06 session 4 mr. shaleen singal impact analysis from ... ·

Sustainable Consumption and Production: Policy Impact

Shaleen Singhal

Prof. TERI School of Advanced Studies, New Delhi

UNESCAP Conference on

Living within our planetary limits

17-18 Oct. 2019, Bangkok, Thailand

Context

…. On the one hand, over a billion-and-a-quarter people are still living in poverty. Onthe other, patterns of unsustainableproduction and consumption areendangering our planet’s eco-systems.….

THE PRESIDENT OF INDIA, SHRI PRANAB MUKHERJEE

(Inauguration of World Sustainable Development Summit, Delhi, 2016)Consumer Behaviour responsive Policy Landscape

Sustainable Consumption and Production

SCP - India - Region

• Economic growth, wellbeing, poverty reduction - vital• By 2030, India to become 3rd largest consumer market after US and China (middle

class-led; cities) – HDI performance rank (130th in 2018)• Institutional factors dominate the challenges for transition to SCP• Beyond sensitization of policy makers (higher education & practice)• Enhance evidence base - contribution of SCP policies to Region’s sustainability• Delink economic growth and environmental degradation• Sectoral focus

(UNEP 2015; World Sustainable Development Summit 2016-19; Singhal, 2019)

Urgency and Focus

• Sectoral SCP focus• Energy and Waste • Trajectory

• Geographical emphasis• India

• Methodological approach• Review of practice-based and

scientific literature • Non directive interviews with key

stakeholders• Consumers, policy practitioners,

researchers, manufacturers and supply chain, others

Policy Impact & Behavioural

Responses

Enabling Environment –

Change & Challenges

Recommendation (Flexible

Strategies)

Energy consumption in

buildings

Consumer choices and demand for energy efficient appliances

Waste management(Construction and Demolition waste)

• India - likely to contribute 17 – 18% of global urban growth by 2050

• Urban population - 290 million in 2001; to 472 million in 2019; and likely 876 million in 2050

• Building sector - 33% of total energy produced (24% by residential sector; 9% by commercial sector)

Impact Analysis: Rationale1. Energy Management in Building Sector

0

100000

200000

300000

Elec

tric

ity C

onsu

mpt

ion

(Gw

H)

Domestic Commercial

Source: Central Electricity Authority (CEA), GoI, 2017

Trend of Energy Consumption in Urban areas

Policy Initiatives and Changes

Year Policy/Guidelines Emphasis

2001 Energy Conservation Act Catering the need of energy efficiency

2002 Bureau of Energy Efficiency (BEE)Specify standards for energy consuming, generating & transmitting appliances

2007 Energy Conservation Building Code (ECBC) For Commercial Buildings2007 GRIHA Green Rating2016 Model Building Bye-laws sustainability and Green buildings 2017 IGBC Green Rating

2018 Energy Conservation Building Code (ECBC) For Residential Buildings

2010-11 Energy Efficient Housing Refinance Scheme Encouraging energy efficiency in the residential sector

Building efficiency approach includes efficiency in five key building system components:• Building Envelope (Walls, Roofs, and Windows)• Heating Ventilation and Air Conditioning (HVAC) System• Electrical Systems (Power Factor, Transformers)• Lighting (Indoor and Outdoor)• Services Water Heating and Pumping

Policy Impact: Stakeholders Behavioral Response

Type Warm and humid Composite Hot and dry Moderate Simple averageOffice building, less than 50% air-conditioning

101 86 90 94 93

Office building with more than 50% air-conditioning

182 179 173 179 178

Shopping mall 428 327 273 257 321BPOs 452 437 – 433 440Hotels – up to 3 star 215 201 167 107 173Hotels – above 3 star 333 290 250 313 297Hospitals 275 264 261 247 262Institutes 150 117 106 129 126

Source: EECB Report , 2016

Energy performance index of commercial buildings (kWh/m2/year)

22672

667630

32235

233167

18784 36398 47494

0

100000

200000

300000

400000

500000

600000

700000

800000

Thou

sand

Meg

awat

t Hou

rs (M

Wh)

Cumulative Energy Savings Potential for HVAC Technologies (2010-2030)

Source: PACE-D (2014)

Avg. EPI is highest for BPOs and lowest for office buildings with less than 50% air-conditioning


• Commercial energy consumption (Trade and Offices) – Max by HVAC. Likely increase - 11-12%/yr

• Preference to LEED rating system over indigenous GRIHA (international branding)

• Increasing awareness in middle class for energy-efficiency (cities)

• Willingness to pay extra to live in energy-efficient built environment (family earning)

• Limited enforcement of norms for monitoring energy consumption in residential sector.

4%, 4%4%, 4%

34%, 34%

28%, 28%

13%, 13%

7%, 7%10%, 10% Coolers

TV

Fans

Lights

Refrigeration

Acs

Others

25%, 25%

15%, 15%55%, 55%

5%, 5%

Lighting

Internal loads

HVAC

Others

Energy Consumption by Appliances

Commercial buildings Residential buildingsSource: : ICLEI South Asia, 2019

Governance

Uptake of green building rating programs

Enlargement of a pool of energy- efficient building

experts

Amendments of codes at State level

Finance

Providing rebates in electricity charges

Promote use of energy saving equipment in domestic context by National Housing Bank.

Low interest loans for green housing

Provision of aadditional FAR (Floor Area Ratio)

Eco-Labelling

BEE Star labelling programme for existing buildings >100kw

Rating of appliances program by BEE

Enabling Environment(Buildings)

Enabling Environment: Changes and Challenges

Multiplicity of institutional roles

Low willingness to pay by developers (only 2-5% extra) for green branding; working around

rating systems

Limited monitoring of programmes

efficacy

Noticeable gaps in awareness of broad user base towards energy-

efficiency

Lack of reliable data and information at micro level

Reliance of occupants on appliances for comfort - buildings

fail to meet comfort needs

High inconsistency between costing, branding and energy

efficiency across brands


Impact Analysis: Rationale• Rapidly growing economy with increased disposal incomes is leading to rise in consumption/

usage of appliances.

• Fans, TV, refrigerators, ACs, water-heaters have substantial share of electricity consumption.

• India’s Commitment at UNFCCC to reduce its energy intensity by a third by the year 2030.

0.010.030.050.070.090.110.130.15

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

India - Energy Intensity (MTOE/ GDP ($Bn)

Source: Thapar (Forthcoming)

2. Consumer Choices & Demand for Energy Efficient Appliances

Sr. No. Guidelines Year Emphasis

1.Standards and Labeling Programme

2006-2007 Labelling program for Air Conditioners and Refrigerators

2007-2010 12 Appliances included in voluntary labelling Programme

(2007-10)

2010-2016 4 Appliances covered in mandatory labelling

2011-2016 21 Appliances included in labelling programme 8 in Mandatory labelling scheme

2016 onwards 10 mandatory appliances (2018) Star labelling for cars

2.

Unnat Jyoti by Affordable LED and Appliances (UJALA) Scheme 2015

• Promoting super-efficient mass-selling appliances• Reducing peak load as well as energy consumption• LED Lamps provided to each HH to replace existing

inefficient lamps 360 Mn Lamps, 2 Mn Fans, 7 Mn Tubes



0

2000000

4000000

6000000

8000000

Star-1 Star-2 Star-3 Star-4 Star-5 TOTAL

Air Conditioners - Sale Figures in India2011-122012-132013-142014-152015-162016-172017-182018-19


• Maximum increase in sales of Star 3 labelled air conditioners (2011 – 2019)• Concern of consumers for surrounding pollution levels; rise in willingness to pay extra.

0

200

400

600

800

1000

2014 2015 2016 2017 2018

Lamp Sales - India (Million Pieces)

ICL LED



• Creation of web portal to facilitate manufacturers, suppliers and importers• Designated state government agencies to enforce provisions by way of inspections & penalties• Concern of consumers about their surroundings and pollution level and rise in willingness to

pay more

Source: EESL

Governance

Energy efficient Appliance made mandatory when sale

of rated systems cross a certain threshold (50%).

Involvement of EESL as a dedicated federal agency

Finance

Steep-cost reduction due to Demand aggregation and open

tenders, Upfront payment to suppliers enabled low quotes,

Direct sale using offices of DISCOMS, Reduced

transportation costs.

Eco-Labelling

Organization of ‘National Retailer Training Programme’ for salespersons on promoting

Star-Rated Appliances

Gradual enhancement of efficiency standards, 5-star becomes 4-star

Innovation

DIY- LED retrofit in casement of existing lamps for consumers.

Customer pay equivalent to ICL, balance in monthly bills

Technology

E-portal & APP for consumers to compare energy use of a

product.

Enabling Environment

(Energy Appliances)


Limited regulatory bandwidth for effective project

monitoring.

Limited fiscal incentives for using energy efficient products

Unexpected consumer behavior-Rebound effect,

low-income elasticity.

Higher uptake of systems like ACs, refrigerators over other

items.

Market saturation phase,

diminishing returns on investment

Skewed sale of products like 3-starTVs

Difficult to scale-up equipment requiring retrofit (fans, tube) & high cost; no one-size

fits all model.


Tiered Framework for Energy Management

Enhancing SCP through

ENERGY MANAGEMENT

Furtherincentivizationfor energy &environmentalratingsEnhanced

private sector engagement by promoting ESCOs

Strengthening labelling programme (active/passive measures)

Bridging gap inuser awareness(beyond metrocities)

Programme efficacy monitoring

Financial instruments to promote EE in buildings (debt based, equity financing, etc.)

Efficient HVAC systems. Quality/ testing of large category of products (including imports)

Responsivenessof residentialbuildings tolocal climaticconditions-energyoptimization

Convergence &implementationof rules inpractice

Methods to ascertain actual performance of rated buildings-continual basis

Awarenessdrive -consumersanddevelopers

Distincthousingsnorms -differentincomegroups

Strengthening institutional memory

Providing key energy efficient products

information on energy performance of products

Baseline HH energy assessment based on consumption

pattern and demand

EFFECTIVE GOVERNANCE

INNOVATIVE FINANCE

TECHNOLOGYADVANCEMENT

INFORMATION & CAPACITY

Innovative business models -bidding, demand aggregation, competitive procurement, Carbon Credits/ Green funds

• The demand of construction minerals expected to increase 5-7% annually due to rise in urban population (Ministry of Mines, 2018).

• Current sand, aggregate, and soil consumption is 750 million tonnes, 600-750 million tonnes and 350 million m3 (BMTPC 2018, NITI Aayog, 2019).

• India generates 100-300 million metric tonnesof construction and demolition waste (C&DW) annually (Jain et al. 2018).

• The amount of waste generated during demolition (500 kg/m2) is greater than during construction or renovation (40-60 kg/m2) (TIAAC, 2001).

3. Waste ManagementImpact Analysis: Rationale

Source: Jain et al. 2019; based on data from CementManufacturer’s Association and Census reports

Impact Analysis: Rationale• Urban areas alone generate more

than 700 million tonnes of C&DW(DA, 2015).

• C&DW recycling can save 2-8% of natural minerals like sand and aggregates in urban areas.

• Land is a valuable resource, C&DWrequires land for dumping as considerable amount of C&DW is dumped illegally or landfilled.


Sr. No.

Year Policy/Guidelines Emphasis

1. 2000 Municipal Solid Waste (MSW) Rules

• Waste management

2. 2016 C&DW Waste Management Rules, MoEFCC

• Established waste management hierarchy• Defined roles and responsibilities of stakeholders (waste generators, ministries,

local government)• Hold waste generator responsible for ensuring waste property transported to

designated sites at their own cost• Large generators to also pay processing charges

3. 2016 Bureau of Indian standards (revised after 1993)

• Permits 100% use of recycled materials in non-structural applications• Up to 20% in structural applications

4. 2019 Draft National Efficiency Policy

• Suggests through inventorizing CD&W by 2022• Achieving 50% recycling rate by 2025, 75% by 2050• Ensuring 30% use of recycled materials in public construction works

Policy Impacts: Eco Efficiency

• Recycling 1 tonne of C&DW in India has potential of lowering life cycle carbonemissions by up to 5-10 kgs. 100 million tonnes could lower India’s carbon footprint by0.5-1 million tonne.

Potential cumulative material, energy and emission savings from C&DW recycling by 2025 Source: Jain et al. 2019

• Drafting of National Resource Efficiency Policy 2019, the impacts will only be noticeable after 2022-2023.

• Few cities have started commissioning recycling plants (Delhi, Ahmedabad)• Recycling plants in New Delhi became operational before current rules

were notified• Two recycling plants in New Delhi recovering 0.5-0.6 tonnes of sand and

aggregates, and 0.3-0.4 tonnes of soil from each tonne of C&DW. • Competition is limited as recycled products still constitute small share of

total demand.• Competition for C&DW is arising between recyclers and builders; builders

want C&DW for backfilling whereas recyclers want it for recycling.

Policy Impacts: Stakeholders Behavioral Response

GovernanceMandatory procurement of

recycled materials up to 10-20% in all local

government contracts

Encouraging RecyclingThe production cost of recycled products is lower than that of similar products made from natural

materials

However, higher tax for recycled products than on natural products to make them less attractive

Targeting increase in C&DW recyclingTarget of achieving

recycling rate of 50% by 2025 and 75 % by 2030

Target of constructing a recycling plant in every

major urban area

Enabling Environment(C&D Waste)


Consumers

Mandatory procurement of recycled materials up to 10-20% in all local government

contracts

Governance

Inefficient policy and regulatios to encourage C&DW recycling in nearly all major cities

Producers

Plant operators are challenged to sell their products; government

agencies continue to buy traditional products

Enabling Environment(C&D Waste)


Flexible Strategy (Recommendations) - C&D Waste

Governance• Incentivizing state and local governments to procure recycled materials.• Integrating rural areas in discourse of resource efficiency.• Enhancing growth of recycling industry through focus on large cities.• Enhancing demand for recycled products.

Finance• Fiscally empowering local authorities.• Encouraging extended producers responsibility as well as tax incentives and subsidies.

Technology• Influencing architects and construction managers to minimize generation of C&D waste.• Promoting innovative use of C&D waste (bricks, kerbstones).

1. Hotspots o Knowledge exchange – SCP Academy on Cities for Region

2. Low hanging fruits o Sectoral – Energy, Waste. Green Infrastructure, Transport, Watero Empirical and indigenous data driven policy structuring

3. Policy implementation – Feedback loop o Branding a policy change - top-down & bottom-up o Efficiency to Effectivenesso Handholding

4. Behavioural response – Stakeholders (multi-dimensional response)o Transformation of institutional infrastructure (stakeholders engagement -

value chain ) before policy change

5. Market transformationo Innovative business models (e.g. climate fund)o Advance R&D for production/promotion of high impact eco-friendly products

Lessons to Share (Region - Asia Pacific)

Reduce the resource intensity of production; undertake new patterns with reduced levels of consumption and change what is consumed and by whom.

Sustainability will come a full circle only when local knowledge is recognized and given its due importance

Thank you!

[email protected]

(Acknowledgement: Contributions from Dr Sapan Thapar, Ms Meenakshi Kumar, Ms Uzma Parveen, Mr Sourabh Jain)

06 session 4 mr. shaleen singal impact analysis from ... ·

Documents