Industrial Energy Efficiency and Material Substitution in Carbon-Intensive Sectors

Energy is needed in industry for a number of technologies and processes, including crosscutting technologies such as steam, motors, compressed air, pumps, heating and cooling, as well as specific processes in energy-intensive sectors (Chemicals, Iron and Steel, Cement, Pulp and Paper, Non-Ferrous Metals, and Food). Greenhouse gas emission reductions in these industries can be achieved in many different ways. Despite the great energy and cost saving potential, there are a number of barriers that often impede the implementation of energy efficiency measures. They include particularly the lack of financing and the lack of awareness, technical knowledge and personnel resources. In order to overcome these barriers and to support the adoption of energy efficiency measures, there are different policy options.

This paper analyses these policy options and different motivations of international organizations that are active in the field of energy efficiency in industry as well as of stakeholders at the national level. With the results from case studies, the authors show why a mixture of particular, aligned policy instruments seems promising and how voluntary approaches can complement the effective bunch of policies. Other recommendations include continuing to use policies that have proven successful.