How to radically transform industrial energy use

A new IEA-IIP report offers step-by-step guide to implementing energy management programmes for industry.

Improved efficiency could cut industrial energy use by more than a quarter, benefitting more than just the bottom line. Because industry accounts for about a third of global energy demand, greater efficiency in the sector is also a major step towards improved energy security as well as reduced greenhouse-gas emissions.

But for many reasons, companies often need help in pursuing efficiency as a strategic investment, even when it is a path to greater profitability. Government-led energy management programmes offer companies both a reason and a method to reduce energy consumption by revealing not only the savings but also improved productivity and competitiveness, even showing new business opportunities.

A new report jointly developed by the IEA and the Institute for Industrial Productivity (IIP), “Energy Management Programmes for Industry,” uses lessons learned from these programmes to present a ten-step implementation guide for policy makers. The report offers diverse approaches to fit the different frameworks and objectives of individual countries and industrial sectors. In-depth case studies show the importance of stakeholder consultation, pilot projects and evaluation, with one illustrating how other stakeholders such as the European Bank for Reconstruction and Development (EBRD) can support governments and industry.

Energy management involves the systematic tracking, analysis and planning of energy use. For more than two decades, energy management programmes have encouraged industry in certain countries to improve efficiency. Some programmes are compulsory while others are voluntary, but they all feature procedures and practices to encourage better energy use in industry.

Energy management programmes are not quick fixes: they work best when carefully planned and as part of a broader government agreement on energy efficiency. They need buy-in and so should be developed in a transparent manner and in close consultation with industry. Assistance, tools, training and many other resources are critical to success, as are initial incentives.

“Energy Management Programmes for Industry” is the fourth in the “policy pathways” series on how countries can achieve the IEA’s 25 Energy Efficiency Policy Recommendations. This latest report breaks down its 10 steps into 24 actions that keep policy makers on target as they move from planning to implementation, then monitoring and finally an overall evaluation. It distills the lessons learned by pioneers, helping policy makers benefit from other governments’ successes in using energy management programmes to counteract barriers to energy efficiency improvement and promote the transition towards more sustainable energy use in industry.

Download the Policy Pathways: Energy Management Programmes for Industry


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