overview of key developments, needs and …...overview of key developments, needs and challenges in...

Overview of key developments, needs and challenges in energy performance standards and labelsA presentation to the International Conference On Sustainable CoolingEric Gibbs, Chief Policy & Analysis Officer, CLASPNovember 28, 2018

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• The Policy Imperative• The Energy Efficiency Policy Toolbox• Policy Tools Implementation & Outcomes (case studies)⎻ Brazil⎻ Indonesia⎻ Philippines⎻ India

Outline

Title of presentation

3Title of presentation

What is the policy imperative?

0

500

1000

1500

2000

2500

Best MEPS Best Available Technology

Cumulative Emissions Reductions 2022-2030 (MT CO2) from a transition to high-efficiency ACs

China India Rest of World Indonesia Other High Priority Southeast Asia High Priority Latin America US Europe

533 MT CO2

2120 MT CO2

¼ of total potential can be achieved through best practice EE policy

4

MEPS only

Comparative Label only

MEPS & Comparative Label

MEPS & Endorsement Label

MEPS & both Label types

AC Policies Around the World

5

Room AC Policies Over Time

0

5

10

15

20

25

30

35

40

45

50

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Label Comparative Label Endorsement MEPS

6

In Mexico, impacts from AC and refrigerator standards implemented between 1995 and 2014 resulted in:• National electricity savings of 5.2 TWh

of electricity in 2014, roughly equivalent to two 500 MW power plants

• Cumulative CO2 emissions mitigation of 23 million metric tons through 2014

• Avoided over 40 thousand million Mexican pesos (3 billion USD) ofelectricity bills through 2014.

Impacts of Policy Implementation


Energy Efficiency Policy Toolbox

MEPS

Comparative Label

Endorsement Label

Bulk Procurement specification


What happens when you don’t use the toolbox?

Brazil• Infrequent revisions of labeling

categories have resulted in 57% of room ACs belonging to the most efficient labeling class, a disincentive to industry and consumers

Philippines• The lack of an EE policy resulted in a

market mostly stagnant for the past 5 years, with little improvement in the overall efficiency of AC products

Indonesia • Too lenient EE policy when

implemented has no effect on the market


Policy Tools – Implementation and Outcomes: Case Study of Market Transformation in India

The RAC Policy Timeline in India



• The production-weighted average EER/ISEER of RACs has increased from 2.8 in 2011-12 to 3.6 in 2017-18, which represents a 29% increase in efficiency over the period

2.802.90

3.00 3.103.20 3.23

3.6

2.50

2.70

2.90

3.10

3.30

3.50

3.70

3.90

4.10

2011 2012 2013 2014 2015 2016 2017

Prod

uctio

n-W

eigh

ted

Aver

age

EER

/ISEE

R

Financial Year



Source: BEE

99%89%

70%

1%11%

30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017

Pro

ducti

on (

%)

Financial year

Fixed Speed RAC Inverter RAC

Market penetration of Inverter RAC, 2015 - 2017



Labeling

mandatory for

Fixed Speed ACs

Annual sales of leading brand ACs between 2009 and 2018 (‘000s)

Source: Euromonitor International

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

1,600.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Local Brands Japanese Brands Other Brands

Labeling

mandatory for

Inverter ACs


Key Takeaways

• Energy efficiency policy alone can secure ¼ of total potential GHG savings from a transition to high-efficiency ACs

• The benefits of EE AC policy translate to:⎻ Electricity savings, curving energy demand and the need for

new power plants⎻ Billions of USD in electricity bills savings for consumers

• EE AC policy in India is a great example of market transformation

• Lessons form the energy efficiency policy toolbox implementation in India can be replicated in other markets


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overview of key developments, needs and …...overview of key developments, needs and challenges in...

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