A Survey of Policies, Initiatives That Can Reduce GHG Emissions, Improve Industrial Energy Efficiency

“Review of GHG Policies, Programs, Initiatives, and Energy Efficiency Opportunities for U.S. Industry,” a report produced by the Alliance, explores how industrial firms can limit their greenhouse gas emissions by adopting more energy-efficient practices, from effective energy management to process optimization.

In the United States, the industrial sector accounts for nearly one-third of total greenhouse gas (GHG) emissions that, according to the Intergovernmental Panel on Climate Change (IPCC), are altering the energy balance of Earth’s climate and threatening public health and welfare. Historically, industrial firms have benefited directly from a substantial portfolio of federal program resources including research and development assistance, technical resources, financial support and low-cost capital. However, perhaps the greatest key to sustained energy efficiency improvements in the industrial sector will come from long-term regulatory certainty under which industrial firms can plan and invest.

GHG Emissions and Energy Efficiency: Implications for the Industrial Sector

In 2006, the industrial sector accounted for approximately one-third of total energy use.  About 28.6 percent (2,083 MMT) of U.S. GHG emissions (19 percent of direct emissions plus 9.6 percent of indirect emissions) are attributable to non-agricultural industrial production. As GHG emissions are highly correlated with fossil fuel energy use and industrial output, cost-effective, energy-saving opportunities will play a leading role in further reducing energy intensity and GHG emissions among industrial companies. 

While many active state and federal programs and policies feature emission reductions as a shared end-goal, they pursue different approaches to reducing energy intensity. The disparate nature of federal, state and municipal initiatives can be overwhelming to industrial firms, and can lead to apathy among industrial participants.  As such, any future U.S. emissions policy should consolidate existing emissions reductions programs and require a standardized methodology for reporting GHG emissions. Unfortunately, to date, no single registry system has gained national acceptance.

In addition to existing programs, policies, and initiatives, there are more opportunities that can spark measurable and lasting efficiency gains and emissions reductions. Many effective energy management practices and energy-efficient technologies are economically viable and commercially available.  Some industrial firms already are modifying operations to prepare for possible future GHG emissions regulation and to make their business models more sustainable.  

Steps to Reduce Industry’s GHG Emissions

To further help the industrial sector cut down on its GHG emissions, the report offers several recommendations:

• Construct a national GHG reporting program and support a single, national cap-and-trade mechanism
• Enhance research and development in energy efficiency and renewable energy for industrial plants
• Promote energy efficiency in small and medium enterprises with policy support, technical assistance and financing incentives
• Encourage manufacturers to participate in voluntary initiatives for energy intensity and GHG emissions reduction
• Support more active utility involvement in industrial energy efficiency projects
• Raise awareness of energy efficiency and renewable energy opportunities

Read the full GHG Report:  ASE GHG Report- October 2009