Energy Efficiency Accord
Policy measure

According to the IEA (2005), the “Minister for Energy and Minerals, together with the CEOs from 24 major energy users and seven industry associations, signed the Energy Efficiency Accord, voluntarily committing themselves to individually and collaboratively work to implement the government target for energy savings. Within a framework of eight strategic goals based on the three cornerstones of sustainability, the strategy targets a 15% reduction in final energy demand for the industrial sector by 2015, and a 12% improvement in energy efficiency for the country as a whole by the same date. This target is expressed as a percentage reduction against the projected national energy usage in 2015.”

Implementation

The industry signatories agree to (IEA, 2005):

  • “Promote the development of sector specific strategies and targets that contribute to the achievement of the overall energy efficiency.

  • Promote the use of Demand Side Management contracts concluded with energy suppliers.

  • Develop common reporting requirements for energy usage from all energy sources.

  • Define industry-specific projected energy use in the future, based on Business-as usual (BAU) growth expectations.

  • Use 2000 as the baseline year against which performance will be measured.

  • Establish methodologies allowing for the baseline quantification for energy use/intensity various sub sectors, and to take into account the need to measure specific energy intensity rather than absolute energy use in order to promote industrial growth whilst achieving energy efficiency and recognizing the energy conservation measures already in use in some sub sectors.

  • Establish methodologies to take into account increased production, for the pursuit of improved energy efficiency not to hamper industrial growth.

  • Develop a generic energy auditing protocol that can be adapted for use by the individual sector and company signatories.

  • Where appropriate, exploit opportunities presented by energy efficiency projects to develop CDM projects.”

Challenges

According to WBCSD (2008), “the setting of individual industry sector targets was challenging as the potential for reductions had to be evaluated for each sector. The task of engaging companies was made doubly difficult by the lack of clear incentives. At the time, South Africa still had some of the lowest electricity prices in the world, electricity shortages had yet to bite, global oil prices were still low, and the reality of climate change was not yet fully grasped. Nevertheless a group of farsighted companies joined the Accord, at a range of different starting points, levels of expertise and commitment, and began to work together and individually to meet its targets.”

Outcomes
No identified outcomes.
References

IEA (International Energy Agency), 2005. Energy Efficiency Accord. Available at: www.iea.org/textbase/pm/?mode=pm&id=4158&action=detail.


WBCSD (World Business Council for Sustainable Development), 2008. National Business Initiative - Energy Efficiency Accord. Collaborative Action for Energy Regional Network Case Study. Available at: www.wbcsd.org/DocRoot/PfGHVgSo01GC3ES3tuf2/NBIenergyefficiencyaccordfullcase.pdf.