EnergyEfficiency Standard and Labeling Program: Market Transformation and Case Study

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Energy-Efficiency Standard and Labeling Program
Market Transformation and Case Study

• Dr. LI Tienan Professor

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Market Transformation
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Objectives

• Supporting EE SL programs.
• Influencing the stakeholders including policy
  makers, manufacturers, utilities, retailers and
  others.
• Stimulating new energy-efficiency and
  conservation technology.

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Problem Statement

• Energy Efficient Technologies available in the
  marketplace but
• Often are unable to achieve rapid market
  deployment
• Individual program delivered by numerous
  individual agencies, utilities, and other
  organizations.
• Experience with energy efficiency programs shows
• EE technology markets are complicated w/many
  barriers
• Individual policies and measures can overcome 1
  barrier but still have limited market impact
  (e.g., advertising without product availability).

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What is Market Transformation?

• A strategic approach that
• Identifies barriers to market entry of EE
  products
• Brings a number of policies/projects to bear in a
  coordinated way to address them.
• Results in lasting changes in the structure or
  function of a market or the behavior of market
  participants With a final outcome of an increase
  in the adoption of energy- efficient products,
  services, or practices.

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Market Transformation Approach

• Not just individual program activities but an
  integrated and dynamic strategy that links
  separate elements to create a permanent shift in
  the market
• Technology push and market pull measures to
  complement and strengthen each other
• Where one measure on its own is weak and the
  combination is strong.

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Design of MT Strategy

• Each product/market may include a different mix
  of measures depending on the types of barriers
  faced.
• Typical barriers include
• Technology, market and cost uncertainty
• Lack of technical capacity Industry,
  government, stakeholders
• Lack of information and awareness
• First cost issue
• Financing constraints
• Poor regulatory/institutional context.

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Examples of Programs and Policies

• The programs and policies can be integrated in an
  MT strategy to support EE SL programs include
• Energy pricing and metering.
• Financing and incentives.
• Regulatory strategies.
• Voluntary activities .
• Government purchasing.
• Energy audits.
• Consumer education and information, etc.

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Energy Pricing and Metering

• Market-based Energy Pricing --- free market with
  cost-based energy prices.
• Metering and Billing --- the cooperation of
  utility companies is necessary.

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Financing and Incentives

• Rebates, grants, and tax incentives.
• Financing of energy-efficiency investments loan,
  lease, ESCO, vendor/manufacturer financing, and
  utility financing.

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Regulatory Programs

• Mandatory energy labels.
• Energy-efficiency requirements in building codes.
• Government requirements that private utilities
  offer energy-efficiency programs.

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Lessons Learned Purchasing Programs

• Need clear policy and regulations/laws
  communicated repeatedly to buyers/sellers
• Make the efficient products the easiest to buy
• Efficiency products should be automatically
  selected by customers
• Then, lower first-cost to choose among efficient
  products.
• Keep the guidance simple levels, lists, labels!
• Coordinate purchasing with other programs
  Product testing/ labels, construction specs,
  rebates, tax credits and green purchasing.
• Seek active private sector involvement
• Manufacturers, vendors, ESCOs, architects
• Clear, consistent energy efficiency requirements.

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Other Policies and Programs

• Energy-audit.
• Voluntary agreement.
• Quality commitment.
• Consumer education and information.
• Regional/global cooperation/ harmonization.
• Others.

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Case Study China Practice
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Energy Efficiency Standards

• China National Institute of Standardization is in
  charge of developing China national EE standards
• More than 20 standards are developed, including
• Home AppliancesRefrigerators, air conditioners,
  electric water heaters, micro-wave ovens, rice
  cookers, washing machine, gas ovens
• Lighting ProductsBallasts for fluorescent tubes,
  double-capped fluorescent lamps, CFLs,
  high-pressure sodium lamps and the associating
  ballasts, metal halide lamps and the associated
  ballasts
• Industry Productselectric motors
• Standby power Products Color TVs, printers,
  copiers, fax machines, computers, monitor,
  external power supplier
• Others.

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Energy Efficiency Endorsement labelling program -
1

• It is a voluntary labellling program and launched
  in 1998.
• About 700 top manufacturers participate by the
  end of 2007.
• CSC manages China endorsement label in last 10
  years and transferred to CQC now.

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Energy Efficiency Endorsement labelling program -
2

• About 60 product categories including
• Home AppliancesRefrigerators, air conditioners,
  electric water heaters, micro-wave ovens, rice
  cookers, washing machine, gas ovens
• Lighting ProductsBallasts for fluorescent tubes,
  double-capped fluorescent lamps, CFLs,
  high-pressure sodium lamps and the associating
  ballasts, metal halide lamps and the associated
  ballasts
• Industry ProductsAir compressors, electric
  motors, electricity power transportation fittings
  and traps, power control devices
• Standby power Products Color TVs, DVD/VCD,
  printers, copiers, fax machines, computers,
  monitor, external power supplier
• Building materials Window, insulation glass,
  insulation materials
• Some of these categories are listed in The List
  of Energy Efficient Products for Government
  Procurement.

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ELI Global Labelling Program - 1

• Background
• A global labelling program for EE lighting
  products
• Seed funding by GEF and implemented by IFC
  starting in 1998
• The ELI logo has been actively promoted in 7
  countries.
• International Launch of Phase 2
• In 2003, CSC won an international bid to
  administrator the Phase 2 ELI program
• In 2004-2005, CSC established ELI Quality
  Certification Institute
• ELI is now headquartered in Beijing, with team of
  international outreach consultants.

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ELI Global Labelling Program - 2

• ELI Strategy
• ELI is a reach standard for EE lighting
  equipment in developing countries
• ELIs fundamental goal is a Commitment to
  Quality.
• ELI Product Categories
• Compact Fluorescent Lamps
• Linear Fluorescent Lighting
• Ballasts (electronic and magnetic)
• Public Luminaires
• LED traffic signals, etc
• Launch of ELI Phase 2
• ELI labeling program launched in March 2006
• CSC will cooperate with international partners to
  operate the ELI certification program worldwide.

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Energy Efficiency Information labelling program

• It is a mandatory labellling program and launched
  in 2006.
• CNIS manages China information label program.
• 9 product categories including refrigerators, air
  conditioners, washing machine, CFL, etc are in
  the list now.

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Key Regulations and policies

• China Energy Conservation Law.
• Regulations on Energy Efficiency labelling
  programs.
• Regulation on the Carrying Out of Resources
  Saving Society Building.
• Government Procurement Policy for
  Energy-Efficient Products.
• Tax incentive policies.
• China TOP 10 energy conservation and efficiency
  projects.
• 20 energy intensity target.
• Consumer incentive initiative.
• Others
• EE labels and labeled products were adopted by
  implementing regulations and initiatives

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Promotions
China National Energy Conservation Week promotion
CSC Annual Exhibition for Energy -efficient,
Water-conservation and Ecolabelling Products.
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Key Manufacturer Partners
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International Cooperation

• AUSTRALIA/AGO
• US/EPA
• REEEP
• CLASP
• GTZ/CIM
• DEFRA
• UK MTP/AEA
• KEMCO
• LBNL
• ICF Consulting

• UNDP
• UNESCAP
• UNEP
• GEF
• UNDESA
• UNIDO
• WB
• IEA
• IFC

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International Projects - 1

• China Government Energy Efficiency Procurement
  project (EF).
• China Government Energy Management Program (EF).
• EE Product Market Transformation Program (UK-MTP/
  DEFRA/AGO).
• International policy benchmarking e.g. APEC
  projects.
• Energy Management System standards development
  (UNIDO/REEEP/ISO).
• China End Use Energy Efficiency Project
  (UNDP/GEF).
• China Green Lights Project (UNDP/GEF).
• EE SL development and Priority Study
  (LBNL/CLASP).

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International Projects - 2

• MOU with Australian in 2005.
• From Capacity Building to MOU with US EPA (2007.
• BRESL Barrier Removal to the Cost-Effective
  Development and Implementation of Energy
  Efficiency Standards and Labeling Project
  (UNDP/GEF).
• International CFL Harmonization Initiative
  China-CSC, USEPA Australia-AGO.
• Harmonization Initiative for Energy-Efficient
  Set-top Box China-CSC, USEPA, UK-AEA
  Australia-AGO.
• Harmonization Initiative for Energy-Efficient
  External Power Suppliers.

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Thanks!

• Contact
• LI Tienan
• Director of China Standard Certification Center
• Add No.4 Zhichun Road, Haidian District, Beijing
  100088 China
• Tel [phone]
• Email litn_at_cecp.org.cn