Memorandum submitted by Eaga
BACKGROUND TO
EAGA
Eaga manage a wide range of energy efficiency
and fuel poverty reduction programmes throughout the UK. We have
assisted over five million households in the UK since we were
founded in 1990, and currently improve some 250,000 homes per
year through the installation of insulation, efficient central
heating and household level renewable technologies.
CONTEXT
The market for carbon offsets is growing at
an increasing pace as collective awareness of climate change builds
in tandem with individual recognition of responsibility. Increased
media attention around travel and energy use has led to a wider
demand to offset these and other activities that may increase
an individual carbon footprint and exacerbate dangerous climate
change.
THE CASE
FOR OFFSETTING
Eaga believes that, in the long-term, the only
sustainable way to save carbon and tackle climate change is to
invest in renewable energy solutions and to drive behavioural
change throughout our energy use. However, the vast majority of
currently available renewable energy technologies remain unproven,
costly and unable to deliver on a sufficiently large scale basis.
Until such technologies, and the associated
infrastructure, are available, accessible and reliable on a wide
scale, Eaga believes that offsetting represents an attractive,
cost-effective and potentially significant route to save carbon
in the interim period.
By offering individuals the opportunity to invest
in a range of carbon saving projects very quickly (through for
example specialist websites or as packaged in with air travel),
offsetting offers an immediacy and simplicity that encourages
individuals to buy in to and engage with the carbon reduction
agenda.
OFFSETTING IN
THE UK
A high proportion of the attention currently
focussed on offsetting schemes relates to carbon saving projects
in the developing world. Customers are able to contribute a small
amount to an overall fund that delivers carbon savings in countries
such as Nigeria, India and Mexico. Defra recently published a
consultation aimed at creating a `gold standard' that would have
the effect of regulating this market.
However, by focussing attention on cheaper projects
in the developing world, Eaga firmly believes that an opportunity
is missed to reduce the UK's own carbon emissions and help meet
the Government's own targets on emissions.
By investing in energy efficiency projects in
the UK, consumers could help to save carbon at home. By accrediting
schemes that were shown to be additional to current activity,
robust in their management and able to deliver auditable, lifetime
carbon savings, Government would allow high levels of investment
in the UK market that would reduce emissions in the UK.
Such schemes could also be combined with the
drive to eradicate fuel poverty—assistance could be targeted
to the most vulnerable households. This step, at a time of record
fuel price levels, would help to reduce bills in a sustainable
way.
RECOMMENDATIONS
Eaga would recommend that:
— Offsetting is recognised as a quick
and straightforward way to save carbon in the short-term, whilst
work continues apace to develop and bring onstream the long-term
solutions of tomorrow
— The benefits of offsetting, in terms
of encouraging individuals to engage with their responsibilities
regarding climate change and their potential contribution to carbon
reduction, are recognised
— Government and key stakeholders recognise
the benefits of additional, innovative and auditable carbon saving
activity that could form the basis of an offset product in the
UK market
— Strong consideration is given to
how offsetting schemes in the UK could help to tackle behavioural
change in this country, as well as aiding the drive to eradicate
fuel poverty and facilitate investment in community projects,
such as schools and hospitals.
January 2007
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