Breaking barriers: sensible policy mechanisms that industry could embrace

Panel: 1. Policies and programmes

Authors:
Eva Hoos, European Commission - DG ENER Unit C3, Belgium
Yeen Chan, ICF International, United Kingdom
Ravi Kantamaneni, ICF International, United Kingdom

Abstract

The EU has adopted a revised framework to reach a new set of 2020 – 2030 targets. While the current policy framework provide good initial steps in mandating public bodies and utilities to energy saving commitments, it still lacks the ability to address persisting internal barriers encountered by a diverse range of actors and energy consumers within the industrial sector. Meeting the EU’s triple challenge (sustainability, competitiveness and affordability) is extremely difficult to accomplish, as the underlying market challenges are constantly changing. Industries tend to favour voluntary market based approach to regulatory measures and current EU policy framework depends mainly on these market mechanisms to address Industrial Energy Efficiency (IEE). Nevertheless, growing evidence show that even cost-effective IEE improvements are often overlooked. In contrast to market based mechanisms, experience show that regulatory measures can be very effective in driving change and results. Integration of regulatory and market based mechanisms are imminent. Effective hybrid instruments are needed to ensure IEE improvements become part of a normal business practice. The authors of this abstract have developed a shortlist of market and regulatory based measures to complement and address potential gaps within EU’s policy framework. These evidence-based measures aim to drive change by providing the mechanics to systematically overcome multiple barriers internal to industry, address market failures and ultimately embed IEE improvement as a business norm. Both sector-specific and cross-sector measures are discussed in detail, in terms of their need, application, energy saving potential and market impact. These measures were developed with industry’s business objective, diversity and operating challenges in mind. The authors invite the audience to participate in an engaging discussion and debate on the context and application of these measures.