Grantee Research Project Results
Final Report: Accessing Overseas Markets Energy Efficiency Standards and Appliance Labeling in Asia and Latin America
EPA Grant Number: R824749Title: Accessing Overseas Markets Energy Efficiency Standards and Appliance Labeling in Asia and Latin America
Investigators: Egan, Kristina , Sanhueza, Eduardo , Holmes, Karen , duPont, Peter , Na-Phuket, Sood , Hall, Stephen , Kraft-Oliver, Terry
Institution: International Institute for Energy Conservation
EPA Project Officer: Chung, Serena
Project Period: October 1, 1995 through September 30, 1997
Project Amount: $240,000
RFA: Incentives and Impediments to Pollution Prevention (1995) RFA Text | Recipients Lists
Research Category: Nanotechnology , Sustainable and Healthy Communities , Pollution Prevention/Sustainable Development
Objective:
Background
Many developing countries are currently experiencing severe environmental problems caused by fuel extraction and consumption. Electricity consumption causes the deterioration of air and water quality, acceleration of greenhouse gas emissions, and destruction of ecosystems. Implementing mandatory or voluntary energy efficiency standards and labeling reduces electricity consumption. Creating national standards regimes also promotes the diffusion of advanced energy-efficient technologies, thus building regional markets for firms providing energy-efficient products and services.
This project investigated the potential for establishing energy efficiency standards and energy labeling for electrical appliances and equipment in Asia and Latin America. Over the 3-year project period, IIEC applied the research through a series of in-country and regional technical assistance activities designed to build national standards regimes and internationally coordinate efforts.
The project is a highly-leveraged effort. In addition to research monies from USEPA, IIEC received funding from the Asian Development Bank, the US Agency for International Development, the Royal Thai Government, and the Copper Development Center of Southeast Asia.
Objectives
- inform international donor agencies about "best bet" technical assistance opportunities for building standards regimes in Latin America and Asia
- technically assist in-country stakeholders who are building national standards regimes through on-going reports on project research findings
- provide forums through which to spur intraregional cooperation on standards
Research Methodology
IIEC investigated two areas of research. First, field research in Asia and Latin America painted a picture of the efforts currently underway and the policy and market barriers that hinder standards regime development. The information was gathered through interviews with policy-makers, private sector firms, and research institutions in Thailand, the Philippines, Indonesia, Singapore, Malaysia, China, India, Hong Kong, Chile, Argentina, and Brazil.
Second, we investigated the potential for regional coordination of national energy testing procedures, minimum efficiency standards, and energy labels. This information was gathered through workshop dialogues held between stakeholders from the regions.
Summary/Accomplishments (Outputs/Outcomes):
Most policy-makers in the surveyed countries recognize the cost-effectiveness of standards and labeling as tools for reducing power shortages and environmental damage. All of the countries surveyed, with the exception of Singapore, are now initiating or expanding standards and labeling activities. Since most policy-makers already "believe in" the efficacy of standards and labeling, the next steps in promoting standards regimes are primarily to secure the resources (both financial and human) to accomplish technical work.
Our research indicates that the largest barrier to effective program implementation is lack of in-country technical capacity to establish testing infrastructure, design energy labeling programs, and develop energy-efficiency standards. We identified the specific technical gaps in each surveyed country. Our recommendations for addressing the barriers are based on the following criteria:
- fit with national energy, environment, and economic development plans
- demonstrated interest from concerned organizations
- institutional strength and political will to carry out proposed actions
- need for external resources
Prioritized actions for each country are listed below.
Action |
Notes | |
brazil |
Dissemination of Success |
Brazil?s successful motor standards program should be disseminated as model for rest of Latin America. |
chile |
Training in Label and Labeling Program Design |
The Comision Nacional de Electricidad needs technical assistance in designing a voluntary refrigerator label and labeling program. |
China |
Training on Devising Standards |
Technically assist Technical Committees in drafting energy performance standards. Currently standards are promulgated solely through a consensus process. |
Baseline Market Data |
Unknown efficiency of products on the market, especially air-conditioners and industrial motors. | |
India |
Training in Label and Labeling Program Design |
Bureau of Indian Standards and Technical Committees need capacity building for implementing planned voluntary labeling programs. |
Training on Deriving Standards |
Few professionals can perform engineering and economic analysis to derive energy performance standards. | |
Advertising Campaign |
An active consumer movement exists upon which to build advertising and education initiatives which complement energy labeling. | |
Indonesia |
Establish Testing Infrastructure |
Set up new facilities to test air-conditioners and refrigerators for energy efficiency. Involving manufacturers and NGOs would ensure the usage of the facility. Lab personnel need to be trained. |
Training in Label and Labeling Program Design |
Ministry of Mines and Energy have draft labels for a voluntary program, no market research confirms the efficacy of different designs. Assistance to Indonesia should target policy-makers in program design, evaluation. | |
Advertising Campaign |
An active consumer movement exists upon which to build advertising and education initiatives. | |
Malaysia |
Establish Testing Infrastructure |
Malaysia has no facilities for assessing energy efficiency. Assistance in selecting institution to house the laboratory; training for lab personnel. |
Training in Building Standards Regime |
Provide in-depth technical for government agencies directed to devise standards and labels. | |
Advertising Campaign |
A decentralized consumer movement exists upon which to build advertising and education initiatives. | |
Philippines |
Upgrade testing facilities |
Better equipment is needed to test air-conditioners and refrigerators at the government Fuels and Appliance Testing Laboratory. Although the lab earns sufficient user fees for upgrades, earnings go to the national treasury. Devise more financially sustainable arrangement. |
Conduct Program Evaluation |
The highly-acclaimed air-conditioner standards and labeling program has not been assessed by an outside evaluator. Particularly, the label design must be evaluated before its replication for other products. | |
Advertising Campaign |
There is a lack of human capacity and financial resources within the responsible government agencies to market efficiency. | |
Training in Devising Standards |
Standards are planned for 4 products, but no impact assessments for different standards levels exist. | |
Thailand |
Establish Motors Testing Facility |
Thailand will set standards for industrial motors. However, there is no energy-efficiency testing capacity. |
Training in Devising Standards |
The Department of Energy Development and Promotion has limited human capacity to devise standards levels through economic-engineering or statistical analysis. | |
Viet Nam |
Establishing Testing Infrastructure |
No facilities perform energy efficiency testing, but the Ministry of Science Technology and the Environment is developing standards programs. |
Training in Building Standards Regime |
Training for government professionals charged with implementing the Energy Conservation and Efficiency Master Plan. |
In order to further spur regional cooperation on standards and labeling, we recommend:
Action |
Notes |
Information Clearinghouse |
Proposed at the Forum on Asia Regional Cooperation on Energy Efficiency Standards and Labeling. Purpose is to provide library of technical documents and electronic links between experts. |
Technical Training |
Training in conducting energy efficiency testing, devising standards and labels, program administration, building consumer awareness, and evaluation. |
South-South Information Exchanges |
Few regional forums have provided the opportunity for policy-makers, consumers and manufacturers to focus exclusively on standards and labeling experiences in the South. Regional meetings enable these information exchanges. |
Milestones
Throughout the 3-year project period, IIEC used our research findings to begin hurdling barriers to standards and labeling program implementation. Below, we describe our technical assistance activities.
National Level Capacity Building
Training for Laboratory Personnel and Energy Policy Specialists
Held a week long seminar for Indonesian policy-makers and laboratory personnel in Bangkok on Thailand?s voluntary labeling program. Presented sessions on elements of successful programs from around the world for 3 standards training tours held in the US organized by the International Institute of Education. Trained ministry officials in Vietnam on methodology for establishing national standards regime.
Seminar and Conference Presentations
Presented research on building standards regimes, importance of testing procedure harmonization, and elements of success and failure from programs around the world. Lectures: Hong Kong?s Electrical and Mechanical Services Department seminar, (resulting in 3 new manufacturers joining voluntary labeling program); Green Lights seminar in Beijing, China with focus on lighting; two United Nations Economic and Social Commission for Asia and the Pacific workshops in Malaysia; Ministry of Power?s roundtable on voluntary standards and labeling in India; National Energy Policy Office seminar on evaluating energy labels; Vietnam?s Ministry of Science, Technology & Environment?s seminar on experiences from overseas.
Blueprints for Standards Regimes
Worked with government partner agencies to develop detailed scopes of work for setting up standards or labeling programs. Prepared: action plan for establishing minimum standards for industrial motors, ballasts, air conditioners, and refrigerators for Thailand?s National Energy Policy Office (currently being implemented); voluntary refrigerator label for Comision Nacional de Electricidad in Chile; laboratory specifications and energy label for Indonesia?s Directorate General for Energy and Electricity Development in the Ministry of Mines and Energy (identified as priority for Asian Development Bank follow-on assistance); plan for program evaluation and consumer awareness campaign for Philippines? Fuels and Appliance Testing Laboratory of the Department of Energy (identified as priority for USAID follow-on assistance); White Paper on importance of standards for Malaysia?s Deputy Prime Minister; regime concept outline for Vietnam?s Ministry of Science Technology and the Environment.
Regional Coordination
International Forums
Held Forum on Asia Regional Cooperation on Energy Efficiency Standards and Labeling in July 1997 in Bangkok, Thailand. Co-sponsored by five Asian governments: National Energy Policy Office of Thailand, Philippines Department of Energy, Korean Energy Management Corporation, Industrial Technology Research Institute of Chinese Taipei, Electrical and Mechanical Services Department of Hong Kong. Attended by 50 delegates. Held Technical Colloquium on Energy Efficiency Testing Procedures for Industrial Motors, Household Refrigerators, and Air-Conditioners, a roundtable of 12 experts which resulted in the formation of an organization named the Asian GRoup for Energy Efficiency (AGREE).
Partnering with International Organizations
Consulted with Association of Southeast Asian Nations about plan for harmonizing energy labels across borders. Collaborated with other NGOs to place standards on Summit of Americas agenda. Designed the Workshop on Energy Efficient Buildings and Equipments in the Americas for Advisory Committee of the Hemispheric Energy Initiative. Worked within Asia Pacific Economic Cooperation forum to elevate standards to one of top four priorities of Energy Ministers.
Dissemination of Research
Consultations
Briefed European Commission and other European decision-makers about Latin America regional harmonization initiative. Advised US Agency for International Development on global standards strategy.
Documents
Disseminated proceedings from July 1997 Forum for Asia Regional Cooperation on Energy Efficiency Standards and Labeling and recommendations on testing procedure harmonization from July 1997 AGREE roundtable to over 250 professionals, including international donor agencies. Distributed industrial motors standards white paper to Latin American working group. Wrote articles for Energy Policy, Newsvision, Appliance Efficiency, E-Notes, and the United Nations? Compendium of Energy Conservation Legislation in Countries of the Asia and Pacific Region. Presented papers at American Council for an Energy Efficient Economy Summer Workshop and the First International Conference on Efficiency in Household Appliances organized by the European Commission.
Conclusions:
Environmental concerns and pressures of constrained capacity are stimulating the adoption of standards and labeling programs in Asia and Latin America. In just five years, numerous standards and labeling efforts have developed into full-fledged, successful programs which can serve as models for developing countries struggling with similar constraints and barriers.
Our investigation reveals that excellent potential exists for initiating and strengthening programs in many countries. For instance, after the July 1997 Bangkok forum, Iran indicated that the professional exchange was instrumental in establishing Iran?s refrigerator labeling program. Hong Kong also indicated that a similar IIEC-UN forum held in 1995 helped inspire the nation?s voluntary labeling program, and the 1997 seminar in which IIEC presented resulted in 3 manufacturers joining the newly-operating program. In Thailand, the blueprint for establishing standards for 4 products is currently being operationalized and in Indonesia, the blueprint led the Asian Development Bank to create a project to establish a testing laboratory. Lastly, the newly-founded group, AGREE, will likely be coordinating regional technical training tours for the Asia Pacific Economic Cooperation forum in 1999.
We conclude that further targeted, in-depth technical assistance and capacity building are the next essential steps to ensure effective program design and implementation in the coming years. With resources to back up policy-makers? commitments, Asian nations can build stronger and more comprehensive standards regimes on top of the significant groundwork already laid.
Journal Articles:
No journal articles submitted with this report: View all 9 publications for this projectSupplemental Keywords:
Scientific Discipline, Geographic Area, Sustainable Industry/Business, cleaner production/pollution prevention, International, Social Science, appliance labeling, regional environmental benefits assessment, energy efficiency, air emissions, Asia, outreach and education, environmental labeling, regional working groups, accessing overseas markets, Latin AmericaProgress and Final Reports:
Original AbstractThe perspectives, information and conclusions conveyed in research project abstracts, progress reports, final reports, journal abstracts and journal publications convey the viewpoints of the principal investigator and may not represent the views and policies of ORD and EPA. Conclusions drawn by the principal investigators have not been reviewed by the Agency.