"Implementation One of the key components"
CHAPTER 8 Implementation One of the key components of the Integrated Environmental Strategies (IES) program is to build support in the host country for adopting integrated measures with local and global benefits. The ultimate goal of any IES co-benefits analysis is to put policies and programs in place (through mechanisms such as rules, legislation, decrees, executive orders, or demonstration efforts) to reduce emissions of conventional pollutants and GHGs. Real environmental, economic, health, and other benefits can only be realized through the adoption of such measures. Moving from analysis to implementation, however, is not always a straight- forward process, and a number of hurdles can impede the adoption of new policies. It is useful for IES program partners to keep implementation clearly in mind throughout the developmental and analytical phases of the program. IES partners can also work to continually engage policymakers, build support for implementation among key constituencies, identify and secure funding for implementation, and integrate IES methodologies and results into existing policymaking processes. Implementation Hurdles exceeded their economic costs, or the costs were greater than the benefits by a relatively small A number of barriers can impede the amount). Importantly, from the IES perspective, implementation of recommended measures to the estimated benefits did not take into account reduce conventional pollutants and GHGs. While changes in health or other improvements in the specific hurdles vary from country to coun- social welfare. If the value of these other posi- try, a number of common obstacles also exist. tive changes had been included, more of the During the 1990s, 35 developing and transition actions would have produced positive net eco- countries examined a variety of measures for nomic benefits. reducing GHGs as part of the United States The Intergovernmental Panel on Climate Country Studies Program (USCSP).1 Many of Change’s Special Report on Methodological and the measures considered were similar to ones Technological Issues in Technology Transfer2 commonly identified in IES studies, applied pri- also discusses factors that can impede the imple- marily to the energy supply/demand sectors, and mentation of technological measures commonly were no-cost or low-cost actions (i.e., the esti- identified in the IES program. The report identi- mated economic benefits of the measures either fies many of the same issues as the USCSP. 1 U.S. Countries Studies Management Team. 1999. Climate Change Mitigation, Vulnerability, and Adaptation in Developing and Transition. 2 Metz et al. 2000. Methodological and Technical Issues in Technology Transfer. Chapter 8 84 Implementation IES Handbook The studies identified the following barriers to • The need for appropriate legal institutions implementation: and frameworks to provide assurance that the product or service can be sold, that contracts • Insufficient domestic expertise and will be enforced, that legal disputes can be infrastructure for supporting new resolved, and that property rights will be technologies and energy sources (e.g., lack protected. of reliable infrastructure for distributing electricity and natural gas). • The need for general education to improve citizens’ awareness and acceptance of new • Lack of capital for developing or investing technologies and resource conservation in new technologies, energy sources, and opportunities and to change their choices infrastructure because of (1) competing and habits. domestic priorities for scarce capital and (2) a lack of foreign investment in these areas. • General economic or political instability, leading to competing demands for scarce • The need for training of people in economic resources and political attention. the manufacture, installation, use, and maintenance of new technologies, as well as in the implementation of new resource management practices. • Lack of domestic supply of new technologies and alternative fuels sources, resulting in the need to increase dependence on imports if these technologies and fuel sources are to be used. • Existing policies and regulations that favor current technologies and energy sources and discourage the development and implementation of new technologies and energy sources. Moving From Analysis • Lack of data and methods for conducting comprehensive benefit-cost analyses of to Implementation mitigation options. The IES analytical framework helps countries move toward implementation by producing • High initial capital costs of purchasing quantitative information on the relative benefits more efficient technologies and a lack of of different policies and technologies under mechanisms for reducing the initial costs consideration. However, moving from analysis borne by the end user. to implementation requires a focus on process as • Lack of a system of codes, standards, well as on product. As discussed in Chapter 2, and certification processes to ensure the when IES partners engage policymakers and other performance and reliability of new goods and stakeholders early in the process, they are more services, as well as the compatibility of any likely to have a receptive audience to hear IES intermediary products and services. results, refine initial analyses, and move towards implementation. Partners also benefit from con- sidering ways to build momentum for implemen- tation at the very start of an IES project. Chapter 8 85 Implementation IES Handbook Another challenge in moving from IES analysis researchers typically work together to develop to implementation is taking the alternative sce- project proposals. See Appendix E for a descrip- narios that were developed (often a combination tion of funding sources relevant to IES projects. of different policies) and transferring those For example, the Chilean government submitted scenarios to specific mitigation measures a proposal to the Global Environment Facility (e.g., introduce hybrid buses, switch fuels). (GEF) for a grant that would support the imple- The experience of the eight countries that have mentation of the 2000-2010 Urban Transport participated in the IES program to date suggests Plan for Santiago, an important planning docu- four strategies for effectively moving from ment for the city. The plan calls a long-term shift analysis to implementation: to more efficient, less-polluting forms of trans- portation. Specific objectives include reducing • Develop funding proposals. private car use and promoting public transporta- • Incorporate results into existing planning and tion through road pricing measures, replacing old policymaking processes. buses with cleaner low-emission buses, increas- ing the use of bicycles and other non-emitting • Build support for implementation. modes of transportation, and laying the ground- • Institutionalize IES process and results. work for more energy-efficient travel patterns through land use changes such as redistribution of education and shopping facilities. Chile’s GEF proposal, which is still pending approval, relied heavily on analysis conducted by IES partners. The Chilean government’s interest in IES (and the strong ties between IES researchers and government officials) have been instrumental in helping Chile move closer to implementation of promising mitigation measures. Incorporate Results into Existing Processes In many cities where IES projects are initiated, systems are already in place for implementing policies, technologies, and strategies to improve air quality and reduce GHGs. IES partners in many countries have found that building an early rapport with policymakers and linking the results of IES analysis to existing decisionmak- Develop Proposals for Funding ing structures facilitate implementation. By feeding directly into existing structures, IES The quantified information that results from IES can support local objectives while introducing analyses can be useful in developing proposals new ideas and information. Implementation for implementing promising measures. Since will be most effective if the process is tailored multilateral development banks and other to specific policy processes and conditions in funding entities frequently lend or give grants each city. Some examples include: to governments, it is important that IES partners engage government officials early in the IES process. Government officials and in-country IES Chapter 8 86 Implementation IES Handbook • City/Regional Management or Development In the Philippines, the IES technical team Plans: Air quality management plans, energy or conducted a series of in-depth presentations environmental development plans, transportation and discussions on the policy implications of the plans, and city land use or development plans Manila study with key government ministries, can all be effective mechanisms for adopting including the Department of Environment and integrated strategies. For example, IES partners Natural Resources, the Department of Energy, are studying the air quality and GHG mitigation the League of Cities/Municipalities (mayors), benefits of several measures that could be and the Interagency Committee on adopted as part of Mexico City’s formal air Environmental Health, to help integrate study quality management plan, PROAIRE. Although conclusions into policy decisions. they were not originally included in PROAIRE, In Shanghai and Beijing, IES teams have also some of these measures might be adopted if they found effective ways to work with local officials prove as technically feasible and cost-effective to support existing decisionmaking structures. IES as other measures under consideration. researchers in Shanghai regularly brief officials • Major Event Planning: IES can assist involved in Shanghai Province’s Five-Year Plan. policymakers looking to achieve environmental Since this planning process is an important blue- targets in conjunction with a large, visible print in China, the consideration of IES results in international event. For example, Shanghai is the process, now in the 11th cycle, has influenced planning to host the World Exposition in 2010, the shape of policy in this large and populous and, as a result, the municipal government province. As previously noted, IES researchers in wants to present to the world a city with air Beijing are participating in planning for the 2008 quality at the same level (or better) than similar Olympics. The Chinese government plans to use world-class cities. In Beijing, planning for the this preparation for the Olympics to implement 2008 Olympics includes a number of initiatives the 11th Five-Year Plan and the Strategy of to improve local air quality and reduce GHG Three-Phased Development for Beijing. emissions (see “Planning for a ‘Green’ Olympics” sidebar on page 88). Build Support for Implementation • Project-Based Environmental Analysis: If Many IES partners have found that while reliable research indicated that certain industrial-sector data and a refined analytical framework are neces- improvements could be effective in improving sary tools for effective decisionmaking, support air quality and reducing GHGs in an area, a from key constituencies (such as businesses, non- project-specific analysis could be carried out on governmental organizations, citizen groups, and a single enterprise, or a collection of enterprises policymakers) is vital to build momentum for or industrial sectors. Although such an analysis implementing promising measures. IES partners has not been attempted through the IES in some countries have found it beneficial to program, it would be a straightforward extension undertake outreach activities, such as education of the urban-scale IES study, utilizing similar campaigns, to complement IES analysis. Outreach analytical tools, models, and methodologies. activities are often an implicit recognition that the issues at the heart of IES analysis affect people’s IES partners can also consider delivering regular lives, and they require careful planning and good briefings to existing decisionmaking bodies, coordination among multiple partners to be such as air quality management boards or effective (see Figure 8.1 on page 88). planning agencies, to build relationships with policymakers and develop opportunities for an IES analysis to provide useful input to decisionmaking processes. Chapter 8 87 Implementation IES Handbook Outreach activities can include the following: air quality, public health, and climate change. Campaigns can include many kinds of • Education campaigns to provide individuals activities, such as distributing educational with information on how the choices they flyers and other publications; airing public make (individually and collectively) can affect Planning for a “Green” Olympics A key component of the IES work in Beijing is its connection to the China’s efforts to make the 2008 sum- mer games the world’s first “green” Olympics. The Beijing IES project was launched in January 2002, six months after the city was awarded the rights to host the event. By the time the IES project began, the Beijing government had already published several policies for improving air quality as a part of the preparations for the Olympics. The IES team incorporated these policies into the development of scenarios for the IES project (see Table 8.1), so that results of the study would be directly applicable to the policy decisions being made. In July of 2002, the Beijing municipal government released an action plan to guide the city’s preparations for the Olympics. The plan includes numerous initiatives to improve urban infrastructure and environmental quality in Beijing by 2008. Goals include 1) reducing emissions of SO2 and NOx in urban areas so that con- centration levels meet World Health Organization standards and 2) reducing particulate concentrations so that they are on par with those of major cities in developed countries. The IES Beijing team has been careful to make its scenarios consistent with the city’s plans. The assumptions made in the clean energy supply, indus- try structure, and green transport scenarios are directly relevant to the government’s action plan. Table 8.1 Beijing IES Scenarios Scenario Key Aspects Base Case “Business as usual.” • Switch from coal-fired industrial boilers to natural gas. Clean Energy Consumption • Use liquid petroleum gas for cooking in rural residences and expand grid-based natural gas power. • Relocate steel production. Industry Structure Transformation • Reduce trichloroethylene capacity of coking. • Modify growth in cement, petroleum, and chemical industries to high-tech industries. • Improve residential lighting and heating, ventilation, and air conditioning systems. Energy Efficiency • Promote a fuel economy program in light vehicles. • Expand public transportation development. • Slow growth in private car ownership. Green Transport • Promote liquid petroleum gas in taxis and buses. • Improve vehicular emission standards. • Promote advanced technology vehicles. Preliminary results from the Beijing IES study indicate that if all of the measures mentioned in Table 8.1 are fully implemented, the ambient concentration of SO2 and NOx in major urban areas will meet air quality standards in 2008. However, additional measures will need to be implemented to control energy use, fugitive dust, and regional emissions if the city is to reach its targets for particulates. IES tools and analytical techniques are having a direct impact on policies and initiatives to improve air quality in the Beijing urban area. The city’s efforts to meet its 2008 Olympics’ goals provide an excellent opportunity for incorporating the IES program’s analytical and capacity-enhancing strengths. Chapter 8 88 Implementation IES Handbook service announcements on radio and • Articles and press coverage of IES findings television; hosting Web sites such as India’s (or related topics of local interest such as air site at <http://www.eptri.com/ies>; and quality and public health issues) in journals, displaying posters in buses or rail systems; newspapers, and other venues. sponsoring health fairs or other events to • Initiatives to encourage businesses to adopt raise awareness of the links between low-cost energy-efficiency measures that have environmental/health issues. local and global benefits. Figure 8.1 Steps for Conducting an IES • Initiatives to encourage and reward industry Outreach Campaign for implementing voluntary strategies for reducing GHGs and air pollutants. Identify specific sectors within the IES study area: • General public • Collaboration with the medical community • Industry to raise awareness of the links between health • Transportation effects and air quality. • Policy Makers • Joint efforts with transportation organizations to raise consumer awareness of transportation choices, encourage mass transit, and build Develop a multi-level approach to sharing momentum for adopting new measures and/or the message with applicable sectors technologies (e.g., hybrid buses). • Curriculum development to teach children about local/global environmental issues and Develop a simple and unique message to potential impacts. "brand" the education campaign • Policymaker briefings for central, regional, provincial, and local decisionmakers to keep them informed of IES progress and results and • Inform policy officials of the campaign prior to initiation and seek their endorsement build support for implementation. • Develop metrics for measuring campaign In Chile, a single journal article in Science3 about success the potential health impacts of deteriorating air quality in Santiago generated significant local press coverage and public attention; as a result, the issue was raised in importance with local Conduct the outreach campaign environmental officials. In the metropolitan area of South Korea, IES part- ners are contributing to a government-sponsored • Measure level of success • Summarize results outreach initiative that seeks to educate citizens • Share results with policymakers about the links between energy, air quality, and • Identify lessons learned public health.4 The IES-South Korea team also has been involved in a multifaceted outreach program to disseminate IES analytical results, publicize the health impacts of air pollution, 3 Cifuentes et al. 2001. Hidden Health Benefits of Greenhouse Gas Mitigation. 4 Note that the metropolitan area of Seoul, South Korea, defined for the IES study includes the city of Seoul, the city of Inchon, and part of Kyonggi area. Chapter 8 89 Implementation IES Handbook and promote policy measures to address GHGs in some developing country contexts. Although and air quality. In 2001-2002, the daily newspaper each of the case studies focuses on a different Hankyoreh published a series of 26 articles on air technology in a different set of circumstances, quality, health, and global climate change. This they illustrate a number of similar problems. media campaign was steered, in part, by the IES South Korea coordinator and is credited with edu- Compact Fluorescent Lamps cating the public about the importance of air qual- A compact fluorescent lamp (CFL) uses about ity as a national issue. As a result of the campaign, 20 percent of the electricity consumed by the television news programs now regularly report on more common incandescent lamp. Greater use climate change, air quality, and health in Korea. of CFLs is often cited as a measure for increas- Outreach activities do not have to wait to be ing energy efficiency and reducing pollutants implemented until the IES analysis is complet- generated in fossil fuel combustion. Researchers ed. In India, the IES team designed an outreach in India examined the reasons that sales of this program to complement the core analysis. The product are not increasing as rapidly as expected team took this approach to publicize the IES in the country and identified strategies for analytical framework. The team hopes that these changing the situation.5 outreach activities will lay the groundwork for focused discussions on implementing mitigation measures identified by the analysis. Outreach activities have focused on building support for implementation among three key groups in Hyderabad: businesses, the general public, and policymakers at key agencies in both Hyderabad and the central government in New Delhi. Use the Framework as a Decisionmaking Tool IES offers an analytical framework that can refine and assist decisionmaking. One strategy for The study notes that while the purchase price of implementation is to explore opportunities for the a CFL is 10 to 30 times greater than an incan- adoption and use of the IES framework by gov- descent lamp, a consumer can recover this cost ernment agencies themselves, with the assistance in energy savings in less than two years if the of IES partners. In this way, the IES approach can lamp is used for only one hour a day. be institutionalized, and the legacy of the IES Furthermore, these savings would increase as project could be the assessment of integrated electricity prices rise and as CFL prices come measures on many different issues in the future. down. Despite sound underlying economics and significant marketing efforts by the Indian light- Clean Energy Case Studies ing industry, the actual use of CFLs in India is only 1 percent of the potential. Some of the rea- The following case studies (which are not from sons identified for this gap were: IES projects) examine factors that have impeded the greater use of three environmentally and eco- • Poor awareness of CFLs among ordinary nomically beneficial technologies and processes consumers. 5 Kumar et al. 2002. Disseminating Energy-efficient Technologies. Chapter 8 90 Implementation IES Handbook • Limited awareness of longer-term economic CFC-Free, Super-Efficient savings, even among people aware of the Refrigerators6 product. The U.S. EPA has cooperated with China since • High purchase price. the late 1980s on a number of activities to pro- • Lighting levels below those desired by mote use of energy-efficient products and equip- consumers. ment. The ultimate goal of these activities has been to reduce air pollutants, including ozone- • Consumer preference for a whiter light than depleting substances (ODS), and to promote the produced by the CFLs. reduction of GHG emissions through increased • Longevity less than claimed due to problems energy efficiency. caused by the Indian power grid. One major area of cooperation has been on CFC- • Lack of a performance guarantee. free super-efficient refrigerators.7 In the 1980s, the Chinese Government was considering ratify- To be successful, any IES strategy that included ing the Vienna Convention for the Protection of or implied significant use of CFLs would need the Ozone Layer and the Montreal Protocol, but to address these problems and achieve greater was concerned about the impact of ratification market penetration. Some of the recommenda- on its refrigerator industry. Refrigerator use was tions from the study were: growing rapidly in Chinese households, and the • More intensive advertising by both the volume of ODSs consumed in the refrigerator government and industry. sector was becoming substantial. • Free and-no-obligation trial offerings. The U.S. EPA had demonstrated that technolo- gies existed in the United States to make refrig- • Longevity warranties and/or certificates of erators both CFC-free and significantly more quality. energy efficient and wanted to demonstrate that • Installment purchase mechanisms. an ODS phase-out could be achieved with little or no adverse impact on Chinese industry or • Attractive point-of-purchase materials. consumers. Some of the barriers faced by China • Large-scale seminars, conferences, and trade in implementing a strategy requiring such a shows to raise public awareness. phase-out were: • Subsidies for approved manufacturers of CFLs. • Uncertainty over appropriate CFC replacements. While a range of CFC One other reason that sometimes contributes replacements existed, experts did not know significantly to the gap between potential and which would be most appropriate under actual use of CFLs in some areas, but not men- Chinese conditions. tioned in the study discussed above, is the lack of availability of products and replacement parts • Lack of basic industry information. China in the market. lacked comprehensive information on the nature of the country’s refrigerator market (e.g., production quantities for specific models, technologies in use, consumer preferences and perceptions, and purchasing behavior). 6 Hathaway et al. 2002. U.S.–China CFC-Free Super–Efficient Refrigerator Project. 7 See <http://www.resourcesaver.com/file/toolmanager/O86F34579.pdf> for more information. Chapter 8 91 Implementation IES Handbook • Shortage of industry technical expertise. • Monitoring and evaluating the results of all The industry comprised dozens of companies these activities. that varied widely in their technical capacities, The project successfully transformed the refrig- but most lacked the technical knowledge, erator industry in China. The industry leader experience, and skills necessary to research, introduced a new CFC-free, energy-efficiency select, design, test, manufacture, and market model and conducted extensive advertising to advanced refrigerator. promote its new product. The messages received • Limited standards development and testing considerable consumer attention, and helped to capacity. China’s minimum energy-efficiency influence other manufacturers to develop CFC- standards were relatively weak, and its free models of their own to remain competitive. calculation methods and test procedures could not be compared with other countries. Its Efficient Biomass Stoves infrastructure for standards development and Much of the world’s population cooks with bio- product testing required strengthening, and mass, including a significant portion of the poor more expertise was needed to develop test in urban areas. Most traditional biomass stoves procedures, life cycle cost analysis, modeling, are very inefficient, and the negative impacts of and data collection methodologies. excessive biomass fuel use, especially if used in • Lack of understanding of cost/savings an unsustainable manner, include: information. The costs and benefits of • Depletion of increasingly scarce wood and CFC-free and energy-efficient refrigerators other biomass resources. were not well understood by government, manufacturers, or consumers. • In some situations, use of scarce cash resources for purchasing fuel wood or Working with the U.S. EPA, China’s State charcoal; in other situations, use of significant Environmental Protection Agency (SEPA) initi- amounts of time for gathering fuel. ated a comprehensive set of market transforma- tion activities that included: • Acute respiratory infections, especially in children. • Collecting basic industry information on refrigerator production, sales, market share, • Chronic lung disease and cancer. technologies, and energy use by model. Furthermore, in addition to CO2, biomass • Identifying appropriate CFC replacements and combustion creates products of incomplete building industry technical expertise, combustion that are more powerful GHGs on especially in the area of technology research a unit basis than CO2. and testing. After the significant increases in oil prices in the • Building institutional capacity for establishing 1970s, many bilateral and multilateral assistance minimum efficiency standards. organizations developed programs to encourage greater use of more efficient biomass stoves. • Gathering information on costs and savings. The results were usually less robust than expect- • Providing technical assistance to compressor ed. The World Bank Group examined the factors manufacturers and refrigerator manufacturers. than can contribute to the success or failure of efficient biomass stove programs, and some of • Instituting a consumer education program. the lessons learned were:8 8 Barnes et al. 1994. What Makes People Cook with Improved Biomass Stoves. Chapter 8 92 Implementation IES Handbook • Programs were more likely to succeed where • Government and donor assistance was there were immediate opportunities to save particularly useful in assessing market money (among users currently buying both the potential; disseminating information; fuel and the stove) or valuable time (not providing technical advice, testing, and among users with easy access to free fuel or quality control; and facilitating financing. no significant opportunity cost for their time). • Monitoring and evaluation criteria and • Fuel efficiency is only one of many factors responsibilities were carefully developed that consumers value; the involvement of local during the planning stages of successful experts was generally necessary to ensure that programs. the stove design met the multiple needs of the • Government or donor support extending over end-users. at least five years and designed to strengthen • Prices of more successful stoves were kept local institutions and expertise greatly relatively low through the use of local increased the chances of program success. materials, including scrap, and local mass production. • Significant subsidization tended to undercut the long-term commitment of producers and consumers to the newer stoves; when subsidies disappeared, so did the stoves. Chapter 8 93 Implementation