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Energy Efficiency 2018 - South African Webinar
The OECD/IEA 2018 Energy Efficiency Market Report discusses global energy efficiency trends, highlighting an increase in global energy demand driven by economic growth despite improvements in energy efficiency. It underscores significant potential for further efficiency gains, particularly in emerging economies, and emphasizes the need for policy enhancements and investments to realize these opportunities. The report also reveals that energy efficiency can play a crucial role in achieving climate targets while delivering economic benefits.
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Energy Efficiency 2018 - South African Webinar
- 1. © OECD/IEA 2018 EnergyEfficiency Market Report 5 December 2018 IEA
- 2. © OECD/IEA 2018 Agenda •Introduction • Welcome / Opening Remarks • Presentation • Questions & Answers
- 3. © OECD/IEA 2018 IEAteam on the webinar today Joe Ritchie Hugo Salamanca
- 4. © OECD/IEA 2018 GotoWebinarHousekeeping Telephone Details for Mexico: 01 800 112 2091 + Access Code: 651-174-028 Toll-free: 0 800 555 452 (South Africa) Access Code: 362-354-458 Questions in English Question box Attendee Interface
- 5. © OECD/IEA 2018 Welcomingremarks Melanie Slade Energy Efficiency in Emerging Economies Programme Manager - IEA
- 6. © OECD/IEA 2018 Openingremarks Brian Motherway Head of the Energy Efficiency Division - IEA
- 7. © OECD/IEA 2018 TheIEA is focusing on energy efficiency
- 8. © OECD/IEA 2018 Analysis,policy advice, training and exchange Insights papers Market reports Workshops Online exchange platform Global trainingGlobal conference
- 9. © OECD/IEA 2018 EnergyEfficiency 2018 • Global trends and outlooks - Energy intensity and efficiency trends - Introduction to efficient world scenario - Policy progress and trends - IEA Efficient World Strategy • Sector chapters - Transport, Buildings and Industry • Investment finance and business models • Energy Efficiency in Emerging Economies - Brazil, China, India, Indonesia, Mexico and South Africa • Available for free from www.iea.org/efficiency2018
- 10. © OECD/IEA 2018 Energyefficiency trends and outlook
- 11. © OECD/IEA 2018 Globalenergy demand rose by nearly 2% in 2017, the fastest rise this decade, driven by economic growth and changes in consumer behaviour. Change in global primary energy demand, 2011-17 2017 saw a resurgence in global demand growth 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 2011 2012 2013 2014 2015 2016 2017 Source: Adapted from IEA (forthcoming), World Energy Outlook 2018; IEA (2018c) World Energy Statistics and Balances 2018 (database)
- 12. © OECD/IEA 2018 Globalprimary energy intensity improved in 2017, but at the slowest rate this decade. The rate of global improvement would have been worse if not for continuing gains in China. Annual change in global primary energy intensity, 2011-17 Global energy intensity is improving at a slower rate -3.5% -3.0% -2.5% -2.0% -1.5% -1.0% -0.5% 0.0% 2011 2012 2013 2014 2015 2016 2017 Global Global without China Source: Adapted from IEA (forthcoming), World Energy Outlook 2018; IEA (2018c) World Energy Statistics and Balances 2018 (database)
- 13. © OECD/IEA 2018 Whyis energy use on the rise? Global energy efficiency is improving, but its impact is being overwhelmed by factors that create more demand for energy. Decomposition of final energy use in the world’s major economies Note: Countries covered are IEA countries plus China, India, Brazil, Indonesia, Russia, South Africa and Argentina. 0 50 100 150 200 250 300 350 2000 energy use More buildings and appliances Less efficient transport patterns Increased activity Shifts in economic activity Improvements in energy efficiency 2017 energy use EJ
- 14. © OECD/IEA 2018 Theimpacts of energy efficiency are already significant Energy efficiency improvements since 2000 prevented 12% more energy use and emissions in 2017. Global final energy use and emissions with and without energy efficiency improvements, 2000-17 100 120 140 160 180 200 2000 2003 2006 2009 2012 2015 2017 Index(2000=100) Energy use 100 120 140 160 180 200 2000 2003 2006 2009 2012 2015 2017 Emissions 100 120 140 160 180 200 2000 2003 2006 2009 2012 2015 2017 Energy use GDP Without energy efficiency Actual
- 15. © OECD/IEA 2018 Efficiencygains have been largest in industry, underpinned by savings in China and North America. Transport has made the smallest contribution, due to variable policy and activity growth. Sectoral contributions to energy savings from improvements in energy efficiency in IEA and other major economies What sectors are contributing to efficiency gains? Notes: IEA includes Mexico, other major economies are China, India, Brazil, Indonesia, Russia, South Africa and Argentina. 51% 38% 11% Industry Buildings Transport
- 16. © OECD/IEA 2018 Progresson energy efficiency is variable. Gains in transport and residential buildings have been offset by worsening efficiency in industry and services. However, this appears to be reversing. Decomposition of South African final energy use, 2000-17 (left) and sectoral contribution to efficiency gains (right) South African energy efficiency trends 0 1 2 3 2000 energy use Activity Structure Efficiency 2017 energy use EJ - 150 - 100 - 50 0 50 100 150 PJ Passenger transport Freight transport Industry and services Residential Buildings
- 17. © OECD/IEA 2018 Efficiencygains avoided 12% more energy use in 2017, although structural change is larger. The industry and service sectors were responsible for nearly half of the total savings. Decomposition of Australian final energy use, 2000-17 (left) and sectoral contribution to efficiency gains (right) Australian energy efficiency trends 0 1 2 3 4 5 2000 energy use Activity Structure Efficiency 2017 energy use EJ 0 100 200 300 400 PJ Passenger transport Freight transport Industry and services Residential Buildings
- 18. © OECD/IEA 2018 Whatdoes a more efficient world look like? • The world is missing opportunities to improve energy efficiency, policy is not delivering the full potential gains that are available with current technology. • What is possible with greater efforts on energy efficiency? The IEA’s new Efficient World Scenario answers the question: What would happen by 2040 if countries realised all the economically viable energy efficiency potential that is available today? The Economy The Energy System The Environment
- 19. © OECD/IEA 2018 Energyproductivity can more than double, from USD 9000 to USD 18 000 of GDP for every tonne of oil equivalent of energy demand. Doubling global GDP for a marginal increase in energy demand Now 2040 GDP Energy demand
- 20. © OECD/IEA 2018 Energyintensity has been falling in all countries to varying degrees. But the EWS shows that average intensity across all six economies could decline by over 50%. Primary energy intensity in the six major emerging economies Emerging economies could become even less energy-intensive 0 3 5 8 10 13 World Brazil China India Indonesia Mexico South Africa 2000 2016 EWS 2040 Primaryenergyintensity (GJ/thousandUSDPPP)
- 21. © OECD/IEA 2018 Thereis significant cost-effective savings potential in every sector Only one third of the potential cumulative energy savings from efficiency gains by 2040 are realised in the NPS. The majority of potential across all sectors is realised in the EWS. Cumulative energy savings in NPS and additional potential in the EWS to 2040 0 100 200 300 400 500 600 Industry Transport Buildings EJ Efficient World Scenario New Policies Scenario
- 22. © OECD/IEA 2018 Efficiencycan deliver immediate environmental benefits The EWS results in an early emissions peak and around 40% of the abatement required by 2040 to be in line with Paris targets. Energy efficiency is indispensable to achieving global climate targets. Greenhouse emissions in the NPS and EWS, 2000-40 (left) and air pollutant emissions in the EWS, 2015-40 (right) 20 25 30 35 40 2000 2005 2010 2015 2020 2025 2030 2035 2040 Gt CO2-eq Greenhouse gas emissions Historic Baseline Efficient World Scenario 0 40 80 120 160 200 240 2015 2040 Mt Air pollutant emissions PM2.5 NOx SO2
- 23. © OECD/IEA 2018 Inthe Efficient World Scenario, South Africa could avoid over 500 PJ of additional final energy use in 2040. Emissions could also fall to be nearly 25% less than current levels. Total final energy use and emissions in the NPS and EWS for South Africa, 2012-40 There is much more to be gained from energy efficiency 2.95 3.20 3.45 3.70 3.95 2012 2016 2020 2024 2028 2032 2036 2040 EJ 2.95 3.20 3.45 3.70 3.95 2012 2016 2020 2024 2028 2032 2036 2040 EJ Transport Buildings Industry Historical NPS EWS 0.30 0.35 0.40 0.45 2012 2016 2020 2024 2028 2032 2036 2040 Gt CO2-eq Thousands 0.30 0.35 0.40 0.45 2012 2016 2020 2024 2028 2032 2036 2040 Gt CO2-eq Thousands
- 24. © OECD/IEA 2018 Efficiencybring benefits to all levels of the economy The Efficient World Scenario also fully delivers the energy efficiency target (Target 7.3) of the UN Sustainable Development Goals USD 700 billion Avoided energy imports in the EU, China and India USD 600 billion Avoided energy expenditure in industry USD 550 billion Avoided household energy spending USD 2 billion In South Africa USD 13 billion In South Africa USD 6 billion In South Africa
- 25. © OECD/IEA 2018 Energyefficiency policy and investment
- 26. © OECD/IEA 2018 Themajority of global energy use is not covered by mandatory energy efficiency policy. Outside of buildings, mandatory policy does not have a large presence in South Africa. Share of final energy use covered by mandatory policies, by sector Policy coverage varies across sectors 0% 10% 20% 30% 40% 50% Industry Transport Residential buildings Non-residential buildings Total % energy use World South Africa Australia
- 27. © OECD/IEA 2018 Nearly18% of global energy use is captured by a utility obligation. However, the implementation of new policies has slowed, with few new or strengthened policies in the last few years. Coverage of energy utility obligations, by country/region Obligation schemes have become a common policy tool 0% 4% 8% 12% 16% 20% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Shareofglobaltotalfinal consumption Other Brazil United States China Europe
- 28. © OECD/IEA 2018 Nationalgovernment incentives for energy efficiency amounted to USD 27 billion in 2017. USD 8 billion in incentives for EVs, makes transport the largest sector. National government incentives for energy efficiency in 2017, by sector, including and excluding incentives for electric vehicles Incentives are being used to influence efficiency actions 0 2 4 6 8 10 12 Buildings Industry Cross-sectoral Transport USD (2017) billions Including EVs Excluding EVs Note: Countries included in this analysis are Australia, Austria, Brazil, China, Estonia, Germany, India, Ireland, Italy, Mexico, Norway, Portugal, Spain, Switzerland, the United Kingdom and the United States. In the case of China, 2016 efficiency incentives data are used as a proxy for 2017.
- 29. © OECD/IEA 2018 Globalenergy efficiency investment grew marginally in 2017, up by 3% to USD 236 billion. The buildings sector continues to dominate, reaching USD 140 billion (59%) of the global total in 2017. Energy efficiency investment by sector and region Energy efficiency investment growth slowed in 2017 0 50 100 150 200 250 2014 2015 2016 2017 USDbillions By region Other North America Europe China 29% 11% 6% 14% 7% 8% 14% 11% 59% 15% 26% By sector Envelope HVAC and controls Appliances Lighting Energy intensive industry Other industry Premium paid for energy efficient vehicle Freight vehicles USD 236 billion Buildings Transport Industry
- 30. © OECD/IEA 2018 Butinvestment levels need to rise Annual energy efficiency investment must double to 2025 and then double again to 2040. Policy will need to facilitate finance and business model innovation to stimulate this investment. Annual energy efficiency investment in 2017 and in the Efficient World Scenario 0 300 600 900 1 200 1 500 Current Average annual 2017-25 Average annual 2026-40 USD (2017) billions 2017 Efficient World Scenario (EWS)
- 31. © OECD/IEA 2018 Transportenergy efficiency
- 32. © OECD/IEA 2018 Historicrates of efficiency improvement within transport are highly variable. Car and truck energy efficiency could improve at a much faster rate. Historical efficiency improvements and future projections for transport (left), Energy savings potential for road transport (right) Transport can accelerate towards a more efficient world 0% 1% 2% 3% 4% 2000-16 2017-40 2000-16 2017-40 2000-16 2017-40 2000-16 2017-40 Passenger light- duty vehicles Road freight Aviation International Shipping Averageannualefficiencyimprovement Efficient World Scenario Historical Cars and vans 52% Trucks 42% Buses 4% 2 and 3 wheelers 2%
- 33. © OECD/IEA 2018 Transportpolicy coverage is highest in countries where fuel economy standards have been in place for an extended period (US, China, Japan). There is room for growth in emerging markets. Mandatory policy coverage of transport energy use for select countries, 2017 Transport policy reflects the varying presence of standards 0% 20% 40% 60% 80% % of transport energy use 2000 2005 2010 2015 2017
- 34. © OECD/IEA 2018 Implementingthe best in class fuel economy standards would have avoided 2.2 mb/day of oil use. Without any change in policy settings, passenger car energy use could increase by over 4 mb/day. Historical and future change in global passenger car energy use without standards and if best-in-class fuel economy standards had been implemented, 2000-17 and 2017-40 What is the benefit of fuel economy standards -5 -4 -3 -2 -1 0 1 2 3 4 5 Without standards Implementing best-in-class standards Mboe/d Implementing no new policies (CPS) EWS 2000-17 2017-40
- 35. © OECD/IEA 2018 Newambition levels required for transport What is possible by 2040 Key policy actions • Improve coverage and strength of transport policies for cars and trucks and non-road modes. • Provide incentives to support uptake and sustainable use of efficient vehicles. • Information to support efficient vehicle uptake and mode shift. • Energy demand could stay flat, despite doubling activity levels. • Passenger cars and trucks offer two-thirds of potential savings.
- 36. © OECD/IEA 2018 Buildingsenergy efficiency
- 37. © OECD/IEA 2018 Energyefficiency improvement has been variable, due mainly to increased appliance ownership. Gains could be made across all end-uses, with space and water heating and cooling covering 60% Change in energy intensity, 2000-40 (left) and contribution to total energy savings in the EWS to 2040 (right) Efficiency can improve across all building end-uses -40% -20% 0% 20% 40% 60% 2000-17 2018-40 2000-17 2018-40 2000-17 2018-40 2000-17 2018-40 2000-17 2018-40 2000-17 2018-40 Space heating Space cooling Water heating Lighting Cooking Appliances Energy intensity improvement (%) Historic Efficient World Scenario 26% 22% 26% 5% 9% 12% 24 EJ Space heating Water heating Cooking Lighting Appliances Space cooling
- 38. © OECD/IEA 2018 Lessthan 40% of building energy use is covered by mandatory energy efficiency policy. Although coverage is high for lighting and space cooling Energy efficiency policy coverage of buildings end-uses, 2000-17 Policy coverage is spread across building end-uses 0% 20% 40% 60% 80% 100% 2000 2003 2006 2009 2012 2015 2017 Policy coverage Lighting Space cooling Appliances Space heating Water heating ALL BUILDINGS Cooking
- 39. © OECD/IEA 2018 Spacecooling energy use has grown rapidly, as a result of warming climates and growing populations. Forces pushing space cooling energy demand will continue to grow, but efficiency can limit the impact. Buildings cooling energy use decomposition, global, 2000-40 Space cooling energy use will grow rapidly 0 4 8 12 16 20 2000 Activity Structure Efficiency 2017 Activity Structure Efficiency 2040 Historical Efficient World Scenario Cooling final energy (EJ)
- 40. © OECD/IEA 2018 Buildingscould be 40% more efficient than today What is possible by 2040 Key policy actions • Comprehensive efficiency policies, targeting both new and existing building stock and appliances. • Incentives to encourage consumers to adopt high efficiency appliances and undertake deep energy retrofits. • Improved quality and availability of energy performance information and tools. • Building space could increase by 60% for no additional energy use. • Space heating, cooling and water heating offer 60% of savings.
- 41. © OECD/IEA 2018 Industrialenergy efficiency
- 42. © OECD/IEA 2018 Energyefficiency improvements are possible across all sub-sectors. Light industry (e.g. food, beverage and textile manufacturing) represent the bulk (70%) of savings. Percentage improvement in energy intensity by industry sub-sector (left) contribution to total energy savings in 2040 (right) Efficiency can improve across all industry sub-sectors 0% 10% 20% 30% 40% 50% 2000-17 2018-40 2000-17 2018-40 2000-17 2018-40 2000-17 2018-40 2000-17 2018-40 2000-17 2018-40 Iron and steel Chemical and petrochemical Cement Paper, pulp and print Aluminium Other industries %improvementinenergyintensity Historic Efficient World Scenario 14% 9% 2%5% 1% 70% Iron and steel Chemicals Cement Pulp and paper Aluminium Other industries
- 43. © OECD/IEA 2018 Industrialenergy efficiency policy coverage grew rapidly following policies in China. China, Japan and India, lead on policy coverage due to strong mandatory policies Industrial energy use covered by mandatory energy efficiency policies, globally, 2000-17 (left) and by country in 2017 (right) Industrial energy efficiency policy coverage is slowing 0% 10% 20% 30% 40% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 %ofindustrialenergyusecovered Global 0% 20% 40% 60% 80% 100% %ofindustrialenergyusecovered Country in 2017 China's top 1 000 Program introduced China's top 10 000 Program introduced
- 44. © OECD/IEA 2018 Metalsrecycling is 60 to 90% less energy-intensive than producing metals from mineral ore in primary production processes. Energy intensity of primary and recycled metal production of steel, aluminium and copper Metals recycling will be key to realising efficiency gains 0 10 20 30 40 50 60 Blast furnace - basic oxygen furnace Direct reduced iron - electric arc furnace Scrap based electric arc furnace Primary Recycled Primary Recycled from scrap Secondary direct melt Iron and steel Aluminium Copper GJ/tonne produced
- 45. © OECD/IEA 2018 Targetingefficiency beyond the largest industry sectors What is possible by 2040 Key policy actions • Expanded and strengthened standards for key industrial equipment, including electric heat pumps and motors. • Incentives to encourage the adoption of energy management systems. • Mechanisms such as industry networks, training and case studies to enhance awareness and capacity. • Value-added per unit of energy could double. • Less energy-intensive industry offers 70% of potential savings.
- 46. © OECD/IEA 2018 Concludingremarks • The IEA EWS shows a 2040 world with double GDP, 20% more people and 60% more building space, with lower emissions than today • Efficiency can reduce air pollution, imports and consumer bills, and EWS maps out the path to delivering the UN SDG on energy efficiency • The efficiency opportunities are cost-effective and use only technology available today, but require a significant step up in policy action • Investments need to double now and double again after 2025, but these investments will payback threefold on energy savings alone • There are good examples today of all the policies required for tomorrow. These form the basis for increased ambition and impact • IEA will work with governments providing analysis, policy guidance, exchange and capacity building, working towards an efficient world
- 47. © OECD/IEA 2018 Downloadfor free at: www.iea.org/efficiency2018
- 48. © OECD/IEA 2018 Additionalinformation
- 49. © OECD/IEA 2018 Grants/subsidiesand taxation based measures represented nearly 80% of national government incentives for energy efficiency in 2017. Other measures make smaller contribution. Government expenditure on incentives for energy efficiency by type of incentive National governments use a variety of incentives Grant/subsidy 48% Tax relief (incl. rebates, exemptions and credits) 31% Debt finance/loan 11% Other public schemes 8% Guarantee 1% Direct investment 1% Equity finance or risk sharing facilities 0.4%
- 50. © OECD/IEA 2018 Transportactivity is rising and behaviours are shifting to less efficient practices. Energy efficiency improvements have prevented energy use equivalent to 120 million cars. Decomposition of passenger transport final energy use, 2000-17 Passenger transport efficiency is being overwhelmed 0 10 20 30 40 50 60 2000 energy use Activity Inter-mode shift Vehicle type Occupancy Efficiency 2017 energy use EJ Note: Countries covered are IEA countries plus Argentina, Brazil, China, India, Indonesia, Russia and South Africa.
- 51. © OECD/IEA 2018 Theabsence of fuel economy standards for trucks until recently has meant that efficiency has made little impact on energy use in freight transport. Decomposition of freight transport final energy use, 2000-17 Freight transport energy efficiency has shown little progress 0 5 10 15 20 25 2000 energy use Activity Inter-mode shift Efficiency Vehicle Type 2017 energy use EJ Note: Countries covered are IEA countries plus Argentina, Brazil, China, India, Indonesia, Russia and South Africa. US freight transport excluded due to changes in historical data
- 52. © OECD/IEA 2018 Growthin building sector energy use is linked to increasing floor space and appliance ownership. Space heating is driving savings across both all building types. Decomposition of buildings global final energy use, 2000-17 (left) and end-use contribution to efficiency savings (right) Buildings sector energy use is continuing to rise 0 40 80 120 160 2000 Activity Structure Efficiency 2017 EJ 0 2 4 6 8 Residential Non-Residential EJ Appliances Cooking Lighting Water heating Space cooling Space heating Sources: Adapted from IEA (2018a), Energy Efficiency Indicators 2018 (database) and IEA Energy Technology Perspectives Buildings model (www.iea.org/etp/etpmodel/buildings/).
- 53. © OECD/IEA 2018 Shiftingactivity and efficiency are reducing offset over 50% of the impact from rising activity. Contributions to efficiency gains were greatest in China, North America and energy-intensive industry. Decomposition of energy use in the industry and service sectors (left) and contribution to efficiency savings (right) in IEA countries and other major economies, 2000-17 Efficiency and structural change are both apparent in industry 0 50 100 150 200 2000 energy use Activity Structure Efficiency 2017 energy use EJ 0 7 14 21 28 EJ South America Russia Asia Pacific Europe North America China Notes: Countries covered are IEA countries plus Argentina, Brazil, China, India, Indonesia, Russia and South Africa.
- 54. © OECD/IEA 2018 MEPSare a common policy tool, but slow stock turnover has not seen policy reach its potential. Coverage is highest in North America due to early implementation of policy (i.e. before 2000). Policy coverage and potential for electric motors (left) and coverage and increase in policy strength since 2000 (right) MEPS for electric motors is a common policy tool 0% 20% 40% 60% 80% 2010 2011 2012 2013 2014 2015 2016 2017 Electricmotorsenergyusecovered Global Actual coverage Coverage potential 0% 2% 4% 6% 8% 0% 20% 40% 60% 80% Electricimotorsenergyusecovered Country/region Increase in policy strength since 2000 (right axis)
- 55. © OECD/IEA 2018 Themajority of electric motors are estimated to be at the lower (IE0 or IE1) efficiency levels. China dominates global electric motors energy use and will continue to do so. Energy consumption of electric motor systems by efficiency level (left) and regional breakdown of electric motor energy use (right) The majority of electric motors are still at lower efficiency levels 0 1 2 3 4 5 6 7 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 PWh IE3 IE2 IE1 IE0 North America 12% South America 4% Asia and Pacific 17% Europe 11% China 43% Other 12%
- 56. © OECD/IEA 2018 Therewere over 23 000 ISO 50001 certifications in 2017, a slow down in the rate of growth. Matching certifications for other management standards will depend on take-up by China. ISO 50001 certifications 2011-17 (left) and certification progress compared with other management standards (right) ISO 50001 certifications are slowing 0 5 000 10 000 15 000 20 000 25 000 2011 2012 2013 2014 2015 2016 2017 Number of certifications Germany Other Europe Asia and Pacific North America Other 0 30 000 60 000 90 000 120 000 150 000 1 2 3 4 5 6 7 8 9 10 Numberofcertifications Years after introduction of standard ISO 14001 ISO 9001 ISO 50001
- 57. © OECD/IEA 2018 Implementationof an energy management system, led to projects with savings of over 26 GWh. However, there were also 8 GWh of “energy management system unique” savings. Comparison of project and energy management enabled savings in 9 UNIDO Projects Energy management systems unlock unique savings 0% 4% 8% 12% 16% 20% 0% 20% 40% 60% 80% 100% Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 Company 8 Company 9 Total % of total electricity use% of total savings Additional "energy management system unique" savings Project savings Energy management savings % total electricity use (right axis)
- 58. © OECD/IEA 2018 Whatpolicies can improve rates of metals recycling Policy/support category Type of support Example of policy/support Financial assistance for recycling facilities Grants New South Wales, Australia: The Major Resource Recovery Infrastructure programme provides grants to fund major resource recovery facilities. Debt finance from public banks EU: Over 5% of transactions in the European Fund for Strategic Investments managed by the European Investment Bank have a resource efficiency element. Favourable tax treatment for recycling facilities Corporate tax provisions for small businesses North Carolina, United States: If a business purchases or constructs facilities or equipment for recycling or resource recovery, it may be entitled to special corporate state income tax treatment. Recycling specific tax credits Mexico City: Tax credits are available to corporations that recycle or reprocess solid waste. Accelerated depreciation for recycling facilities United States: RISE Program in the United States entitles domestic recycling companies to write-off 50% of an asset’s value in the first year of operation. Value added tax credits South Korea: Tax credit for scrap metal collectors that acquire scrap from individuals or public organisations. Measures to encourage individuals and organisations to recycle Bans of landfilling of certain wastes EU: Proposal in the EU Action Plan for a Circular Economy to ban landfilling of separately collected waste. Taxes on landfill waste Many countries and regions have implemented landfill taxes, which are assessed by weight or type of waste. Provision of recycling services by local government EU: The EU waste framework directive requires the member states to provide for the collection of recyclable wastes including paper, plastic, glass and metal. Extended product responsibility (EPR) Requirements for manufacturers to collect old products once usable life is over. By 2013 there were nearly 400 EPR systems in operation globally, with nearly 50% covering electronics and vehicles/automotive products (including batteries).