Transcript Document
Update on Negotiated Energy Agreements Pilot Programme Peter Brabazon Sustainable Energy Ireland Glasnevin, Dublin 9 Tel: 01- 8369080 Fax: 01- 8372848 www.sei.ie 1 Negotiated Agreements Pilot - Presentation format • Introduction and Context • Pilot Project Details • The Role of Audits • Progress and Next Steps 2 Energy Agreements An agreement between an individual firm or group of firms and the state aiming to achieve substantial energy and emissions reductions “beyond business-as-usual” 3 Policy context • Climate change • Kyoto Protocol • EU: Burden sharing arrangement • Ireland: +13% by 2008 - 2012 • National Climate Change Strategy – Oct ‘00 • Industry – One million tonnes CO2 reduction 4 National policy context • Integrated strategy • Early action to meet targets • Burden sharing and equity across all sectors • Market instruments with appropriate supports • Industry – taxation, agreements, best practice, emissions trading 5 Tax & Agreements National Climate Change Strategy (Oct 2000): - Targeted taxation measures - Negotiated agreements linked to taxation measures - Industry overall: 1Mt CO2 reduction Minister for Finance (Dec 2002): Carbon/energy tax to be introduced from end 2004, with full consultation 6 Negotiated Agreements • Aim to provide fairness, flexibility while building competiveness • Firms agree to take certain actions or to meet specific targets • Equity in context of market instruments • Incentives for participation • Flexibility for firms while meeting national objectives • Can be individual or group basis • Can be across all activity, or technology specific 7 Agreements in Ireland • Core element of strategy • Signalled connection to energy/climate levy • Firm level, multi-year, legally binding agreements • Energy management systems a minimum • Best international practice, beyond business as usual 8 Negotiated Agreements Pilot - Presentation format • Introduction and Context • Pilot Project Details • The Role of Audits • Progress and Next Steps 9 Negotiated Agreements Pilot • Initiated by SEI in February 2002 • Completion date – planned end June 2003 • Draft, non-binding agreements • Ongoing consultation includes IBEC (business representative body) and relevant Government Departments • Aims to inform policy makers for development and implementation of full measure 10 NA pilot project involves: Draft agreements with:1. One major energy-using company 11 Individual agreement • Aimed at very large energy consumers with unique processes or activities • Based on full audit of all energy practices • Criteria negotiated and agreed • Audit and criteria used to develop list of possible actions • Draft agreement based on identified desirable actions 12 Individual agreement Aughinish Alumina 13 NA pilot project involves: Draft agreements with:1. One major energy-using company 2. A representative group of 15 companies across industry, focusing on a shared end-use technology (thermal energy) 14 Technology agreement • Capturing key elements of energy use across industry • Pilot agreement focuses on generation and distribution of hot water and steam • Audits to understand existing practices, develop standards and identify opportunities • Discussions with suppliers/installers • Agreement based on actions and practices 15 Technology agreement Aer Rianta, Dublin Kepak, Co Meath Cadbury, Coolock, Dublin Millipore, Carrigtwohill, Cork Dawn Meats, Co Mayo Smurfit Paper Mills, Dublin GE Superabrasives, Dublin St James’s Hospital, Dublin Glanbia Ballyragget, Co Transitions Optical,Co Galway Kilkenny Tyco Healthcare, Mulhuddart, Dublin Unilever BestFoods Ireland, Dublin Yeast Products, Dublin Green Isle Foods, Naas, Co Kildare Hewlett Packard, Leixlip, Co Kildare (15) 16 NA pilot project involves: Draft agreements with:1. One major energy-using company 2. A representative group of 15 companies across industry, focusing on a shared end-use technology (thermal energy) 3. A group of 10 similar companies from same sector (pharmachem) 17 Collective agreement • Collective efficiency • A group of firms with largely similar processes • Audits to develop general understanding • Criteria for action agreed • List of desired actions developed • Draft agreement based on identified actions 18 Collective agreement Chemical / Pharmaceutical Sector GlaxoSmithkline, Co Cork Cambrex Profarmaco, Co Cork Janssen, Little Island, Co Cork Leo Pharma, Dublin Micro-Bio, Fermoy, Co Cork Novartis, Ringaskiddy, Co Cork Pfizer, Loughbeg, Co Cork Pfizer, Little Island, Co Cork Servier Laboratories, Arklow, Co Wicklow Wyeth Medica, Newbridge, Co Kildare (10) 19 Pilot project – approach: • Collaborative approach with industry • Action-based, firm-level agreements • Use of energy audits to identify what actions required to bring companies to best international practice • Negotiation to ensure realistic/ acceptable draft agreements • Exploration of links between bottom-up (actionbased) approach and overall reduction targets 20 Pilot project – main steps: 1. Company/group recruitment/selection 2. Development of energy audit templates 3. Selection of energy auditors 4. Energy audits in each firm 5. Development of negotiation framework 6. Negotiations themselves 7. Exploration of resource/system needs for full NA system (info systems, monitoring, benchmarking, etc) 21 Negotiated Agreements Pilot - Presentation format • Introduction and Context • Pilot Project Details • The Role of Audits • Progress and Next Steps 22 The templates • Setting out the special requirement of the pilot project audits • Standardising scope • Establishing compliance and data quality checks • Standardising reporting • Not standardising assessment, analysis, creative input 23 Special features • Data quality checks • Specific reference to best practice • 6 year payback in first analysis • No distinct payback categories • Identifying Special Investigations 24 Using the template • Auditor contracted to the firm to provide audit for energy strategy • Some special requirements for the pilot project additional to the firm’s needs • Template sets out project approach specific data needs • Quality assurance by SEI 25 Negotiated Agreements Pilot - Presentation format • Introduction and Context • Pilot Project Details • The Role of Audits • Progress and Next Steps 26 Schedule • June 29th 02 Individual Meeting, Dublin • July 10th 02 Collective Meeting, Waterford • 16th July 02 Technology Meeting, Dublin • 11th October 02 Joint Meeting, Portlaoise • 1th December 02 Auditor Briefing, Dublin • 14/15 January 03 Training for Group Reps • 27th-31st January 03 Site visits by FES/SEI • 11th February 03 Meeting with Group Reps 27 Looking ahead - some priorities: • Inform policy development • Explore ability of agreements to ‘deliver’ on topdown emissions objectives • Explore impacts on industry • Benchmark against intl. best practice • Options for monitoring/compliance • Explore options for codes of practice • Inform and develop the broader industrial sector 28 Next steps • Collation and analysis of audits • Commencment of negotiations meetings • Provisional deadline of 30th April • Production of final report in June 29 Indications so far: • High level of cooperation/commitment from industry • Industry sees agreements as vital, in the context of taxation • Indications that agreements could add significantly to impact of taxation on emissions reduction • Possible to move between bottom-up and topdown approaches • Strong/positive support from auditors to audit approach 30 Update on Negotiated Energy Agreements Pilot Programme Peter Brabazon Sustainable Energy Ireland Glasnevin, Dublin 9 Tel: 01- 8369080 Fax: 01- 8372848 www.sei.ie 31