On 8 February 2012 the Department for Energy and Climate Change (DECC) launched the Energy Efficiency Deployment Office ("EEDO"). On the same day EEDO published a Call for Evidence on energy efficiency. Views are sought on how to tackle market failures, boost third party finance for efficiency solutions and influence behavioural change.  EEDO expressly states that it considers that the transport, real estate (domestic and non-domestic), industrial activities, electricity generation and services sectors should be the primary targets. It is interesting that the water and agriculture sectors have been left off the list. It is expected that the findings of the Call for Evidence will be factored into a national energy efficiency strategy which is due to be published by the end of 2012. Responses to the Call for Evidence are due by 4 April 2012.

EEDO's role

EEDO is to have a number of functions, including the following:

  • Co-ordinate energy efficiency policy across Government
  • Develop new policy and deploy existing policy (Green Deal, CRC Energy Efficiency Scheme, Smart Meters)
  • Identify and fill in any gaps in the evidence base for policy
  • Examine how to foster employment and skills in the energy efficiency sector
  • "Co-create" policy with genuine commercial engagement by holding face-to-face discussions
  • Partake in negotiations relating to the draft European Energy Efficiency Directive (the European Commission published its proposal for an Energy Efficiency Directive on 22 June 2011)
  • Develop and launch by the end of 2012 an energy efficiency strategy for the UK economy (to include working with the devolved administrations and with domestic and non-domestic real estate being a key opportunity sector)

Barriers to change

The key barriers to uptake and deployment of energy efficiency are noted by EEDO in the Call for Evidence. These include lack of trust by investors and consumers, poor access to data, lack of finance and the presence of "split incentives" (e.g. the interests of landlords differ from those of tenants). It is also considered that there is a general lack of understanding of the positive impact energy efficiency savings would have on social and economic externalities such as energy security, climate change mitigation and adaptation, technology and innovation.

Sectors

In the Call for Evidence, EEDO identifies sectors (transport, real estate industrial activities, electricity generation and services) which it considers have the highest potential for energy saving (and real estate is particularly in focus (as it has been for some time). None of these sectors will cause surprise (if only because they mirror the EU Energy Efficiency Plan 2011 (see our previous lawnow)). Perhaps what is surprising is the absence of reference to the water and agriculture sectors.

Comment

These developments provide yet more evidence that in the eyes of the UK Government, energy efficiency will make a positive impact on the economy. There appears to be little debate to the contrary. Instead the debate is all about how best to deploy and embed energy efficiency into the market. Certainly for those involved in providing, or financing, infrastructure, real estate, transport, or looking for new markets for services, technology and innovation, a keen eye should be kept on these developments.

Enquiries and responses to the Call for Evidence: Energy Efficiency should be sent to eedostrategy@decc.gsi.gov.uk

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

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The original publication date for this article was 13/02/2012.