Incentives for clean energy in the industry
Industrial production is growing in most countries, partly very rapid. Although the specific energy input per production unit has decreased, industrial energy demand is increasing in total. Forecasts show that up to 95 % of additional energy demand will be provided by fossil fuels in the business-as-usual scenario. Policy should focus thusfore on an utmost efficient use of fossil energy and a bigger share of renewables.
In the following some lessons learned from Europe:
- Old-style regulations: During the last decades European industries made enormous efforts to reduce their emissions. Almost all hazardous emissions, 90 per cent of sulphurdioxide and nitrogenoxygen emissions could be reduced. Carbondioxide emissions kept in balance with fossil energy use almost. This figures were achieved mainly through very restrict regulations, which forced industry to a number of very expensive measures. Today we know that these mainly so called end-of-pipe measures (filter and treatment technologies) were fire-brigade measures to protect the environment against the worst case. Concerning the energy balance we must admit, that end-of-pipe technologies have even increased the energy demand as they need very large-scale and energy intensive appliances. At the same time world must be aware, that developing industries will not be able to copy such cost expensive measures.
- Future-style regulations: Some of the older European regulations may be more suitable. In first instance regulations, which address the subsitution of fuels, should be mentioned. Heavy oil through light or ultra-light oil, coal through clean coal, oil and coal through natural gas. These measures would meet the problems near at the origin. New features in European industrial regulations are heat recovery and co-generation. Research has developed some new technologies like gas-turbines and fuel cells with high efficiency. Where ever possible local administrations responsible for licensing of industrial plants and installations should address such conditions.
- Fiscal measures: If proper frameworks exist, industries should be forced to fall back on tax reliefs and tax credits for investments in low emission fuel technologies. Subsidies could be given in kind of interest co-financing of credits. But usally such measures will exceed the elbowroom of cities.
- Voluntary agreements are the means of first choice for industrial energy policy on local level. There exists a number of examples, how industry commits to government to improve their environmental and energy performance. To give a frequent example, innovative European authorities some times surrender to make instructions, if the concerned company promises to find a new or better way for improvement within a time period.
- Consulting and advice: There are some programmes existing in western countries, like ISO 14000 or EMAS and other management systems (eg. Responsible Care) which can be joined by industry voluntary. A first-class programme is the Austrian ECOPROFIT programme, which combines ecological and economical improvements in industry at the same time, which is very attractive for companies. Such projects are usally introduced and implemented by the local administrations together with consultants.
- Research and development: Some European countries have set up competitions of research and development projects with grants from government side. As an example the Austrian programm "Factory of the future" is mentioned, because it is open also for non-Austrian applicants.
- Obstacles to be aware: Resistance of industries to change production processes and product lines with cost arguments. The best answer are demonstration projects and the offering of convincing consulting programmes. So far use of regulations (future-style regulations) is possible, they should be applied.
- Effects: Every innovation in industry will cause new investments. To attract such projects mainly the above mentioned instruments are on disposal.