About EEIP: Interview With Dusan Jakovljevic

ANALYSIS
Energy Efficiency in Industrial Processes

Operating both within and beyond Brussels, the EEIP is redrawing the lines of policy-stakeholder engagement. Policy Director Dusan Jakovljevic explains how the organisation is supporting the open, transparent and proactive exchange of ideas, and delivering a blueprint for improved energy efficiency in European industry
To begin, could you outline how Energy Efficiency in Industrial Processes (EEIP) came into being? EEIP crystallised from two areas I have a long-term interest in. Firstly, how to optimise effectiveness and policy impact of EU trade association; and secondly, finding the best way for stakeholders to engage with EU policy makers. The way business interests are currently represented at EU level is rather fragmented. This is understandable, but at EEIP we feel that in an overarching issue such as energy efficiency, specific business interests do not need to clash with general interests such as environment or climate change. In the field of energy, EU policy input dervied from trade associations is either technology- or sector-specific, which, for a horizontal issue such as energy efficiency, often underdelivers in policy. EEIP came into being when I joined forces with my colleague Juergen Ritzek who, with his corporate background, brought business sense to EEIP. He has been in charge of our business partner relations. EEIP was launched during EU Sustainable Energy Week 2011, where it secured support from industry leaders like Danone, Microsoft, CP Pump Systems and European Paper Association. We felt that modern communications technologies could enable a more direct exchange of ideas between business and policy. Rather than setting up another association, we wanted to create an open, free membership platform, bringing together all those interested in energy efficiency for business. We are keen users of social media, such as Twitter and LinkedIn, and our intention is to go where the people are with information and engagement. We have named our overall model business-to-policy (B2P), as having an impact on EU policy is our final goal. Could you outline the organisations remit and activities? EEIP is a neutral, not-for-profit organisation promoting industrial energy efficiency. We bring together both users and suppliers of products and services. EEIP runs EU projects, organises events and coordinates discussions on industrial energy policy. In 2012 the European Commission nominated us for an EU Sustainable Energy Award in the communications category. It was exciting to compete against organisations working in softer areas like solar energy or wind.
22 INTERNATIONAL INNOVATION
EEIP is currently working in three areas. In terms of financing energy efficiency, we are one of very few organisations that have managed to bring the discussion to the private sector from banks to companies and investment funds. We are contributing to EU policy by presenting views that are usually not heard in energy policy discussion. Secondly, EEIP is very active in promoting the use of industrial energy, based on industrial waste heat and energy recovery. We feel that there is major potential for energy recovery in Europe, be it among the energyintensive sector or smaller businesses. Thirdly, we are working to promote a different approach to energy efficiency, one that goes beyond individual elements of the industrial processes such as motors, pumps and IT. Energy efficiency is a system that includes technology, management, financing as well as people. Within our Energy Management workstream we are presenting this systemic approach to policy makers. EEIP had its very own stand at this years Hannover Messe the worlds leading trade fair for industrial technology. What did EEIP gain from the event, and did any other initiatives related to energy efficiency catch your eye? It is important for us to continue to enable our energy efficiency community to grow. Working between business and policy, we feel
30,000
With a new business model and a fresh approach to engage audiences, EEIP has grown to over 30,000 members, making it the worlds fastest growing energy efficiency platform
ANALYSIS
with cheaper workforces and lower energy prices. Energy efficiency is one of the best ways to ensure competitiveness. In many countries, national governments support this change in manufacturing. We can see successful voluntary schemes or sectorial initiatives, but EU-wide policy is still falling short. It is unfortunate that we often see discussion in Brussels being reduced to calls for binding targets for energy efficiency, rather than constituting open debate. Energy efficiency is about people, and motivating the change on how energy is perceived and the ways we use it is the important first step. In the international context, how does Europes commitment to improving energy efficiency in industrial processes compare with those of other regions? On industrial energy efficiency, Europe has a mixed record. We have seen good initiatives in the US and Canada since the 1970s and more recently in China. In Europe, certain countries such as Denmark and Finland have been amongst the worlds energy efficiency leaders, but overall, Europe is often behind. These days we hear a lot in Brussels about the reindustrialisation of Europe; energy efficiency should be interweaved into such initiatives if they are to be successful. Are there any particular challenges or silos that are affecting Europes efforts to green industrial practices? Firstly, the non-functioning of EU emissions trading scheme (ETS) on which so much of industrial and energy policy has been based. With the recent vote in the European Parliament we see backloading being effectively buried. This opens an opportunity for the European Commission to discuss the option of basing allocations on actual production rather than historical emissions. This could be a long-term solution that will align EU ETS with the Australian scheme and ease linkage between the two. Related to this, a revision of the carbon leakage list is underway. We believe DG Competition now realises that changing the rules necessitates change of the Directive. Some less energy-intensive sectors or those facing less global competition might be excluded from the list. What is your vision for EEIP and energy efficiency in European industry more generally? We see energy efficiency being one of the drivers of economic recovery in Europe not only in terms of bringing extra jobs, but in driving innovation, competitiveness and sustainability. We also recognise major potentials for sustainable energy overall (energy efficiency and renewables) driving interest of new generations into technical education and training. EEIP is a cog in this new industrial revolution. Dusan Jakovljevic was educated in Modern History and International Relations at London Metropolitan University and the London School of Economics. He started his career at the Federal Trust for Education & Research, the oldest UK think-tank on EU-related issues. Having moved to Brussels, he worked as a lobbyist for the district heating industry and, for a while, the rolling tobacco industry. Jakovljevic is committed to finding the best ways to engage business and policy.
Best practice makes perfect

Energy efficiency the Norwegian way
EEIP is running an EU co-funded project, Energy Recovery > Emission Reduction (ER>ER), promoting an energy recovery project recently completed at Norwegian ferrosilicon manufacturer Finnfjord AS. The company has invested over 100 million in creating what is the most energy-efficient installation of its kind. EEIP has been promoting their approach for proactive energy efficiency, one which goes beyond energy cost savings but is also led by environmental company policy. We have even brought representatives from different energy and policy-making sectors to an on-site visit in Norway to see energy efficiency in action.
there are many technical sectors that are still underrepresented in EEIP discussions. The Hannover Messe is an excellent opportunity to move away from the Brussels bubble and reach into the real world. In addition, we launched our new directory, EnergyPages, that we developed with support from our members; this is the first global directory of expertise in energy efficiency. We are partners with Hannover Messe and were ensured excellent visibility. We even had a photo of German Chancellor Angela Merkel and Russia President Vladimir Putin at the front of our stand! I was greatly excited to see educational pavilions at the Messe. This is where major companies and institutes showcase technologies and technical skills to young visitors of the fair. Promoting the study of engineering has been one of EEIPs long-term goals. While Germany excels in supporting technical learning, the same cannot be said for Europe as a whole. With its presence on social media, EEIP hopes to play a positive role in changing this. Improving energy efficiency is a core tenet of the EUs energy goals. What contributions is EEIP making towards the EU goal of improving energy efficiency by 20 per cent by 2020? We feel that there is major potential for energy efficiency in industry and business. EEIP upholds the idea that companies and regulators should be engaged and working in partnership in reaching these. For example, we see big opportunities in the broadest implementation of energy management systems based on ISO50001 that can be scaled to all company sizes. Also, industrial waste heat and energy recovery has often been seen as a neglected child of energy efficiency. There is huge potential here. EEIPs goal is to ensure the functioning and growth of the energy efficiency market. We find that although financing is available, technologies exist and energy users are interested, the market remains fragmented. This is the major weakness of energy efficiency. EEIP acknowledges that information exchange is key in order to bind the market together. This exchange should include all actors connected to energy efficiency and not be dominated by tech-jargon. These actors are coming together in the EEIP community. Why is energy efficiency in industrial processes considered so significant? Over a third of the energy consumed in Europe is used in industry, and the major use is in manufacturing processes. For many sectors like metals, paper and the chemical industry, the bulk of energy is used on the factory floor, and this is the area in which the most significant energy savings can be made. What progress have we seen in terms of European industry improving its energy efficiency? How does performance vary across sectors and at the national level? European manufacturing has been subject to global trends and competition. We are often met with competitors that operate in markets
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ANALYSIS

Energy Efficiency in Industrial Processes

Best practice makes perfect

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