide the IEA with regular updates”. and/or is part of a regional arrangement such as the EU. and in light of the specific provision for such a report in the IEA final 2007 recommendation. in late 2007 and early 2008. It further noted that the IEA would then “present an assessment of progress to the 2008 G8 Summit in Japan”. the report proceeds on a recommendation-by-recommendation basis. Preparation of the report is also consistent with the May 2005 communiqué of IEA Energy Ministers. which “instructed” the IEA to “monitor our efforts” in relation energy efficiency. In the case of the buildings sector. G+5 or IEA countries to comply with the IEA energy efficiency recommendations. the involvement of the G+5 countries in the Gleneagles Dialogue. Ultimately. All countries covered by the assessment have. it is hoped that the findings in this report might serve as a tool to facilitate further improvements in the field of energy efficiency policy. the report does not seek to provide an exhaustive list of every policy measure that might be relevant to implementation of each recommendation in every country assessed. and the widely accepted importance of addressing climate change and improving energy efficiency at a global level. and are planning to further develop. appears likely to affect the degree to which and how it has implemented the IEA recommendations. all of which are IEA members other than Russia. a range of other worthwhile energy efficiency measures that are not addressed here. the putting into effect of all EU-level legislation that is relevant to the IEA recommendations requires transposition and substantive implementation within all member states. positive developments and areas requiring further improvement for each of the IEA 2006 and 2007 recommendations. the IEA considered both existing and planned measures in the G8 countries. It is recognised that there is no binding obligation upon the G8. 49 © OECD/ IEA 2008 . Moreover. positive developments and areas requiring further improvement in relation to that recommendation. This report simply seeks to consider progress in implementation of the recommendations in the context of the IEA GPOA mandate to provide further guidance on improving efforts in relation to energy efficiency. the involvement of all state or provincial governments may be necessary for the full implementation of the IEA recommendation on building codes for new buildings. In this context. In light of the response of the IEA Energy Ministers to the recommendations. This report specifically seeks to focus on policy measures relevant to implementation of IEA 2006 and 2007 recommendations. Similarly. for example. the IEA conducted a preliminary assessment of progress with implementation of its recommendations. Rather. It is also noted that whether or not a country has a federal system of government.

Additionally. over a period of several years. whether they require energy efficiency standards for new buildings and their intended aim with regard to lifetime costs. take their codes to least cost over a 30-year lifetime. and probably also Germany. in some of these countries. Infrastructure and Transport indicated an intention to consider. Those countries. In Japan. Austria. even within countries. India developed standards for commercial buildings in 2007 and in South Africa. such as Germany. The IEA original recommendation noted the importance of enforcing and regularly updating and strengthening building code standards. France. Almost all G8. In China. existing mandatory requirements relate mostly to registration and reporting and only cover those buildings with a surface area greater than 2000 m². the regulation of building codes is typically the chief responsibility of the provincial or state level of government. with Sweden. and also applies in Spain. If these countries actually proceed with these plans and fully implement them. the Japanese Ministry of Land. in terms of the degree to which the IEA recommendation has been implemented. among others.Summary of Progress Recommendation: Building Codes for New Buildings Countries that do not currently have mandatory energy efficiency standards for new buildings in Building Codes should urgently set. The IEA suggests that other countries should also consider doing so. This applies. IEA and EU countries have mandatory energy efficiency standards for new buildings. have updated their standards since 2006 and/or are planning to do so in the next few years. even where a model code exists at the national level. however.standards must be endorsed and/or implemented at the state or regional level. Mexico has implemented mandatory standards. should significantly strengthen those standards. extending the requirements for energy efficiency in new buildings to all buildings with a surface area of more than 300 m² and to provide for stronger enforcement mechanisms generally. several countries are currently planning to further strengthen their building codes. However. whether they are mandatory. such increased stringency would. 50 © OECD/ IEA 2008 . enforce and regularly update such standards. Regarding minimising total costs over a 30-year lifetime. Denmark and parts of Austria being notable examples. for example. Several countries are moving closer to this goal. that currently have mandatory energy efficiency standards for new buildings. Regarding the updating and strengthening of standards. In countries with a federated structure. but the IEA would encourage countries to enhance their enforcement efforts. a mixed picture exists . It is noted though. during the regular 2008 Diet session. This means that there is considerable variation. This is the case in most G8 and G+5 countries. Australia and Belgium. provincial level measures vary in terms of the stringency of building codes. Energy efficiency standards for new buildings should be set by national or state government and should aim to minimise total costs over a 30-year lifetime. the 2005 Energy Efficiency Strategy provided for the introduction of energy efficiency standards for buildings. the IEA assessment indicates that no country has yet implemented a policy on setting energy efficiency standards based on a 30-year building lifetime assessment. Italy and the United Kingdom (UK). Information on enforcement remains somewhat limited such that no assessment is provided here. In the G+5 countries. that in February 2008. many states in the US and provinces in Canada. The IEA assessment indicates that in such countries. October 2007 amendments to the 1997 Energy Conservation Law provided for national building energy efficiency standards to be promulgated. to the UK and Denmark. and various European countries.

This is the case.e. In Germany and Austria. the strengthening of requirements and further actions for passive houses were announced as part of the European Commission’s 2006 Energy Efficiency Action Plan (COM(2006) 545). Many countries. Canada and the UK among others. a range of programmes and measures are designed to further encourage and support the development of PEH or ZEB. energy rating and labelling schemes for buildings further encourage the development of PEH or ZEB buildings. Based on this information governments should construct a package of initiatives to address the most important barriers to energy efficiency in buildings. Even where such policies exist. In several countries. Further. nor of the use of PEH or ZEB as a benchmark in the updating of building regulations. the package should increase awareness of efficiency in the building sector and raise the market profile of a buildings’ energy performance. Many countries do not have an explicit policy to encourage PEH or ZEB. In the US. Nevertheless. Passive houses are also coming onto the market in countries such as Sweden. including Germany. many countries also have policies that aim to improve energy efficiency in existing buildings. the UK. PEH or ZEB should be used as a benchmark for energy efficiency standards in future updates of building regulations. the notion of Zero Carbon Buildings is used. Standardised indicators should also be calculated for energy efficiency in buildings for international comparison. Japan. other EU countries and Norway now collect data on the energy performance of existing buildings. passive houses already have a visible share of the new buildings market. This package should set standards to ensure that energy efficiency improvements are achieved during the refurbishment of all buildings. In these countries. among others. 51 © OECD/ IEA 2008 . However the uptake of these measures – i. the Department of Energy announced in October 2007 that more than US44 million would be used to develop net-zero-energy homes through the Building America programme. specifically to accelerate the adoption of new and developing energyefficient technologies. Governments should set objectives for PEH and ZEB market share of all new construction by 2020. Also. Recommendation: Existing Buildings Governments should systematically collect information on energy efficiency in existing buildings and on barriers to energy efficiency. for example. Italy. the actual achievement or real efficiency improvements – in existing buildings is generally slow and all countries could substantially increase their efforts in 11 In the UK. there are very few instances of specified objectives as to the market share of PEH or ZEB by 2020. the US. with measures under the 2007 Key Elements of an Integrated Climate Change and Energy Programme in Germany. while in Australia. In other developments. A good example of recent developments in this regard is the EcoENERGY for Buildings and Retrofit programme of the Canadian federal government. PEH and ZEBs are beginning to emerge in the building market.Recommendation: Passive Energy Houses and Zero Energy Buildings Countries should support and encourage the construction of buildings with very low or no net energy consumption (Passive Energy Houses (PEH) and Zero Energy Buildings (ZEB)) and ensure that these buildings are commonly available in the market. Denmark and France. monitoring and selection of best practices. Notable exceptions to the lack of policies on PEH and ZEP as future standards can be seen in the UK and Denmark. Implementation of this recommendation has been more limited than that for the previous recommendation. PEH or ZEB11 will provide the standards for building regulations within approximately a decade and by 2020 will represent close to a 100% market share of new buildings.

this area. It is essential that such efforts include activities to increase the awareness of energy efficiency in the buildings sector and raise the market profile of the energy performance of buildings. Similarly, more work should be done to develop a comprehensive package of complementary measures that together address the key barriers to improved energy efficiency in existing buildings. In the G+5 countries, action in this area remains more limited. In China, the 11th FiveYear Period, seeks to reduce the energy consumption of residential and public buildings by 50%. The federal plan for energy conservation in buildings formally mandates: • • • the quick technical reform of heat-supply systems nation-wide; renewed efforts to promote building energy efficiency technology and related products; and, renovation of existing buildings in the nation’s cold northern regions, with a particular focus on hotels.

Regarding indicators, there is not yet a standardised international system of indicators for measuring energy efficiency in buildings. The Sustainable Buildings Network, agreed to at the Heiligendamm G8 Summit, could be an avenue for pursuing this and the IEA can provide guidance for this work. Recommendation: Mandatory Performance Requirements or Labels All countries should adopt mandatory energy performance requirements and, where appropriate, comparative energy labels across the spectrum of appliances and equipment at a level consistent with international best practices. Adequate resources should be allocated to ensure that stringency is maintained and that the requirements are effectively enforced. Most developed countries have established standards and labelling programmes that cover traditional major residential appliances, such as refrigerators and freezers, dishwashers, air conditioners and clothes washers, among others. However, three key limitations can be observed, which apply to many countries: • • In many instances, these programmes have not been kept up to date, such that many of the standards no longer require best performance. Similarly, the scope of such programmes, in terms of the appliances covered, could be expanded in many jurisdictions so as to cover more equipment categories within the residential, commercial and industrial sectors. For example, in many countries there remains considerable scope to include more lighting products, motors, distribution transformers, commercial cooking and refrigeration equipment. Regarding the residential sector particularly, as products in the home entertainment, and information, communications and technology areas have increased in importance, few countries have yet responded by sufficiently broadening the scope of their programmes. Available data suggests that procedures for monitoring compliance and fully enforcing existing measures remain inadequate in most jurisdictions.

These three aspects – namely the stringency, scope and enforcement of relevant measures, are considered by the IEA to be of vital importance to ensure that the potential for the lowest cost energy efficiency is realised. This is reflected in the IEA original recommendation, which refers to the “spectrum of appliances and equipment” and also

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notes that “adequate resources should be allocated to ensure that stringency is maintained and that the requirements are effectively enforced”. At this time, the better schemes, in terms of maintaining the stringency of policy measures and expanding their scope, are found in Canada, and Australia and New Zealand. It is also noted that Korea recently developed a mandatory programme over a relatively short period of time, incorporating the better elements from the more established national programmes and adding new initiatives, such as the threat of using mandatory warning labels for products that fail to meet standby power targets. The US, which had not met its own expectations in this area in recent years, has now set strict timetables for updating standards and has adopted streamlined consultative processes in order to catch up with its backlog. Similarly the EU has fallen behind many countries in terms of both the coverage and stringency of its mandatory programmes, but is now attempting to address these shortcomings. Among the G+5 countries, standards and labelling programmes are beginning to be developed, but in some cases the full development and implementation of such schemes has been hampered by capacity-related limitations. At the time of writing, mandatory programmes in China cover a number of products, as does the MEPS scheme in Mexico. Brazil has MEPS and labels schemes for a small number of products, while India and South Africa have voluntary labelling schemes and also have the legislative infrastructure in place to develop mandatory MEPS and labelling schemes. Based on the available evidence, there remains considerable room for improvement of the compliance frameworks associated with both mandatory and voluntary energy efficiency appliance measures in most countries. Market surveillance procedures to adequately monitor compliance appear patchy, as do follow-up enforcement activities. Some countries appear lacking in basic procedures to undertake these types of work, and there is little evidence of an improvement following this particular recommendation. In terms of best practice examples in this field, Australia and New Zealand appear to have one of the most comprehensive and transparent compliance regimes currently in place. Mandatory energy performance requirements and labels have proven to be a highly costeffective policy tool for reducing the average energy consumption of equipment without reducing consumer choice or triggering sustained increases in prices. In light of the fact that residential appliances account for over 30% of electricity consumption in most countries, and represent one of the fastest growing energy loads, the IEA considers it important that a further intensification of effort is achieved in this area, not simply in terms of the development of mandatory schemes, but also in their updating, expansion of coverage and enforcement. Recommendation: Standby Power The IEA concludes that international best practice consists of a “horizontal” one watt regulatory limit on standby. The IEA recommends that all countries adopt the same one watt limit and apply it to all products covered by an International Electrotechnical Commission definition of standby power with limited exceptions. As of early 2008, the issue of standby power has achieved a relatively high policy profile. Wide-scale use of the IEC 62301 test method is evident, together with a range of policy measures in most developed countries. Yet, generally speaking, only five to six of the 50 to 60 appliances that use standby power are covered by such measures and often in a voluntary manner, meaning that a majority of product categories are still not covered by mandatory or voluntary standby requirements. It is for this reason that the IEA recommendation specifically provided for a horizontal standard to cover all products (with minor exceptions) and to overcome problems of emerging or changing product definitions and the rapid development of new products. No

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country or economy has yet implemented this, although the EU has proposed development of such a standard under the Ecodesign of Energy-using Products Directive, and Australia and New Zealand have made a commitment to implement 1 Watt standby power regulations for all electronic appliances by 2012. While most individual product policies are voluntary, the number of countries and products where standby power is the subject of regulation is growing. The US, Korea, Japan and Australia and New Zealand, for example, have all introduced standby requirements in mandatory labelling or MEPS for some products, or will do so in the near future. There also appears to be a trend toward incorporating standby requirements into wider energy efficiency regulations, which the IEA considers to be a positive development. Products covered in this manner include power supplies, computers, imaging equipment, washing machines and televisions. Coverage in developing countries, including in the G+5 countries, lags behind G8 and IEA countries at this time, although it is noteworthy that India is to host the International Standby Conference in April 2008, and has indicated that standby power is a priority for future action. Both China and Brazil have introduced limited measures to address standby power in selected products. Recommendation: Low Power Mode for Electronic Equipment All countries should adopt policies which require electronic devices to enter low power modes automatically after a reasonable period when not being used. Countries should ensure that network-connected electronic devices minimise energy consumption, with a priority placed on the establishment of industry-wide protocols for power management. This recommendation included two components – the development of policies that require devices to enter low power modes automatically, and the development of industry-wide protocols for power management of interconnected products. To use energy efficiently, a device should use the minimum amount of energy necessary to provide the level of functionality required by the consumer. However, products typically need external stimulus to enter a low power mode despite the fact that the technology exists for this to take place automatically after a period of inactivity. The introduction of auto-power down facilities would remove the need for consumers to understand the workings of increasingly complex devices and would maximise energy saving potential without limiting functionality. With regard to policies requiring products to enter a low power mode automatically, there has not yet been a great deal of progress. This may reflect a wider trend of paying insufficient attention to home entertainment and information, communication and technology products. One positive example can be seen in the US, where the Energy Star scheme has included auto-power down in requirements for many relevant products when criteria are updated or established. It is suggested that other international Energy Star partners could adopt similar measures. Where countries have implemented or are considering mandatory policies for relevant devices, such as the EU, Australia and New Zealand, and the US, there is considerable scope to introduce requirements for products to enter auto-power down. Regarding work on introducing protocols for power management in networked equipment, there are some relevant activities currently being undertaken by individual research establishments, but the IEA is not aware of any national or international coordinated effort to strive for protocols for interconnected products. One of the most promising

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However. have partially addressed the first component of this recommendation. significant benefits will result from cooperation and coordination. Australia and New Zealand. either in relation to the first component of establishing a minimum efficiency standard. Recent developments of note include the following (policies on incandescent light bulbs are discussed in the next section): 55 © OECD/ IEA 2008 . A positive example of activity in relation to both components of this recommendation can be seen in the US. These regulations should specify the maximum power levels while “on” and “off” and ensure that the consumer can easily switch the unit to the lower power level. Meeting this target will involve greatly increased technical and administrative activity in the area of energy-efficient lighting in all G8 countries. and Canada. while striving to achieve the cost-effective savings potential in their economy. If the objective of across-the-board best practice in lighting were adopted and implemented. the energy used for lighting in 2015 could be cut by an estimated one third in most economies. The expected electricity savings by 2030 would be about 38%. the IEA considers that progress in this area needs to be rapid. The Australian and New Zealand governments propose to extend their MEPS scheme to set-top boxes in October 2008. Additionally. A second aspect of best practice is to ensure that government-subsidised units meet higher efficiency requirements. or in relation to the second component of ensuring that government-subsidised units meet higher efficiency requirements. as markets for these products are continuing to expand at a quick pace. Generally speaking. Many economies are beginning to give the issue greater consideration as the deadline for digital TV roll-out approaches. where an Energy Star specification has been adopted for DTAs and where a federal subsidy targets set-top boxes with efficiency requirements. the IEA recommendation on set-top boxes and DTAs has not yet received a substantial response. all countries are both leaders and laggards depending on the application concerned. while in Canada. the federal government proposed in October 2006 to extend minimum energy performance regulations under the Energy Efficiency Act to set-top boxes and DTAs. Research indicates that electricity consumption from home entertainment devices is continuing to grow at a rapid rate. Best practices for individual aspects of efficient lighting are scattered around the IEA member countries. Some of the elements of best practice apply equally across IEA member economies and therefore merit a coordinated response. Thus far no single country has adopted a fully unified approach to efficient lighting although some are attempting to evolve comprehensive policy packages. The IEA best practice recommendation implies that each country should develop and adopt a specific plan of action that would reflect the unique characteristics of that country. Recommendation: Best Practice in Lighting The IEA recommends that the G8 endorse the objective of across-the-board best practice in lighting. Since individual countries already have expertise in certain aspects. Recommendation: Set-top Boxes and Digital Television Adaptors The IEA concludes that international best practices with respect to energy-efficient settop boxes are policies that establish a minimum efficiency standard for Digital Television Adaptors (DTAs). the EU is considering mandatory measures for set-top boxes under the Eco-design of Energy-using Products Directive.avenues would be to pursue these activities through the proposed new IEA Implementing Agreement on Efficient Electrical End-use Equipment.

In Italy. It covers the major lighting technologies with the exception of low pressure sodium and induction lighting and covers residential. Several economies have announced efforts to develop regulatory measures that either will. or are likely to. There have been some significant developments with regard to implementation of this recommendation. In Brazil. the European Commission is currently considering options for the development of legislation on more stringent energy efficiency requirements for office and street lighting by 2008. In G+5 countries. • • • Recommendation: Phase-Out Incandescent Lamps Governments should move to phase out the most inefficient incandescent bulbs as soon as commercially and economically viable. At the request of European heads of state. addressing the ballast efficiency factor for ballasts operating with energy saving lamps. and adding an exclusion for dimming ballasts. In 2005. “Greenlight Australia” provides a voluntary framework for reducing energy consumption from Australian lighting over a ten-year period. result in the removal of inefficient incandescent lamps from the market. and the renovation of production and assembly lines of high efficiency electronic appliances. office buildings and sports venues. hotels. the Australian government and the Australian lighting industry committed to a voluntary target of reducing the energy consumption of lighting by 20% by 2015. In aiming for this objective there is a need both for appropriate time scales and performance targets to be established. Also government and industry actions must be coordinated internationally to ensure a sufficient supply of good quality higher efficiency alternative lamps. a phase-out is anticipated in the National Energy Efficiency Action Plan. Some of these are summarised below. there has been considerable investment in public lighting since 1985 with funds received through a levy on energy utilities. it is noted that private sector initiatives to phase out lighting have also increased and that these have played a role in focusing policy attention on this issue. developments in Australia are of particular note. it has mandated the promotion of high efficiency lighting systems and threeprimary-colour phosphorous in public facilities.• In Canada. shopping centres. revising the cold temperature exclusion. In other IEA countries. a range of amendments took effect in July 2006. commercial. the Australian government announced the phase-out of all yellow incandescent bulbs by 2009. To do this. including the harmonisation of efficiency standards for fluorescent lamp ballasts with those of the US Energy Star Program. • In February 2007. The Canadian federal government announced in April 2007the phase-out of the use of incandescent light bulbs by 2012. the Chinese government is aiming to reduce electricity consumption by 29 billion kilowatt hours over the 11th Five-Year Period. • • • 56 © OECD/ IEA 2008 . a phase-out will be implemented by means of the EU Eco-design Directive and the federal government further considers that there is implicit provision for such a measure in measure Number 8 of the 2007 Key Elements for an Integrated Climate Change and Energy Programme. submitted to the European Commission in July 2007. The IEA is well placed to facilitate such a coordinated transition were this to be requested by international stakeholders. industrial and public lighting sectors. In Germany. In addition to the below policy developments. The policy promotes CFLs to replace incandescent light bulbs.

In the UK. In the US. China has indicated a desire to phase out inefficient lamps but has also noted that further studies are necessary before the timescales or methods of implementation can be confirmed. The UK government has also been supporting CFL uptake in substantial volumes. and other announcements have been made in Belgium. These were distributed to low-cost housing areas. followed by the 75 watt bulb a year later and 40 and 60 watt bulbs in 2014. any strategy to phase out incandescent lighting needs to ensure that there is both sufficient consumer confidence in alternative technologies and that measures are implemented to make lamp quality more apparent to consumers. the problem of poor quality products being available and being indistinguishable from other products still persists. 57 © OECD/ IEA 2008 . To this end. there are a range of important market building and incentive measures that can be usefully deployed to support a market transformation process. Mexico and South Africa. it still remains for these measures to be implemented and properly enforced. several important activities related to this recommendation are now under way. which were identified by the South African Network Planning Department as areas with existing or impending capacity problems. Although no country has yet fully implemented the IEA recommendation with regard to best practice on fuel-efficient tyres. The distribution is still being carried out by various ESCOs in the country. Portugal and Switzerland. Governments also need to work with industry (both lamp and luminaire manufacturers) and retailers to ensure that there is a sufficient supply of higher efficiency products to meet demand in the event of regulated change. and . the government announced in September 2007 that it would begin phasing out incandescent light bulbs in early 2008 by way of a voluntary agreement with major light bulb makers. France. retailers and energy utilities. with the help of unemployed local residents. While many phase-out policies have now been announced. which effectively amounts to a phase-out of the traditional light bulb. the Energy Law passed in December 2007 will require lighting to use up to 30% less energy.maximum allowable levels of rolling resistance for major categories of tyres. Recommendation: International Best Practice for Fuel-Efficient Tyres The IEA concludes that international best practice with respect to fuel-efficient tyres consists of two elements: . for example. the national utility Eskom distributed more than seven million CFLs to replace incandescent bulbs in 2006. In light of this. This legislative development was partly prompted by developments at the state level. Some of the higher efficiency alternative lamp technologies are already well established. India is undertaking CFL replacement activities through the Kyoto Protocol’s Clean Development Mechanism and a range of promotional replacement activities have been instituted in Brazil. • • In the G+5 countries. In the case of CFLs.measures to promote proper inflation levels of tyres. In South Africa. The aim of this agreement is to reduce up to five million tonnes of carbon dioxide emissions per year by the end of 2011. while others are just appearing or are imminently expected on the market. with Nevada regulating the performance of general service light bulbs in June 2007 and California releasing proposed legislation in October 2007. it is noted that alongside regulatory measures. Requirements for 100 watt bulbs will take effect from the beginning of 2012. The European Commission has proposed more stringent energy efficiency requirements for incandescent lamps by 2009 and is in the process of considering regulatory options.• • Ireland has proposed a phase-out timetable of 2009. while Japan is also considering taking action.

Japan. The IEA is not aware of any other country-specific developments of note with regard to maximum rolling resistance. the European Commission announced in February 2007 that it would propose a legislative framework by mid-2008 incorporating measures to achieve an EU-wide objective of 120 grams per kilometre (g/km) of CO2 emissions from average new cars by 2012. South Africa and the US. namely. countries participating in the World Forum for Harmonization of Vehicle Regulations (WP. With regard to the second component of the recommendation – measures to promote proper inflation levels of tyres. among others. 58 © OECD/ IEA 2008 . for example. discussions on TPMS have commenced within the WP. the International Standards Organisation (ISO) is currently finalising the international test procedure. In its 2007 Low Carbon Innovation Transport Strategy. experts reached a consensus that international test procedures for measuring tyre rolling resistance are necessary for effective deployment of fuel-efficient tyres. In August 2007. it is hoped that activity in this area will be intensified in the near future. should make the fitting of tyre-pressure monitoring systems (TPMS) on new road vehicles mandatory.29) of the Inland Transport Committee of the United Nations Economic Commission for Europe (UNECE) have chosen tyre pressure monitoring systems (TPMS) as one of the most effective devices to promote proper tyre inflation levels. Russia. including in relation to tyre rolling resistance and measures to promote proper tyre inflation levels. in cooperation with international organisations including the United Nations Economic Commission for Europe (UNECE). test procedures for measuring the rolling resistance of tyres. would range from 3-5% of vehicle consumption when fully implemented. The expected global fuel savings from tyres with low rolling resistance. It now appears likely that an international test procedure will be discussed by the UNECE once finalised by the ISO. all governments. the European Commission undertook a public consultation on its proposals.With regard to maximum allowable levels of rolling resistance. but has noted the need to discuss these issues internationally to consider harmonisation. Germany has expressed some support for international test procedures for maximum rolling resistance limits and mandatory TPMS. India. As a result. Korea. Norway. Among other proposed measures. Similarly. the UK government welcomed the European Commission’s proposals. Such measures are considered to form a central aspect of maximising potential energy savings in the transportation sector. the EU. Canada. As such. New Zealand. with the latter anticipated to occur in the near future. These discussions have involved Australia. Partly in response to that. the European Commission said this legislative framework will seek to set maximum tyre rolling resistance limits for tyres fitted on passenger cars and light commercial vehicles. After the presentation of the above recommendation to the St Petersburg G8 Summit. discussions on tyre inflation levels have commenced in this forum. Regarding the first aspect of this recommendation. Recommendation: Test Procedures and Tyre Pressure Monitoring Systems Governments should adopt new international test procedures for measuring the rolling resistance of tyres to set maximum rolling resistance limits and for road-vehicle tyre labelling. In addition. including the compulsory fitting of TPMS and maximum tyre rolling resistance limits. nor with regard to measures to promote proper inflation levels. China.29 of the UNECE.

the US. It is also noted that some countries have other types of policy measures in place that are designed to encourage fuel efficiency. In India. Several jurisdictions currently have voluntary agreements. it appears possible that the 140 g/km target will not be achieved. the Canadian government announced an intention to develop regulation for the fuel efficiency of cars and light duty trucks. as part of its announcement to achieve a target of 120 g/km by 2012. it announced a proposed regulation in December 2007. With regard to the G+5. which will increase fuel economy standards by 40% according to a recent federal government announcement. At present. Additionally. the European Commission said that 130 g/km of this target should come from vehicle fuel efficiency. beginning with the 2011 model year. The EU voluntary agreement with automotive manufacturer associations. or. Canada. Article 46 of the revised Energy Conservation Law: provides that relevant departments of the State Council shall establish fuel efficiency standards for vehicles. this should remain a key objective with regard to energy efficiency efforts in the transportation sector. make those standards more stringent. Both the EU and Canada have recently announced an intention to develop mandatory measures. if appropriate. would develop mandatory standards within two years. and also provides for the strengthening of supervision and management of fuel efficiency standards. it is noted that work toward the harmonisation of vehicle fuel efficiency standards could be intensified. China and Korea. With regard to stringency. the government announced in October 2007 that the Petroleum Conservation Research Association. Such harmonisation would reduce compliance costs for manufacturers by providing consistent regulatory conditions across countries. such as vehicle tax differentiation and consumer information schemes. Australia (which also has a mandatory labelling system). As such. together with the Bureau of Energy Efficiency. aims to reduce the average CO2 emissions of new cars to 140 g/km by 2008-09. In February 2007. b) Announce the more stringent content of the proposed standards as soon as possible. 59 © OECD/ IEA 2008 . those in Japan arguably provide the best example at present. The implementation of appropriate mandatory fuel efficiency standards for cars and lightduty vehicles is a necessary aspect of achieving the significant potential for energy savings in the transportation sector. mandatory fuel efficiency standards exist only in Japan. Finally. which must be met for vehicles to be in operation. Subsequently. In an April 2007 policy statement. in China. Although progress has been made in reducing average emissions of new cars across the EU. the US will set a fuel economy standard of 35 miles per gallon by 2020. which is another important aspect of fuel efficiency standards. where they do exist. as many aspects of the future standards as possible. This would in turn have flow-on benefits for drivers. and c) Harmonise. principally. for example.Recommendation: Mandatory Fuel Efficiency Standards for Light Duty Vehicles All governments should: a) Introduce new mandatory fuel efficiency standards for light-duty vehicles if they do not already exist. the EU and Korea.

Recommendation: High Quality Energy Efficiency Data for Industry Governments should support the IEA energy efficiency indicator work that underpins critical policy analysis by ensuring that accurate energy intensity time series data for industrial sectors is reported regularly to the IEA. Such positive developments include: • • • the ecoENERGY for Industry benchmarking scheme in Canada. the Energy Conservation Law in Japan. • • • • There is a considerable degree of industry-related data collection work taking place in G+5 countries. various energy auditing schemes in Italy. while Brazil is part of the IEA Energy Efficiency (Sectoral/End-Use) Indicators Project. the IEA first G8 industry recommendation suggested that countries provide accurate energy intensity time series data for industrial sectors to the IEA. Paris) and IEA (forthcoming. Recent and forthcoming IEA publications highlight a significant gap in the availability of high-quality energy efficiency data. 2008) Assessing Measures of Energy Efficiency Performance and their Application in Industry (IEA/OECD. but not yet for the purposes of indicators work. announced in 2007 (formerly the Energy Performance Commitment). which requires designated energy management factories to hire a certified energy manager and to report on the status of their energy consumption annually. for example. and the US Department of Energy’s Save Energy Now campaign. for example. However. reporting and publication are also part of China’s 1000 Enterprises programme. more detailed data on industry energy efficiency in Germany through the monitoring of the EU End-use Efficiency and Energy Services Directive and through measure Number 7 of the Key Elements of an Integrated Climate and Energy Programme. the revised Energy Conservation Law provides for the establishment of an energy use statistical and indicators system. the Carbon Reduction Commitment in the UK. among other activities.12 Without accurate data it is difficult to target and develop appropriate energy efficiency policies and to evaluate policy effectiveness for this significant energy-using sector. several countries have or are in the process of introducing energy auditing or data collection schemes for industry. See. Paris). To this end. some work is being done in the area of benchmarking using energy efficiency indicators. 12 60 © OECD/ IEA 2008 . more broadly. for example. Additionally. and the regular publishing of statistical information on the energy consumption and energy conservation of the key energy-consuming industries. Data collection. such as the Sardinia energy auditing scheme. IEA (2007) Tracking Industrial Energy Efficiency and CO2 Emissions: The Way Forward (IEA/OECD. which has involved the distribution of energy saving information and software to large industrial plant managers and no-cost industrial energy assessments. In China. which will operate alongside the Climate Change Agreements scheme and the domestic implementation of the EU Emissions Trading Scheme. an energy audit programme and the collection of some data through the White Certificate Scheme in France. OECD member countries and some non-member countries regularly provide the IEA with time series data on energy consumption. It also provides that heavy energy consumption entities submit reports on energy consumption and savings matters.

Among the many impediments to the adoption of cost-effective energy efficiency investments is the “finance barrier”. which provides for the Department of Energy to issue guarantees for up to 100% of the amount of a loan. financial institutions and customers to invest in energy-efficient technologies because of the initial cost barrier. In this context. Beyond this. to reduce existing uncertainties in quantifying the benefits of energy efficiency investments and stimulate increased private sector involvement. Since that time. which entered into force on 1 January 2006. Germany. subject to the limitation that it may not guarantee a debt instrument for more than 80% of the total cost of an eligible project. which has also been applied in other countries. b) review their current subsidies and fiscal incentive programmes to create more favourable grounds for private energy efficiency investments. it is important that governments adopt and publicise a common verification and measurement protocol which would help to create more favourable grounds for private energy efficiency investments. With regard to reviewing existing subsidies and fiscal incentive programmes and seeking to create more favourable grounds for investment. It is noted however. where an International Performance Measurement and Verification Protocol was first developed in 1995 to provide information on best practices in verifying the results of energy efficiency. Key developments include those in France. The US is one such exception. financiers’ lack of familiarity with energy efficiency investments. and publicise to the private sector. and c) collaborate with the private financial sector to establish public-private tools to facilitate energy efficiency financing. the lack of market information on financial products for energy-efficient investments and the inadaptability of traditional finance criteria (such as the payback period) to energyefficient investments. a wide range of policy instruments exist at the federal and state levels in the US. the German federal government intends to consider a savings and measurement protocol as part of its implementation and monitoring of the EU End-use Efficiency and Energy Services Directive. the US. The aim of this protocol. To take one example. Very few countries have yet adopted a common verification and measurement protocol for energy savings. This refers to the reluctance of investors. there has been a greater level of activity. Also signed into law within the Energy Policy Act 2005 were energy efficiency tax credits. Italy. a common energy efficiency savings’ verification and measurement protocol. is to help secure low-interest loans from financial institutions for energy efficiency investments. It is also important that governments work to implement public-private tools to facilitate energy efficiency financing. that procedures undertaken to check and ensure that the relevant aspects of the protocol are applied to projects vary. and to stimulate the development of innovative financing options to realise energy efficiency opportunities. With regard to efforts to enhance private-public partnerships.Recommendation: Increased Investment in Energy Efficiency Governments should: a) adopt. the UK. recent developments in Australia provide one example of what can be undertaken in this field. Brazil and China. One of the objectives of the 2004 National Framework for Energy Efficiency was to increase understanding among financial institutions and decision makers about the benefits of energy efficiency. water efficiency and renewable energy projects in commercial and industrial facilities. Australian governments have been working with the finance sector to identify methods to ensure the sector is aware of and 61 © OECD/ IEA 2008 . This includes a loan guarantee programme under the federal Energy Policy Act 2005.

focus attention on the important issues. Partial plans exist in both Japan and Russia. In recent years. In Russia. to motivate action by businesses. the Energy Strategy of Russia provides that energy intensity will decrease 25-27% by 2010. National energy efficiency strategies are useful because during their development. revise the Energy Tax Directive and highlight the potential for using tax credits as incentives for both companies and households. released in May 2006. Italy and the UK have all developed some kind of national energy efficiency strategy that incorporates timebound targets. third-party financing. the Carbon Trust. The Commission also notes a plan to remove. This plan has not been financed since 2006. Recommendation: National Energy Efficiency Strategies and Energy Intensity Reduction Objectives National energy efficiency strategies can accelerate the implementation of energy efficiency practice across all sectors. where possible. where the French Energy Agency (Ademe) and Banque Populaire d’Alsace have offered preferential loans for energy efficiency investments. energy performance contracting and recourse to businesses providing energy services. the New National Energy Strategy. identify gaps in current work programmes. policy agencies developing these strategies need to be adequately resourced. Though several countries have adopted energy efficiency strategies. It has further decided to draft a Green Paper on indirect taxation. Germany. national legal barriers to shared savings. implementation and evaluation they can help to: make the vision for energy efficiency explicit. The plan calls on the banking sector to offer financing opportunities tailored to small and medium enterprises and enterprises providing energy efficiency solutions. Similarly. engages in a wide range of activities. however. In Japan. information and advice to trade and professional bodies so they can help their members reduce their carbon emissions. Among the measures to meet this aim is the Energy Conservation Toprunner Plan.acts appropriately to address energy efficiency opportunities. the coverage is by no means complete. to providing interest-free loans to invest in energy saving projects. Effective strategies can involve the establishment of specific. a federal target programme ‘Energyefficient Economy’ commenced in 2002 and will run until 2010. and to improve the skill base to identify energy efficiency opportunities. A marked improvement in energy efficiency requires a concurrent improvement in funding for policy agencies. In the EU. Another positive example can be seen in France. and it is understood it may be revised. provides for the establishment of a state-of-the-art energy supply-demand structure so as to reduce oil dependence to less than 40% by 2030. measurable and achievable energy efficiency objectives. There has been considerable activity in this area within the EU. a private company established by the government. the European Commission’s Action Plan on Energy Efficiency includes several measures to facilitate investments to boost energy efficiency. from providing financial support. identify necessary tasks and resources. the European Commission released an Action Plan for Energy Efficiency. to bring energy efficiency opportunities to the attention of key decision makers in large energy consumers. these objectives enable evaluation of a strategy’s progress. in the UK. which sets a target to improve energy efficiency by 30% relative to 2006 by 2030. and allocate implementation and monitoring responsibility. By illuminating trends in energy use and efficiency. Additionally. In October 2006. 3540% by 2015 and 42-46% by 2020 compared with 2000 levels on a moderate scenario (where the favorable scenario rates are 2-5% higher). Additionally. France. which outlined a framework of policies and measures to reduce annual primary energy consumption by 20% 62 © OECD/ IEA 2008 .

In some instances. which consists of a “menu” of policy instruments that different provinces and territories can adopt according to their circumstances. federalism appears to play a role in whether and how nation-wide energy efficiency plans are developed. The plan addressed energy efficiency possibilities across all sectors. In addition. and the measures adopted or planned. In Canada there is no nation-wide energy efficiency target though a range of targets exist at the provincial level. In other IEA countries. or had submitted only interim or partial plans. to be achieved by the end of 2016. is notable. the IEA draws attention to its wording of the above recommendation. the Energy Efficiency Strategy of South Africa. further work could be done to specify precise measures to meet energy savings goals. and allocate implementation and monitoring responsibility. which would provide for an overall national indicative savings target of 9% or higher. This strategy links energy sector development with national socio-economic development plans and sets a target for improving national energy efficiency by 12% by 2015. in that more countries are developing cross-sectoral energy efficiency strategies that provide for timebound savings goals. as reported in the NEEAPs. The Council of Energy Ministers released Moving Forward in Energy Efficiency for Canada: A Foundation for Action in September 2007. on the other’. which notes that in addition to providing an explicit “vision” for energy efficiency. the framework does not include an overall energy savings target. and the resources allocated to preparing it. which it released in January 2008. In this regard. and an intermediate national indicative savings target for 2010. the Ministerial Council on Energy endorsed Stage One of a National Framework for Energy Efficiency in 2004. the European Commission noted that most of the plans ‘seem to present a business-as-usual approach. the European Commission launched infringement proceedings against ten states in December 2007. Twenty of these actions were implemented in 2007. ensure adequate resources to the policy agencies responsible for the strategy. identify necessary tasks and resources. comprising a range of energy efficiency measures. on the one hand. The directive further required each member state to submit a National Energy Efficiency Action Plan (NEEAP) to the Commission by 30 June 2007. as well as a selection of cost-effective energy efficiency improvement initiatives to be implemented before 2012. several countries. had not yet submitted their national plans. The strategy covers all sectors and is being implemented through Sectoral Implementation Plans. Additionally. 63 © OECD/ IEA 2008 . New Zealand has a national strategy with sectoral targets and overall estimated savings. which was approved by cabinet in March 2005. such strategies should help to identify gaps in current work programmes.by 2020. and measures to promote energy efficiency and energy services. not a staking out of forward looking and visionary strategies’ and that ‘a first assessment of the NEEAPs gives some encouragement but seems to indicate a considerable gap in several member states between the political commitment to energy efficiency. In Korea. In Australia. they should provide for adequate resources for the policy agencies responsible for energy efficiency. incorporating ten energy conservation priorities and more than 70 planned actions. obligations on national public authorities regarding energy savings and energy-efficient procurement. In response to this. While estimations as to the potential savings from these measures were included. the Energy Enduse Efficiency and Energy Services Directive included an indicative energy savings target for member states. and provide for adequate and ongoing evaluation of the strategy and related measures. Among the G+5. Additionally. in its initial assessment of all of the NEEAPs. As of December 2007. including several IEA member countries. an energy plan unveiled in July 2007 calls for boosting the country’s overall energy efficiency by roughly 24%. clearly designate responsibility for each measures envisaged. in almost all cases. while there have been some positive developments in this area. Thus.

on tyre-pressure monitoring systems and international test procedures. these measures could achieve significant savings. The IEA preliminary assessment of implementation of its energy efficiency recommendations reveals that in the case of several of the recommendations. through to no evidence of any substantive action at all. In several other areas. IEA and other governments in adopting relevant measures to better implement these recommendations. This particularly applies to the recommendations on new and existing buildings. least costly way to reduce energy demand. and should be further pursued by all countries. which provide best practice examples for other countries to follow and which serve to reinforce the worth of energy efficiency measures as a means of mitigating human-induced climate change. nationally and internationally coordinated combinations of measures. Finally. more important work remains to be done in all G8. Harvesting these global opportunities requires implementation. these measures could be updated or further strengthened. Saving energy is the most rapid. but of course. addressing energy security and providing for sustainable development. there are numerous instances of positive developments. IEA. IEA and G+5 countries to fully implement the IEA recommendations. 64 © OECD/ IEA 2008 . No country has fully implemented all of the IEA recommendations. In the case of these recommendations. for example. from the existence of measures that substantially implement components of some recommendations. ensuring effective enforcement and compliance procedures remains a universal issue across many of the recommendations. to drafted measures that are not yet in force but that will make a real difference once implemented. Developing and implementing energy efficiency policies now is critical. Across all of the IEA recommended areas of activity. but globally. The IEA 2006 and 2007 policy recommendations require only existing technologies and should be considered for early implementation in the G8. yet. If fully and properly implemented. This applies with regard to the recommendations on fuel-efficient tyres. and to those on minimum energy performance and standby power requirements for appliances. particularly in the buildings and appliances sub-sectors. not only in G8 countries. G+5 and other countries to achieve major energy savings. it remains to be seen if this will occur. certain countries have introduced voluntary measures. fuel efficiency standards for light duty vehicles and low power modes for electronic equipment. Having said this. the IEA considers mandatory measures to be an important part of ensuring that the full savings potential in the relevant sub-sector is met. but there are still few or no instances of mandatory requirements. some or many countries have established a range of pertinent measures. A full range of activity is apparent. Such procedures are a central aspect of successful policy development and implementation in all energy efficiency sub-sectors. on the phase-out of incandescent lamps. in most instances. To this end. CO2 emissions and energy supply investment needs. Energy efficiency has a huge potential to bring costeffective savings in a relatively short timeframe. monitoring and enforcement of new. and on the strengthening of building regulations.Concluding Observations Progress in implementing the IEA recommendations varies across countries and between recommendations. to announcements of plans to consider developing measures. the scope of their application broadened and compliance better monitored and enforced. there are instances where relevant policy measures have been drafted or are being considered but have not yet been implemented. The IEA will continue to support G8.

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