Promoting environmental services in Asia Resource and Energy Efficiency Services Girish Sethi Director, TERI, India International Conference on Green Industry.

Promoting environmental Promoting environmental services in Asiaservices in Asia

Resource and Energy Efficiency ServicesResource and Energy Efficiency Services

Girish SethiDirector,

TERI, India

International Conference on Green Industry in Asia, Manila

9 Sept 2009

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Contents

About TERI Background and definitions Environmental service sector in Asia Renewable and energy efficiency services

Energy efficiency services Renewable energy services Clean energy manufacturing services

Industrial environmental management services Waste management and recycling Promoting environment services across Asia

Promoting environmental services in Asia 9-11 Sep 2009, Manila

About TERI

An independent, not-for-profit research organization established in 1974

Pursuing activities related to energy, environment, and sustainable development

Staffed by nearly 600 professionals drawn from over a dozen disciplines

Based in New Delhi; regional centres in southern; western and north-eastern India; and staff presence in Japan and Dubai

Affiliates: TERI-NA in Washington, DC TERI-Europe in London

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Background and definitions – Environmental Services

Help in Reducing consumption of raw materials, energy and water Lowering GHG emissions Reducing wastes and pollution Creating job opportunities in both urban and rural areas meeting the MDGs (MDG-7: Environmental sustainability)

Classifications: WTO/ GATS (traditional and narrow) OECD/ Eurostat (includes cleaner technologies, products and

services that reduce environmental risk and minimize pollution and resource use)

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Definitions …contd.

As applied in this Background Paper Services related to resource and

energy efficiency Consists of OECD “Cleaner

technologies and products” group and “Resource management” group (energy & water management and renewable energy production)

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Environmental service sector - Trends

OECD countries account for 85% of global market of EG&S Global volume estimates (German Federal Environmental

Agency, 2007) : EUR 1 trillion; Energy efficiency: EUR 450 billion

Expected to touch EUR 2.2 trillion in 2020

Services, 52%

Equipment, 24%

Resource management,

24%

Market share

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Increasing share in developing countries with the growth in industrial sector

Projected growth: South east Asia (14%) and China (12%) Generates green jobs

China - 1.8 million in 10,000 enterprises/ institutions (year 2000) Korea - 95,000 people

Domination of economy by SMEs Nearly 13 million SMEs in India Existence of clusters

Increasing role of private sector Shift from end of the pipe solutions to adoption of cleaner

technologies Increasing share of renewables:

Global wind capacities – 100,000 MW (2008) India – 8,000 MW China - 6,050 MW; Chinese Renewable Energy Industry Association

predicts the capacity to increase to 50,000 MW in 2015

Environmental service sector – Trends…contd.

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Resource and energy efficiency services

Three broad heads:

Energy efficiency and renewable energy services Energy efficiency services Renewable energy services Clean energy manufacturing services

Industrial environmental management services

Waste management and recycling

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Energy Efficiency Services

Energy audits and ESCOs (Energy Service Companies)

ESCO Market → Industry and commercial buildings (40 - 50%)

India : ESCO market potential → USD 3.5 billion (ADB study)

Number of barriers for ESCO promotion

Greater role of “Associations” of ESCOs (Japan, China, Korea)

Accreditation of energy auditors and energy managers (about 1200) in India through BEE (Bureau of Energy Efficiency), Government of India, since 2004.

Government policies to influence EE market Energy Conservation Act, 2001 in India National Mission on Enhanced Energy Efficiency

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Renewable Energy Services

Specific programs to promote RETs in China, India, Sri Lanka and many Asian countries Incentives and financial aids for remote areas and villages Increasing focus on solar in China (thermal and PV)

Accounts for 70% of world solar thermal market India Solar Mission : 20,000 MW on solar

RETs to meet 10% of global primary energy demand by 2030 (IEA) Estimated cumulative investment during 2007-30 is USD 5.5

trillion Generate 20 million additional jobs by 2030 in RE sector (UNEP)

Case study: TERI’s LaBL (Lighting a Billion Lives)

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Clean energy manufacturing services

Not covered in detail in this Background paper but closely linked to the “Environmental Services” sector

Includes manufacturing of energy-efficient equipment/products (lighting, appliances, transport , industrial products, renewable energy technologies, etc)

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Industrial environmental management services

Includes services and programs that support cleaner industrial transitions

Focus on ISO services: ISO – International standards on environmental management

ISO 14001 widely used standard

Growing awareness 154,572 certificates issued in 148 countries (ISO Survey 2007)

ISO 14064 – GHG accounting and verification: Emerging standard

ISO 50001 – Energy management services (2010)

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Growth of ISO 14000: 2004 certification in Asia

Country 2005@ 2006 2007

China 12683 18842 30489

Hong Kong, China 385 509 522

Taipei, Chinese 1556 1633 1674

India 1698 2016 2640

Indonesia 430 369 625

Iran 407 780 624

Japan 23466 22593 27955

Korea 97 91 474

Malaysia 694 593 667

Philippines 408 458 637

Singapore 887 716 602

Thailand 1120 1369 1020

Viet Nam 127 189 358

@ includes only total ISO 14001 certification

• 21% increase over 2006

• Top 10 countries include Japan and China.

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Waste management and recycling - MSW

Notable leaders - Korea and Japan

Waste generation increasing with growth in urban population Primarily managed by government bodies

Characterized by low infrastructure and less resources

20-50% MSW uncollected in South Asia Generation to increase to 1.8 million tonne per day in 2025 (World Bank)

Informal collection system prevails to a large extent Mumbai – 30,000 waste pickers & 400 micro enterprises;

Jakarta – Waste pickers recover 25% of city waste saving USD 3.6 million annually

Public- private partnership model including community based schemes can boost MSW management

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Waste management and recycling - Wastewater and industrial wastes

Insufficient sewage treatment capacities in developing countries 21% capacity available in India

Market: USD 1-1.2 billion; projected growth: 10-12% per annum in India Efforts by China

Key state projects (USD 2 billion) and water/ wastewater treatment plants in special economic regions

300 institutions/ organizations involved in design and water treatment projects

Industrial waste recycling Unorganized sector (steel, paper, glass, …) Generates employment

42% worldwide steel output through scarp (2006), providing employment to 200,000 people

Need to establish efficient collection, storage and transportation facilities

E-wastes

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Promoting environment services across Asia - Strategies

Need for combination of policy instrumentscovering

regulatory, financing and market development

Promoting environmental services in Asia 9-11 Sep 2009, Manila

(1) Enabling policy environment Promotion of industry support institutions

(e.g. NCPCs, ESCOs, RESCOs…)

Standards and labeling Influence consumers and market creation (e.g. Energy star rating for

appliances) Development of efficiency standards

Public procurement policies for resource efficient products (e.g. CFLs, Solar PV modules, recycled paper, blended cement …)

Specific programs for promoting RETs

Financial incentives and taxation

Promoting environment services across Asia

Promoting environmental services in Asia 9-11 Sep 2009, Manila

(2) Strengthening local delivery system to ensure long-term sustainability of demonstrated solutions Case-study: Promoting energy efficient technologies in SMEs -

TERI’s efforts in Firozabad glass cluster, India

(3) Enhanced Research, Development and Demonstration efforts Low RD&D funding in Asia compared to OECD/EU Need to develop local systems for innovation at

national/regional levels for applied R&D

Promoting environment services across Asia …contd.

Promoting environmental services in Asia 9-11 Sep 2009, Manila

(5) Strengthening institutional frameworks Existing institutional structures very weak; gap predominantly

high in municipal services Need to explore other PPP models

(6) Information dissemination and capacity building

Promoting environment services across Asia …contd.

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Lighting a Billion Lives (LaBL)

TERI’s LaBL campaign focuses on rural communities to displace kerosene lanterns with solar lighting systems

1.6 billion people lack access to electricity; 25% in India alone

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Local support services – Small scale glass industries of Firozabad TERI’s intervention in energy-intensive SMEs with support from

Swiss Agency for Development and Cooperation

Pot furnace

Coal fired

Gas fired

Gas fired

Coal fired

Muffle furnace

Promoting environmental services in Asia 9-11 Sep 2009, Manila

Thank You

Email: [email protected]