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Building a market for energy efficiency

Call for evidence on additional measures and incentives that could encourage home-owners to invest in energy efficiency improvements.

Objectives of the consultation

This call for evidence outlined a range of barriers to investment in energy efficiency on both the demand and supply side. It invited views about the role of government in overcoming barriers and stimulating the market through more direct interventions. Finally, it considered a range of potential solutions, many of which were advocated by businesses and industry representatives. 

The list was not exhaustive, and additional ideas were welcomed, as were views about the relative impact of the ideas listed in this call for evidence, and how they might be implemented to best effect.

Although the proposed solutions focused mainly on the owner occupied sector, many of the ideas set out in the call for evidence could have a positive impact across all tenure types, and could also be applicable to micro or small enterprises, especially home-based businesses.

This call for evidence closed on 9 January 2018.

Supporting papers

To download the consultation document, please follow the link below.

CIBSE response

The Institution was pleased to respond to this Call for Evidence. Whilst we understand the objective of seeking to ensure that the market for energy efficiency is as efficient and effective as possible, there does appear to be a presumption that energy efficiency on the scale required to meet our Paris Agreement and Climate Change Act commitments in 2050 can be delivered by market mechanisms alone. The Institution believes that this is highly unlikely to be the case.

The Committee for Climate Change, in its 2017 report, noted that although good progress has been made to date, that progress is stalling and that since 2012 emissions reductions have been largely confined to the power sector, whilst emissions from transport and the building stock are rising. The Committee is clear that effective new strategies and policies are urgently needed to ensure emissions continue to fall in line with the commitments agreed by Parliament.

Whilst the committee makes a number of recommendations relating to energy efficiency, none of them suggests that building a market for energy efficiency is going to close the policy gap ahead of the fourth and fifth carbon budgets. The principles set out for the demand side include new financial mechanisms, price signals and greater awareness of energy efficiency. CIBSE believes that whilst the principles are all quite reasonable, there needs to be a further principle, which is that where the market fails to deliver, Government should intervene to address the failure.

To read the full CIBSE response, please follow the link below.