Techical meeting on the energy benchmarking for the plastic sector for the period up to 2030

10:19 - 10/10/2024

On the morning of October 9, 2024, the "Technical meeting on the energy benchmarking for the plastic sector for the period up to 2030" took place.

The meeting was held both offline and online, with the participation of representatives from the Department of Energy Efficiency and Sustainable Development (Ministry of Industry and Trade), the Energy Partnership Program between Vietnam and Denmark 2020-2025 (DEPP3 Program), the Vietnam Plastics Association, Viegand Maagoe Company, local energy audit companies, plastics industry enterprises, and experts in the fields of energy and energy efficiency.

During the opening speech, Mr. Dang Hai Dung, Deputy Director General of the Department of Energy Efficiency and Sustainable Development (Ministry of Industry and Trade), stated: The plastics industry is one of the major energy-consuming sectors with annual rapid growth, consuming approximately 5-7 billion kWh of electricity annually. While the global economy is moving toward green, energy-efficient, and low-emission products, Vietnamese plastics enterprises must adapt and comply with global commitments to meet the demands of strict markets such as the EU and the US.

Mr. Dang Hai Dung, Deputy Director General of the Department of Energy Efficiency and Sustainable Development, delivered his opening remarks at the meeting.

According to Mrs. Huynh Thi My, General Secretary of the Vietnam Plastics Association, Vietnam currently has 4000 businesses operating in the plastic sector. Among these, only 10% are large-scale enterprises, accounting for over 70% of this sector's total revenue. In recent years, Vietnam has exported plastic products to more than 160 markets worldwide. Therefore, to keep pace with market demands, the Vietnamese plastics industry is shifting towards sustainable development, focusing on using recycled materials and producing environmentally friendly products, such as those with eco-labels or eco-designs.

Mrs. Huynh Thi My, General Secretary of the Vietnam Plastics Association, presented an overview of Vietnam's plastics industry.

She stated: "Vietnam needs to develop recycling infrastructure to meet international standards and ensure a stable supply of raw materials. This requires expanding recycling methods to remote areas rather than just focusing on major cities with high waste emissions. Additionally, priority should be given to investing in waste classification systems, establishing collection infrastructure and sorting centers to develop a sustainable and circular economy."

Sharing insights on energy efficiency opportunities in the plastics industry, Mr. Christian Jensen, an expert from Viegand Maagoe, noted: The global plastics industry has significant potential for energy efficiency, and Vietnam is no exception. Companies can establish closed-loop recycling systems, utilizing scraps, waste, and off-cuts to save on input materials. Moreover, waste heat can be used to preheat plastic granules, reducing energy consumption while improving product quality. Specifically, cooling systems, air compressors, and ventilation systems are major energy consumers in the plastic production processes. Thus, businesses need to find solutions to optimize energy efficiency in these areas.

Mr. Christain Jensen, an expert from Viegand Maagoe, presented the energy efficiency opportunities in the plastic sector.

As part of the DEPP3 Program, the Ministry of Industry and Trade, in collaboration with Danish experts, has developed a set of technical guidelines and technology catalogues for energy efficiency in energy-intensive industries. This includes energy efficiency catalogues for cooling systems, air compressors, and ventilation systems. These materials will assist plastics companies and other energy-intensive industries to improve energy efficiency, reduce energy losses in production processes, and facilitate them to meet customer demands for energy efficiency and carbon emission reductions.

Notably, under Component 3 of the DEPP3 Program, the Ministry of Industry and Trade, in collaboration with the Embassy of Denmark in Vietnam and the Danish Energy Agency, is piloting the "Voluntary Agreement Scheme on Energy Efficiency in Energy-Intensive Industries in Vietnam" (VAS Program). This initiative aims to support industrial enterprises in seeking solutions and implementing specific energy efficiency investment projects.

Mr. Jorgen Hvid, Long-term Advisor of the DEPP3 Program, introduced the VAS Program and DEPP3's publication.

In addition, one of the key tasks of the VNEEP 3 Program is to review, develop, and improve mechanisms and policies for the economical and efficient use of energy, including the formulation and revision of energy benchmarking for energy-intensive industries in Vietnam.

To achieve the set goals and align with the industry's energy consumption and development trends, the Ministry of Industry and Trade has directed the implementation of various activities to support businesses in energy efficiency efforts.

Specifically, the Ministry of Industry and Trade has collaborated with the Danish Energy Agency and the Vietnam Plastics Association to develop and amend energy benchmarking for the plastics industry to enforce regulations on the economical and efficient use of energy.

Currently, energy benchmarking for the plastics industry is governed by Circular 38/2016/TT-BCT and Consolidated Document 26/VBHN-BCT. However, with the rapid growth of the plastics industry, which accounted for 12.83% of the total energy consumption of the industrial sector in 2020, new and updated regulations are needed to reflect the actual situation of the industry and market demands, ensuring the effective implementation of energy efficiency plans.

The proposed energy benchmarking for specific categories within the plastics industry.

At the meeting, Mrs. Nguyen Thi Nhu Van, the representative of Vietnam Technology Solutions Company (VETS), presented on energy benchmarking in the plastics industry. From 2017 to 2019, the company conducted a survey by sending questionnaires to over 1,000 plastics companies. However, only 279 companies responded, and only 254 companies had sufficient data (representing 8.47% of the total plastics enterprises in 2020).

Based on the survey results, VETS proposed specific energy benchmarking for different groups of plastic products, including Packaging Plastics – Bags, Packaging Plastics – Bottles, Packaging Plastics – Packaging, Construction Plastics, Household and Technical Plastics, and other plastic products.

The program also allocated significant time for participants to clarify the objectives, requirements, and content of the Draft Energy Benchmarking for the plastic industry. The Ministry of Industry and Trade will cooperate with the Energy Partnership Program between Vietnam and Denmark to develop a plan for the Draft.