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Lead Articles

Energy efficiency policies for the future

20.May.2005 Author: Impetus Consulting

The UK Government has set a target to reduce carbon emissions by 60% by 2050.  Energy efficiency will play a huge part in meeting this target and three recently launched publications investigate whether current policies and mechanisms are sufficient to meet the ambitious targets set, and if they are not, what is needed? 

 This article will examine the three publications and the recommendations they each make are summarised.  The publications are:

  1. An Agenda for Change - from the Energy Saving Trust;
  2. New policies for energy efficiency - by Green Alliance and the UK Business Council for Sustainable Energy; and
  3. The 40% House Project - undertaken by Oxford, UMIST and Heriot Watt universities

An Agenda for Change

EST¿s manifesto for change highlights that the maximum impact in tackling climate change can only come with whole hearted commitment of government through its leadership, regulation, taxation and spending policies.  The ¿Agenda for Change¿ sets out a framework and the practical actions below that are required to help mitigate climate change.

  1. Support organisations that deliver change at a local level.
  2. Use the tax system to encourage people to take action.
  3. Help businesses to ¿green¿ consumers.
  4. Outlaw climate damaging products.

Within this framework EST recommends a number of policy changes and initiatives:

  • Make carbon reduction in the community a strategic goal of regional bodies and local authorities with reduction targets linked to funding;
  • Encourage homeowners to invest in greening their homes through incentives in property taxes, for example, stamp duty and council tax rebates for improving fuel efficiency in homes;
  • Increase Vehicle Excise Duty for high emission cars to fund further reductions in low carbon vehicles;
  • Surcharge inefficient products such as tungsten light bulbs;
  • Ensure any tax on ¿planning gain¿ rewards green developers;
  • Support small scale renewable technologies and advanced energy efficiency through a Low Carbon Buildings Programme;
  • Build on the Energy Efficiency Commitment, setting more demanding targets, and developing a long-term system of tradable energy efficiency certificates;
  • Develop the Code for Sustainable Building so that developers have a clear target for best practice environmental standards for new homes;
  • Incentivise attractive consumer offers for cutting edge low carbon technologies;
  • Ensure a long-term framework for planning investment to support responsible business in buildings, consumer products and cars, and
  • Use the UK Presidency of the EU to press for new minimum energy standards to outlaw energy wasting cars and appliances.

For further information click here.

New policies for energy efficiency

This research focuses on how the Energy Efficiency Commitment (EEC) needs to change and evolve to ensure it delivers long-term incentives for the industry to invest in domestic energy efficiency, as well as how to engage better the commercial buildings sector.

In terms of the domestic sector the report recommends fiscal incentives to encourage the installation of energy efficiency measures and, like the EST, calls for government to look at the benefits of stamp duty, council tax rebates and similar incentives.  It states that the Home Information Packs that are due to be introduced in 2007 represent a good opportunity to introduce such incentives.

The research also calls for a certificate-based system, similar to the Renewables Obligation, in order to transform the market for energy efficiency, as well as renewed action to ensure that current fuel poverty targets are met.  It states that the potential to split the fuel poverty element from the kWh saving/carbon reduction element of EEC should be explored further.

For further information visit the website: www.green-alliance.org.uk 

The 40% House

The 40% House project is a comprehensive report investigating how the 60% cut in carbon emissions by 2050 can be realised in the residential sector, so that the typical home becomes a ¿40% house¿.

The 40% House scenario presented in the report is challenging and demonstrates the scale of change needed to meet 2050 targets. The focus is on the role of households in securing emissions reductions, covering the building fabric, lighting and appliances, and building-integrated technologies.

The report proposes a proactive market transformation of the total housing stock, with an emphasis on strong regulation and product policy.  As well as highlighting the level of change needed over the timeframe, the report also points out the opportunities for intervention that exist, fitting market transformation in with the natural cycles of replacement.

The report provides the technical specifications that will be required for the 40% house and the policy recommendations are outlined below:

Housing stock

  • A long-term, over-arching UK energy and housing strategy is required that covers both the rate of turnover in the housing stock and the resultant energy use and carbon emissions;
  • The housing strategy should define the role of grants in improving the stock of dwellings and the extent to which these would be focused on fuel poverty, as they are at the moment;
  • Responsibility for implementing the strategy is largely devolved to local and regional authorities;
  • Providing information to consumers and local authorities on the energy performance of a dwelling is essential to guide policy and drive the market towards more efficient homes.  An address-specific database of the energy efficiency of individual homes, collated at the level of each housing authority, would provide this detail.

Lights and appliances

  • Market transformation, which already exists in this sector, needs to stronger and more focused by setting minimum standards;
  • Replacing policy on energy efficiency with policies on absolute energy demand would encourage downsizing of energy consuming equipment;
  • Manufactures must be encouraged to view energy efficiency as a vital component of product design to prevent energy-profligate equipment appearing on the market.  This could be achieved under the European Energy-using Products Directive.

Space and water heating

  • Building regulations should specify minimum standard low and zero carbon (LZC) technologies in new build and renovations.

Consumers and society

  • Feedback and information are essential for awareness raising.  The design of utility bills, electricity disclosure labels and tariff structures all need to be considered in order to discourage consumption and improve energy-literacy;
  • As an example of an appropriate framework, personal carbon allowances offer an equitable solution to achieving greater carbon awareness amongst consumers, by placing a cap on individual consumption, and therefore should be considered.

For further information visit the website: http://www.eci.ox.ac.uk/lowercf/40house.html

Conclusion

All the reports outlined demonstrate the scale of change, which needs to occur if the UK is to meet its necessary target of 60% emissions reductions by 2050.

The reports also agree that given current trends, existing policies and programmes are not sufficient to meet this level of emissions reductions and a clear strategy is required to deal with both the energy and housing needs of the UK.



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