Update on Negotiated Energy
Agreements Pilot Programme
Peter Brabazon
Sustainable Energy Ireland
Glasnevin, Dublin 9
Tel: 01- 8369080
Fax: 01- 8372848 www.sei.ie
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Negotiated Agreements Pilot
- Presentation format
• Introduction and Context
• Pilot Project Details
• The Role of Audits
• Progress and Next Steps
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An agreement between an individual firm or group of firms and the state aiming to achieve substantial energy and emissions reductions “beyond business-asusual”
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• Climate change
• Kyoto Protocol
• EU: Burden sharing arrangement
• Ireland: +13% by 2008 - 2012
• National Climate Change Strategy – Oct ‘00
• Industry – One million tonnes CO
2 reduction
4

• Integrated strategy
• Early action to meet targets
• Burden sharing and equity across all sectors
• Market instruments with appropriate supports
• Industry – taxation, agreements, best practice , emissions trading
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National Climate Change Strategy (Oct 2000):
- Targeted taxation measures
- Negotiated agreements linked to taxation measures
- Industry overall: 1Mt CO
2 reduction
Minister for Finance (Dec 2002):
Carbon/energy tax to be introduced from end
2004, with full consultation
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• Aim to provide fairness, flexibility while building competiveness
• Firms agree to take certain actions or to meet specific targets
• Equity in context of market instruments
• Incentives for participation
• Flexibility for firms while meeting national objectives
• Can be individual or group basis
• Can be across all activity, or technology specific
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• Core element of strategy
• Signalled connection to energy/climate levy
• Firm level, multi-year, legally binding agreements
• Energy management systems a minimum
• Best international practice, beyond business as usual
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Negotiated Agreements Pilot
- Presentation format
• Introduction and Context
• Pilot Project Details
• The Role of Audits
• Progress and Next Steps
9

• Initiated by SEI in February 2002
• Completion date – planned end June 2003
• Draft, non-binding agreements
• Ongoing consultation includes IBEC (business representative body) and relevant Government
Departments
• Aims to inform policy makers for development and implementation of full measure
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Draft agreements with:-
1. One major energy-using company
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• Aimed at very large energy consumers with unique processes or activities
• Based on full audit of all energy practices
• Criteria negotiated and agreed
• Audit and criteria used to develop list of possible actions
• Draft agreement based on identified desirable actions
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
Aughinish Alumina
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Draft agreements with:-
1. One major energy-using company
2. A representative group of 15 companies across industry, focusing on a shared end-use technology (thermal energy)
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• Capturing key elements of energy use across industry
• Pilot agreement focuses on generation and distribution of hot water and steam
• Audits to understand existing practices, develop standards and identify opportunities
• Discussions with suppliers/installers
• Agreement based on actions and practices
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
Aer Rianta, Dublin

Cadbury, Coolock, Dublin

Dawn Meats, Co Mayo

GE Superabrasives, Dublin

Glanbia Ballyragget, Co
Kilkenny

Green Isle Foods, Naas, Co
Kildare

Hewlett Packard, Leixlip, Co
Kildare

Kepak, Co Meath

Millipore, Carrigtwohill, Cork

Smurfit Paper Mills, Dublin
 St James’s Hospital, Dublin

Transitions Optical,Co Galway

Tyco Healthcare, Mulhuddart,
Dublin

Unilever BestFoods Ireland,
Dublin

Yeast Products, Dublin
(15)
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Draft agreements with:-
1. One major energy-using company
2. A representative group of 15 companies across industry, focusing on a shared end-use technology (thermal energy)
3. A group of 10 similar companies from same sector (pharmachem)
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• Collective efficiency
• A group of firms with largely similar processes
• Audits to develop general understanding
• Criteria for action agreed
• List of desired actions developed
• Draft agreement based on identified actions
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Chemical / Pharmaceutical Sector

GlaxoSmithkline, Co Cork

Cambrex Profarmaco, Co Cork

Janssen, Little Island , Co Cork

Leo Pharma, Dublin

Micro-Bio, Fermoy, Co Cork

Novartis, Ringaskiddy, Co Cork

Pfizer, Loughbeg, Co Cork

Pfizer, Little Island, Co Cork

Servier Laboratories, Arklow, Co Wicklow

Wyeth Medica, Newbridge, Co Kildare
(10)
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• Collaborative approach with industry
• Action-based, firm-level agreements
• Use of energy audits to identify what actions required to bring companies to best international practice
• Negotiation to ensure realistic/ acceptable draft agreements
• Exploration of links between bottom-up (actionbased) approach and overall reduction targets
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1. Company/group recruitment/selection
2. Development of energy audit templates
3. Selection of energy auditors
4. Energy audits in each firm
5. Development of negotiation framework
6. Negotiations themselves
7. Exploration of resource/system needs for full NA system (info systems, monitoring, benchmarking, etc)
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Negotiated Agreements Pilot
- Presentation format
• Introduction and Context
• Pilot Project Details
• The Role of Audits
• Progress and Next Steps
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• Setting out the special requirement of the pilot project audits
• Standardising scope
• Establishing compliance and data quality checks
• Standardising reporting
• Not standardising assessment, analysis, creative input
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• Data quality checks
• Specific reference to best practice
• 6 year payback in first analysis
• No distinct payback categories
• Identifying Special Investigations
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• Auditor contracted to the firm to provide audit for energy strategy
• Some special requirements for the pilot project additional to the firm’s needs
• Template sets out project approach specific data needs
• Quality assurance by SEI
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Negotiated Agreements Pilot
- Presentation format
• Introduction and Context
• Pilot Project Details
• The Role of Audits
• Progress and Next Steps
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• June 29 th 02
• July 10 th 02
• 16 th July 02
• 11 th October 02
Individual Meeting, Dublin
Collective Meeting, Waterford
Technology Meeting, Dublin
• 11 th February 03
Joint Meeting, Portlaoise
• 1th December 02
• 14/15 January 03
Auditor Briefing, Dublin
Training for Group Reps
• 27 th -31 st January 03 Site visits by FES/SEI
Meeting with Group Reps
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• Inform policy development
• Explore ability of agreements to ‘deliver’ on topdown emissions objectives
• Explore impacts on industry
• Benchmark against intl. best practice
• Options for monitoring/compliance
• Explore options for codes of practice
• Inform and develop the broader industrial sector
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• Collation and analysis of audits
• Commencment of negotiations meetings
• Provisional deadline of 30 th April
• Production of final report in June
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• High level of cooperation/commitment from industry
• Industry sees agreements as vital, in the context of taxation
• Indications that agreements could add significantly to impact of taxation on emissions reduction
• Possible to move between bottom-up and topdown approaches
• Strong/positive support from auditors to audit approach
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Update on Negotiated Energy
Agreements Pilot Programme
Peter Brabazon
Sustainable Energy Ireland
Glasnevin, Dublin 9
Tel: 01- 8369080
Fax: 01- 8372848 www.sei.ie
31