Extracts from the May-June 2003 edition of Renew
These extracts only represent about 25% of it

9. Energy Efficiency- the record so far

In answer to parliamentary Question on Jan 27th, the DEFRA minister Mr. Morley noted that, since the publication of the UK’s Climate Change Programme in Nov. 2000, the following main actions have been taken to promote energy efficiency:

The Climate Change Levy, a levy on the business use of fuel, was introduced in April 2001. Receipts, forecast at £1 billion a year, are recycled back to business- including £50m for business energy efficiency.

Climate Change Agreements have been reached with 44 sectors of energy intensive industry. Participants in these agreements pay a reduced rate of Climate Change Levy (20% of the full levy) in return for meeting energy efficiency targets over a 10-year period.

The Carbon Trust was launched in April 2001, and receives two-thirds of its annual budget from recycled receipts from the Climate Change Levy, it encourages and promotes the development of low carbon technologies to support the transition to a low carbon economy. It offers an interest free loan scheme for small and medium-sized businesses and provides funding for the development of low carbon technologies through the Low Carbon Innovation Programme.

The Enhanced Capital Allowances Scheme enables businesses to claim 100% first year capital allowances on investments in a range of approved energy saving technologies.

The UK Emissions Trading Scheme was launched in April 2002. Companies in Climate Change Agreements can trade within the scheme to help meet their targets. Participants entering directly into the scheme can trade to meet emission reduction targets delivering 1.1 MtC by 2006. Energy efficiency measures help participants to meet their targets.

New requirements have been introduced for local authorities. Authorities have to know their buildings’ energy consumption and carbon emissions. From 2002-03 they are required to benchmark their energy use in operational property and street lighting, and will set local improvement targets from 2003-04.

The Energy Efficiency Commitment for 2002-05 (EEC) places an obligation on electricity and gas suppliers to promote improvements in domestic energy efficiency. Suppliers will achieve individual EEC targets by encouraging and assisting consumers to take up energy efficiency measures. It is expected to save 0.4 million tonnes of carbon a year by 2005. It will also help those on lower incomes- who spend a larger proportion of their incomes on energy- by focussing at least 50% of energy savings on consumers in receipt of benefits or tax credits.

Since its launch in June 2000, the new Home Energy Efficiency Scheme- which is now marketed as Warm Front- has helped over 400,000 households through the installation of a range of insulation and heating measures. Warm Front is the Government’s main programme for tackling fuel poverty, aimed at the most vulnerable groups in the private sector in England.

The Community Energy Programme is a £50 million grant programme operational from 2002-04 aiming to promote community heating in the UK, primarily through the use of CHP. It will install and refurbish community heating schemes, benefiting people on low incomes while contributing to the Climate Change Programme by reducing carbon emissions by an estimated 0.15 million tonnes of carbon a year. See Box. for the latest awards under this scheme

Part L of the Building Regulations covering energy efficiency provisions was revised in October 2001 and the changes came into effect in 2002. These require work on new buildings and the refurbishment of the existing stock to conform to higher energy efficiency standards including those relating to building insulation, air-tightness, lighting, space heating, hot water, boiler performance and replacement glazing.

He noted that ‘It is estimated that the package of measures introduced in October will reduce carbon emissions from the domestic sector by 0.8 million tonnes per year by 2010’. In addition he reported that ‘the Treasury introduced in the 2002 Budget, a VAT reduction on certain energy saving materials installed under grant schemes, and that the Government have provided funding for the Energy Saving Trust (EST) to help individual households, local authorities and others improve domestic energy efficiency’.

Since 2000, EST has created the Practical Help advisory service, expanded its local authority support programme providing dedicated staff to 23 areas across the UK, introduced a new grant scheme for innovative projects and expanded its network of Energy Efficiency Advice Centres providing households with advice and support. EST has developed the Energy Efficiency Recommended (EER) labelling scheme (with energy efficiency manufacturers, retailers and installers) to provide easy identification of energy efficient products. EST has also developed EEI- the network of accredited installers in the insulation and heating industries.

Quite a list, but with so many programmes, some of which may overlap, it’s hard to know what the overall impact will be- will it achieve the 20% savings suggested by the Cabinet Office Performance and Innovation Unit last year for the domestic sector by 2010? And what about the further 20% saving the PIU called for by 2020? That’s going to take a lot more effort and possibly some fiscal measure, like perhaps a hypothecated carbon tax. The Green Party’s new Alternative Energy Review also has some useful ideas.