Overview of International Standards & Labeling Programs Ministry of Energy and Mineral Resources (MEMR)

Overview of S&L

1. Overview of International Standards & Labeling Programs Ministry of Energy and Mineral Resources (MEMR) Eric Gibbs CLASP 19 October 2015 Jakarta, Indonesia

2. Raising consumer awareness & comprehension Promoting highly efficient products Policy design & implementation Resources & tools for practitioners Monitoring & evaluation Training & capacity building CLASP improves the environmental and energy performance of appliances & equipment Phase down of HFCs and high GWP refrigerants Off-grid & energy access

3. Why Demand Side Energy Efficiency? DSEE measures (for instance, efficient lighting, heating, ventilation, and air conditioning for buildings, efficient boilers, motors , compressors in industrial sector) stand out as the least-cost way to acquire new energy system capacity and address energy demand. It is less costly to deploy energy-efficient equipment and practices than to build new energy generation plant and account for energy loss in conversion, transmission , and distribution. Energy efficiency standards and labels have proven to be one of the most effective DSEE policy measures and are the cornerstone of energy efficiency programs in Australia, EU, China, Japan, Korea, and the US, and S&L programs are expanding around the world. 2013 Asian Development Bank report “Same Energy, More Power: Accelerating Energy Efficiency in Asia”

4. Energy Efficiency Standards Minimum Energy Performance Standards (MEPS) require that a manufacturer achieve in each and every product a minimum efficiency (or maximum energy consumption); but does not require a specific technology or design. Prescriptive Standards require that a particular feature or device be installed in all new products. Class-average Standards specify the average efficiency of a manufactured product, allowing each manufacturer to select the level of efficiency for each model so that the overall average is achieved. Energy efficiency standards “PUSH” the market towards greater energy efficiency by removing inefficient products from the market.

5. Energy Efficiency Labels Comparative Labels Represent several levels (“tiers”) of efficiency Allow consumers to compare different products Can display a several kinds of information: cost per year, water consumption, etc. Endorsement Labels Denotes that the product adheres to a set efficiency level Simple design “This product is efficient”

6. Global Standards & Labeling Programs More than 75 economies have energy efficiency standards and labeling programs in place

7. Source : CLASP Global S&L Database *EU countries are accounted once (34+27 EU countries ) More than 60 economies have implemented a labeling program for appliances and equipment

8. Benefits of S&L Programs Source: S&L Guidebook, CLASP

9. Impact of Refrigerator Standards in US Source: Appliance Standards Awareness Project (ASAP)

10. India S&L Program Evolution 2015 21 Products labeled & more to come 2015 21 Products labeled & more to come

11. India’s First Endorsement Label The first endorsement label for laptops will save .2 TWh of electricity and abate of .2 million tons CO 2 e per year in 2020 2011 computer market in India = 12 million CLASP provides technical support to BEE for label design (references ENERGY STAR 5.2 specifications for computers) 2010–2011 March 2011 BEE launches India’s first endorsement label Laptops 58% Desktops 42%

12. India Implemented World’s First Comprehensive LED Standards Proposed by industry, utilities, and BEE CLASP develops 10 LED standards for safety, performance, and quality at BEE’s request Expert and public review period LED standards approved by BIS and go into effect in 2012 Lighting Load Peak Demand Overall Energy Consumption India first county to comprehensively regulate LEDs Potential energy savings 33 TWh per year

13. Market Monitoring & Strategic Policy in China Chinese Market Stock and Energy Growth Projections: 2012-2030 By comparison, while washing machine stock is high, energy consumption in both 2012 and 2030 is low. This product uses relatively little energy per unit Fixed speed AC energy consumption is very high in 2012 and 2030, while stock remains relatively low. This product uses a lot of energy per unit

14. Labeling Tiers Must Be Upgraded Over Time (“Ratcheting”) Models of more inefficient refrigerators on the market decreased over time Models of more efficient refrigerators on the market increased over time It is time to revise the standard efficiency levels when nearly 80% are in the most efficient (Level 1) China Refrigerators Energy Efficiency Level Distribution by Model Type

15. Benefits of S&L in China and India India’s m andatory air conditioner specifications lead to significant environmental ROI CLASP-assisted standards 2008-2012 ≈ annual emissions from 15 coal-fired power plants

16. Market Transformation of Fluorescent Lamps in Korea Source: KEMCO, 2011. In IEA 4E Program, 2015. MEPS announcement spurred and locked in savings from shift to more efficient lighting product

17. Promoting Energy Efficiency Frameworks in the EU The EU has developed a single market through a standardized system of laws which apply in all member states . Standards are developed through the Ecodesign process The EU Energy Label is a mandatory comparative label that rates products by energy efficiency class from A to G.

18. The Brazilian labeling program implemented by various agencies Programa Brasilero de Etiquetaje (PBE) established in 1984 Programa Nacional para la conservación de electricidad (PROCEL) established in 1985 Programa Nacional para el uso racional de combustibles y gas natural (CONPET) established i n 1991 Comparative label, mandatory for 21 products Endorsement seal for electric equipment Endorsement seal for equipment using natural gas

19. KEY TAKEAWAYS Appliance efficiency is the fastest, most cost-effective response to Indonesia’s rapidly growing power demand and peak load. Indonesia is moving quickly to develop MEPS, but need to ensure that they are sufficiently stringent to eliminate inefficient products from the market. There are huge opportunities to capture more savings by going broader and deeper, but not too fast. Beyond MEPS: need to promote labeling and develop robust MV&E program to speed market transformation, ensure program integrity, and capture maximum savings.

20. Eric Gibbs Senior Director of Country Programs CLASP [email protected] [phone] www.clasp.ngo