Policy support
A number of policies exist that aim to encourage decarbonization within Sri Lankan industries. And while some of these policies lay a solid foundation, they often operate in isolation from one another. This can result in overlapping initiatives, inconsistent standards and a lack of clear direction for industries.
In addition, no specific policy or incentive scheme exists to encourage industries to apply renewable energy applications, such as solar thermal. Similarly, there is no regulation incentivising or mandating industrial energy efficiency measures. This means the energy saving potential within the industrial sector remains largely unrealized and the potentially lucrative energy efficiency market undeveloped. What is needed is a unified, comprehensive policy and regulatory framework that connects current efforts and provides clear, industry-specific guidance.
Improving policy and regulatory frameworks
We are working with government, energy experts and industries to develop an overarching policy and regulatory framework for industrial decarbonization as well as the skills and systems needed to implement it. We are also mapping out the concrete actions needed for industrial subsectors to play their part in realizing Sri Lanka’s National Determined Contributions (NDC).
Improving policy and regulatory frameworks
Concrete actions include:
- Estimating the GHG emissions abatement potential of selected industrial sub-sectors and key technologies
- Conducting stakeholder consultations and workshops to discuss and prioritize the mitigation roadmaps
- Assisting the Government of Sri Lanka to revise the NDC as needed so that the country’s ambition towards energy efficiency grows as well as to provide more specific/concrete commitments in improving the industrial sector’s carbon footprint
- Training key officials in policy design, implementation and inter-agency data sharing
- Identifing and analyzing feasible policy options and conducting policy dialogues
- Supporting the drafting process of industrial energy efficiency regulation and developing a policy monitoring and evaluation framework
- Developing a database of energy intensive, resource consuming and waste producing industrial enterprises.
Progress update
In 2023, the Ministry of Industries, UNIDO and Global Efficiency Intelligence undertook research into the current policy and regulation landscape and identified the institutional needs and capacity gaps that must be addressed to move Sri Lanka towards its climate goals. Leading industry representatives from four key manufacturing sectors (textiles and apparels, food and beverages, rubber production and the cement industry) were interviewed and surveyed, alongside key government representatives, decarbonization experts and other stakeholders.
