7.9.5 Regulation of non-CO2 gases
The first regulations on non-CO2 GHGs are emerging in Europe. A new EU regulation (EC 842/2006) on fluorinated gases includes prohibition of the use of SF6 in magnesium die casting. The regulation contains a review clause that could lead to further use restrictions. National legislation is in place in Austria, Denmark, Luxembourg, Sweden and Switzerland that limits the use of HFCs in refrigeration equipment, foams and solvents. During the review of permits for large emitters under the EU’s Integrated Pollution Prevention and Control (IPPC) Directive (EC, 96/61) a number of facilities have been required to implement best available control technologies for N2O and fluorinated gases (EC, 2006c).
7.9.6 Energy and technology policies
The IEA’s World Energy Outlook 2006 (IEA, 2006c) provides an up-to-date estimate of the impacts of energy policies on the industrial sector. The IEA compares two scenarios, a Reference Scenario, which assumes continuation of policies currently in place, and an Alternate Policy Scenario, which projects the cumulative impact of the more than 1400 energy policies being considered by governments worldwide, many of which affect the industrial sector. The Alternate Policy Scenario assumes faster deployment of commercially demonstrated technology, but not technologies that are still to be commercially demonstrated, including CCS and advanced biofuels.
Global industrial energy demand in 2030 in the IEA’s Alternate Policy Scenario is 9% (14 EJ) lower than in the Reference Scenario. Industrial sector CO2 emissions are 12% (0.9 GtCO2) lower. Estimated investment to achieve these savings is US$ 362 billion (2005 US$), US$ 195 billion of which is in electrical equipment. The savings in electricity costs are about three times the investment in electrical equipment. The IEA (2006c) does not provide information on the value of the fuel savings in industry, but clearly it is larger than the investment.
Government is expected to lower financial risk and promote the investment through technology policy, which includes diverse options: budget allocations for R&D on innovative technologies, subsidy or legislation to stimulate specific environmental technologies, or regulation to suppress unsustainable technologies. See for example the US DOE’s solicitation for industrial R&D projects (US DOE, n.d.-a) and the Government of India’s Central Pollution Control Board Programmes on development and deployment of energy efficient technologies (CPCB, 2005).