Skip to main content
SpringerLink
Log in

Review of Voluntary Agreements on Energy Efficiency: Promoting Energy Efficiency Financing in ASEAN Countries

  • Chapter
  • First Online:
Energy Efficiency Financing and Market-Based Instruments

Part of the book series: Economics, Law, and Institutions in Asia Pacific ((ELIAP))

Abstract

The Association of Southeast Asian Nations (ASEAN) countries need to consider more innovative, market-oriented approaches to accelerate energy efficiency improvement. Well-designed voluntary agreements help companies understand the importance and benefits of energy efficiency and engage in activities to improve industrial energy efficiency. Hence, they can contribute to overcoming some challenges that ASEAN countries face in promoting energy efficiency financing schemes and raising the effectiveness of the schemes. This study reviews how successful voluntary agreements in energy efficiency in five countries (People’s Republic of China, Finland, Japan, the Netherlands, and the United Kingdom) achieved their targets in order to draw implications for designing future voluntary agreements in ASEAN countries. We find that three design elements: ambitious and realistic target setting, effectively enforceable incentives and penalties, and a strong monitoring and evaluation mechanism, are essential for well-functioning voluntary agreements. In addition to these elements, the unique conditions of each country must be considered, and transparency must be ensured to maximize the effectiveness of voluntary agreements.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 89.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 119.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 119.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  • Abdelaziz EA, Saidur R, Mekhilef S (2011) A review on energy saving strategies in industrial sector. Renew Sustain Energy Rev 15:150–168

    Article  Google Scholar 

  • Abeelen C, Harmsen R, Worrell E (2016) Counting project savings–an alternative way to monitor the results of a voluntary agreement on industrial energy savings. Energy Effic 9:755–770

    Article  Google Scholar 

  • ACE (2019a) Study report: ASEAN cooperative project on financing mechanism design for energy efficiency and conservation (EE&C) projects implementation. ACE, Jakarta

    Google Scholar 

  • ACE (2019b) Mapping of energy efficiency financing in ASEAN. ACE, Jakarta

    Google Scholar 

  • Environment Agency (2017) Climate change agreements: biennial progress report 2015 and 2016. Environment Agency, Bristol

    Google Scholar 

  • ASEAN Centre for Energy (ACE) (2015) ASEAN plan of action for energy cooperation (APAEC) 2016–2025. ACE, Jakarta

    Google Scholar 

  • ASEAN Centre for Energy (ACE) (2017) The 5th ASEAN energy outlook. ACE, Jakarta

    Google Scholar 

  • Association of Southeast Asan Nations (ASEAN) (2019) ASEAN key figures 2019. ASEAN Secretariat, Jakarta

    Google Scholar 

  • Association Technique Energie Environnement (ATEE) (2017) Snapshot of energy efficiency obligations schemes in Europe: 2017 update. Association Technique Energie Environment, Paris

    Google Scholar 

  • European Commission (EC) (2017) Annual report on the EED 2017. Report to the European Commission pursuant to Article 24(1) of the Energy Efficiency Directive (2012/27/EU). European Commission, Brussels

    Google Scholar 

  • Cornelis E (2019) History and prospect of voluntary agreements on industrial energy efficiency in Europe. Energy Policy 132:567–582

    Article  Google Scholar 

  • Croci E (2005) The economics of environmental voluntary agreements. In: Croci E (ed) The handbook of environmental voluntary agreements: design, implementation and evaluation issues, 1st edn. Springer, Dordrecht, pp 3–30 https://doi.org/10.1007/1-4020-3356-7_1

  • Fawkes S, Oung K, Thorpe D, Zhu X, de la Rue du Can S, Farrell TC (2016) Best practices and case studies for industrial energy efficiency improvement: an introduction for policy makers. UNEP DTU Partnership, Copenhagen

    Google Scholar 

  • Gynther L, Suomi U (2017) Energy efficiency agreement for industries in Finland. https://epatee.eu/sites/default/files/epatee_case_study_finland_energy_efficiency_agreement_for_industries_ok_0.pdf. Accessed 4 Mar 2020

  • Hong J, Hong S, Wang L, Xu Y, Zhao D (2015) Government grants, private R&D funding and innovation efficiency in transition economy. Technol Anal Strateg Manag 27(9):1068–1096

    Article  Google Scholar 

  • International Energy Agency (IEA) (2019) Southeast Asia energy outlook 2019. International Energy Agency, Paris

    Google Scholar 

  • Kementerian ESDM RI, ECN (2016) Indonesia NAMA: energy efficient electric motor systems. Kementerian Energi dan Sumber Daya Mineral Republik Indonesia, Jakarta

    Google Scholar 

  • Li L, Ackva J, Ghera C, Martin EF (2018) Climate change agreements in the UK: fact sheet. Ecofys, Utrecht, The Netherlands

    Google Scholar 

  • Lindén AL, Carlsson-Kanyama A (2002) Voluntary agreements – a measure for energy-efficiency in Industry? Lessons from a Swedish programme. Energy Policy 30(10):897–905

    Article  Google Scholar 

  • Lyon TP, Maxwell JW (2003) Self-regulation, taxation and public voluntary environmental agreements. J Public Econ 87(7–8):1453–1486

    Article  Google Scholar 

  • Menanteau P (2005) Efficiency standards versus negotiated agreements in the European electrical appliance sector. In: Croci E (ed) The handbook of environmental voluntary agreements: design, implementation and evaluation issues, 1st edn. Springer, Dordrecht, pp 163–178. https://doi.org/10.1007/1-4020-3356-7_8

    Chapter  Google Scholar 

  • National Development and Reform Commission (NDRC) (2015) Evaluation report of top 10,000 program. National Development and Reform Commission, Beijing

    Google Scholar 

  • OECD Statistics Database. https://stats.oecd.org/index.aspx?queryid=350

  • Organisation for Economic Co-operation and Development (OECD)/International Partnership for Energy Efficiency Cooperation (IPEEC) (2016) Energy efficiency networks – an effective policy to stimulate energy efficiency. OECD, Paris

    Google Scholar 

  • Reinaud J, Goldberg A (2012) The boardroom perspective: how does energy efficiency policy influence decision making in industry? OECD Publishing, Paris

    Google Scholar 

  • Rezessy S, Bertoldi P (2011) Voluntary agreements in the field of energy efficiency and emission reduction: review and analysis of experiences in the European Union. Energy Policy 39(11):7121–7129

    Article  Google Scholar 

  • Simachev Y, Kuzyk M, Feygina V (2015) Public support for innovation in Russian firms: looking for improvements in corporate performance quality. Int Adv Econ Res 21(1):13–31

    Article  Google Scholar 

  • Storey M, Boyd G, Dowd J (1999) Voluntary agreements with industry. In: Carraro C, Lévêque F (eds) Voluntary approaches in environmental policy, 1st edn. Springer, Dordrecht, pp 187–207. https://doi.org/10.1007/978-94-015-9311-3_11

    Chapter  Google Scholar 

  • Tanaka K (2011) Review of policies and measures for energy efficiency in industry sector. Energy Policy 39(10):6532–6550

    Article  Google Scholar 

  • Thollander P, Backlund S, Trianni A, Cagno E (2013) Beyond barriers – a case study on driving forces for improved energy efficiency in the foundry industries in Finland, France, Germany, Italy, Poland, Spain, and Sweden. Appl Energy 111:636–643

    Article  Google Scholar 

  • Thollander P, Kimura O, Wakabayashi M, Rohdin P (2015) A review of industrial energy and climate policies in Japan and Sweden with emphasis towards SMEs. Renew Sustain Energy Rev 50:504–512

    Article  Google Scholar 

  • Tractbel ENGIE (2018) Do voluntary agreements on industrial energy efficiency still have a future? Tractbel ENGIE, Brussels

    Google Scholar 

  • Veum KC (2018) Long-term agreements on energy efficiency for the non-ETS sector. https://epatee.eu/sites/default/files/epatee_case_study_netherlands_mja3_voluntary_agreements_in_the_non-ets_sectors_ok.pdf. Accessed 4 Mar 2020

  • Wakabayashi M, Arimura TH (2016) Voluntary agreements to encourage proactive firm action against climate change: an empirical study of industry associations’ voluntary action plans in Japan. J Clean Prod 112:2885–2895

    Article  Google Scholar 

  • Wang X, Stern R, Limaye D, Mostert W, Zhang Y (2013) Unlocking commercial financing for clean energy in East Asia. World Bank, Washington, DC

    Book  Google Scholar 

  • Zhang M, Cui Y, ter Avest E, van Dijk MP (2018a) Adoption of voluntary approach: can voluntary approach generate collective impacts for China achieving ambitious energy efficiency targets? Energy Env 29(2):281–299

    Google Scholar 

  • Zhang M, Li H, Jin W, ter Avest E, van Dijk MP (2018b) Voluntary agreements to achieve energy efficiency, a comparison between China and the Netherlands. Energy Env 29(6):989–1003

    Google Scholar 

  • Zhao X, Li H, Wu L, Qi Y (2016) Enterprise-level amount of energy saved targets in China: weaknesses and a way forward. J Clean Prod 129:75–87

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Energy Studies Institute of the National University of Singapore, Singapore, Singapore

    Jeong Won Kim

  2. African Development Bank, Abidjan, Ivory Coast

    Yang Liu

Authors
  1. Jeong Won Kim
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Yang Liu
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Yang Liu .

Editor information

Editors and Affiliations

  1. African Development Bank Group, Abidjan, Côte d'Ivoire

    Yang Liu

  2. Tokai University, Hiratsuka-shi, Kanagawa, Japan

    Farhad Taghizadeh-Hesary

  3. Keio University, Tokyo, Japan

    Naoyuki Yoshino

Rights and permissions

Reprints and permissions

Copyright information

© 2021 ADBI

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Kim, J.W., Liu, Y. (2021). Review of Voluntary Agreements on Energy Efficiency: Promoting Energy Efficiency Financing in ASEAN Countries. In: Liu, Y., Taghizadeh-Hesary, F., Yoshino, N. (eds) Energy Efficiency Financing and Market-Based Instruments. Economics, Law, and Institutions in Asia Pacific. Springer, Singapore. https://doi.org/10.1007/978-981-16-3599-1_3

Download citation

  • DOI: https://doi.org/10.1007/978-981-16-3599-1_3

  • Published:

  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-16-3598-4

  • Online ISBN: 978-981-16-3599-1

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics

Search

Navigation