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WORLD ENERGY [R]EVOLUTION
A SUSTAINABLE ENERGY OUTLOOK
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climate & energy policy | TARGETS AND ACTION
Governments should mandate the phase-out of incandescent and
inefficient light bulbs and replace them with the most efficient
lighting. Countries like Cuba, Venezuela and Australia have already
banned incandescent light bulbs.
Governments should also set emissions standards for cars and
power plants, such as those proposed in Europe for passenger cars
of 120g CO2 /km and 350 g/kWh for power plants. Similar
emissions standards, as already implemented in China, Japan and
the states of Washington and California, will support innovation and
ensure that inefficient vehicles and power plants are outlawed.
Action: Support innovation in energy efficiency, low carbon
transport systems and renewable energy production
Innovation will play an important role in making the Energy
[R]evolution happen, and is needed to realise the ambition of everimproving
efficiency and emissions standards. Programmes
supporting renewable energy and energy efficiency development and
diffusion are a traditional focus of energy and environmental
policies because energy innovations face barriers all along the
energy supply chain (from R&D to demonstration projects to
widespread deployment). Direct government support through a
variety of fiscal instruments, such as tax incentives, is vital to
hasten deployment of radically new technologies due to a lack of
industry investment. This suggests that there is a role for the public
sector in increasing investment directly and in correcting market
and regulatory obstacles that inhibit investment in new technology
Governments need to invest in research and development for more
efficient appliances and building techniques, in new forms of
insulation, in new types of renewable energy production (such as
tidal and wave power) as well as in a low carbon transport future,
through the development of better batteries for plug-in electric cars
or fuels for aviation from renewable sources. Governments need to
engage in innovation themselves, both through publicly funded
research and by supporting private research and development.
There are numerous ways to support innovation. The most
important policies are those that reduce the cost of research and
development, such as tax incentives, staff subsidies or project
grants. Financial support for research and development on ‘dead
end’ energy solutions such as nuclear fusion should be diverted to
supporting renewable energy, energy efficiency and decentralised
energy solutions.
Specific proposals for efficiency and innovation measures include:
appliances and lighting
Two types of renewable quota systems have been employed -
tendering systems and green certificate systems.
• Efficiency standards Governments should set ambitious, stringent
and mandatory efficiency standards for all energy consuming
appliances that constantly respond to technical innovation and
enforce the phase-out of the most inefficient appliances. These
standards should allow the banning of inefficient products from the
market, with penalties for non-compliance.
• Consumer awareness Governments should inform consumers
and/or set up systems that compel retailers and manufacturers to
do so, about the energy efficiency of the products they use and
buy, including awareness-raising and educational programmes.
Consumers often make their choices based on non-financial
factors but lack the necessary information.
• Energy labelling Labels provide the means to inform consumers
of the product’s relative or absolute performance and energy
operating costs. Governments should support the development of
endorsement and comparison labels for electrical appliances.
buildings
• Residential and commercial building codes Governments should
set mandatory building codes that require the use of a set share of
renewable energy for heating and cooling and compliance with a
limited annual energy consumption level. These codes should be
regularly upgraded in order to make use of fresh products on the
market and non-compliance should be penalised.
• Financial incentives Given that investment costs are often a
barrier to implementing energy efficiency measures, in particular
for retrofitting renewable energy options, governments should
offer financial incentives including tax reductions schemes,
investment subsidies and preferential loans.
• Energy intermediaries and audit programmes Governments
should develop strategies and programmes to promote the
education of architects, engineers and other professionals in the
building sector as well as end-users about energy efficiency
opportunities in new and existing buildings. As part of this
strategy governments should invest in ‘energy intermediaries’ and
energy audit programmes in order to assist professionals and
consumers in identifying opportunities for improving the
efficiency of their buildings.
transport
• Emissions standards Governments should regulate the efficiency
of private cars and other transport vehicles in order to push
manufacturers to reduce emissions through downsizing, design and
technology improvement. Improvements in efficiency will reduce
CO2 emissions irrespective of the fuel used. After this further
reductions could be achieved by using low-emission fuels. Emissions
standards should provide for an average reduction of 5g
CO2/km/year in industrialised countries. These standards need to be
mandatory. To dissuade car makers from overpowering high end
cars a maximum CO2 emissions limit for individual car models
should be introduced.
• Electric vehicles Governments should develop incentives to
promote the further development of electric cars and other
efficient and sustainable low carbon transport technologies.
Linking electric cars to a renewable energy grid is the best
possible option to reduce emissions from the transport sector.
• Transport demand management Governments should invest in
developing, improving and promoting low emission transport
options, such as public and non-motorised transport, freight
transport management programmes, teleworking and more
efficient land use planning in order to limit journeys.
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