Online, 28 – 29 June 2021The ASEAN Centre for Energy and the Korea Energy Agency (KEA) organised the virtual ASEAN-Korea Capacity Building Workshop on Energy Efficiency and Conservation (EE&C) in Industry and Transportation Sector on 28 and 29 June 2021.

Referring to the 6th ASEAN Energy Outlook, the industry and transportation sectors are projected to be the most energy-intensive sectors in ASEAN, which account for the vast majority share of 41.2% and 37.1% by 2040, respectively. It is also projected that these two sectors have the most significant opportunity for reducing energy demand.

As one of the activities under the ASEAN+3 Mitigation Cooperation Programme, jointly implemented by ACE and KEA, the workshop aims to serve as a platform for knowledge exchange and experiences sharing on EE&C policy and regulatory framework in industry and transport sectors for reducing greenhouse gasses (GHG) emissions.

“This Capacity Building Workshop will certainly support ASEAN Member States (AMS) in developing EE&C policies and measures in industry and transportation sector through knowledge and experience exchange between ASEAN and Korea. Moreover, the initiative will further strengthen the efforts in achieving the target of 32% energy intensity reduction by 2025 under the APAEC Phase II through the expansion of EE&C programme to industry and transportation sector,” said Dr Nuki Agya Utama, Executive Director of ACE, during his opening remarks.

Day 1 – EE&C Policy and Measures in Industry Sector

On the 1st day, the experts from KEA and the policymaker from the AMS shared the policy and measures to promote the EE&C application in Industry Sector in their respective countries.

KEA representative, Mr Jung-Phi Park, explained the Voluntary Energy Efficiency Target Scheme (EETS), one of the Republic of Korea’s measures in EE&C for reducing GHG emissions through substantial energy efficiency efforts by the industry sector. EETS provides incentives for energy-intensive businesses to set voluntary goals to reduce energy intensity, including active energy-saving investments and energy Measurement and Verification (M & M&V). EETS is five years scheme with voluntary participation.

The AMS also has implemented various measures and plans for industrial energy efficiency, including implementing an energy management system for the energy-intensive industries through the appointment of an energy manager, periodical report submission, energy audit, and benchmarking. Moreover, some AMS also have set up the standard and labelling system for industrial equipment, such as boilers and electric motors.

Mr Sandy Fajrian from ACE further highlighted various efforts to reduce the industry sector energy consumption, such as through fuel-switching for industrial processes, improving energy efficiency and emission standards for industry sectors, and reconfiguring and upgrading existing factories. Furthermore, it also mentioned that machinery and vehicle production are the likeliest targets for energy efficiency improvements in the industry sector.

Day 2 – EE&C Policy and Measures in Transportation Sector

The 2nd day of the workshop focuses on the EE&C policies and measures in the transportation sector. As indicated in the perspective and outlook for the transportation sector by ACE, the transportation sector remains dominated by fossil fuels. Notably, the oil will continue having mot share of transportation fuel. It is noted that ASEAN needs to adapt and transition to new technologies, such as electric vehicles or biofuel, in the transportation sector to avoid the risks of being dependent on fossil fuels that could harm future energy security.

The KEA highlighted the wide range of policies to promote the eco-friendly vehicle, such as subsidies and incentives for purchasing EVs, including in building up engagement with the private sector in the country.

It is noted that the AMS are in different stages of their development for the EE&C in the transportation sector. They also shared their plans and measures in the EE&C promotion for the transportation sector, such as fuel efficiency standards, fuel-switching initiatives, and awareness-raising programmes.

The workshop was concluded with a roundtable discussion on the challenges and opportunities for cooperation in EE&C for the industry and transportation sector. During the discussion, the importance of stakeholder engagement and dissemination for both sectors was highlighted.

“Energy efficiency and conservation is the workhorse of the clean energy world. Therefore, the whole aspects of increasing the use of eco-friendly vehicles and enhancing efficiency in the industry needs to be done collaboratively by all the stakeholders in place,” said Mr Christopher G. Zamora, the Senior Manager of APAEC from ACE.

Specifically for the industry sector, various opportunities were identified, including developing an industrial energy database and policy support for SMEs. Moreover, policy and incentives to support EV promotions are the main priorities for the AMS for future engagement.

Mr Watcharin Boonyarit, Director of Strategy and Planning Division, DEDE Thailand, highlighted that the fruitful discussion and information shared will be beneficial for the AMS to update their EE&C policy in the industry and transport sector. Finally, Mr Sung Moon Jung, Director of Global Project Division of KEA, also expressed his hopes that these workshops could help the ASEAN’s energy sector adapt and mitigate global climate change.

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By SNS and VYS