Corporate energy performance in the Netherlands: benchmarking covenant
In the benchmarking covenant, energy-intensive companies undertake to match the best in the world in terms of energy performance.
Current situation relating to the benchmarking covenant
| Sector | Total companies | Draft Energy Efficiency Plan | Assessment of Competent Authority |
| situation on 30 June 2003 | |||
| Chemical industry | 84 | 79 | 57 |
| Refineries | 4 | 4 | 4 |
| Basic metals industry | 6 | 6 | 6 |
| Beer | 8 | 8 | 5 |
| Paper and pulp | 25 | 25 | 21 |
| Glass and cement | 12 | 12 | 10 |
| Electronics | 46 | 46 | 46 |
| Sugar and starch | 13 | 10 | 5 |
| Other companies | 4 | 2 | 2 |
| Electricity generation | 31 | 27 | 20 |
| Total | 233 | 219 | 176 |
| Source: Verificatiebureau benchmarking energie-efficiency. | RIVM/MC/03 | ||
Corporate participation in benchmarking covenant
On 30 June 2003, 233 establishments had signed the benchmarking covenant. There are 276 establishments that qualify for participation. The number of participants is therefore well above expectations.
The Verificatiebureau benchmarking energie-efficiency (Energy Efficiency Benchmarking Verification Agency: VBE) has used the 219 draft Energy Efficiency Plans (EEP) that have been submitted to calculate the joint energy consumption of establishments from industrial sectors: this was 704 PJ in 1999. This level of energy consumption corresponds to approximately 92% of total energy consumption (768 PJ) by energy-intensive industry. Electricity-generating companies consumed 406 PJ in 1999. This corresponds to approximately 98% of total energy consumption (415 PJ) by the sector.
The participating companies submit draft Energy Efficiency Plans (EEP). The Verification Agency issues recommendations about the plans, and the competent authority then assesses them. The companies did not fulfil the agreement to complete their energy efficiency plans by 1 January 2001. It proved particularly awkward to determine the level of the world leaders. More than two and half years later, the percentage of submitted plans was 94%. Industry and the energy sector still have to complete ten and four draft EEPs respectively. It should be pointed out that, after the assessment by the competent authority, the EEP becomes definitive. Agreement from the competent authority then follows. On 30 June 2003, there were 131 definitive EEPs and the competent authorities had agreed to 111 of them.
Reduction in CO2 emissions as a result of the benchmarking covenant
Calculations have been made on the basis of the EEPs submitted before the end of 2002 and the monitoring reports for 2001. They indicate that a reduction of the CO2 emissions of 5.1 billion kg for the industry should be possible by 2012. Before the benchmarking covenant went into the initial phase, it was estimated that it could reduce emissions of CO2 from industry by 3.2 to 4.0 billion kg. The forecast for the energy sector is a cut in CO2 emissions of 0.7 Mtonnes by 2012. This does not take into account the forecast reduction of 1.8 billion kg in CO2 emissions as a result of the use of biomass.
The last report published on the Internet by the Benchmarking Committee provides an extensive overview of the interim results of the covenant up to and including February 2002. The figures presented above describe the situation as at 30 June 2003.
Development of the Energy Efficiency Index
The Energy Efficiency Index (EEI) for an establishment is determined by dividing the measured annual energy consumption by the annual reference consumption level. The reference consumption level is the amount of energy that would have been consumed by that establishment if production in that year had been achieved with the same energy efficiency as in the reference year. A fall in the index corresponds to an improvement in energy efficiency.
The monitoring shows that the EEI for industry fell from 100% in the reference year 1999 to 99.8% in 2000 and 99.9% in 2001. The EEI for gas-fired power plants was 99 in 2000 and 102 in 2001. The values for coal-fired power plants were 97 and 98 respectively.
Note on benchmarking covenant
The heart of the benchmarking covenant established in mid-1999 is that industrial companies undertake to match the world leaders in the area of energy performance. Companies that sign the covenant draw up an EEP stating how close the company is to the world leaders and how they intend to catch up.
Monitoring
The covenant requires annual monitoring of how establishments have improved in the preceding calendar year in terms of energy and CO2. For this purpose, participating establishments submit monitoring reports annually to the Verificatiebureau Benchmarking Energie-efficiency and the competent authority. Monitoring took place for the first time in 2002. It covered 2000 and 2001, using 1999 as the reference year.
