Pak-UNIDO REEE_Policy- volume 2

mainstreaming can contribute to increasing effectiveness of the energy policy, and increasedfemale representation in policy formation, planning and decision-making bodies can enhance thecross-sectoral and cumulative effects of energy efficiency strategies. Connecting EE policyinitiatives with those in other sectors like finance, enterprise development, social policy,healthcare, agriculture and rural development have further potential to increase the positive effectsof the sector. Page 98 of 123

8. POLICY RECOMMENDATIONSFOR THE PROMOTION OF EEIN THE INDUSTRIAL SECTOROFPAKISTAN8.1Policy Recommendations for EE Promotion in the Industrial Sector of PakistanBased on the identified barriers, on the comparison and gap analyses of the existing EE policyframework in Pakistan with the five Asian countries, and on the findings from consultations withvarious stakeholders in Pakistan, and the National Energy Efficiency and Conservation (NEEC)Act 2016, the following EE policy instruments are recommended for Pakistan to promote the EEadoption in industries.Table 17: Recommended policy instruments for promotion of EE adoption in the industrial sector ofPakistan Policy no. Short description of the policy P1 Create a program with the specific mandate to build the capacity of policy makers and other stakeholders in promoting the deployment of EE in industries. (Covering M1, M3, M8& M9 in Table 16) P2 Develop a program or scheme to provide fiscal and financial incentives to industrial projects adoptingEE solutions.(Covering M2) P3 Formulate a regulatory policy to make it mandatory for industries to save energy, conduct energy audits, adopt an Energy Management System (EMS) and report on their energy performance. Such policy will include a scheme to provide support in conducting energy audits, in implementing EMS and in training/accrediting energy auditors and managers. (Covering M4 & M5) P4 Create a program to develop and implement EEstandards and labelling in the industrial sector of Pakistan. The program will devise an appropriate mechanism and legal framework to enforce adequate penalties. (Covering M7) P5 Create a program or center to collectand disseminate knowledge and information on relevant experience and lessons learned regardingthe efficient use of energy and its conservation in industries.(Covering M6) P6 Formulate a policy to establish required standard procedures for gender mainstreaming in industrial EE initiatives and projects, to support women’s economic and entrepreneurial development opportunities, and ensure a gender balance in policy development, planning, decisionmaking and leadership including quotas for women at all levels. (Covering gender issues) Page 99 of 123

8.2 Implementing Rules and Regulations&Implementation Roadmap for the Recommended PoliciesThe policies that have been recommended in the previous section will provide the overarchingbasis and guidelines for the objectives being pursued. Further to this, the implementing rules andregulations as well as the implementation roadmap needs to be elaborated for the guidance of theimplementing agencies and those affected by the policies. This section provides the guideposts andsuggestions in drafting these documents once the policies have been approved.Definitions of the key terms used in this section:“Accredited laboratory” means a laboratory designated by the NEECA or the ProvincialGovernment and duly accredited by the National Accreditation Body to carry out tests of energyefficient products.“Certified energy auditor” means any person to be certified and designated by the NEECA forcarrying out energy audit;“Designated consumer” means a consumer designated as such by the NEECA;“Energy audit” means an examination of any energy-consuming facility about the way the energyis generated, transmitted, distributed and used there and identification of areas where energy wastecan occur for improving energy efficiency and where scope for improving energy use efficiencymay be possible;“Energy conservation” means reduction in energy consumption by minimizing waste, orcurtailment of energy use or improving generation, transmission, distribution or end-use energyefficiency to avoid waste, creating additional energy supply at source and effecting a reduction ofundesirable emissions to the atmosphere or air due to better fuel combustion;“Energy-efficient product” means energy-consuming appliance or equipment whose overall energyefficiency is equal or better than a minimum energy performance standard;“Energy efficiency” means the ratio of energy output to energy inputin respect of energy-consuming equipment, appliances or systems;“Energy-efficiency label” mean informative label that is fixed to a manufactured product anddescribe its energy performance (usually in the form of energy use, efficiency or energy cost) toprovide consumers with the data necessary for making informed purchase;“Energy management” means the process of planning, monitoring, controlling, and conservingenergy in a facility;“Financial incentives” mean financial benefits offered to industry-based energy efficiency projects; Page 100 of 123

“Fiscal incentives” mean tax measures geared to encourage industries to adopt energy efficiencytechnologies and solutions;“Gender mainstreaming” means assessing the implications of any initiative or project on both menand women, and making both women’s and men’s concerns and experiences an integral part of itsdesign, implementation, monitoring and evaluation so that men and women will benefit equally.“Industrial sector” means small-scale, medium-scale and large-scale industry involvingmanufacturing, making, formulating, altering, repairing, finishing, packing or otherwise treatingany article or substance with a view to its use, sale, transport, delivery or disposal;“Minimum Energy Performance Standards” mean the minimum level of energy performance thatenergy-consuming products must meet or exceed before they can be offered for sale or used forcommercial purposes.P1. Create a program with the specific mandate to build the capacity of policy makers andother stakeholdersin promoting the deployment of EE in industries.Title of the Program: Energy Efficiency Capacity Development Program for the IndustrialSector of Pakistan.Purpose/coverage: The aim of the Program is to develop and strengthen the capacity of policymakers and other stakeholders in promoting the EE adoption in industries.Key elements of the Program and guidelines on their design and formulation:Organizational and management structure. The Program shall be managed by NEECA and shall beheaded by a Program Director to be supported by dedicated personnel comprising of at least twoCapacity Building Specialists, an Accountant/Financial Manager and an Administrative Staff.Relevant short-term experts or practitioners who have training or capacity building skills will behired by the Program on an intermittent basis to conduct training and capacity building activities.Role and responsibilities of the Program personnel.  The Program Director is in charge of the overall coordination and administration of all aspects of the Program including planning, organizing, and controlling the program activities;  The Capacity Building Specialists are responsible for the implementation of the training and capacity building activities. Their tasks include the development of an overall five-year training and capacity building plan in close collaboration with the Program Director, detailed agenda and implementation plan for each activity (e.g. training course, seminar, workshop), its promotion and execution.  The Accountant/Financial Manager oversees the budget and other financial transactions of the Program. She/he is also responsible for the preparation of the annual and five-year operating budget of the Program.  The Administrative Staff is responsible for managing the Program’s office operations. Page 101 of 123

Duration of the Program. The Program will be established for a long term and will becomepermanent. However, based on the experience from the five studied countries, especially China andIndia, the detailed Program implementation plan should be prepared for a five-year period.Target groups of the Program. The Program should cover the following target groups:  Policy makers, i.e. officials from MOWP, MOIP and other relevant ministries, being involved in policy planning and development. The Program will also target the corresponding provincial departments.  Industrial enterprises;  Energy service providers and ESCOs;  Financial institutions;  Educational and R&D institutions;  Equipment manufacturers, suppliers and contractors;  Other stakeholders (NGOs, professional/industrial associations, chambers of commerce and industry, etc.).Five-Year Training and Capacity Building Plan. In order to prepare a Five-Year Plan, NEECAshould assess capacity building needs and gaps of all the target groups mentioned above. Based onexperience from other countries, NEECA can seek the support from international donors for thisassessment. The plan shall include, but not be limited to, the following:  Targets to be achieved (annual and five-year targets), such as number of people to be trained, number of capacity building events to be executed, etc.;  Types of capacity building activities, such as specific training courses, seminars/workshops, study tours/site visits, and others (like Energy Conservation Awareness Week in China);  Tentative contents and targeted participants for each capacity building event;  Timeframe of each capacity building event;  The requirements for external short-term experts for development of training curricula and materials, and conduct of training;  Estimated budget;  Methodologies and tools for monitoring and evaluation of the capacity building results.Budget/Funding. Based on the Five-Year Training and Capacity Building Plan, NEECA shallestimate the budget required for its implementation. It is recommended that GOP should source thefunds for the establishment and first-year operation of the Program. The international and localsponsors should be contacted to seek their support for the implementation of the activities plannedin the second year and onwards.Mandate/Tasks and responsibilities:The following tasks are to be implemented to support thedesign, formulation, establisment and operation of the Program:NEECA:  Design the organizational/management structure, and determine the roles andresponsibities of the Program personnel.  Conduct an assessment of the capacity building needs and gaps, and design/develop thetraining and capacity buildingprogram every five years. Page 102 of 123

 Determine the budget and source the funds for the sustainable operation of the Program during its proposed existence.  Formulate the Program for approval by GOP.  Establish the Program and support its operation.  Endorse the annual budget of the Program for GOP approvalGOP (i.e., MOWP/MOIP and other relevant ministries):  Conduct consulation on the objectives and content of the Program with relevant stakeholders.  Approve the establishment of the Program.  Approve the annual operating budget of the Program.Timeframe:NEECA should start the development of the Program within 3 to 6 months after the approval of thepolicy recommendation. The design and formulation of the Program should be completed within 6to 12 months.P2. Develop a program or scheme to provide fiscal and financial incentives to industrialprojects adopting EE solutions.Title of the Program/Scheme: Energy Efficiency Incentive Program for the Industrial Sector ofPakistan.Purpose/coverage: The Program aims to reduce the high specific investment costs of industry-based EE projects, improve their financial performance, and make them more commerciallyattractive to the industrial facility owners and investors through a provision of fiscal and financialincentives. The Program will also provide suitable incentive support to ESCOs for implementingEE projects in industries.Key elements of the Program and guidelines on their design and formulation:Duration of the Program.It is suggested that the Program/Scheme is first implemented over aperiod of 3 to 5 years (e.g. 3 years in India, and 5 years in China and Vietnam). It can then befurther extended.Types of incentives to be included in the Program. Based on the experience from the five studiedcountries (see Table 15), the following types of incentives can be used:  Fiscal incentives: accelerated depreciation, exempted/reduced CIT, and exempted/ reduced ID&T;  Financial incentives: soft loan, investment grant/financial subsidy, loan guarantee, and tradable carbon credit.It should be noted that only India has adopted all types of incentives for EE projects. Othercountries are using some incentive options that are most suitable for them. The common incentiveoptions for promoting EE projects in five studied countries can be considered for Pakistan: Page 103 of 123

 Exempted/reduced CIT,  Exempted/reduced ID&T,  Soft loan,  Investment grant/financial subsidy/loan guarantee.Magnitude (level) of incentive. Based on the experience of the five studied countries, the followingassessments shall be conducted to define the magnitude of incentives included in the Program:  Economics of EE projects, i.e. how much are the incentives needed to help the EE projects reach their expected performance (rate of return on investment, payback period, etc.). For example, the level of financial incentives (soft loan, investment grant) in Thailand was defined based on the criterion that investments in EE projects shall be paid back within 7 years.  Impacts of the incentives on EE adoption in industries and on GOP budget (e.g. tax revenues for GOP for the case of fiscal incentives).Eligibility for receiving incentives. GOP can consider to set the following eligibility criteria for theindustrial facility owners and ESCOs to receive incentives from the Program (based on experiencefrom China):  For industrial facility owners: + Annual energy savings generated by EE project should be higher than a preset target.  For ESCOs + ESCO shall use Energy Performance Contract (EPC) with shared savings, + Annual energy savings generated by EE project shall be higher than a preset target. + ESCO shall provide a major part of EE project investment (in China, at least 70% of the total EE project investment is from the ESCO), + ESCO should be registered with NEECA (in China, ESCO is registered with the National Development and Reform Commission, an entity having similar mission as NEECA, and with Ministry of Finance), + ESCO shall have a registered capital higher than a prescribed amount, + ESCO shall have its main business focus on energy conservation services.Procedures and guidelines for granting fiscal and financial incentives.A related document shouldinclude the following key issues:  Administration of the EE Incentive Program,  Eligibility for incentives,  Incentive application procedures, including application form templates,  Procedures and criteria for evaluation of incentive applications,  Procedure and criteria for incentive award,  Incentive award contract/agreement,  Guidelines on project monitoring and reporting.Sources of budget/fund for the incentives. The following sources of budget and funds can beconsidered for providing incentives to EE projects in the industrial sector of Pakistan:  For fiscal incentives: government budget, Page 104 of 123

 For soft loan: the State Bank of Pakistan (SBP), international financial and development organizations.  For financial incentives (investment grant/financial subsidy): the existing National Energy Conservation Fund (ECF)can be consolidatedfrom (i) grants from GOP, (ii) assistanceand grants from local and international agencies, and (iii) tax levies on fossil fuels (e.g. on petroleum products in Thailand).Mandate/Tasks and responsibilities:The following tasks are to be implemented to support thedesign, formulation, establisment and operation of the Program:Inter-Agency Committee led by NEECA:  Conduct a study on the different incentive options, and their impacts on EE development in industries and on GOP budget (i.e., tax revenue).  Design the modalities for the selected incentive options and obtain approval from the concerned authorities.  Develop mechanisms and procedures for granting fiscal and financial incentives to qualified industrial facilities.  Conduct a study and recommend to GOP the sources of the budget/fund for deployment of the incentives.  Conduct a study on suitable support mechanisms for ESCOs.  Design and formulate the EE Incentive Program/Scheme for approval by GOP.GOP (i.e., MOWP/MOIP/Ministry of Finance (MOF) and other concerned ministries):  Conduct consultation on the Program/Scheme with relevant stakeholders.  Create an inter-agency committee (consisting of NEECA and representatives from the Federal Board of Revenue, Pakistan Customs, Industrial Associations, Chambers of Commerce and Industry, etc.) to develop the Program/Scheme.  Approve the budget and allocate sufficient funding for the deployment of the incentives, and establish the Program/Scheme.Timeframe:The inter-agency led by NEECA should start the development of the Program/Scheme within 3 to 6months afterapproval of the policy recommendation.The design and formulation of theProgram/Scheme should be completed within 6 to 12 months.P3. Formulate a regulatory policy to make it mandatory for industries to save energy,conduct energy audits, adoptan Energy Management System (EMS) and report on theirenergy performance. Such policy will include a scheme to provide support in conductingenergy audits,in implementing EMS and in training/accrediting energy auditors andmanagers.Title of the policy: Policy on Mandatory Energy-Efficiency Obligation, Energy Audit,Management and Reporting for the Industrial Sector of Pakistan. Page 105 of 123

Purpose/coverage: The Policy aims to increase the use of EE&C solutions in the industrial sectorof Pakistan through enforcing the EE obligation (energy-saving target), mandatory energy audit,management and reporting on energy performance. This policy shall first cover all energy-intensiveindustries in Pakistan.Key elements of the Policy and guidelines on their design and formulation:Duration of the Policy. It is suggested that the Policy will be firstly implemented in a period of 3 to5 years. It can be renewed/extended after that. As a reference, a similar program in India (thePerform, Achieve, Trade (PAT) scheme) was implemented over 3 years, and another program inChina (the Top 1000 Energy-Consuming Enterprise Program) was implemented over 5 years.Energy-intensive industries to be covered by the Policy. A study should be carried out to identifythe industrial sectors to be included in the Policy. Based on the studies that have been conducted byvarious institutions, the following industrial sectors could be considered for inclusion in the Policy:  Textile,  Pulp and paper,  Ceramics,  Food processing,  Foundries,  Cement, and  Sugar mills.Setting EE obligation/energy-saving targets for the designated consumers (DCs). The followingsteps are recommended in order to set the EE obligation/energy-saving targets for DCs:  Conduct a baseline study in identified energy-intensive industries to determine their baseline specific energy consumption (SEC) level (i.e. energy consumption per unit of product). Then, the list of DCs to be included in the Policy shall be established;  Establish the SEC norms/standards for each DC based on Best Practice Technology (BPT) or Best Available Technology (BAT);  Conduct an energy benchmarking, and estimate EE potential for each DC;  Establish a SEC in the target year, and set a technically and economically achievable EE obligation/energy-saving target for each DC.Energy audit.It shall be mandatory for all DCs to have energy audits carried out annually byaccredited energy auditors to identify EE opportunities and measures.Energy management. The mandatory energy management requirements for DCs should include thefollowing:  To nominate an Energy Manager to be in-charge of EE&C. This energy manager shall be accredited by NEECA;  To set up and implement an energy management system (EMS). The standard ISO 50001:2011 “Energy management systems – Requirements with guidance for use” can be used for establishing, implementing, maintaining and improving the EMS. Page 106 of 123

Training and accreditation of energy auditors and energy managers. A national certificationscheme for energy auditors and energy managers in Pakistan is under development by the ClimateTechnology Center and Network (CTCN) together with NEECA, Provincial Energy Departments,Pakistan Engineering Council, Higher Education Commission, and Energy Conservation Fund.According to the concept note of this study, NEECA will carry out the certification examination.Subsequently, the selected energy auditors and managers will be certified and designated byNEECA. These designated auditors and managers will then be appointed by the designatedagencies of the respective provinces for the purpose of ensuring the compliances of the Act. Theexaminations would be conducted on an annual basis. This will become a regular ongoing programofNEECA.Based on the experience from other studied countries, a minimum qualification requirement shouldbe set for selecting energy auditors and energy managers. As a reference, India requires that thecandidates who score at least 50% in three examination papers (including (i) general aspects ofenergy management and energy audit, (ii) EE in thermal utilities, and (iii) EE in electrical utilities)become certified energy managers. Candidates who score at least 50% on the fourth examinationpaper (energy performance assessment for equipment and utility systems) become certified energyauditors as well as certified energy managers.Considering its strong experience in conducting energy audits in industries, NPO should beinvolved in training of energy auditors and energy managers.Energy reporting. This shall be a mandatory requirement for DCs. The report shall be prepared bythe Energy Manager of the DC. The Annual EE&C Report shall be shall include at least thefollowing:  EE&C activities implemented during the year,  Results/achievements of EE&C implementation,  Plan on EE&C for next year.It is suggested that NEECA creates an electronic portal of a Database System to allow on-linesubmission of the Annual EE&C report by DCs. Each DC is provided with an address and IDnumber to access this database system.Monitoring, reporting and verification (MRV) of energy savings. The progress of theimplementation of EE&C plans at DCs should be monitored by NEECA or its assigned agenciesthrough checking the Annual EE&C Reports. Monitoring visits may be conducted to verify datareported by DCs. However, independent accredited energy auditors shall do the annual verificationof energy savings (i.e. SEC) of each DC in the baseline year and in the target year.Based on the lessons learned from the Top 1,000 and Top 10,000 Programs in China, the provincialgovernments (i.e., the Provincial Energy Departments) should be assigned to lead and implementthe MVR, including, but not be limited to, the following:  overseeing, tracking, supervision, and management of the energy-saving activities of the DCs,  providing training for the DCs on EE measurements, statistics and management,  improving the monitoring of the DCs through audits and sampling. Page 107 of 123

Mechanisms for rewards and penalties.  Rewards: In addition to the incentives received from the EE Incentive Program (P2), the rewards for energy-saving achievements should be considered. As a reference, GOC grants a one-time reward subsidy (per unit of energy saved) to DCs if they fully achieve the expected energy-saving targets assigned to them. In India, the tradable Energy Saving Certificates (ESCert) are allocated to a DC if it achieves more energy savings than the set target. One ESCert is issued for each tonne of oil equivalent of energy saved over the set target.  Penalties: DCsthat fail to meet the assigned energy-saving target should be penalized (like in China and India).Mandate/Tasks and responsibilities:The following tasks are to be implemented to support thedesign, formulation and enforcement of the Policy:Inter-Agency Committee led by NEECA:  Conduct a study to define theDCs to be included in the Policy.  Conduct an energy baseline/benchmaking analysis to set energy-saving targets for these DCs.  Develop necessary procedures and guidelines for the DCs to conduct energy audits, implement energy management systems and report energy performance.  Develop a mechanism for monitoring, recording and validation (MRV) of energy performance of the DCs.  Develop a reward-penalty mechanism for achieving or not meeting the EE obligations.  Develop the procedures and guidelines for examination and accreditation of energy auditors and energy managers.  Formulate the Policy for approval by GOP.GOP (i.e., MOWP/MOIP and other concerned ministries):  Conduct consultation on the Policy with relevant stakeholders.  Create an inter-agency committee (consisting of NEECA and representatives from MOIP/NPO, Provincial Energy Departments, Pakistan Bureau of Statistics, Industrial Associations, Chambers of Commerce and Industry, etc.) to develop the Program/Scheme.  Approve and promulgate the Policy.Timeframe:NEECA should start the development of the Policy within 3 to 6 months afterapproval of the policyrecommendation.The development and formulation of the Policy should be completed within 1 to 2years.P4. Create a program to develop and implement EE standards and labelling in the industrialsector of Pakistan. The program will devise an appropriate mechanism and legal frameworkto enforce adequate penalties.Title of the Program:Energy Efficiency Standards and Labelling Program for the IndustrialSector of Pakistan. Page 108 of 123

Purpose/coverage: The purpose of this Program is to provide the industries of Pakistan withpractical information on how to purchase and use energy-efficient products. This is expected togenerate energy savings in the medium and long terms. NEECA has developed a voluntary energy-labelling scheme for electric fans. This scheme will be expanded to cover more energy-efficientproducts used in the industrial sector.Key elements of the Program and guidelines on their design and formulation:Type of the Program. The review of the policy best practices in the studied countries has shownthat China, India, Thailand and Vietnam have first adopteda voluntary scheme, before enforcing amandatory scheme for labelling energy-efficient products. It is suggested that NEECA adopts thesame approach.Duration of the Program. For each EE product, there will be a period of two (2) years of voluntaryscheme. After two years, the scheme will become mandatory.Energy-efficient products to be included in the Program. NEECA, in collaboration with PSQCA,shall conduct a study to identify the energy-efficient products to be included in the Program.Based on the list of Pakistan Standards issued by PSQCA (http://www.psqca.com.pk/compulsory_items.html), the following six (6) energy-consuming products could be included in theProgram (in addition to electric fans):  Tubular fluorescent lamps,  Ballasts for tubular fluorescent lamps,  Self-ballasted lamps,  Gas water heaters,  Induction motors,  Reciprocating internal combustion engines.These six energy-consuming products will be mandatory after two years.A new voluntary scheme could be created under the Program, including, as a minimum, thefollowing industrial energy-consuming products (based on experience from other countries):  Industrial air conditioners,  Distribution transformers,  Electric pump-sets;  Variable speed drives;  Electric chillers.Standards development plan. Based on the list of energy-consuming products proposed for Phase 2of the Program, NEECA and PSQCA shall prepare a plan for the development of the MEPS forthese products. NEECA and PSQCA will develop and recommend the national EE standards toNEECB and, after approval by the National Standards Body, use these standards for EE labelling.Guideline for registration, assessment, certification and issuance of Pakistan EnergyLabel.NEECA already developed and issued a “Scheme Outline of Voluntary Pakistan Energy Page 109 of 123

Labels for Electric Fans” (http://www.enercon.gov.pk/). This document already contained all thenecessary information of the energy-labelling scheme (like in the five studied countries), such as:  Type and duration of the scheme,  Submission and processing of application,  MEPS and criteria for grant of Pakistan Energy Label,  Affixing of Pakistan Energy Label,  Affixing of NEECA Security Sticker,  Responsibilities of applicant and NEECA,  Renewal of labelling license,  Compliance monitoring of Pakistan Energy Label, and  Violation penalties.This “Scheme outline” can be modified to use for other energy-consuming products that will beincluded in the Program.Testing laboratories. NEEC Act 2016 stipulates that NEECA shall establish and maintain one ormore laboratories as accredited laboratories for conducting tests and analysis [Section 7, clause(e)], and shall request for test and analysis of energy characteristics of an EE product from its ownlaboratory or from any other accredited laboratory [Section 7, clause (k)]. It is suggested thatNEECA shall be responsible for accrediting the local testing laboratories. The standard ISO/IEC17025 “General requirements for the competence of testing and calibration laboratories” shall beused as a basis for accreditation of laboratories in Pakistan. For imported EE products, based onexperience from Vietnam, NEECA can consider to accept the test results from laboratoriesaccredited by international organizations such as the International Laboratory AccreditationCooperation (ILAC, http://ilac.org/) and the Asia Pacific Laboratory Accreditation Cooperation(APLAC,https://www.aplac.org/) after signing a cooperation agreement with them.Mandate/Tasks and responsibilities:The following tasks are to be implemented to support thedesign, formulation, establisment and operation of the Program:NEECA (in collaboration with the PSQCA):  Conduct a study to identify the energy-efficient products to be included in the Program (short- term and medium-term plans).  Develop guidelines for registration, assessment, certification and issuance of Pakistan Energy Label for the identified energy-efficient products.  Design and formulate the Program for approval by GOP.  Establish the Program and support its operation.  Estimate the budget/fund required for the implementation of the Program.GOP (i.e., MOWP/MOIP and other concerned ministries):  Conduct consultation on the Program with relevant stakeholders.  Approve the establishment of the Program.Timeframe: Page 110 of 123

NEECA should start the development of the Program within 3 to 6 months after theapproval of thepolicy recommendation.The design and formulation of the Program should be completed within 6to 12 months.P5. Create a program or center to collect and disseminate knowledge and information onrelevant experience and lessons learned regarding the efficient use of energy and itsconservation in industries.Title of the Program/Center: Pakistan Energy Efficiency Knowledge Center.Purpose/coverage: The Pakistan EE Knowledge Center shall promote the efficient use of energyand its conservation in the industrial sector of Pakistan, through awareness creation and knowledgedevelopment for all relevant stakeholders.Key elements of the Center and guidelines on their design and formulation:Host. The Center may be hosted by NEECA. Based on the experience from the five studiedcountries, the EE Knowledge Center is hosted by a government agency, such as the NationalEnergy Conservation Center in China, MOP’s Bureau of Energy Efficiency in India, DOE’sEnergy Efficiency and Conservation Division in the Philippines, MOE’s Department of AlternativeEnergy Development and Efficiency, or MOIT’s Energy Efficiency and Conservation Office inVietnam.Management. The Center shall be headed by a Director to be supported by dedicated personnelcomprising at least three specialists (an IT specialist and two specialists withcommunication/training background. Relevant external service providers/experts will be hired onan intermittent basis for producing information material for dissemination.Role and responsibilities. The Center will act as: a) the think tank of the country for EE&Ctechnology and solutions; b) the knowledge depository for EE&C technology and solutionsinformation; and c) a source of information on capacity building for EE policy makers, localESCOs, EE&C solution providers, EE&C technology manufacturers and d) support to R&D onEE&C solutions. As such, its responsibilities will encompass the following aspects: a. Create awareness on the benefits, opportunities, production and utilization, among others, of EE&C through awareness campaigns and suitable information media; b. Collect, store and disseminate information on EE&Cmatters to stakeholders;Information collection. In order to reduce the operating costs of the Center, only information indigital format (text files, photos, videos, etc.) will be collected.Information processing and storage. The collected information will be stored in computers in theiroriginal forms or after some processing. The Center therefore shall be equipped with sufficientequipment and software for producing high-quality information products, such as videotapes,brochures, posters, stickers. Page 111 of 123

Information dissemination. Information will be disseminated through meetings, media (televisions,newspapers, advertisement posters on buses, etc.), exhibitions, websites and social networks. Themost common forms used in the five studied countries are website and television. The Center shallcreate a website that will publish the latest information on EE technologies and their adoption inthe industrial sector of Pakistan. The system shall provide an interactive portal that will allowfeedback and Q&A. A sample of a web-based Knowledge Exchange Platform in India can befound at http://knowledgeplatform.in/about-kep/.Service fees for information access. It is suggested that the information access will be free ofcharge.Budget/Funding of the Center. Based on the experience from other countries, GOP, throughMOWP should allocate a budget for the operation of the Center. However, NEECA can coordinatewith the international and local donors for raising funds for the Center, especially for some specificpublic awareness campaigns, or for producing information materials. The operating budget of theCenter shall be prepared annually, and submitted to GOP for approval.Mandate/Tasks and responsibility:The following tasks are to be implemented to support thedesign, formulation, establisment and operation of the Pakistan EE Knowledge Center:NEECA:  Design the organizational/management structure of the Center.  Planning the activities of theCenter.  Design and formulate the policy for approval by GOP.  Establish the Pakistan EE Knowledge Center and support its operation.  Determine the budget and source the funds for the sustainable operation of the Center.  Endorse the annual budget for GOP approval.GOP (i.e., MOWP/MOIP and other concerned ministries):  Conduct consulation on the Center with relevant stakeholders.  Approve the establishment of the Center.  Approve the annual budget of the Center.Timeframe:NEECA should start the development of the Center within 3 to 6 months from approval of thepolicy recommendation. The design and setting up of the EE Knowledge Center should becompleted within 6 to 12 months.P6. Formulate a policy to establish required standard procedures for gender mainstreamingin industrial EE initiatives and projects, to support women’s economic and entrepreneurialdevelopment opportunities, and ensure a gender balance in policy development, planning,decisionmaking and leadership including quotas for women at all levels. Page 112 of 123

Title of the policy:Policy on Gender Mainstreaming in Industrial Energy Efficiency Initiativesand Projects in PakistanPurpose/coverage: Improved sustainability and benefits through inclusion of different groups ofpeople in all industrial EE initiatives and projects. The Program will cover all EE initiatives andprojects in the industrial sector of Pakistan.Key elements of the Policy and guidelines on their design and formulation:Gender impact assessment.EE policies shall establish required standard procedures for gendermainstreaming in industrial EE initiatives and projects:  Establish a gender analysis/impact assessment followed by the formulation of specified gender targets and indicators in any EE initiative or project;  Establish a gender-separated monitoring and evaluation system for tracking the extent of economic and non-economic impacts and benefits for different target groups, both men and women;  Allocate specified and earmarked human and financial resources for enhancing women- focused economic activities in any EE initiative.Support to women involved in EE sector.EE policies shall support women’s economic andentrepreneurial opportunities:  Establish quotas and special educational programs for training women in EE technology and organize capacity building programs for women;  Establish quotas for women to be trained and employed in EE programs and projects;  Establish mechanisms and support systems for female graduates in engineering for working in the EE sector and for remaining in the work even when married;  Establish special incentives and programs supporting women’s business start-ups and business development in the EE sector, including loan programs.Gender balance requirements.EE policies shall be gender balanced in policy planning, decisionmaking and leadership:  Establish quotas for women and develop mechanisms to increase the number of women in EE policy development organizations and decision-making bodies;  Target recruitment of women and establish quotas for women in management and leadership positions in the EE sector;  Establish a gender focal point/ gender officer position in policy development and decision- making bodies;Mandate/Tasks and responsibilities:The following tasks are to be implemented to support thedesign, formulation and enforcement of the Policy:NEECA, in collaboration with other relevant agencies (i.e., Women Development Departments,Center for Gender and Policies Studies, Women Chambers of Commerce and Industry, SocialPolicy and Development Center): Page 113 of 123

 Conduct gender-impact analysis.  Assess the capacity building needs of women in EE aspects.  Develop mechanisms and procedures for gender mainstreaming in industrial EE initiatives and projects.  Design mechanisms and support systems for women involved in EE sector.  Formulate the Policy for approval by GOP.GOP (i.e., MOWP/MOIP and other concerned ministries):  Conduct consultation on the Policy with relevant stakeholders.  Approve and promulgate the Policy.Timeframe:NEECA should start the development of the Policy within 3 to 6 months after approval of thepolicy recommendation. The development of the Policy should be completed within 1 to 2 years. Page 114 of 123

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